Unit 1 O Mba Tri,Ps1 4
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    Unit 1 O Mba Tri,Ps1 4 Unit 1 O Mba Tri,Ps1 4 Presentation Transcript

    • Unit-1 OM,mba2Trim, p1
      • Business organisations:
      • Classification:
      • A.Private enterprises
      • 1) sole proprietership2)Joint Hindu Family firm 3)Parternship firm4) Joint Stock Company5)Cooperative societies
      • B.State/Public enterprises
      • 1)Departmental organisations2)Public corporations3)Government Company
      • Business(B):
      • Engaged in economic activities
      • B=Industry(I)+ Commerce( C)
    • Unit-1 OM,mba2Trim, p2
      • B=Industry(I)+ Commerce( C)
      • Industry(I)= 1)Growing(Genetic)(Organic),2)Extraction(Agri,Mining..),3)Manufacturing(Analytical:a=b+c+d..,;Synthetic,a+b+c…=d;Processing,Raw Materials processed,eg:Shirt,fertilizer..;Assembling,eg:Car..(4)Construction(Dams..)
      • Industry(I) classification by products:a)Primary products,eg: from natural resources ,wheat,ore..
      • b)Semi manufactured goods,eg:cotton yarn,pulp..c)Manufactured goods,ready for use
      • Another classification:,a)Capital or Producer’s goods,eg:Mc tool,Boiler..b)Consumer’s goods
    • Unit-1 OM,mba2Trim, p3
      • B=Industry(I)+ Commerce( C)
      • (C):Buying,selling,exchanging,Distibuting..
      • C)=Trade(a)Internal(b)International:Imports,Exports,Entrepot)
      • + Aides to Trade(eg:Advertising&Publicity,Banking,Insurance,Packaging,Transport,warehousing..)
    • Unit-1 OM,mba2Trim, p4
      • Production Function:’O’ = F(I1,I2,…In)
      • Production, in a manuf orgn is making of a physical object (Using inputs)
      • Production, in a Service orgn is discharging of a function ,which has a utility to consumer(Using inputs)
      • In short, Production Management is tranforming activity. It uses decision making processes for managing production system subject to Quality,Quantity at minimum cost,as per demand.
    • Unit-1 OM,mba2Trim, p5
      • Production Management can also be stated as use of principles, techniques to discharge production function.
      • Operations Management is process of converting or using inputs(Input Resources) into useful Output/Product(Goods Or services)
      • Importance: Gives competitive edge, improves standard of living
    • Unit-1 OM,mba2Trim, p6
      • Production system configuration:
      • Inputs conversion output
      • process :
      • Other component
    • Unit-1 OM,mba2Trim, p7
      • C A S E S T U D Y
      • Production system configuration:
      • Inputs conversion output
      • process:
      • Primary resources: Physical (Mfg,mining..)
      • Men, Locating services(Transport) Goods/
      • Materials,Machines, Exchange services(R/Whole sale) Services
      • Supplies Storage services(W/Hing)
      • Capital assets/Money Other services(Ins, Fin,B/services,
      • Utilities personal services,Real estate…)
      • Govt Services (Local,S,Centre)
      • Other component Control System
    • Unit-1 OM,mba2Trim, p8
      • Production/Operations management, is a functional management.
      • It involves Decision making in 3 tiers;
      • Strategic,Operating(Shop Floor level) and Control decision. Production/Operations management
      • Production/Operations management is application of management principles to production function in terms of factory,Large corporation & scientific management
    • Unit-1 OM,mba2Trim, p9
      • Operations management is in thing and uses tactics of scheduling,Resorce utilisation,Quality & process planning
      • Operations management produces tangibles (Goods) & Intangible Services(Banking,Airlines,Supbazar chains,Education,consultancy,Health,Leisure…)
    • Unit-1 OM,mba2Trim, p10
      • OM: Scope : Large,
      • Used in deciding Location,land,building plan,machinery planning,purchase & storage of raw materials, conversion process,QM,Mntce Mgt,, ppc,work study..
      • Modern OM: Cometitive advantage,Service orientation,Pollution free mfg,small size organisation..
    • Unit-1 OM,mba2Trim, p,11
      • Duties of Operations Manager:
      • Plant Location,Plant layout
      • Design production system
      • Product design
      • Work study application
      • Capacity planning
      • PPC
      • Materials management,including supply chain management
      • QM
      • Maintenance management
      • Productivity enhancement
      • IR,Health,Safety& Staff selection& management
      • Interaction with other functional management
      • Budgetting…..
    • Unit-1 OM,mba2Trim, p12
      • Automation
      • And
      • Scientific computer
      • Industrial management Integrated
      • Handicraft Revolution Systems
      • Era
      • ^ ^^^^^^^^^^^^^^^^^ ^ ^^^^^^^^^^^^^^^^^^ ^ ^^^^^^^^ ^^ ^ ^ ^^^^^^^^^^^^
      • 1750 1800 1850 1900 1950 2000
      • * Colonial * Industrial * Financial &Marketing * * Infrmn Expansion
      • Expansion Expansion Expansion Dn & Global comptn
    • Unit-1 OM,mba2Trim, p13
      • Mile Stones:
      • 1)Handicraft Era :
      • James Watt,1764, : Steam Engine
      • Adam Smith,1776,: Division of Labour
      • American Constitution: 1789
      • Eli whitney,1790, :Interchangeable parts
      • 2)In dustrial Revolution:
      • Charles Babbage,1832: Economic analysis of work & pay based on skill requirements.
    • Unit-1 OM,mba2Trim, p14
      • Mile Stones:
      • 3) Scientific Management:
      • Frederic Taylor,1890,: Father of Scientific Management,Training,Time study, Production standards
      • Frank & Lilian Gilbreth,1910,:Motion Economy & Human Factors
      • Henry Ford,1913, : Assembly - Line Mass production
      • Henry Gantt,1913,:Scheduling systems
      • W.Shewart,1913,;Statistical Quality Control(S.Q.C)
      • F.W.Harris,1915,:Economic Ordering Quantity(E.O.Q) model, for Inventory management (Part of Materials Management)
      • Elton Mayo,1933,: Attention to behavioural factors
      • L.H.C.Tippett,1935 : Work Sampling
    • Unit-1 OM,mba2Trim, p15
      • Mile Stones:
      • 4)Automation & Computer Integrated Systems:
      • Individual contributions :
      • Dantzig, Deming, Juran,
      • Buffa, Hertzberg,
      • Wight,
      • Skinner, etc.
      • Organisational contributions :
      • AT&T,GM,DUPONT,
      • IBM,VOLVO,GE,
      • SIEMENS,TOYOTA,
      • INTEL,PHILIPS, etc.
    • Unit-1 OM,mba2Trim, p16
      • Post 1950’s:
      • Operations Research(O.R) Techniques,Comutreised Information Systems & Age of Automation commenced (Logic units provided in equipments)
      • Current Status:
      • Robotisation in 70s,
      • C.I.S(Computer Integrated Systems) in 80s,
      • And Production became capable of responding to on line information.
      • F.M.S(Flexible Manufacturing Systems in 90s for customization & Volumes.
      • Extensive usage of I.T & C.T is the order of day.
      • GLOBALISATION ERA OF OPERATIONS(FOR MARKETS) ACCELERATED DURING 1990S.
      • Welcome to the GLOBALISATION ERA.
    • Unit-1 OM,mba2Trim, p17
      • Duties of Operations Manager:
      • Plant Location ,Plant layout
      • Design production system
      • Product design and Development
      • Work study application (Method Study &Work measurement)
      • Capacity planning
      • Production Frecasting & PPC
      • Materials management, including supply chain management (S.C.M)
      • QM
      • Maintenance management
      • Productivity enhancement
      • IR, Health,Safety& Staff selection& management
      • Interaction with other functional management
      • Budgetting…..
    • Unit-1 OM,mba2Trim, p18
      • Types of Manufacturing systems:
      • Production process involved is categorized as (a)Flow or Continuous Production &(b) Intermittant Production.
    • Unit-1 OM,mba2Trim, p19
      • Types of Production System (Process):
      • Flow or Continuous production &Intermittent production
      • Flow or Continuous production: (Standard set of processes & Sequence of processes is adopted)
      • Mass production/Process production/Assembly line production
    • Unit-1 OM,mba2Trim, p20
      • a)Flow or Continuous Production :
      • Repeated production,Work moves from one stage to next stage as per set sequence, standard procedures& sequence,Inputs standardized
      • Egs: Medical tablets,Fertiliser, car.
      • to C
      • (b) A to B to D to E
      • to C
    • Unit-1 OM,mba2Trim, p21
      • ( c) Varieties of Flow production:
      • (c.1) Mass production , eg: tablets, F.M.C.Gs
      • (c.2) Process Production :
      • Analytical :One Raw material into many products, eg. Crude oil into petrol,diesel,kerosene,tar….
      • Synthetic: 2 or more Raw materials into one product, eg: Iron ore & others into steel, many chemicals into soap…
    • Unit-1 OM,mba2Trim, p22
      • Assembly production: (Notation: I, inputs, P parts , F.P is finished product)
      • I1
      • into P1
      • I2
      • I3
      • into P2 into F.P
      • I4
      • I5
      • into P3
      • I6
      • Line balance method is used. Eg: Automobile, TV…
    • Unit-1 OM,mba2Trim, p23
      • a)Flow or Continuous Production :
      • Characterictics : use of special purpose machines, high capital for equipment,Machines capacity to be balanced,Fixed material handling equipments like Cranes, fork lifts …,online inspection, Less inventory, less space requirement per unit production,% of man power costs less in total cost,less control,product layout,
      • Demerits : Disruptions are critical
      • Requirements: Constant demand for product,inputs of good quality,Preventive maintenance, high investment
    • Unit-1 OM,mba2Trim, p24
      • (b) Intermittant Production.
      • Production not continuous & made only when required.
      • Facilities(Equipment,people..) flexible to handle a variety of products and specifications.
    • Unit-1 OM,mba2Trim, p25
      • Intermittant Production.
      • Characterictics: No single procedure,production of a product non uniform & intermittent,frequent changes in product design, usage of general purpose machines,Functional or Process Layout, Components are made for in process inventory and then assembled,small volume per product,low capital,Specialised labour,PPC is critical, Labour costs high, Material handling in varying paths,All similar machines at one location.
    • Unit-1 OM,mba2Trim, p26
      • Varieties of Intermittant Production. :
      • JOB PRODUCTION:
      • single complete unit made by a group of people.eg: ship,Building,Dam..
      • Work completed individually on each productEg: printing press jobs:operate printing machine for printing,folding,page setting,stapling,trimming,binding,packing&transporting.
      • BATCH PRODUCTION:
      • Increased production quantities for repeatition,
      • Due to non uniform demand in the year, switching to other products becomes essential.
      • All processes are done for one batch of a product& repeated.
      • Eg: Export products,Motors,Boilers…
      • BATCH PRODUCTION may be considered as a combination of Job+Mass production
    • Unit-1 OM,mba2Trim, p27
      • MULTI PURPOSE PRODUCTION:
      • System starts in the form of BATCH PRODUCTION and then grows into MASS PRODUCTION. This is the current trend.
    • Unit-1 OM,mba2Trim, p28
      • (Recommended Reading : POM ,Chap 4, production processe,Manufacturing and Service operations,Aswathappa,Sridhar Bhatt(2008)(PP41 to 42,49 to 53))
      • Mfg operations :
      • These convert inputs into tangible items .Mfg processes may be categorized as Forming Processes, Casting, forging, stamping, embossing,.. (changeing shape without adding/removing material), Machining processes(Metal removal by turning, drilling,milling, grinding,shaping,boring..,& chipless methods such as Electro Discharge Machining,Electro Spark Erosion,Electro Chemical Machining,LASER DRILLING etc,,,) and Assembly processes(welding,brazing,soldering,riveting,fastening,use of adhesive…),
    • Unit-1 OM,mba2Trim, p29
      • SERVICES:
      • Services are those economic activities, which produce generally intangible product such as health ,education,entertainment,hospitality,fovernment,finance,transportation …..services. similarly,repair and maintenance,restaurants,hotels,tourism,transportation,telecom,banking,insurance,trade,financial,real estate,…
      • In many DEVELOPING COUNTRIES,50% OF GDP IS FROM SERVICE SECTOR.
      • “ Any major economy that is not competitive in the service sector is not competitive internationally”
    • Unit-1 OM,mba2Trim, p30
      • Primary characteristics of services : 1)Intangibility(Education,but tangible is college furniture..Purchasing does not give ownership),2)Perishability(Service can not be inventoried eg., seat in air plane,3)Inseperability,simultaneous production & consumption,Variability(different levels of service quality,due to human element)
      • Difference between goods and services:
      • Goods can be resold/inventoried/ some of the quality measurable/production & selling different/Location is important/easy to automate/
    • Unit-1 OM,mba2Trim, p31
      • Difference between Manufacturing and services:
      • Exists in respect of ; customer contact (Less ,More) ,uniformity of input(Less ,More),%Labour content(Less ,More), variability in output quality (Less ,More),Location of facility (over all economics ,proximate to customer), Diffculty in Productivity Measurement (Less ,More), production and delivery(Not simultaneous, simultaneous),
      • Quality assurance challenge(Less ,More)
    • Unit-1 OM,mba2Trim, p32
      • (Recommended Reading : POM ,Chap 14, Service operations:Planning&Scheduling, ,Aswathappa,Sridhar Bhatt(2008) )(PP291 to 302))
      • OPERATION STRATEGIES FOR SERVICES ;
      • COMPETITIVE PRIORITIES FOR SERVICE FIRM are(1) low service product cost, (2)Fast and ontime delivery,(3) Services to be of high quality,(4)customer service attitude & (5)flexibility.
      • THREE TYPES OF SERVICE OPERATIONS are(1) Quasi-manufacturing,eg:Aircraft maintenance works, (2)Customer-as-participants(eg:Retailing, (3)Customer as product(Beauty clinic, Hospital,Tailor..)
    • Unit-1 OM,mba2Trim, p33
      • SCHEDULING FOR SERVICES : Services are by people & the demand pattern in non uniform,Hence Scheduling of services involves(1) scheduling customers, (2) scheduling work force, (1) scheduling Equipment,Eg:Restaurant
      • SCHEDULING STRATEGIES FOR SERVICES :
      • (1) Schedule for peak demand, (2) Chase demand (3) Reservation strategy(Hotels,airlines…) (4) consumer participation (Self service Restaurants,ATM services..), (5) Adjustable capacity (Close-off hours in a restaurants). (6) Cross training(Banks, restaurants) (7) Sharing Services (Hiring buses from State R.T.Cc)
    • Unit-1 OM,mba2Trim, p34
      • SCHEDULING STRATEGIES FOR QUASI –MANUFACTURING “ SERVICES ”:
      • (1) Product- focused operations: Eg: Back room operations at a fast food restaurants like layout,assembly line balancing,automation,HRD,Materials purchase,production of high volume standard products,cost management , to meet highly variable hour-to-hour customer demand.
      • (2) Process- focused operations: Eg: Medical test laboratory.Based on the nature of service requested , the job is routed to the appropriate departments until it is completed.
    • Unit-1 OM,mba2Trim, p35
      • PERSONNEL SCHEDULING IN SERVICES : due to demand variability,Service time variability(Eg:Health spa), use of personnel when they are needed(full 7 part time employees).
      • SCHEDULING ‘CUSTOMER-AS-PARTICIPANT ‘ SERVICE OPERATIONS :
      • Eg: Retailing,Tourism…Customer needs are to be looked into.
      • SCHEDULING ‘CUSTOMER-AS-PRODUCT’ SERVICE OPERATIONS :
      • Service is performed on customers.
      • Eg: Beauty clinic,medical Treatment, Surgery…
    • Unit-1 OM,mba2Trim, p36
      • SCHEDULING MULTIPLE RESOURCES :
      • It is critical in service sector.Eg: An educational institute must schedule Faculty,classrooms , LCD systems and Students.A hospital must schedule Doctors,surgeons,Nurses,O.Ts,Ward staff,admissions,spl equipments,billing activity….Others are Banks, Airlines.
      • Manning system is based on Cyclical or Rotating schedule.
      • / End of unit-1/