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
4)Automation & Computer Integrated Systems:
Individual contributions :
Dantzig, Deming, Juran,
Organisational contributions :
Unit-1 OM,mba2Trim, p16
Operations Research(O.R) Techniques,Comutreised Information Systems & Age of Automation commenced (Logic units provided in equipments)
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)
Production Frecasting & PPC
Materials management, including supply chain management (S.C.M)
IR, Health,Safety& Staff selection& management
Interaction with other functional management
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.
(b) A to B to D to E
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)
into P2 into F.P
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
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. :
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.
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 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.