Production and operations management
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Production and operations management



The basic concepts of Production and Operation management

The basic concepts of Production and Operation management



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    Production and operations management Production and operations management Presentation Transcript

    • PRODUCTION AND OPERATIONS MANAGEMENT The set of interrelated management activities, which are involved in manufacturing certain products, is called as production management. If same concept is extended to service management, then the corresponding set of management activities is called as operation management.
    • DUTIES OF PRODUCTION MANAGER  Production planning  Production control  Quality control  Method Analysis  Inventory Control  Plant layout and material handling  Work measurement  Other functions
    • TYPES OF PRODUCTION SYSTEM Job shop production  Batch production  Mass production  Continuous production  Objectives of Production management  Right Quality  Right Quantity  Right time  Right manufacturing cost
    • SCOPE OF PRODUCTION AND OPERATIONS MANAGEMENT  Location facilities  Plant layouts and material handling  Product design  Process design  Production planning and control  Quality control  Materials management  Maintenance management
    • FACTORS INFLUENCING PLANT LOCATION General location factors  Controllable factors 1. Proximity to markets 2. Supply of raw materials 3. Transportation facilities 4. Infrastructure availability 5. Labour and wages  Uncontrollable factors 1. Government policy 2. Climatic condition 3. Supporting industries and services 4. Community and labour attitudes
    • SPECIFIC LOCATION FACTORS  Manufacturing organization 1. Dominant factors 2. Secondary factors  Service organization 1. Dominant factors 2. Secondary factors
    • PLANT LAYOUT Plant layout is the plan of an optimum arrangement of facilities including personnel, operating equipment, storage space, material handling equipment & all other supporting services along with the design of best structure to contain all these facilities. Types of layouts  Process layout  Product layout  Combination layout  Fixed position layout  Group layout
    • PRINCIPLES OF PLANT LAYOUT 1. 2. 3. 4. 5. 6. 7. Min. handling Min. distance Max. flexibility Cubic space utilization Flow of materials Integration 3S
    • OBJECTIVES OF PLANT LAYOUT 1. 2. 3. 4. 5. Economy Delays Space Supervision & control Flexibility
    • TYPES OF PLANT LAYOUT 1. 2. 3. 4. 5. Process Product Combination Fixed position Group
    • LINE BALANCING Balancing the production line objective to distribute the task evenly over the work stations so that idle of men and machines is minimized. 1. Behavioral factors 2. No. of cycles produced 3. Cycle time Material handling Function dealing with preparation, placing & positioning of materials to facilitate their movement or storage.
    • PRINCIPLES OF MATERIAL HANDLING 1. Planning principle 2. Performance principle 3. Systems principle 4. Simplification principle 5. Space utilization principle 6. Safety principle 7. Standardization principle 8. Motion principle 9. Maintenance principle 10. Capacity principle 11. Control principle
    • SELECTION OF MATERIAL HANDLING EQUIPMENT 1. Properties of material 2. Cost consideration 3. Engineering factors 4. Equipment reliability 5. Nature of operation 6. Layout and characteristics of building 7. Production flow
    • MATERIAL HANDLING EQUIPMENTS 1. 2.      Fixed path equipment Variable path equipment Conveyors Industrial trucks Cranes Containers Robots Guidelines for effective material handling
    • MATERIAL MANAGEMENT Function responsible for the coordination of planning, sourcing, purchasing, moving, storing and controlling materials in an optimum manner so as to provide a pre-decided service to the customer at a minimum cost.
    • PURCHASING PROCEDURE 1. 2. 3. 4. 5. 6. 7. 8. Recognition of need The selection of supplier Placing the order Follow-up of the order Receiving and inspection of the materials Payment of the invoice Maintenance of the records Maintenance of the vendor relations
    • VENDOR RATING 1. 2. 3. The categorical plan The weighted point method The cost-ratio plan
    • INVENTORY CONTROL AND MANAGEMENT Reasons for inventories 1. To stabilize the production 2. To take advantage of price discount 3. To prevent loss of orders 4. To keep pace with changing market condition. Inventory control
    • TECHNIQUES OF INVENTORY CONTROL 1. 2. 3. 4. 5. 6. ABC analysis HML analysis VED analysis FSN analysis GOLF analysis SOS analysis Economic Order Quantity
    • JIT 7 wastes 1. Over production 2. Waiting 3. processing 4. Stocks 5. Motion study 6. Defective product Benefits of JIT 1. Product cost 2. Quality 3. Design 4. Productivity improvement 5. Higher production system flexibility
    • PRODUCTION PLANNING AND CONTROL Direction and coordination of firm’s resources towards attaining the prefixed goals. Functions of PPC 1. 2. 3. 4. 5. Routing Loading Scheduling Expediting Evaluation
    • PRODUCTION CONTROL Activation 1. Initiating the production 2. Progressing 3. Corrective actions on feedback Objectives of PPC Phases of PPC 1. Planning phase 2. Action phase 3. Control phase
    • STEPS INVOLVED IN PRODUCTION PLANNING 1. 2. 3. 4. 5. Determination of targets Collection & Interpretation of Information Developing plans Planning plans into operations Follow Action
    • STORE AND STORE KEEPING function of receiving, storing & issuing of raw materials, tools, etc. Duties of storekeeper Types according layout 1. Centralized store 2. Decentralized store
    • DIFFERENT DOCUMENTS RELATED TO STORE Goods inward sheet  Material issue requisition  Bin card  Store record card  Material transfer note  Material return note 
    • SAFETY MANAGEMENT 1. Problems of Industrial accidents  Effect on industry or owner  Effect on workers  Cost of society 2. Accidental causes  Technical causes i. Unsafe condition ii. Mechanical factors iii. Environmental factors  Human causes i. Unsafe act ii. Unsafe personal factors
    • 3. Accident control and prevention  Discovering the accident cause  Controlling the environment causes  Controlling behavioristic causes  Proper placement of workers  Proper training about safety rules
    • AGGREGATE PLANNING  Aggregate Planning Strategies  Guidelines
    • MATERIAL REQUIREMENT PLANNING Basic calculations used to determine components required from end item requirement. Plan & control manufacturing component. Objectives of MRP 1. Inventory reduction 2. Reduction in manufacturing and delivery 3. Realistic delivery commitments 4. Increased efficiency MRP System
    • SCHEDULING Prescribing when & where each operation necessary to manufacture the product is to be performed. Principles of scheduling 1. 2. 3. The principle of optimum task size Principle of optimum production plan Principle of optimum sequence Inputs to scheduling Scheduling strategies 1. 2. 3. 4. Detailed scheduling Cumulative scheduling Cumulative detailed Priority decision rules
    • TYPES OF SCHEDULING 1. Forward scheduling 2. Backward scheduling Scheduling methodology 1. Gantt charts & Boards 2. Priority decision rules 3. Mathematical Programming methods  Linear programming model  PERT/CPM network model
    • QUALITY Dimensions 1. Performance 2. Features 3. Reliability 4. Appearance 5. Safety 6. Customer service Methods of Inspection 1. 100% inspection 2. Sampling inspection
    • QUALITY CONTROL Regulatory process through which we measure actual quality performance, compare it with standards, & act on the difference. Types of QC 1. Offline quality control. 2. Statistical process control. 3. Acceptance sampling plans.
    • CONTROL CHARTS 1. 2. Variable control charts Attribute control chart Characteristics of control charts Benefits using control charts Objectives of control charts Control charts for Attributes 1. 2. P-charts C-charts
    • TOTAL QUALITY MANAGEMENT Effective system of integrating the quality development, quality maintenance & quality improvement efforts of various groups in an organization so as to enable marketing, engineering, production & service at most economical levels which allow for full customer satisfaction. Benefits of TQM 1. Customer satisfaction oriented benefits  Improvement in product quality  Improvement in product design  Service  Production flow  Employee morale & quality consciousness  Market place acceptance.
    • 2. Economic improvements oriented benefits  Reduction in operating cost  Reduction in operating losses  Reduction in field service costs  Reduction in liability exposure
    • ISO 9000 ISO 9000- Quality management and quality assurance standards   ISO 9001- Quality in design  ISO 9002- Production & installation  ISO 9003- Final inspection and test  ISO 9004- Quality management and systems Benefits of ISO 9000 series Steps in ISO 9000 Registration
    • PRODUCTIVITY  Output/Input Productivity Improvement Techniques 1. 2. 3. 4. 5. 6. Technology Based Employee Based Material Based Process Based Product Based Task Based
    • WORK STUDY Select Record Examine Develop Execute Define Install Maintain
    • METHOD STUDY Eliminate unnecessary operation & to achieve the best method of performing the operation. Essentials of method study Advantages Objectives
    • RECORDING TECHNIQUES OF METHOD STUDY 1.   2. Charts Macro Motion charts Micro Motion charts Diagrams
    • WORK MEASUREMENT (TIME STUDY) Application or technique designed to establish the time for qualified worker to carry out specified job at defined level or performance.
    • ALLOWANCES Types 1. Relaxation allowances • Fixed allowances i. Personal needs allowances ii. Allowances for basic fatigue • Variable allowances 2. Interference allowances Contingency allowances Policy allowances 3. 4.
    • MAINTENANCE MANAGEMENT The work of keeping something in proper condition, upkeep. Types 1. 2. 3. Breakdown (Reactive) Maintenance Preventive Maintenance Predictive Maintenance
    • TOTAL PRODUCTIVE MAINTENANCE (TPM) Involves newly defined concept for maintaining plants & equipment. Objectives of TPM
    • STATISTICAL QUALITY CONTROL Application of statistical techniques to determine how far the product conforms to standard of quality & precision. Techniques of SQC 1. Control charts 2. Acceptance sampling Benefits