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Manufacturing & operations management
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Manufacturing & operations management


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  • 1. Nishant Wasatkar MOM
  • 2.  Production Systems Plant Location & Layout Production Planning & Control Maintenance Management Inspection Work Study Lean Production Systems Nishant Wasatkar MOM
  • 3.  Production can be defined as the process of converting inputs into desired output thereby adding value to some entity. Production function brings together people, machines & materials to provide goods & services satisfying the wants of people. Nishant Wasatkar MOM
  • 4. Adjustments Monitor Needed Output INPUTS Conversion Process Outputs Labour Materials Goods &Equipment Services Capital Comparison Actual Vs Planned Nishant Wasatkar MOM
  • 5.  Manufacturing Cycle Time/ Lead Time Inventory Work in progress (WIP) Material Handling (Manual/Automated) General Purpose Machines (GPM) Special Purpose Machines (SPM) Product Layout Process Layout Nishant Wasatkar MOM
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  • 10. MillingAssembly & Test Grinding Drilling Plating Process Layout - work travels to dedicated process centers Nishant Wasatkar MOM
  • 11.  Primary Objective: To produce goods & services of quality accepted by customer, in desired quantities, according to time schedules & at minimum cost. Nishant Wasatkar MOM
  • 12.  Effectiveness: Producing right kind of goods & services that satisfy customers needs. Efficiency : Maximizing output of goods & services with minimum resource inputs. Quality: Ensuring that goods & services produced conform to pre-set quality specifications. Nishant Wasatkar MOM
  • 13.  Lead Time: Minimizing mfg. cycle time by reducing delays, waiting time and idle time. Capacity Utilization: Maximizing utilization of manpower, machines and rest of resources. Cost: Minimizing cost of producing goods or services. Nishant Wasatkar MOM
  • 14.  Planning: ◦ Product selection & design ◦ Process selection & planning ◦ Facility Location ◦ Facility layout and materials handling ◦ Capacity planning ◦ Forecasting ◦ Production Planning Nishant Wasatkar MOM
  • 15.  Organizing  Work study & job design Controlling ◦ Production control ◦ Inventory control ◦ Quality control ◦ Maintenance & replacement ◦ Cost reduction & cost Control Nishant Wasatkar MOM
  • 16.  The factory system was a method of manufacturing first adopted in England at the beginning of the Industrial Revolution in the 1750s and later spread abroad. Traditionally, each worker used to create a separate part of the total assembly of a product. In factory system all resources of productions were bring together under one roof. Nishant Wasatkar MOM
  • 17. Manufacturing system need to interact with bothinternal & external environment. Internal  External Environment: Environment: ◦ Engineering ◦ Customers ◦ Marketing ◦ Competitors ◦ Personnel ◦ Suppliers ◦ Accounts/Finance ◦ Labor Unions Nishant Wasatkar MOM
  • 18.  The selection of manufacturing system is a strategic decision. The system selected should ensure ◦ Desired output ◦ Required Quality ◦ Cost effectiveness Nishant Wasatkar MOM
  • 20.  Definite beginning and definite end. Non uniform requirement of resources Involvement of different agencies Fixed Position layout ◦ E.g. production of ships, aircrafts, construction of buildings, bridge etc. High cost overruns ◦ Often delays takes place in projects which are very expensive due to cost of factors of production & penalties. Nishant Wasatkar MOM
  • 21.  Personnel Problems ◦ If labor are borrowed from outside for short duration, involvement in project will be limited. ◦ Since project has a limited period, the staff starts spending more time for getting prepared for next project. ◦ Generally sites of project are in underdeveloped region & it may change from project to project which causes dislocation of the normal life. Scheduling & Control ◦ As large number of activities involve in project completion by different agencies with strict precedence, scheduling & control becomes complex & very important. Nishant Wasatkar MOM
  • 22.  Small production runs. Discontinuous flow of materials ◦ Imbalance in operation wise work content leads to discontinuity in materials flow. Disproportionate manufacturing cycle time ◦ Lack of materials/components, imbalanced work flow, design changes, design errors detected during manufacture, inaccurate work measurements etc will lead to extended mfg cycle time. General purpose machines & process layout. Nishant Wasatkar MOM
  • 23.  Highly skilled labor Highly competent knowledgeable supervision Large work in progress Limited functions of production planning & control ◦ Materials are indented & purchased on receipt of orders. ◦ Tools control function is simple. Standard tools are stocked while special tools are either made or purchased on request. ◦ Process planning activity is almost absent. ◦ The scheduling activity is decentralized. A schedule is prepared to show the start and completion date of each major component of the product. Nishant Wasatkar MOM
  • 24.  Short runs Skilled labor in specific trades Supervisor to possess knowledge of a specific process. General purpose machines & process type layout. Manual material handling Mfg cycle time affected due to queues Large work in progress Flexibility of production schedules Need to have production planning & control. Nishant Wasatkar MOM
  • 25.  Continuous flow of materials Special purpose machines & product type layout Mechanized materials material handling Low skilled labor Short manufacturing cycle time Easy supervision Limited work in progress Lesser flexibility in production schedules. Nishant Wasatkar MOM
  • 26.  Process production is characterized by manufacture of a single product produced and stocked. Special purpose machines with built in controls Highly mechanized materials handling Virtually zero manufacturing cycle time Low skilled labor Supervisor to be process specialist Negligible work in progress Nishant Wasatkar MOM
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  • 28.  High product variety require highly skilled labor, general purpose machinery, detailed & sophisticated production planning & control systems. Low product variety enables the use of low skilled labor, highly automated mass production processes using special purpose machinery and simple production planning & control systems Nishant Wasatkar MOM
  • 30.  Fixed cost are high for continuous process & low for intermittent process While variable costs are more for intermittent process & less for continuous process. Intermittent process therefore will be cheaper to install and operate at low volumes & continuous process will be economical to use at high volumes. Nishant Wasatkar MOM
  • 31. Total Cost (Intermittent) Total Cost (Continuous) Variable Cost (Intermittent) Variable Cost (Continuous) Fixed CostCost (Continuous) Fixed Cost (Intermittent) Intermittent Continuous Manufacturing Manufacturing Range Range Volume Nishant Wasatkar MOM
  • 32.  Flexibility implies ability of manufacturing system to manufacture variety of products. Greater flexibility will be achieved in intermittent production which also results in higher inventories, long mfg lead times & complex planning & control. Nishant Wasatkar MOM
  • 33.  Efficiency measures the speed and the cost of manufacturing system. Depending on sales volume & product variety process has to be considered which will give the best efficiency in terms of machines & manpower utilization. Environment brings new technologies, as market preferences change the manufacturing system has to be changed accordingly. E.g. Furniture manufacturer. Nishant Wasatkar MOM