Calicut University MBA Operations Management Module 5

1. Module 5
Production Planning
&
Maintenance Mgt

2. Topics to cover,
 Production Planning and control in different production systems.
1. Product Selection
2. Product positioning
3. Product design and Development
4. Process Selection
5. Production Scheduling
 Maintenance management
1. Maintenance system
2. Activities under MM
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3. Hello!
I am Sudharman Raman
I am here to showcase you the complete
picture of Module 5.
You can find me at:
sudharmanr14@gmail.com
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4. 1.
Production Planning

5. “A business needs to apply managerial principles to the
production function in an enterprise because it
encomposes the activities of procurement, allocation and
utilization of resources”
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6. ➜ What is product ?
Product is the bundle of satisfaction.
• A Product is the conceptual creation of a producer approved by
the consumer.
• Philip Kotler defined that, a product is anything that can be
offered to a market for attention, acquisition, use or consumption.
Product selection:- Product selection is the process in which
retailor choose the shape or material of the product as per market
demand.
Product selection is a decision process of selecting the right
product, in which the design team selects one or few product
concept for further development.
Product Selection
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7. Issues need to resolve during product selection
➜ Generic issues
➜ Technology issues
➜ Market Information
➜ Export Obligations
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8. Product
Positioning
“Product positioning is a form of marketing that
presents the benefits of your product to a
particular target audience”
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9. 9
Great cash flow
to business
Little cash input
but high cash
flow
Little growth &
low cash flow
Large input of
cash

10. Product Development
The process of creating
new product or modifying
the existing one.
Changing needs of consumers
Sustain in the market
Profitability
Design & Development
Product Design
The development of concept or
idea of a product in terms of
specifications that are required
for transforming that idea into
product.
Production process
Feasibility
Ability
Designs, size, tolerance.
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11. Characteristics of a good design
a) Functionality : Expected performance of the product
b) Reliability : Dependability of the performance of the
product or the durability of the design.
c) Productivity : The possibility of producing the product in
the required quantity at a favorable cost. Eg; multi
purpose machines.
d) Quality : Conformance to specifications.
e) Standardization and simplification : A tool that
promotes the use of minimum number of parts to serve
the maximum number of purpose.
f) Maintainability : Preventive and corrective maintaining
system to improve performance.
g) Cost Effectiveness : Cost of production is determined at
the designing stage and being cost competitive is
essential for a product to be successful .
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12. Concept of Product Design
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13. Product Design
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 Research and Development
Research is a consciously
directed investigation to find a
new technology .
 Reverse Engineering
The process of careful, step by
step dismantling of existing
product in order to understand its
unique underlying concept.
 CAD/CAM
 Concurrent Engineering
A product design approach, in
which the design process takes
place stages, moving from one
Dpt to other.
 Life cycle of a product
Introduction, Growth,
Saturation and Decline
 Manufacturing
Designing a product in such a
way that, it can be easily
manufactured or assembled.
 Adaptability
A product should be
operational in varying
environmental condtions.

14. Product Development Process
Engineering Ramp UpFeasibility
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Commercialization
Exploration

15. Exploration
➜ The starting point where new ideas emerge from the
sales force, which is in the direct contact with
customers.
➜ Foreign magazines, reports of trade journals, seminar
papers, R&D laboratories are the main source of idea.
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16. Feasibility Study
➜ All relevant technical and economic factors and
insufficient details are analyze with qualitative
and quantitative considerations.
➜ Market potential
➜ Technical feasibility
➜ Govt Rules & regulations
➜ Supply of materials
➜ Financial requirements
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17. Detailed Engineering Phase
➜ Primary activities constituting this phase
are the design and construction of working
samples and the development of tools and
equipment critical to the product's
commercial.
➜ If the prototype fails to deliver the desired
performance results, necessary changes in
the product’s design are made by
engineers and the tests are repeated.
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18. Ramp Up
➜ Last phase of product development, where
commercial production begins.
➜ The volume of production increases only
when the organization confidence in it.
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19. Commercialization
➜ The last stage of new product planning, it
consist of decisions like make or buy, production
methods and distribution network.
➜ Achieve volume sales and profitability
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20. 1. Quality Function Development (QFD)
Dr. Yoji Akao ( Japan) Developed QFD in 1996, it states that QFD
is a method to transform user demands into design quality, to
deploy the functions forming quality, and to deploy methods for
achieving the design quality in subsystems and component parts
and ultimately in specific elements of the manufacturing process.
It mentioned in ISO 9000:2000 Standards.
The House of matrix
QFD considers customers requirement and the products existing
and desired characteristics to form the basis of matrix.
Visit and
watch:https://www.youtube.com/watch?v=X1KONQw02H8&featu
re=youtu.be
Techniques of product Design and Development
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21. 2. Design For Manufacturing and Assembly (DFMA)
A methodology used to determine how to simplify a current or
future product design and /or manufacturing process to achieve
cost savings.
Introduced by Dr. Boothroyed and Dr. Dewhurst 1983
This method helps to analyze and compare the costs of different
materials and manufacturing methods in the design phase itself.
• Reduction in supply chain cost
• Simplification of the product and improvement in quality
• Cross functional communication
• Reduction in manufacturing cost
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22. 3. Value Analysis / Value Engineering
The value of the product is based on the degree to which it can
satisfy needs, both given and implied.
The value of the product to a customer is its worth to him in
monetary terms.
According to the British Productivity Council, value analysis is “
The study of the relationship of design, function and cost of any
product, material or service with the object of reducing cost
through modification of design.
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23. Products
Aggregate Planning and Capacity Planning
Plans
Innovative Techniques
Action Plan
Cross Functional
Supports
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24. Aggregate plan is the total or aggregate plan of the company for
producing a product over a certain period of time.
Master Production Schedule (MSP)
Every production volume utilizes a given mix of labour ,
materials and equipement, when the output is changed, a
new optimal mix must be achieved by readjusting the
usage of the various resources.
The MSP shows the quantity and timing of each specific
product for time horizon or it gives the details of
quantities and timing of the planned production of every
product.
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25. Production Scheduling
➜ A schedule is a timetable for performing activities,
utilizing resources or allocating facilities. It schedules,
dispatches, track, monitors and controls production on
the factory floor.
➜ Forward Scheduling: The situation where the system
takes an order and then schedules each operations.
➜ Backward Scheduling: It starts from some date in the
future and schedules the required operations.
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26. Objectives of scheduling
➜ Meet the due dates,
➜ Minimize lead time,
➜ Minimize setup time and setup cost,
➜ Minimize work in progress
➜ Maximize machine and labour
utilization
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27. Scheduling
1. Minimum Process Time Method (MINPRT) / Shortest
Operation Time (SOT) : Job with shortest time is
shedule first, followed by other jobs with next lowest
time.
2. Due Date Method (DD) : The job with earliest due
date is done first.
3. First Come – First Served Method (FCFS) : Jobs are
scheduled in the order in which they are received by
the company.
4. Longest Process Time Method (LPT) : The job with
longest processing time is attanted first.
5. Dynamic Slack/Remaining Oeration (DS/RO) or
Minimum Slack Per Operation (MINSOP) :
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28. Dynamic Slack/Remaining Operation (DS/RO) or
Minimum Slack Per Operation (MINSOP) :
In this method, first dynamic slack is computed,
DS : The difference between the due time and the
processing time) and it will be divided by Remaining
operation time or 1.
Job with lowest DS/RO Value is assigned rank 1 and
attended first.
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29. Gant Chart
Henry Gantt (1917)
A type of bar chart use for production planning, scheduling
and control by plots tasks and time.
Time ( Hours, Day, Weeks or Months) X Axis.
Activities are in Y Axis
Smaller job shops and individual departments of larger
once employ Gantt Charts to help plan and track jobs.
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30. Maintanace Managemnet
➜ Maintenance is defined as:
“Combination of all technical, administrative and managerial
actions during the life cycle of an item intended to retain it in, or
restore it to, a state in which it can perform a required function.”
Maintenance includes actions such as
➜ cleaning, lubrication and topping up,
➜ adjustment and calibration,
➜ condition assessment,
➜ repairs and replacement.
Maintenance enables to detect and prevent failures as they would
occur and hence increase system reliability and availability.
The effectiveness of maintenance is mainly assessed by
maintainability, availability and OEE measures.
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31. Maintanance system
1. Planned maintenance System
a) Preventive maintenance system
Predictive maintenance
➜Running Maintenance
➜Shutdown Maintenance
Predictive or Conditional maintenance
b) Corrective maintenance
➜Design Out maintenance
➜Design In maintenance
2. Unplanned maintenance System
a) Emergency maintenance
b) Breakdown maintenance
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32. Activities In Maintenance Management
1. Inspection
2. Lubrication
3. Cleaning
4. Servicing and Repairing
5. Record
6. Record Analysis
7. Maintenance Training
8. Performance Standards
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33. Thanks!
Any questions?
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