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

Production and operations management

  • 1.
    PRODUCTION AND OPERATIONSMANAGEMENT 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.
  • 2.
    DUTIES OF PRODUCTIONMANAGER  Production planning  Production control  Quality control  Method Analysis  Inventory Control  Plant layout and material handling  Work measurement  Other functions
  • 3.
    TYPES OF PRODUCTIONSYSTEM Job shop production  Batch production  Mass production  Continuous production  Objectives of Production management  Right Quality  Right Quantity  Right time  Right manufacturing cost
  • 4.
    SCOPE OF PRODUCTIONAND OPERATIONS MANAGEMENT  Location facilities  Plant layouts and material handling  Product design  Process design  Production planning and control  Quality control  Materials management  Maintenance management
  • 5.
    FACTORS INFLUENCING PLANTLOCATION 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
  • 6.
    SPECIFIC LOCATION FACTORS  Manufacturingorganization 1. Dominant factors 2. Secondary factors  Service organization 1. Dominant factors 2. Secondary factors
  • 7.
    PLANT LAYOUT Plant layoutis 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
  • 8.
    PRINCIPLES OF PLANTLAYOUT 1. 2. 3. 4. 5. 6. 7. Min. handling Min. distance Max. flexibility Cubic space utilization Flow of materials Integration 3S
  • 9.
    OBJECTIVES OF PLANTLAYOUT 1. 2. 3. 4. 5. Economy Delays Space Supervision & control Flexibility
  • 10.
    TYPES OF PLANTLAYOUT 1. 2. 3. 4. 5. Process Product Combination Fixed position Group
  • 11.
    LINE BALANCING Balancing theproduction 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.
  • 12.
    PRINCIPLES OF MATERIALHANDLING 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
  • 13.
    SELECTION OF MATERIALHANDLING 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
  • 14.
    MATERIAL HANDLING EQUIPMENTS 1. 2.      Fixedpath equipment Variable path equipment Conveyors Industrial trucks Cranes Containers Robots Guidelines for effective material handling
  • 15.
    MATERIAL MANAGEMENT Function responsiblefor 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.
  • 16.
    PURCHASING PROCEDURE 1. 2. 3. 4. 5. 6. 7. 8. Recognition ofneed 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
  • 17.
    VENDOR RATING 1. 2. 3. The categoricalplan The weighted point method The cost-ratio plan
  • 18.
    INVENTORY CONTROL ANDMANAGEMENT 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
  • 19.
    TECHNIQUES OF INVENTORYCONTROL 1. 2. 3. 4. 5. 6. ABC analysis HML analysis VED analysis FSN analysis GOLF analysis SOS analysis Economic Order Quantity
  • 20.
    JIT 7 wastes 1. Over production 2. Waiting 3. processing 4. Stocks 5. Motionstudy 6. Defective product Benefits of JIT 1. Product cost 2. Quality 3. Design 4. Productivity improvement 5. Higher production system flexibility
  • 21.
    PRODUCTION PLANNING ANDCONTROL 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
  • 22.
    PRODUCTION CONTROL Activation 1. Initiating theproduction 2. Progressing 3. Corrective actions on feedback Objectives of PPC Phases of PPC 1. Planning phase 2. Action phase 3. Control phase
  • 23.
    STEPS INVOLVED INPRODUCTION PLANNING 1. 2. 3. 4. 5. Determination of targets Collection & Interpretation of Information Developing plans Planning plans into operations Follow Action
  • 24.
    STORE AND STOREKEEPING function of receiving, storing & issuing of raw materials, tools, etc. Duties of storekeeper Types according layout 1. Centralized store 2. Decentralized store
  • 25.
    DIFFERENT DOCUMENTS RELATEDTO STORE Goods inward sheet  Material issue requisition  Bin card  Store record card  Material transfer note  Material return note 
  • 26.
    SAFETY MANAGEMENT 1. Problems ofIndustrial 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
  • 27.
    3. Accident control andprevention  Discovering the accident cause  Controlling the environment causes  Controlling behavioristic causes  Proper placement of workers  Proper training about safety rules
  • 28.
  • 29.
    MATERIAL REQUIREMENT PLANNING Basiccalculations 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
  • 30.
    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
  • 31.
    TYPES OF SCHEDULING 1. Forwardscheduling 2. Backward scheduling Scheduling methodology 1. Gantt charts & Boards 2. Priority decision rules 3. Mathematical Programming methods  Linear programming model  PERT/CPM network model
  • 32.
  • 33.
    QUALITY CONTROL Regulatory processthrough 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.
  • 34.
    CONTROL CHARTS 1. 2. Variable controlcharts 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
  • 35.
    TOTAL QUALITY MANAGEMENT Effectivesystem 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.
  • 36.
    2. Economic improvements orientedbenefits  Reduction in operating cost  Reduction in operating losses  Reduction in field service costs  Reduction in liability exposure
  • 37.
    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
  • 38.
    PRODUCTIVITY  Output/Input Productivity Improvement Techniques 1. 2. 3. 4. 5. 6. TechnologyBased Employee Based Material Based Process Based Product Based Task Based
  • 39.
  • 40.
    METHOD STUDY Eliminate unnecessaryoperation & to achieve the best method of performing the operation. Essentials of method study Advantages Objectives
  • 41.
    RECORDING TECHNIQUES OFMETHOD STUDY 1.   2. Charts Macro Motion charts Micro Motion charts Diagrams
  • 42.
    WORK MEASUREMENT (TIME STUDY) Applicationor technique designed to establish the time for qualified worker to carry out specified job at defined level or performance.
  • 43.
    ALLOWANCES Types 1. Relaxation allowances • Fixed allowances i. Personalneeds allowances ii. Allowances for basic fatigue • Variable allowances 2. Interference allowances Contingency allowances Policy allowances 3. 4.
  • 44.
    MAINTENANCE MANAGEMENT The workof keeping something in proper condition, upkeep. Types 1. 2. 3. Breakdown (Reactive) Maintenance Preventive Maintenance Predictive Maintenance
  • 45.
    TOTAL PRODUCTIVE MAINTENANCE (TPM) Involvesnewly defined concept for maintaining plants & equipment. Objectives of TPM
  • 46.
    STATISTICAL QUALITY CONTROL Applicationof statistical techniques to determine how far the product conforms to standard of quality & precision. Techniques of SQC 1. Control charts 2. Acceptance sampling Benefits