PRODUCTION AND OPERATIONS

MANAGEMENT

UNIT -01

CONCEPTSOverview and definition of production and

operations management.

Nature and scope of production and operations

management.

Historical evolution.

Role and responsibilities of the production manager.

Types of manufacturing

Manufacturing process.

Product design.

PRODUCTION CONCEPT:Transformation of input to output.

The set of interrelated management activities

involved in manufacturing is called production

management.

Mr. Edwood Buffa

“A process by which goods

and services are created.”

• MONEY • MEN• MATERIAL

INPUTS• CONVERSION OF

TOOLS

CONVERSION

OF PROCES

S

• GOODS • SERVICESOUTPUT

PRODUCTIVITY:

Effectiveness of production management may be

viewed as the efficiency with which inputs are

converted into output.

This conversion efficiency can be gauged by the

ratio of the output to the input.

Productivity = output/ input.

FEATURES OF PRODUCTION SYSTEM:Must have an objective.

Transformation process must be involved.

Linked with various operation.

Feed back about the activities to control and

improve the system.

OBJECTIVES OF PRODUCTION MANAGEMENT:

Right quality.

Right quantity.

Right time.

Right manufacturing.

Right

quality

quantity

time

manufacturing

OPERATION SYSTEM:Operations in a manufacturing as well as in a

service organization represent purposeful activities of the organization.

“As the process of changing inputs into outputs thereby adding value to same entity. ”

The value is added to the entity by one or more of the following ways -

1)Alteration2)Transportation3)Storage4)Inspection

HISTORICAL EVOLUTION:YEAR CONTRIBUTION CONTRIBUTOR

1776 Specialization of labor in manufacturing

Adam Smith

1799 Interchangeable parts, cost accounting Eli Whitney and others

1832 Division of labor by skill; assignment of jobs by skill; basics of time study

Charles Babbage

1900 Scientific management time study and work study developed; dividing planning and doing of work

Frederick W. Taylor

1900 Motion of study of jobs Frank B. Gilbreth

1901 Scheduling techniques for employees, machines jobs in manufacturing

Henry L. Gantt

1915 Economic lot sizes for inventory control

F.W. Harris

1927 Human relations; the Hawthorne studies

Elton Mayo

1931 Statistical inference applied to product quality: quality control charts

W.A. Shewart

1935 Statistical sampling applied to quality control: inspection sampling plans

H.F. Dodge & H.G. Roming

1940 Operations research applications in World War II

P.M. Blacker and others.

1946 Digital computer John Mauchlly and J.P. Eckert

1947 Linear programming G.B. Dantzig, Williams & others

1950 Mathematical programming, on-linear and stochastic

A. Charnes, W.W. Cooper processes & others

1951 Commercial digital computer: large-scale computations available.

Sperry Univac

1960 Organizational behavior: continued study of people at work

L. Cummings, L. Porter

1970 Integrating operations into overall strategy and policy, Computer applications to manufacturing, Scheduling and control, Material requirement planning (MRP)

W. Skinner J. OrlickyG. Wright

1980 Quality and productivity applications from Japan: W.E. Deming and robotics, CAD-CAM

J. Juran.

SCOPE OF PRODUCTION AND OPERATIONS MANAGEMENT: Location of facilities.

Plant layout and material

handling .

Product design.

Process design.

Production and planning

control.

Quality control.

Material management.

Maintenance management.

Inventory control.

Scope of POM

Inventory

controlLocatio

n of faciliti

es

Plant layout and

material handling

Product

designProcess

design

Quality

control

Production

planning and

control

Material

management

Maintenance management

ROLE OF PRODUCTION AND OPERATION MANAGER:Production planning.

Production controlling.

Quality control.

Purchasing.

Inventory control.

Work study.

Plant layout and location.

RESPONSIBILITES OF PRODUCTION MANAGER:To forecast .To utilize the factors of production in the most

efficient manner.To reduce quality costsTo reduce material handling costsTo devise efficient methods of manufacturingTo continually improve labor productivityTo minimize throughput time and work in progress

inventoryTo build team sprit and motivate work men

Problem of plant location

Problem of layout

Problem of planning

Problem of designing

Problem of quality and standards

PROBLEMS OF PRODUCTION AND OPERATIONS MANAGER:

MANUFACTURING PROCESS:

A typical production system comprises 3

components

Inputs

Transformation process

Output

MANUFACTURING SYSTEM:The combination of operation and activities

employed to create goods and services

Manufacturing system therefore maybe looked

upon as an independent group of subsystem

which performing different functions.

Manufacturing system needs to interact with

internal and external

FACTORS INFLUENCING MANUFACTURING SYSTEM:No best manufacturing system for any product Depends upon circumstancesMust meet two objectives

Able to meet the specification of the final product.It must be cost effective.

Stricter specification add to the cost of the product, there is always a tradeoff between the desired specifications and the cost to achieve such specification various factors.Effect of volume /varietyCapacity of the plant FlexibilityLead timeEfficiency

TYPES OF PRODUCTION:Types of production

Intermittent productionJob production

Batch production

Continuous productionMass production

JOB PRODUCTION:Generally job production is related to a particular

product based on the orders given by the customer.

E.g. : heavy machines

Features :

1.Variety of products and low volume

2.General purpose machines

3.High skills are involved

4.Efficient planning and controlling is essential

5.Large inventories are involved

JOB PRODUCTION

ADVANTAGES: DISADVANTAGES Production is based on orders Cost of production decreases It is possible to produces to

produce variety of production No chance to provide storage There is an opportunity for

innovations and a creativity Expenditure is low Full utilization of resources

are possible Wastage of materials is not

there It is used to improve the

skills of employees

Wastage of men material

Variety of products is produced

High expenditure due to frequent setup changes

It is essential to maintain high inventories which lead high expenses

Larger space require.

BATCH PRODUCTION:A batch of same product produced by the

manufacturer based on the orders from customer.As per this limited no of product produced at

regular intervalE.g. : plastic items

Features :1.The setup for plant and machinery may

be changed as per the required of the batch.2.Plant and machinery are flexible3.Shorter production runs4.Manufacture lead time and cost are low

BATCH PRODUCTIONADVANTAGES DISADVANTAGES Better utilization of plant

and machinery It is possible to apply

specialization Optimum utilization of

resources are possible. Investment is at lower level Cost/ unit is less

comparable to job production

It is possible to produce no of product at a time

Job satisfaction is possible No need to allot space for

storage

Due to frequent changes in the design of a batch setup cost maybe at higher level

Planning and control is different from one batch to another

There may be high working process

It is discount flow of production based on the orders

Material handling cost is high

MASS PRODUCTION:A no of products with high volume is produced by the

manufacturer not based on the orders of customer Many products are produced for storage purpose.Features:

1)It is a cont flow of production2)Standard products are produced with high volume.

3)special purpose machines are used to produce the product

4)Working process is low compare to job and batch product

5)Planning and controlling is easy compare to previous types

6)Cycling time is shorter7)There may be automatic handling of material

MASS PRODUCTIONADVANTAGES DISADVANTAGES It is a cont flow of production High product is possible with

low process investor Manufacture cost/unit is low Less no of skilled are

sufficient Work is process is at lower

level No need wait for the orders of

customer Higher capacity utilization

due to live balancing Product layout is used in this High quality and skills are

used

Investment is high comparison to other 2 types

Total cost is also highBreak down of one

machine will stop the entire production

It product design changes the layout may be change

The cycling timing is determined by slowest operation.

PRESENTED BY RENUKA DEVI.KADALIUNDER THE GUIDENCE OF VISALAKSHI MAM

THANK YOU FOR ALL ….