Production and operations management

1. Production and operations management

2. Basic • Production process • Plant location • Material handling • Purchase management • Capacity planning • Method study • Quality mgt/control charts

3. production • Production is conversion of input into output • Input-man , machine, material, money, methods , management • Output-goods produced and services rendered • Control is required at each stage • Production have impact on quality of goods and cost of production.

4. Operation is activities related to production and services thereafter • Management is the process of designing and maintaining an environment in which individuals work to accomplish aims. • Production management is the process of planning, organizing, directing, controlling the activities of the production function. • Operation management is the management of products and services . If service concept is added to production management , it can be called as operation management .

5. Operation management is concerned with production of goods & services , management of resources, distribution of goods & services to customers. • Production deals with the manufacturing (or other such) business end while operations are more sales related.

6. Production management function • Planning –product design, production process selection, location layout, plant &machinery layout, capacity planning • Organizing –time &motion study, material management, purchasing management • Controlling-stores management, quality control, inventory management, maintenance mgt

7. Objectives of production management • To produce quality goods • To increase productivity • To reduce waste • Customer satisfaction • Profitability • Optimum utilization of resources • Deliver the product in time to the right place

8. Scope of production management, before actual production starts • Design of tools • Plant layout-placing machines at right place • Human resource requirement • Method of performance judgement • Selection & operation of the size of the firm

9. Scope of production mgt.during the production • Preparation of production schedules • Plan for maintaining records of raw material, finished goods • Control over the quality • Control on inventory • How any variance will be tackled

10. Productivity and waste • Efficiency through which input is converted in output is called productivity • Productivity –output/input • Other way to look at productivity is by the wastage produced • Waste can be unnecessary input, defective output, idling of resources • Reduction in scrap by 1% can increase in productivity by 10%

11. Product design and development

12. Product development refers to the process of creating new products or modifying the existing ones. As the needs & requirementof customers keeps on changing new products needs to be introduced. • Product design is a term that refers to transforming an idea of how a product should be and the specifications of that product.

13. Need for product design and development • Introduction of new products-new products are developed to meet the changing needs of customers. It is done by taking care of customers need and growth in mkt. • Modifying the existing products-ie providing satisfaction to existing customers by providing new look , improving life cycle(ie to be at growth or maturity pt)

14. Features of good design product 1 functionality –a product is designed to meet the customer need 2 reliability –product should be reliable in terms of quality and performance 3 productivity-no wastage and less cost 4 quality - quality should be maintained by using good material

15. Standardization: d product should be as per the standard established. • Maintainability: the product should require a less amt of maintainence. D product design should b such that maintaining is simple n cost effective, in terms of repair or replacement of defective part. • Cost effective

16. Product life cycle • Introduction-product is launched, advertising is done, no profits , volume is low, small competitors • Growth-product is profitable, competition increases, • Maturity-sale stabilizes, growth at decreasing rate, less profit margin

17. Decline –downfall in mkt , co product not able to cope with mkt situations, price cutting by producers • Withdrawal-product withdrawal from mkt

18. The product development process begins after the requirement for new product have been ascertained n the implementation to them is to b done

19. Product development process • Conception stage/identification stage-the first step is to conceive the idea of product as per the requirement that the product is expected to meet. Mkt deptt tells about the expectation of product, price, competition for the product and design deptt understands them and frame the product

20. Mkt deptt :states d fn reqd in the product, how the product should look like, cost range, time period with in which d product should b there in mkt, requirement in terms of units • Design deptt: offers various products with same fn, tell d mgt about diff possible combination n cost , expected time req to develop the product

21. Acceptance stage/product planning stage :product planning means preliminary mkt analyses, creating alternative concepts, establishing design criteria. It is alwz better to draft drawing, calculations for the product being designed. It is about designing of weight , strength, shape etc of product

22. Execution stage /design stage: once the drawings r available n proposal has been given the reqd acceptance, next stage is to give the plan a physical stage. A sample is produced to know the cost , time, feasibility or product. This stage is time consuming but this stage is very useful

23. Evaluation stage/detailed engineering design stage: at this stage other org function like finance, prodn,etc also get involved. The project is considered as per the available capacity. It gives the detailed definition of product eg material, size, shapes etc. they have to design for function, reliability, safety, efficiency etc

24. Translation stage/prodn process design and development stage: It talks about input material material availability, infrastructure requirement. After this stage , product is ready for prodn • Pre prodn stage/product evaluation& improvement stage:the small batches produced in pre prodn stage r fwd to check the acceptability of product.

25. Post prodn stage/ product use and support:it involves educating the customer about the use of the product

26. Product development technique To develop a good product a co needs to follow particular development technique. Products needs to b developed to meet mkt requirement. 1 standardization: it a technique in which co establishes standard. Std is a criteria for measurement. D main objective of standardization is to compute, identify or describe the products processes and activities in an org.

27. Simplification:it can be defined as process of avoiding a particular product line. Sometimes , it becomes necessary for the co to minimize the no of types or variety of products to avoid complexity. • Specialization: the employees activities should be divided so that they gain specialized knowledge of that activity. It helps in improving productivity

28. Diversification: it is a technique of introducing a new product or new model of existing products. it involves introducing new mkt , new technology

29. Process design/technology life cycle • Process activity can be defined as a set of activity perform to modify and add value to input and convert it into desired output. It is interrelated to product design. Any one of the foll design process can be adopted , depending upon the requirement constraint of the product

30. Assembly line (simple line) technology is suitable for a narrow range of standardized products in high volume. • Continuous flow prodn is suitable for producing a continuous flow of products. • Batch prodn is suitable for variety of products in diff volumes • Job shop prodn is suitable for manufactures of small batches of many diff products each one is custom designed n diff set of processing steps

31. Once d product design has been finalised, d next step is to manufacture it.so manufacturing or prodn process can b defined as a set of activities that r performed to modify or add value to d input and convert it into d desired output.

32. Types of production process • Process prodn • Mass n flow prodn • Batch prodn • Jobbing prodn • Project prodn

33. Process prodn: it is a system where a similar product is produced continuously in large qty yr after yr.e.g. steel inputs, cement, sugar etc capital intensive, special purpose machinery, some specialist to perform.D cost of prodn is almost constant becoz in this system the variety of input n output r not many. unskilled labor is reqd. As far as the mgt is concerned , they have to decide for d prodn process n when the complete prodn line is dedicated to product then decision in regard to volume is to b made. It is good for product whose dd is high n continuous .

34. Mass prodn /flow prodn: max 2 or 3 types of product r manufactured in large qty. capital intensive. It involves special and general purpose machinery. similar type of product can b produced on the basis of common input materials n infrastructure req.e.g. automobiles , iron n steel parts. cost of prodn is more or less constant provided other variables such as input material cost, wages remain same.(un)skilled labor is reqd

35. Jobbing prodn :it involves prodn of 1 or more products whose volume is small.e.g.machine tools manufactures etc small volume ,cost of prodn is high, it requires highly skill ,experienced manpower. • Batch prodn: it is related with variety of products in diff volumes . Here the products r produced in lots n in planned qty.items r produced in batches n a new batch is undertaken for prodn only when d prodn of all items of batch r complete, material

36. handling n storage is immense, mgt bears heavy cost. Skilled and unskilled labor is reqd. skilled one is to run the machinery and unskilled to do packaging n material handling etc e.g. paint manufacturing co.car doors manufacturing co. Project prodn:. It involves various set of activities to make a particular product. And the product is immobile (cannot be moved). it is a prodn of a single complete unit by one operator or group of operators . The product is provided to customer at a single delivery.eg bridge construction, construction of building etc.general purpose machinery is reqd.a high level of coordination is reqd.

37. Delay in one operation can lead to delay in other operations . (un)skilled labor is reqd. the mgt is reqd to plan d activities in a way that each n every activity is conducted without a time lag.

38. Consideration in selecting prodn process • Variety and volume • Lead time • Efficiency • Flexibility • Reusability