2. Operations Management
 Operations Management is the planning, scheduling
and controlling of activities that transforms inputs by
way of raw materials, capital, machinery, labour,
information and time into outputs in the form of
products and services of higher value than the inputs.

3. Decision Areas
 Managing Quality
 Product Design
 Process Design
 Location Strategies
 Layout Strategies
 HR Strategies
 Supply chain Management
 Inventory Management
 Scheduling
 Maintenance

4.  Difference between Production & Productivity
 Partial Vs Total Productivity
 4Ms: Men Machine Material Money
 Efficiency Vs Effectiveness

5. Type of Production Systems
 Mass / Flowline
 Batch
 Job
 Projects

6. Plant Location
A good location reduces the cost of production &
distribution to a considerable extent
Need for Plant Location:
- New Factory
- Expansion
- Relocation

7. Factors determining the plant
location: Primary….
 Supply of Raw Material
 Nearness to the market
 Transport Facilities
 Labour Supply
 Availability of Power
 Supply of Capital

8. Secondary
 Facilities
 Natural Factors
 Political Factors
 Govt Subsidies and facilities (SEZ…)
 Historical & Religious Factors
 Initial start & Goodwill
 Personal Factors
 Miscellaneous Factors (Eg.Vaastu ….Maruti Udyog Ltd)
…and many more.

9. Urban Vs Rural

10. Plant Layout
Plant Layout is the physical arrangement of machines,
processing equipment and service departments to have
the best co ordination and efficiency of man machine
and material in a plant.
Principles of Plant Layout…

11. Factors affecting layout
 Types of Industries
 Type of production system
 Type of product
 Volume of product
 Desired flexibility
 Use of space / Available floor space
 Flow of Work, Material & Personnel
 Accessibility
 Working Environment
 Architecture design of the space

12. Material flow systems
 I Type
 L Type
 U Type
 S Type
 O Type

13. Process charts
 Operations Process chart
 Flow process chart

14. Types of Plant Layout
 Process Layout
 Product Layout
 Fixed Position Layout
 Hybrid Layout

15. Material handling equipments
 Conveyors: Belt, Chain, Roller.

16. Cranes, Hoists

17. Forklifts & Industrial Trucks

18. Principles of Material Handling

19. INVENTORY MANAGEMENT
Managing the stock of items kept on hand by an
organisation to be used to meet customer demand.
Types of Inventory
- RM Inventory
- WIP Inventory
- FG Inventory

20. Functions of Inventory
 To meet anticipated demand
 To smooth production requirements
 To avoid over stocking and under stocking
 To avail quantity discounts
 To hedge against price fluctuations and seasonal demand.

21. Concept of EOQ
 Meaning of EOQ
 Types of cost
 Reorder level
 Assumptions of EOQ

22. Selective Inventory Control
 ABC Analysis
 VED Analysis
 FSN Analysis

23. Materials Management
Materials Management consists of planning, directing,
co-ordinating and controlling those activities which
are concerned with the materials and inventory
requirements from the point of their inception to the
final manufacturing.
“Right Material in right quantity at the right time at the
right price from the right source of supply.”

24. Importance of materials
management
 Accounts for major part of the capital employed
 Offers maximum opportunities to reduce costs and
shorten the process time thus increasing profits
 Quality of finished products eventually depends on
the quality of the materials used
 Materials management encompasses some of the most
prominent areas like Purchasing, Storing, Inventory,
Material Handling, Transportation, Shipping….
 Material Procured should be compatible with the
demand

25. Functions
 Minimisation of costs (Material, purchase, inventory..)
 Maintain the desired quality
 Avoid overstocking & stock outs
 Increase the inventory turnover
 Vendor Management & Vendor Relations
 Development of Operations Personnel

26. Purchase Dept
Types of procurement
 Centralised
 Decentralised

27. Modes of purchasing materials
 Spot Quotations
 Floating the limited inquiry
 Tender

28. Stores Management
Functions:
 Receipt
 Storage
 Retrieval
 Issue
 Records
 Housekeeping
 Surplus stock
 Scrap
 Verification
 Co ordination & Co operation

29. Stores Management
Objective:
 Material never goes out of stock
 Material is never too excess than what is required
 Minimise costs
 Material should be easily traceable and available at
beck and call
 To protect the stores against theft , damage etc…
 Optimum utilisation of cubic space.

30. Principles of Stores Layout
 Optimum utilization of floor space
 Adequate floor load
 Wide aisles & Gangways
 Heavy items to be stored at low levels
 Most frequently used items to be stored near issuing
windows
 Movement of air, temp, light, materials, humans not to
be obstructed
 Ergonomically designed

31.  Water proofing is essential
 Adequate security & safety
 Adequate material handling equipments
 Proper Material tracking & locating systems

32. Material Issuance & pricing
methods
 FIFO
 LIFO
 Average Cost

33. Type of Stores
 Centralised
 Decentralised

34. Maintainance Management
 It refers to the upkeep and protection of plant,
building & machinery and other fixed assets of a firm
which are subject to deterioration due to their use and
exposure to the environment over a period of time.
 Maintainance encompasses all those activities
required to keep the physical facilities and equipments
in good working condition and make necessary repairs
when breakdown occurs, so that the system can
perform as intended.

35. Major areas of Maintainance
 Civil
 Mechanical
 Electrical

36. Types
 Breakdown Maintenance
 Preventive Maintenance
 Predictive Maintenance
 Routine Maintenance
 Planned Maintenance

37. Some Indices
 Maintenance cost index
 Frequency of breakdowns
 Down time index
 Breakdown Maintenance index
 Labour cost of planned Maintainance

38. KAIZEN
 Developed by Masaaki Imai
 Meaning
 Principles
 Merits
 Limitations
 5 s

40. KANBAN
 Literal Meaning “Card Bin”
 Coined by Taiichi Ohno
 It is a scheduling system for Regular and just-in-
time (JIT) production.

42. Six Sigma
 Six Sigma ( ) is a process improvement set of tools
and strategies to achieve excellence and perfection.
 Developed by Motorola in 1986.
 The term borrows its name from the Normal
Distribution.
 A six sigma certification is granted to a process which
manufactures products in which 99.99966% Of the
products manufactured are free of defects.
 A maximum of 3.4 defects per million are allowed.

43. DMAIC Model

44. Learning Curve
A learning curve is a graphical representation of the
changing rate of learning (in the average person) for a
given activity or task.

45.  Concept
 Graph
 Learning Rate
 Limitations
 Anti Learning Curve

46. Quality
The quality of product or service is a customer’s
perception of the degree to which the product or
service meets his or her expectations.
Quality is the performance of the product as per the
commitment made by the producer to the consumer.

47. Benefits of Quality Control
 Minimum Scrap
 Reduction in costs
 Standardisation or uniformity in products
 Reduced Production Bottlenecks & Stoppages
 Reduced inspection and Quality Checks
 High Customer Satisfaction
 Increase in Brand Goodwill & thus higher Sales
 Higher Operating efficiency
 Sense of pride amongst the Employees
 Better utilisation of resources.

48. Dimensions of Product Quality
 Performance
 Features
 Reliability
 Serviceability
 Appearance
 Customer Service
 Safety

49. Q C TOOLS
 Stratification
 Data Collection
 Check Sheet
 Pareto Analysis
 Histogram
 Ishikawa Diagram
 Control Charts

50. Quality Gurus
 Ishikawa
 Deming
 Philip Crosby
 Juran
 Feigenbaum

51. SELF STUDY
ISO