The basic concepts of Production and Operation management

1. 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.

2. DUTIES OF PRODUCTION MANAGER

Production planning

Production control

Quality control

Method Analysis

Inventory Control

Plant layout and material handling

Work measurement

Other functions

3. 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

4. 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

5. 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

6. SPECIFIC LOCATION FACTORS

Manufacturing organization
1.
Dominant factors
2.
Secondary factors

Service organization
1.
Dominant factors
2.
Secondary factors

7. 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

8. 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

9. OBJECTIVES OF PLANT LAYOUT
1.
2.
3.
4.
5.
Economy
Delays
Space
Supervision & control
Flexibility

10. TYPES OF PLANT LAYOUT
1.
2.
3.
4.
5.
Process
Product
Combination
Fixed position
Group

11. 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.

12. 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

13. 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

14. MATERIAL HANDLING EQUIPMENTS
1.
2.





Fixed path equipment
Variable path equipment
Conveyors
Industrial trucks
Cranes
Containers
Robots
Guidelines for effective material
handling

15. 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.

16. 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

17. VENDOR RATING
1.
2.
3.
The categorical plan
The weighted point method
The cost-ratio plan

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. DIFFERENT DOCUMENTS RELATED TO
STORE
Goods inward sheet
 Material issue requisition
 Bin card
 Store record card
 Material transfer note
 Material return note


26. 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

27. 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

28. AGGREGATE PLANNING

Aggregate Planning Strategies

Guidelines

29. 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

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.
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

32. QUALITY
Dimensions
1.
Performance
2.
Features
3.
Reliability
4.
Appearance
5.
Safety
6.
Customer service
Methods of Inspection
1.
100% inspection
2.
Sampling inspection

33. 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.

34. 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

35. 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.

36. 2.
Economic improvements oriented benefits

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.
Technology Based
Employee Based
Material Based
Process Based
Product Based
Task Based

39. WORK STUDY
Select
Record
Examine
Develop
Execute
Define
Install
Maintain

40. METHOD STUDY
Eliminate unnecessary operation & to achieve the
best method of performing the operation.
Essentials of method study
Advantages
Objectives

41. RECORDING TECHNIQUES OF METHOD
STUDY
1.


2.
Charts
Macro Motion charts
Micro Motion charts
Diagrams

42. 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.

43. 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.

44. MAINTENANCE MANAGEMENT
The work of keeping something in proper
condition, upkeep.
Types
1.
2.
3.
Breakdown (Reactive) Maintenance
Preventive Maintenance
Predictive Maintenance

45. TOTAL PRODUCTIVE MAINTENANCE
(TPM)
Involves newly defined concept for maintaining
plants & equipment.
Objectives of TPM

46. 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