Operations management involves planning, organizing, and controlling the processes required to produce goods and provide services. It includes activities that transform inputs like materials, labor, and equipment into outputs such as products and services. The goal is to maximize efficiency and optimize the use of resources. Key functions of operations management include production planning and control, which aims to efficiently utilize resources through planning, coordinating, and controlling production activities. Production systems can take different forms like mass production, job shops, batch manufacturing, and process systems depending on the type of product and production approach.
Operations management involves planning, organizing, and controlling the processes required to produce goods and provide services. It includes activities that transform inputs like materials, labor, and equipment into outputs such as products and services. The goal is to maximize efficiency and optimize the use of resources. Key functions of operations management include production planning and control, which aims to efficiently utilize resources through planning, coordinating, and controlling production activities. Production systems can take different forms like mass production, job shops, batch manufacturing, and process systems depending on the type of product and production approach.
Operations management involves planning, organizing, and controlling the processes required to produce goods and provide services. It includes activities that transform inputs like materials, labor, and equipment into outputs such as products and services. The goal is to maximize efficiency and optimize the use of resources. Key functions of operations management include production planning and control, which aims to efficiently utilize resources through planning, coordinating, and controlling production activities. Production systems can take different forms like mass production, job shops, batch manufacturing, and process systems depending on the type of product and production approach.
Operations management involves planning, organizing, and controlling the processes required to produce goods and provide services. It includes activities that transform inputs like materials, labor, and equipment into outputs such as products and services. The goal is to maximize efficiency and optimize the use of resources. Key functions of operations management include production planning and control, which aims to efficiently utilize resources through planning, coordinating, and controlling production activities. Production systems can take different forms like mass production, job shops, batch manufacturing, and process systems depending on the type of product and production approach.
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OPERATIONS MANAGEMENT
MODULE 1 Concept of Production and Operations Management POM is a process that is associated with the conversion of available inputs into desired outputs.
Production Management Operations Management
Involves a system in which inputs are Involves a system in which inputs are transformed into tangible goods – transformed into intangible goods – manufacturing organizations. service organizations.
Focuses on efficient utilization of Focuses on planning and executing
inputs to achieve desired output. activities for the production of services. What Is Operations Management? Production is the creation of goods and services Operations management (OM) is the set of activities that create value in the form of goods and services by transforming inputs into outputs.
Inputs Outputs (customers requirements Transformation Process (goods and/or (components) and materials) services) Definition
The field of study that focuses on the effectively
planning, scheduling, use and control of manufacturing or service organization through the study of concepts from design engineering, industrial engineering, management information systems, quality management, production management, inventory management, accounting and other functions as they affect the organization.” Production as a System What is a system?
Input Output
Materials, Labour, Process Goods and Services Equipment, Capital
Feedback Information Process includes……
Product Design and Analysis, Work study
• Aggregate • Materials • Line Balancing
Planning Requirement • Single machine Planning - MRP scheduling • Master • Capacity Planning • Flow shop production scheduling schedule • Job shop scheduling Production System Definition “Is a set of interrelated components or sub- systems which receive input from the environment, transform it into desirable output (Products or Services)”
A production system includes all the functions
required to design, produce, distribute and service to manufacture a product. Contd…
Production as a system has three components:
1) Production system – receives input
2) Conversion sub-system – changed, converted 3) Control sub-system – determines acceptability Nature of Production Systems Is an organized activity. Requires decisions at all levels. Is a set of various sub-systems. Is an open end system. It aims at optimum use of resources at optimum cost of production. It produces goods and services of desired quality. It transforms various inputs to useful outputs. There exists a feedback about the activities. Role and Importance of Operations Management
Service level and
Resource Utilization Differences Between Goods and Services
Goods Services
Tangible Intangible Can be inventoried Cannot be inventoried No interaction between customer Direct interaction and process between customer and process Evolution of Operations management
Historical Evolution of Operations Management
Scientific Management Fredrick Winslow Taylor postulates…..
1. Scientific laws govern work, so scientific methods can be
used to analyze work. 2. Workers are different, so match workers to their job and then train them thoroughly. 3. Use employee self interest to motivate. 4. Separate the responsibilities of the workers and managers.
Time and Motion study – Organizational Management –
Assembly Line Manufacturing Recent Trends in OM Globalization – Involves the integration of different economies, societies and cultures through cross-border communication and trades.
Total Quality Management – Aims at minimizing
errors, and focuses on strengths, effectiveness, systems, policies etc, employee participation.
Agile Manufacturing (Flexibility) – Fulfilling the
customer needs while maintaining high quality standards. Customer Relationship Management – Enables the organization to serve the customers better by achieving high level of customer satisfaction.
Business Process re-engineering – Involves re-
designing the workflow pattern and processes of an organization.
Environmental Issues – Emphasis on reducing
pollution, recycling waste, using bio degradable materials etc. Recent Trends in OM Technology
Office Service Technolo Computer Integrated Industry Manufacturing gy Production Planning and Control This function aims at efficient utilization of material resources, people and facilities in any undertaking through planning, co-ordinating and controlling the production activities that transform the raw material into finished goods in optimal manner.
What is expected from a system?
Objectives of PPC
Nature of the Inputs
Quantity of Inputs Proper co-ordination Better control Uninterrupted production Capacity utilization Timely delivery Functions of PPC
Production Planning Production Control
Estimating Dispatching Routing Expediting/ follow up/ Scheduling progressing Loading Inspection Production Planning Functions i) Estimating – Involves deciding the quantity of products to be produced and cost involved in it on the basis of sales forecast. ii) Routing – Is a process for determining flow of work, material handling in the plant and sequence of operations or process steps. iii) Scheduling – It involves fixing priorities for each job and determining the starting time and finishing time for each operation. iv) Loading – Means loading of facility or work center and deciding the jobs to be assigned to which work center or machine. Production Control Functions i) Dispatching – defined as setting production activities in motion through the release of orders and instructions in accordance with the previously planned time schedules and routing. ii) Expediting / Follow up / Progressing – ensure that the work is carried out as per the plan and delivery schedules are met. iii) Inspection – Is a process of examining an object for identification or checking it for verification of quality and quantity in any of its characteristics. ASSIGNMENT 2
Advantages and Disadvantages of PPC
Production Cycle…
An overview…
Discussion in Class. PPC in different systems
Mass production - Flow shop
Job – Shop production
Batch production
Project
Flow / Process Production System
Flow / Process Production System
The production process in which the items are made to
flow through the sequence of operations by various devices right from the first operation to the finished product stage is called a flow or process production system.
Eg - Mass production – Flow shop Some products flow continuously through a linear process.
These types of operations are called continuous flow
(flow shop) operations.
Usually the products are not discrete – are similar or less
variety.
Mass production is the continuous production of items
in a series of steps such that all steps are performed concurrently. These are mass production facilities that produce high volumes of the same products.
They are usually ‘make-to-stock’ producers.
The manufacturing happens in Automated, special-
purpose equipments.
Eg - Assembly lines of various products
Assembly line Batch Manufacturing
Batch means a single production run
Batch size means the quantity produced in a single production run. It may be less than 100 units OR up to a few 1000 units.
Many manufacturing operations fall between job shops
and repetitive manufacturing. These are called batch manufacturing.
Batch production is a production technique that
produces multiple units in a series of steps. Units are moved from step to step together as a batch. Here, products having same or similar processes may be grouped into a product family. Examples are small hand tools (e.g., drill, screw driver, and hand mixers). Job Shop Production Process Job shop production process are used in – woodworking shops, – metal fabrication shops, etc. May require an inventory of a few type of the raw materials.
BUT, here the largest percentage of the inventory is Work in
Process (WIP).
Work in Process is the inventory that accumulates in between
process stages. Project type production system A project is a highly flexible and low volume type operation. Usually the item to be produced stays in a fixed place and all the resources come to it. At the end of production, resources leave the place. Examples are – ship construction, – bridge construction, – buildings and – large machines. Some types of service operations may also be called as Projects. These involve a team of people over a period of time and then the people leave the project. Example:
– Developing a software package may be a project type of
service operation. ASSSIGNMENT 3
Advantages and Disadvantages of all the Production
systems Production Cycle
The period during which the objects of labor (raw
products and materials) remain in the production process, from the beginning of manufacturing through the output of a finished product. In addition to the working time, the production cycle includes interruptions in production owing to physical, chemical, and biological (natural) processes (for example, the period required for tanning leather); the character of the objects of labor; or the technology and organization of production.
