Operation management techniques pdf

The quality of a product will be higher if you have Total Quality Control established and assess the operational risks correctly. Inventory control accounts for a better use of supplies. With Just-In-Time manufacturing, the capacity issues can be solved. Collaboration is a common go-to strategy that you can use to improve the effectiveness of your human resources.

As a general advice, you can always consider adding some technology in the mix. The best way to do that is to develop a technology plan: identify where the company is now, in which areas it would need a boost, what relevant technologies are available, and which ones are feasible to implement. The ever-shrinking product lifecycles, the new trends on the labor market, the environmental concerns, and the digitalization of the processes require innovative approaches to operations management.

Some of the trends that have a significant impact on the discipline today are:. With Business Process Reengineering , you can foster innovation and improve any selected measures dramatically. If you want to do it well, focus on how you can add more value to the customer. Established by the Toyota Corporation, the term lean manufacturing has become a mainstream trend in the industry, and it is used interchangeable with Just-In-Time production.

The concept behind is a constant improvement of processes in order to reduce waste and inventory, and maximize the output of high-quality, low-cost products and services. The reason it came to life was the growing complexity of processes, and it is characterized by product development done in small increments and super-fast decision-making. These together ensure the necessary flexibility and interactivity, proven remedies for unpredictable changes in market demand. Improving processes using a data-driven approach is an innovation of Motorola from mid The method is based on the Six Sigma measure , which is achieved if only 3.

When presented with a problem, the Six Sigma approach uses a five-step method called DMAIC, an acronym of define, measure, analyze, improve and control. Another possible method for reacting to quick changes in the market is RMS, a production system that can be used with different functionalities within a product family. With an RMS, you can make adjustments in production cost-effectively. A recent trend that impacts the human resources management activities in operations is the increasing involvement of employees in the planning processes.

Listening to the opinions of the workers often brings up fresh ideas, a different perspective on what problems should be solved and how to make the operations more effective. Due to the ever constraining environmental regulations, businesses must operate under pressure to reduce their harmful impact while still being able to grow. The issues, since affecting all levels of operations, need the insights of operations management on what are the options to meet these new expectations.

Many times, principles applied for efficiency coincide with sustainable operations management principles, like organizing resources or cut times and waste. This trending research area studies the impact of human behavior, especially non-rational decision-making, on the discipline. Because of its complexity, operations management is a field prone to frequent deviances in problem-solving.

With such a toolbox, managers can make more rational decisions and improve the overall efficiency of the operations. E-mail is already registered on the site. Please use the Login form or enter another. You entered an incorrect username or password. Not yet a member? Sign Up. Find your dream job. Get on promotion fasstrack and increase tour lifetime salary. Explore A structured search through millions of jobs. Job Interview Training Skyrocket your resume, interview performance, and salary negotiation skills.

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Choose file. Add a quote. Submit Cancel. Share your thoughts and experience. Subscribe Replies to my comments All comments. Sorry, you must be logged in to post a comment. Related posts read more. They are: i Materials: The selection of materials for the product. Production manager must have sound Knowledge of materials and their properties, so that he can select appropriate materials for his product. Research on materials is necessary to find alternatives to satisfy the changing needs of the design in the product and availability of material resumes.

In competitive situation this will help the management to decide what should be done in arresting the costs at desired level. It also has to draw the timings of materials movement and plan the activities of manpower. The scheduling is to be done keeping in mind the loads on hand and capacities of facilities available. The Routing consists of fixing the flow lines for various raw materials, components etc.

These are prepared in a set of five copies. These documents are to be released from Production Management department to give green signal for starting the production. The activities of the shop floor will follow the instructions given in these documents.

Activity of releasing the document is known as dispatching. Expediting engineers go round the production floor along with the plans, compare the actual with the plan and feed back the progress of the work to the management. This will help the management to evaluate the plans. This is true because, if the quality inspection is given to production Management, then there is a chance of qualifying the defective products also.

To avoid this situation an external person does correction of answer scripts, so that the quality of answers are correctly judged. This is necessary for setting up the standards for future.

What ever may be the size of the firm; Production management department alone must do Routing, Scheduling, Loading, Dispatching and expediting. This is because this department knows very well regarding materials, Methods, and available resources etc. If the firms are small, all the above-mentioned functions i to x are to be carried out by Production Management Department. In medium sized firms in addition to Routing, Scheduling and Loading, Dispatching and expediting, some more functions like Methods, Machines may be under the control of Production Management Department.

In large firms, there will be Separate departments for Methods, Machines, Materials and others but routing, loading and scheduling are the sole functions of Production Management.

All the above ten functions are categorized in three stage, that is Preplanning, Planning and control stages as shown in figure. This is to say all the activities of an organization, such as: Finance, Personnel, Marketing Hence the position of Production Management in an organization is very important. Whether it should be a line function or Staff function, more or less depends upon the corporate management policy.

In small organization, Production Management is whole and sole of it. The figure 1. Figure 1. Production and Operations Management 9 1.

Basic principles that guide the formation of planning policy and its execution may be the same for all the manufacturing concerns. But emphasis on a particular aspect of production management in fulfilling of specific requirement of the plant and the management approach to the problems of inventory, machine selection, machine setting, tooling, routing, scheduling, loading, follow up and general control will differ depending on the type of production system.

Three main factors generally determine this aspect are : i Type of production i. They are discussed below. The quality involved is small and the manufacturing of the product will take place as per the specifications given by the customer.

This system may be further classified as. After the completion of the product, he takes delivery of the product and leaves the firm. He may not visit the firm to book the order for the same product. The firm has to plan for material, process and manpower only after receiving the order from the customer. The firms have no scope for pre-planning the production of the product.

Here also planning for materials, process and manpower will start only after taking the order from the customer. In case the firm maintains the record of the Jobs Produced by it, it can refer to the previous plans, when the customer arrives at the firm to book the order. Here firm knows very well that the customer visits at regular intervals, it can plan for materials, and process and manpower and have them in a master file.

As soon as the customer visits and books the order, the firm can start production. If the volume of the order is considerably large and the number of regularly visiting customers are large in number, the Job Production system slowly transform into Batch Production system.

When the Production of plant and equipment is terminated, the plant and equipment can be used for producing similar products.

This system also can be classified under three categories. The size of the order is greater than that of job production order. The firm has to plan for the resources after taking the order from the customer. It can have well designed file of its plans, material requirement and instructions for the ready reference. It can also purchase materials required in bulk in advance. As the frequency of regular orders goes on increasing the Batch Production system becomes Mass Production System.

Here also, incase the demand for a particular product ceases, the plant and machinery can be used for producing other products with slight modification in layout or in machinery and equipment.

The continuous production is normally associated with large quantities and with high rate of demand. Hence the advantage of automatic production is taken. This system is classified as i Mass Production: Here same type of product is produced to meet the demand of an assembly line or the market.

This system needs good planning for material, process, maintenance of machines and instruction to operators. Purchases of materials in bulk quantities is advisable. In Mass Production identical products are produced in large numbers. If the demand falls or ceases, the machinery and equipment, after slight modification be used for manufacturing products of similar nature. In flow production, the plant and equipment is designed for a specified product.

Hence if the demand falls for the product or ceases, the plant cannot be used for manufacturing other products. It is to be scraped. The examples for the above discussed production system are i Job Production Shop: Tailors shop; cycle and vehicles repair shops, Job typing shops, small Workshops. Table 1. Particulars Intermittent production system Continuous production system. Type of Process layout is most Product layout designed according plant layout. Type of As it necessitate frequent changes in the As production flow is permanently in machine machine set-up required by the specifica- the form of product line, Automatic or tion of each order, general purpose special purpose machines are used.

Also they In flow production specialised have good flexibility. In batch produc- machines are used. Production and Operations Management 11 S. Type of The type of production pre-supposes The manufacturing activity becomes labour frequent changes in product design and a routine function and as the machines machine setups; which requires highly are designed to suit the process skilled labour.

Repair and maintenance required for product and automatic in of machines are to be done by nature unskillful or semi-skilled labour these labours. A specialised team of plant maintenance staff will look after the repair and maintenance of machines. The product manufacutred in large quantities. Each lot one or two products of standard design. Changes As specification of each order changes, In this type of manufacturing, the set- in machine the machines are to set according to up of machines remains unchanged for set-up.

The standard products frequent changes in machine are manufactured in a continuous flow. Nature and Generally the size of orders is small Generally the production is carried on size of and they are not repeated.

The orders for stock. The production of stan- orders. Products are of single product or products in produced in anticipation of demand. Usually the production is The size of the order is large. Same done according to first-in-first-out type of product is produced in every principle. First orders are received and cycle to satisfy the demand. Investment As the machines are arranged in The machines are arranged according on machines process layout and general purpose to process layout and because of this and machines are required for Job produc- duplication of machines is fairly high.

The machines are fully automatic, the For batch production as automatic and cost is higher than intermittent semi-automatic machines are involved production. Investment Here the operating cycle takes more Bulk purchase of materials is done at on time and it is necessary to have periodic intervals. Due to continuous inventories standard materials for long period process, less in process inventory hence inventory cost per product is exists hence material cost per product considerably large.

Material Because of verities of products, Mechanisation of material handling is handling different routes are followed by possible. Generally, convenyors, equipments materials also volume of order is small, pipe-lines, automatic material handing mechanisation of material equipment is used.

Material Material handling per product is costlier Due to mechanised material handling, handling because of long distance handling material handling cost per product cost manual and backtracking.

Plant It is desirable to have a maintenance It is essential to have a good plant maintenance department to avoid losses due to maintenance department to avoid and service brake down of machinery. Balancing Due to different products and different The chances of imbalance in plant of types of machines with different capacity is very much less. Production The functions of routing, scheduling and The function of routing, scheduling planning and loading becomes relatively complicated and loading are carried on smoothly control due to odd size of order, non-repetitive due to standardised products, rated nature of the order, different delivery capacity.

Here production planning dates, etc. Market research reveals consumer preferences and needs. The marketing department will transfer this information to the design department. The design department basing on the information received from marketing department designs the product to fulfill consumer needs and supplies design specifications and drawings to production department.

The production department verifies whether the product can be manufactured with the technology and skill available in the firm. If yes it will give the acceptance. Once this is done the design department conduct the market survey and analyze the demand and submits its sales programme to the top management. The top management after going through the proposals sanctions the budget and gives green signal for production. Production department produces a trial run and sales department release the product in the test markets to get consumer acceptance sells the products.

Meanwhile, the production department prepares the detailed production plans and production scheduling. After getting the acceptance from the marketing department, actual production of product starts to meet the marketing programme.

All this is shown in figure number 1. Distinguish between Product, Service and Project. Define Production Planning and Control and state the objective of production Planning and control department.

What advantages are desired from efficient Production? Operations Management. Briefly discuss the functions of Production Management.

Describe with the use of organization structure the importance of Production Management function and its relationship with other departments in the organization. What are the specific problems in each one of the above and how can there be tackled.