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operations are efficient and effective. It is also the management of resources, the distribution of goods and services to customers.
Definition
"The field of study that focuses on the effective planning, scheduling, use, and control of a manufacturing or service organization through the study of
concepts from design engineering, industrial engineering, management information systems, quality management, inventory management, accounting, and other functions as they affect the organization" ~ APICS The Association for Operations Management
OPERATIONS MANAGEMEN T
Production Systems - Nature, Importance and organizational function. Characteristics of Modern Production and Operations function. Organization of Production function. Recent Trends in Production and
Operations Management. Role of Operations in Strategic Management. Production and Operations strategy - Elements and Competitive Priorities. Nature of International Operations Management.
UNIT - II FORECASTING, CAPACITY AND AGGREGATE PLANNING Demand Forecasting Need, Types, Objectives and Steps. Overview of Qualitative and Quantitative methods. Capacity Planning - Long range, Types, Rough cut plan, Capacity Requirements Planning (CRP), Developing
capacity alternatives. Aggregate Planning Approaches, costs, relationship to Master Production schedule. Overview of MRP, MRP II and ERP
UNIT - III DESIGN OF PRODUCT, SERVICE AND WORK SYSTEMS Product Design - Influencing factors, Approaches, Legal, Ethical and Environmental issues. Process Planning, Selection, Strategy, Major Decisions. Service Operations - Types, Strategies, Scheduling (Multiple resources and cyclical scheduling). Work Study - Objectives, Procedure. Method Study and Motion Study. Work
UNIT - IV MATERIALS MANAGEMENT Materials Management Objectives, Planning, Budgeting and Control. Overview of Materials Management Information Systems (MMIS). Purchasing Objectives, Functions, Policies, Vendor rating and Value Analysis. Stores Management Nature, Layout,
Classification and Coding. Inventory Objectives, Costs and control techniques. Overview of JIT.
UNIT - V PROJECT AND FACILITY PLANNING Project Management Scheduling Techniques, PERT, CPM, Crashing CPM networks - Simple Problems. Facility Location - Theories, Steps in Selection, Location Models Simple Problems. Facility Layout -
Production and inventory data Capital budgeting requests Capacity expansion and technology plans Orders for materials Production and deliver)' schedules Quality requirements Design/performance specs Product/service availability Lead-time estimates
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Hiring/firing [Training
Personnel needs Skill sets Performance evaluations job design Work measurement
Human Resources
Prior to that time only craft production Mechanically powered machines replaced the laborer as the primary factor of production and brought workers to a central location called Factory.
The Industrial
Revolution
The revolution first took hold in textile mills, grain mills, metalworking, and machine- making facilities
Production process was broken down into a series of small tasks, each performed by a different worker.
Division of Labor
tasks
Assembling and processing of primary parts Co-operating with Company "A 118 enterprises Manufacture of machine parts, accessories, machining, and press work
Same as at left, metallurgical tools and fixtures Press work, plating, cutting, screws, casting and forging, special parts processing
Scientific Management
Based on observation, measurement, and analysis, he identified the best method for performing each job The methods
were standardized for all workers, and economic incentives were established to encourage workers to follow the standards
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total time (TT) i
c c
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non-workplace (NW) workplace time (WP)
c
supportive work time (WT) J work time (WT) v ancillary work time (AW) J service time (ST) non-work time (NT)
v
Elton Mayo and Hawthorne studies, introduced the idea of workers motivation and Productivity Theories of motivation were developed by Hertzberg, Maslow, McGregor, and
others
Mass Production
SHORT
/TECHNOLOGY XX PEOPLE \
/ - STRUCTURED FLCW jC - TOTAL EMPLOYEE \ / MANUFACTURING M \ INVOLVEMENT / SMALL LOT / PRODUCTION SETUP REDUCTION /
CONTRO VISIBILIT
^ANW*
/m . . ^ \ -TOTAL QUAUTY
HOUSEKEEPING
/ ManufacturingX
TOTAL OUALITY FOCUS CONTINUOUS IMPROVMENT
Eli Whitney
Interchaangeable Parts Drawing Conventions Tolerances Modem Machine Tool Development Fredenck Taylor Standardized Work Time Study & Work Standards Worker/Management Dichotomy Frank Gilbreth Process Charts Motion Study TOM Eiji Toyoda Taichi Ohno Shigeo Shingo Toyota Production System Just-ln-Tim e Stockless Production World Class Manufacturing Henry Ford Assembly Lines Flow Lines Manufacturing Strategy Edwards Deming Joseph Juran Ishikawa
Lean Manufacturing
(c>2005 St rat egos. Inc.
It specifically refers to machines or the production line itself being able to stop automatica lly in abnormal conditions This
Autonomation allows machines to run autonomously, as they will stop when a problem occurs.
Jidoka/ Autonomation
Ultimately, it is about transferring human (or better) intelligence to machines.
Production system
'A production system is the collection of people, equipment, and procedures organized to accomplish the manufacturing operations of a
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2)
3)
production, Continuous production system or flow shop production, Project system or one shot system.
General-purpose equipment and methods are used to produce small quantities of output with specifications that vary greatly from one batch to the next. A given quantity of a product is moved as a batch through one or more steps, and the
6 CNC MACHNE ACCURATELY 6 THE PROOUCTS ASSEMBLED BY SHAPES THE PAPTS A MACHINE OPERATED BY A WORKER 7. PRODUCT QUALITY 6 PRODUCT PASSED ON CHECKED AND TESTED TO NCKAGING DEPARTMENT
production costs can be achieved. (e.g.) assembling automobiles, consumer products such as televisions, washing machines, and personal computers etc
Resources are brought together only once. Because of the singular nature of project systems, special methods of management have been developed to contain the costs of production
Project system
(e.g.) Construction of building, bridge etc
Decision Making in OM
Strategic Decisions Operating Decisions Control Decisions
Strategic Decisions
Examples include deciding:
11 the design for a new product's productio n process 11 where to locate a new factory 11 whether to launch a
Operating Decisions
Examples include deciding:
11 how much finished-goods inventory to carry 11 the amount of overtime to use
next week 11 the details for purchasing raw material next month
Control Decisions
In the 1980s, Computer Integrated Manufacturing was developed and promoted by machine tool manufacturers and the CASA/SME (Computer and Automated Systems Association /Society for Manufacturing
Engineers).
CIM
complete of a plant, under control together. automation with all manufacturing
/*
1 Simu'ation.
Customer orders / Production
validation
Results, simulation Performance costs, capacities Request lor estimates Planning Proposa's Computer-bastf
Technical data Calculation^ of material V requirements and toads. PIC -*7 Design. -/ methods. / CAD. CAM Database What and when? Monitoring performance
Purchases
What and when'
Products
Production system
Technologies Continued Growth of the Service Sector Scarcity of Operations Resources Social-Responsib ility Issues
up profits. The global economy that interconnects the economies of all nations has been termed the global village. One of the most important new markets is China.
International Companies
International firms search out opportunities for profits relatively unencumbered by national boundaries. Operations managers must coordinate geographically
dispersed operations.
Strategic Alliances
Strategic Alliances
11 A financial keiretsu links companies together with cross-holding of shares, sales and purchases within the group, and consultation. 11 A production
keiretsu is a web of interlocking relationships between a big manufacturer (Toyota) and its suppliers.
Production sharing means that a product might be designed and financed in one country, its materials produced in other countries, assembled in another country, and sold in yet
other countries.
Production Sharing
The country that is the highest-quality, lowest- cost producer for a particular activity would perform that portion of the production of the product.
11 Productivity grows more quickly (living standards can go up faster) 11 Global competition and cheap imports keep a lid on prices (inflation less likely to derail economic growth) 11 Open economy
spurs innovation (with fresh ideas from abroad) 11 Export jobs often pay more than other jobs
11 Millions of Americans have lost jobs due to imports or production shifts abroad 11 Most displaced workers find new jobs that pay less 11 Worke rs face
pay-cu ts deman ds from emplo yers 11 Service and white-collar jobs are increasingly vulnerable
11 US employees lose their comparative advantage when companies build advanced factories abroad
and techn ology plans Strate gic alloca tion of resou rces Facility plans: capacity, location, and
layout
s inventory policy
11 Produce-to-stock 11 Produce-to-order
Product/Service Plans
As a product is designed, all the detailed characteristics of the product are established
Each product characteristic directly affects how the product can be made.
efficiency, low costs; marketing focuses on competitive sales promotion; profits are at peak. Decline - declining sales and profit; product might be dropped or replaced.
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B&WTVi CD Player i Automobile i
Maturity Decline
Introduction Growth
This strategy is being used more and more as companies strive to operate more efficiently. Outsourcing has many advantages and disadvantages. Companies try to determine the best level of outsourcing to achieve their operations &
business goals.
1
Outsourcing Plans
equipment, fewer employees, and a smaller facility.
11 Proces sing the subco mpone nts, subass emblie s, major assem blies, and finishe
d product
Outsourcing Plans
11 Distributing the product
Outsourcing Plans
Facility Plans
The internal arrangement (layout) of workers, equipment, and functional areas within a facility affects the ability to provide the desired volume,