intro to pom

PRODUCTION AND OPERATIONS MANAGEMENT PRODUCTION AND OPERATIONS MANAGEMENT

Recommended Books

1) Production & Operations Management-Prof. K Ashwathappa, K Sridhar Bhat-HPH

2) POM-Kanishka Bedi-Oxford

3) POM – Martin K starr- Biztantra 2004 Indian reprint

4) Operations Management for Competitive Advantage- Chase, Jacobs, Aquilano- TMH, 10/e.20

5) Operations Management- William J stevenson- McGraw Hill, 7/e, 2005

MODULE-1

Introduction to Production and Operations Management•Nature of POM•Systems approach to POM•Factors affecting POM today•Types of production & Production systems•Productivity and competitiveness•Production/Operation strategy

MODULE-2

Product, Process and Service design•Product design and development•Process planning and process design•Production processes,•Service Operations•Production Technology•Problems

MODULE-3

Facility, Capacity, Location and Layout•Manufacturing facility planning•Long range capacity planning•Facility Location and facility layout•Problems

MODULE-4

Capacity management•Job Design•Ergonomics•Method study and work measurement•Employee productivity•Learning curve•Short term capacity planning•Aggregate planning and capacity requirement planning•Problems

MODULE-5

Materials Management•Scope, functions, IS•Purchasing function•Inventory Mgt.•MRP, JIT,ERP•Problems

MODULE-6

Production Scheduling•MPS•Priority sequencing•LOB

MODULE-7

Quality Management•SQC techniques•TQM•Quality circles•Problems

MODULE-8

Technology Management•Automation and Robotics•Technological change•Maintenance Mgt.


MODULE-1 (4)

Introduction to POM

• Nature of POM

• Systems approach to POM

• Factors affecting POM today

• Types of production & Production systems

• Productivity and competitiveness

• Production/Operation strategy

• NATURE OF POM

Production is the basic activity of all industrial units, all other activities revolve around this activity

Example: 1) Automobile industry, Food processing, IT & ITEs

The Production activity is the step by step conversion of one form of material into another form either chemically or mechanically in other words production is the act of transformation ie inputs are processed and transformed into some output

Production = Output/Input

Input – Men, Material, Machine, MoneyOutput – Goods/Services that satisfy the wants of Individuals/Organizations

PRODUCTION MANAGEMENT

Production Management deals with decision making related to production process so that the resulting goods are produced according to specifications, in the the amounts and by the scheduled demanded and at minimum cost.


• Operations Management

PM is more used for a system where tangible goods are produced. whereas OM is more frequently used where various inputs are transformed into intangible services. Like banks, airlines, utilities, pollution control agencies , super bazars, police departments, consultancy services etc.

Production Management

(Products)

Operations Management

(Services)

1) Tangible

2) Can be produced to inventory for off the shelf availability

3) Minimal contact with ultimate consumer

4) Complex and interrelated processing

5) Demand on system variable on weekly, monthly and seasonal basis

6) Markets served by production system are regional, national and international

7) Large units that can take advantage of economies of scale

Example: Cement, sugar mills etc.

1) Intangible and perishable; consumed in the process of their production

2) Availability achieved by keeping the productive system open for services

3) High contact with clients or customers

4) Simple processing

5) Demand commonly variable on hourly, daily and weekly basis

6) Markets served by production system are usually local

7) Relatively small units to serve local markets

Example: KEB, BWSSB etc

MODULE-1

Introduction to POM

•Nature of POM

•Systems approach to POM

•Factors affecting POM today

•Types of production & Production systems

•Productivity and competitiveness

•Production/Operation strategy


• Production system

Inputs

Conversion Sub-system Outputs

EnvironmentLegal/political, social,

Technological & Economic

MarketCompetition,

product information, customer desires

Primary ResourcesMen, Material,

Machine, Money

Physical (Manufacturing, Mining)

Locational services(Transportation)

Exchange Services(Retailing/wholesale)

Storage Services(warehousing)

Other Private Services(insurance, finance, utilities,

real estate, Health, Business service

& Personal service)Government services(Local, state, central)

Goods or

Services

ControlSub-System

Decision Maker

MODULE-1

Introduction to POM

•Nature of POM







• Factors affecting POM today

1. Effect of Automation (Robotics, CAM, CAD,CIM,FMS)

2. The service Revolution

3. Information Technology (MRP,DSS)

4. Liberalization

5. Globalization

6. Emergency of MNC’s

7. Government Policy

MODULE-1

Introduction to POM

•Nature of POM







Classification of Manufacturing systems

MODULE-1

Introduction to POM

•Nature of POM






Intermittent system

Continuous system

Job Production

Batch Production

Mass Production

Process Production


MODULE-1

Introduction to POM

•Nature of POM






• Comparison table

Intermittent Continuous

1) Production on non -contineous basis

2) Production for Order

3) Flexible production process

4) Equipment used for limited time

5) Wide range of products can be manufactured

6) Smaller scale production

7) Planning and control operation complex and tedious

8) More detailed and complex instructions required

9) Low capital investment

10) Per unit cost of production is high

11) Less security of jobs

12) Functional type of organizations

13) Requires staff of high skill and ability

14) Control not ‘in line of production’

15) Storage required at each operation

16) Change in location easy

17) Product and process not standardized

18) Accuracy low

1) Same product produced continuously

2) Items produced for stock

3) Process not flexible

4) Regular use of equipment

5) Only particular type of product is produced

6) Large scale production

7) Planning and control operations simple and easy

8) Single set of instructions is sufficient for operations

9) High capital investement

10) Per unit cost of production is low

11) More security of jobs

12) Regional type of organizations

13) Requires more managerial capability and better coordination

14) Control ‘in line of production’

15) Storage required at only at limited

16) Change in location difficult

17) Product and process standardized.

18) Accuracy high


MODULE-1

Introduction to POM

•Nature of POM






• POM Decisions are of two types

1. Strategic decision

2. Operational decision

STRATEGIC DECISION

• Design

• Process planning

• Location

• Facilities

• Layout & material handling systems

• Capacity planning (future expansions)

• Safety, Productivity, cost reduction efforts

OPERATIONAL DECISION

• Production planning, scheduling and control

• Inventory planning and control

• Quality Assurance

• Work and Job Design

• Maintenance

• Cost control


MODULE-1

Introduction to POM

•Nature of POM






• Productivity

Productivity is a balance between all factors of production that will give the maximum output with the smallest effort.

Productivity = Output / Input = Value of Outputs / Cost of inputs

Productivity Measures

1. Partial productivity measures

2. Total productivity measures

3. Total factor productivity measures

4. Productivity index

1) Partial productivity measures

Material productivity = Total output / Cost of materials

Labour Productivity = Total Output/ Amount of Labour

Capital productivity = Total output / Capital input


MODULE-1

Introduction to POM

•Nature of POM






2) Total productivity measures

Total productivity = Aggregate output / Aggregate input

Aggregate Output = Value of (finished goods + partial units + dividends from securities + interests + other income)

Aggregate input = Value of (human + material + capital + energy + other inputs)

3) Total Factor Poductivity measures

= Net output / (Labour + capital)inputs

= (Total value of output – materials and services purchased) / (Labour + capital) i/p

4) Productivity Index

= (O/I) current period / (O/I) in the base period

= (25/60)-in current year/ (20/50) -in base year


MODULE-1

Introduction to POM

•Nature of POM






FACTORS AFFECTING PRODUCTIVITY

• Controllable or internal factors

• Product

• Plant and equipment

• Technology

• Materials

• Work methods and processes

• Energy resources and power supply

• Human factors

• Management style

2. Uncontrollable or External factors

• Changes in economic situation.

• Social changes and attitudes

• Natural resources

• Government policy

• Infrastructure


MODULE-1

Introduction to POM

•Nature of POM






TECHNIQUES TO IMPROVE PRODUCTIVITY

1) Technology (CAD,CAM, CIM, Robotics, FMS etc)

2) Human resource (Incentives, Promotions, job enrichment, job design, job rotation, participation, empower)

3) Material Management (MRP, Recycle, storage & retrieval, sourcing, logistics)

4) Process (Methods, job design)

5) Product (Value analysis, value engineering, diversification, standardization, simplification)

6) Management (Style, culture, motivation)

7) Quality (TQM, QC,SPC)

8) Business process re-engineering (BPRE)

intro to pom

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