report in production operation management by mitch g

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    PRODUCTION OPERATION

    MANAGEMENT

    Process Selection andFacility Layout

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    Process Selection

    Refers to deciding on the way

    production of goods or services

    will be organized. It has majorimplications for capacity

    planning, layout of facilities,

    equipment, and design of work

    system.

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    System Design

    Inputs Outputs

    Forecasting

    Technological

    change

    Facilities

    and

    Equipment

    Work

    Design

    Product

    and

    Service

    design

    Layout

    Capacity

    Planning

    Process

    Selection

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    TECHNOLOGY

    TechnologyRefers to applications of

    scientific discoveries to the development and

    improvement of goods and services and/or

    the processes that produce or provide them.

    Technology InnovationRefers to the

    discovery and development of new or

    improved products, services, or processes

    for producing or providing them.

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    Three Kinds of Technology

    Product and Service technologyis the

    discovery and development of new products

    and services.

    Process technology

    includes methods,procedures, and equipment used to produce

    goods and provide services.

    Information technology (IT)

    is the scienceand use of computers and other electronic

    equipment to store, process, and send

    information.

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    Technology as a Competitive Advantage

    Technology innovation in products andservices, and in processing technology can

    produce tremendous benefits fororganizations.

    Technology Acquisition

    While process technology can have

    enormous benefits, it also substantial riskunless a significant effort is made to fullyunderstand both the downside as well theupside of a particular technology.

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    Process Selection

    Process Types - There are five basic types of Process Types :

    Job shopA job shop usually operates on a relatively

    small scale. It is used when a low volume of high-

    variety goods or services will be needed.

    Batch

    Batch processing is used when a moderatevolume of goods or services is desired, and it can

    handle a moderate variety in products or services.

    Repetitivewhen higher volumes of more standardized

    goods or services are needed, repetitive processing isused.

    Continuouswhen a very high volume of non discrete,

    highly standardized output is desired, a continuous

    system is used.

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    Projectis used for work that is non routine,

    with a unique set of objectives to be

    accomplished in a limited time frame.

    Product and Service Profiling

    can be used toavoid any inconsistencies by identifying key

    product or service dimensions and then

    selecting appropriate process.

    Automationis machinery that has sensing and

    control devices that enable it to operate

    automatically.

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    Computer

    aided manufacturing (CAM)

    refersto the use of computers in process control,

    ranging from robots to automated quality

    control.

    Numerically controlled (N/C)are programmed

    to follow a set of processing instructions based

    on mathematically relationship that tell the

    machine the details of the operations to beperformed

    RobotA machine consisting of a mechanical

    arm, a power supply, and a controller.

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    Facilities Layout

    LayoutRefers to the configuration of departments,

    work centers, and equipment, with particular emphasis

    on movement of work (customer or materials) through

    the system.

    Layout decisions are important for three basis reasons:

    a. they require substantial investments of money and

    efforts.

    b. they involved long-term commitments, which makes

    mistakes difficult to overcome.

    c. they have a significant impact on the cost and

    efficiency of operations.

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    Objective of Layout Design

    To facilitate attainment of product orservice quality.

    To use workers and space efficiently.

    To avoid bottlenecks. To minimize material handling costs.

    To eliminate unnecessary movements ofworkers or materials.

    To minimize production time orcustomer service time.

    To design for safety.

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    Repetitive Processing: Product

    Layout

    Product Layoutlayout that uses standardized

    processing operations to achieve smooth,

    rapid, high-volume flow.

    Production Line

    standardized layout arrangedaccording to a fixed sequence of production

    task.

    Assembly Linestandardized layout arranged

    according to a fixed sequence of assembly

    tasks.

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    Process Layout

    Dept. A

    Dept. B Dept. D

    Dept. C

    Dept. F

    Dept. E

    Used for Intermittent processing

    Job Shop or Batch

    Process Layout

    (functional)

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    Process Layout

    Work

    Station 1

    Work

    Station 2

    Work

    Station 3

    Product Layout

    (sequential)

    Used for Repetitive Processing

    Repetitive or Continuous

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    Cellular Production

    Layout in which machines are

    grouped into a cell that can process

    items that have similar processing

    requirements.

    Group Technology

    The grouping into part families of

    items with similar design or

    manufacturing characteristics.

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    Warehouse and storage layouts

    Retail layouts

    Office layouts

    Other Service Layout

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    Line Balancing

    Line Balancing is the process of

    assigning tasks to workstationsin such a way that the

    workstations have approximately

    equal time requirements.

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    Cycle Time

    Cycle timeis the maximum timeallowed at each workstation to

    complete its set of tasks on a unit.

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    Design of Work System

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    Design of Work System

    Job design involves specifying the content

    and methods of job.

    What will be done.

    Who will do the job.

    How the job will be done.

    Where the job will be done.

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    Design of Work System

    Specialization

    Behavioral Approaches to

    Job Design

    Motivation

    Teams

    Methods Analysis

    Motions Study

    Working conditions

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    Specialization

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    Specialization in Business:

    Advantages

    ForManagement:

    1. Simplifies training

    2. High productivity

    3. Low wage costs

    ForLabor:

    1.Low education and

    skill requirements

    2.Minimum

    responsibilities

    3.Little mental effort

    needed

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    Disadvantages

    For Management:

    1. Difficult to motivate

    quality

    2. Worker dissatisfaction,

    possibly resulting in

    absenteeism, high

    turnover, disruptive

    tactics, poor attention

    to quality

    For Labor :

    1. Monotonous work

    2. Limited opportunitiesfor advancement

    3. Little control over work

    4. Little opportunity forself-fulfillment

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    Job Enlargement

    Giving a worker a larger portion ofthe total task by horizontal loading

    Job Rotation

    Workers periodically exchange jobs

    Job Enrichment Increasing responsibility for planning

    and coordination tasks, by verticalloading

    Behavioral Approaches to Job

    Design

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    Motivation and Trust

    Motivation

    Influences quality and

    productivity.Contributes to work environment.

    Trust

    Influences productivity and

    employee-management relations.

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    Teams

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    Teams

    Benefits of teams

    Higher quality

    Higher productivity

    Greater worker satisfaction

    Self-directed teams

    Groups of empowered to makecertain changes in their work process

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    Methods Analysis

    Methods analysis

    Analyzing how a job gets done

    Begins with overall analysis

    Moves to specific details

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    Changes in tools and equipment

    Changes in product design

    or new products

    Changes in materials or procedures

    Other factors (e.g. accidents, quality

    problems)

    The need for methods analysis can come

    from a number of different sources:

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    Methods Analysis Procedure

    1.Identify the operation to be studied

    2.Get employee input

    3.Study and document current method4.Analyze the job

    5.Propose new methods

    6.Install new methods7.Follow-up to ensure improvements

    have been achieved

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    Motion Study

    Motion study - is the

    systematic

    study of the human

    motions used

    to perform an

    operation.

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    Motion Study Techniques

    Motion study principles - guidelines for

    designing motion-efficient work procedures

    Analysis of therbligs - basic elemental

    motions into which a job can be broken down

    M icromotion study - use of motion pictures

    and slow motion to study motions that otherwise

    would be too rapid to analyzeCharts

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    Working Conditions

    Working conditions are an important

    aspect of job design. Physical factorssuch as temperature, humidity,

    ventilation, illumination, and noise can

    have significant impact on worker

    performance in terms of productivity,

    quality of output, and accidents.

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    Compensation

    Compensation is asignificant issue for the

    design work system.

    T B i f

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    Two Basic system for

    Compensation

    Timebased system

    also known as hourly and measured day work

    system,

    Compensate employees for the time theemployee has worked during a pay period.

    Outputbased (incentive) system

    Compensation based on amount of output an

    employee produced during a pay period.

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    Thats All

    hank You