Post on 10-Apr-2018
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11th Largest Economy In The World By GDP
Population 1,139,964,932 - 2008(Source: World Bank, World Development Indicators)
LABOUR FORCE 467 Million
LABOUR FORCEBY OCCUPATION
Agriculture (52%), Industry(14%), Services (34%) (2009)
UNEMPLOYMENT 10.7% (2010)
CONCISE ON INDIAN ECONOMY
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MAIN INDUSTRIES Telecommunications, Textiles,Chemicals, Food Processing,
Steel, Transportation Equipment,Cement, Mining, Petroleum,Machinery, InformationTechnology, Pharmaceuticals
EXPORT $176.5 billion (2009)
EXPORT GOODS Software, Petroleum Products,
Textile Goods, Gems & Jewelry,Engineering Goods, Chemicals,Leather Manufactures
MAIN EXPORT
PARTNERS
US 12.3%, UAE 9.4%, China 9.3%
(2008)
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IMPORTS $287.5 billion ( 2009)
IMPORT GOODS Crude Oil, Machinery,Gems, Fertilizer,Chemicals
MAIN IMPORTPARTNERS
China 11.1%, SaudiArabia 7.5%, Us 6.6%,Uae 5.1%, Iran 4.2%,Singapore 4.2%,Germany 4.2% (2008)
FDI STOCK Home: $161.3 Billion(2009)Abroad: $77.4 Billion
( 2009)
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GDP
Measure of a country's overall economic output .
OR
The monetary value of all the final goods and
services produced within a country's borders in a
specific time period.
GDP= C+I+G+NX
(NX = EXPORTS - IMPORTS)
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GDP FLUCTUATION
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GDP $1.250 Trillion (2009)GDP GROWTH 8.8% (2010, Q1)
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GDP CONTRIBUTION BY SECTOR
1991
41%
27%
32% Agriculture
Industry
Services
GDP CONTRIBUTION BY SECTORS 2010
18%
22%60%
Agriculture
Industry
Services
G D P C O N T R I B U T IO N B Y S E
1 7
2 95 4
A g ric u lt
In d u s tr y
S e rvic e
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WHAT IS A PRODUCT ?
A product is any tangible ,intangible offerings that
might satisfy the needs or aspirations of consumer .
It represents the solution of customers problem .
If product not bought and consumed ,it remains raw
material.
The products is always a combination of tangible adintangible benefits
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PRODUCT
TANGIBLE INTANGIBLE
ServicesPhysical GoodsNon Physical
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CLASSIFICATION OF PRODUCTS
Service (Intangible in nature)
Durable (Hard Goods) tangible ,intangible benefits
Non Durable (Soft Goods) tangible ,moderatelyintangible benefit
Business Products
Consumer Products
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Durable (Hard Goods)
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FMCG Products
Detergents Toilet soaps
Toothpaste
Shampoos Creams o Powders
o Food products
o Confectionerieso Beverageso Cigarettes
Non Durable (Soft Goods)
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STAPLES
Goods that consumes purchaseon a regular basis
IMPULSE GOODS
Purchased without any planningor search
EMERGENCY GOODS
Purchased when a particularneeds arises
FMCG
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Consumer Goods
Classes
Consumer products can be classified based on thebuying behaviour of the consumers:
CONVENIENCE GOODSCONVENIENCE GOODS are bought with little time and effort, suchas milk, bread, a chocolate bar.
SHOPPING GOODSSHOPPING GOODS are those where extensive comparison is the
norm--, furniture, clothes, etc
SPECIALTY GOODSSPECIALTY GOODS are those for which consumers have a strongbrand preference. Computer ,car, mobile .
UNSOUGHT GOODSUNSOUGHT GOODS are those now unknown to the consumer or, if
known, undesired.
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Comparing Consumer Goods Classes
Nature ofpurchase
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7/5/2010 SIVA PRAKASH C.S
SERVICE INDUSTRIES ANDPRODUCTS
Health Care hospital, medical practice,
dentistry, eye care
Professional Services accounting, legal,
architectural
Financial Services banking, investment
advising, insurance
Hospitality restaurant, hotel/motel,
bed & breakfast,
Travel airlines, travel agencies,
theme park
Others: hair styling, pest control,plumbing, lawnmaintenance, counselingservices, health club
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SERVICE PRODUCTS
MetLife Protection ProductsMet Group Life
Met Group Life in lieu of EDLI
Met Group Riders
Fund ProductsMet Gratuity
Home Loans
Educational Loans
Used Car Loans
New Car Loans
Two Wheeler Loans
Personal LoansExpress Loans Plus
Gold Loan
Loans Against Securities
Loans Against Property
Loans Against Rental ReceivablesTractor Loans
HDFC BANK
Children's Policy
Group Insurance PolicyJoint Life Policy
Money Back Policy
Pension Plans or Annuities
Special Plans
Term Policy
Whole Life Policy
LIC Products
http://www.metlife.co.in/MetIndia/Institutional/Products/Products_pre.htmlhttp://www.metlife.co.in/MetIndia/Institutional/Products/Products_pre.html?QryStr=InsPrdIdhttp://www.metlife.co.in/MetIndia/Institutional/Products/Products_pre.html?QryStr=InsPrdIdhttp://www.metlife.co.in/MetIndia/Institutional/Products/Products_pre.html?QryStr=InsPrdIdhttp://www.metlife.co.in/MetIndia/Institutional/Products/Products_pre1.html?QryStr=InsPrdIdhttp://www.metlife.co.in/MetIndia/Institutional/Products/Products_pre1.html?QryStr=InsPrdIdhttp://www.hdfcbank.com/personal/loans/new_car.htmhttp://www.metlife.co.in/MetIndia/Institutional/Products/Products_pre1.html?QryStr=InsPrdIdhttp://www.metlife.co.in/MetIndia/Institutional/Products/Products_pre1.html?QryStr=InsPrdIdhttp://www.metlife.co.in/MetIndia/Institutional/Products/Products_pre.html?QryStr=InsPrdIdhttp://www.metlife.co.in/MetIndia/Institutional/Products/Products_pre.html?QryStr=InsPrdIdhttp://www.metlife.co.in/MetIndia/Institutional/Products/Products_pre.html?QryStr=InsPrdIdhttp://www.metlife.co.in/MetIndia/Institutional/Products/Products_pre.html8/8/2019 Om New 1
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Classifying Business
Products
RAW MATERIALSRAW MATERIALS: unprocessed, become part of other manufacturedproducts
MANUFACTURED PARTS AND MATERIALS:MANUFACTURED PARTS AND MATERIALS: processed products thatbecome part of other products
INSTALLATIONS:INSTALLATIONS: equipments for constructions
ACCESSORY EQUIPMENT:ACCESSORY EQUIPMENT: used in operations, include computers, desks,tools
OPERATING SUPPLIESOPERATING SUPPLIES: low value, used by most firms, convenienceproducts for businesses
G d & S i
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Goods & ServicesGoods & Services
DifferencesDifferences
Intangibility
Perishability
Heterogeneity
Inseparability
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IMPLICATIONSIMPLICATIONS OF INTANGIBILITYOF INTANGIBILITY
Services cannot be inventoried
Services cannot be patented
Services cannot be readily displayed orcommunicated
Pricing is difficult
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PRODUCTION
&OPERATIONS MANAGEMENT
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PRODUCTION
&
OPERATIONS MANAGEMENT
In simply we could say it is the conversion
of certain input in to output through
systematic process..
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OPERATIONS AS ASYSTEM
Transformation
(Conversion)
Process
Transformation
(Conversion)
Process
Energy
Materials
Labour
Capital
Knowledge
Goods &
Services
Feedback (information) - control overprocess inputs & technology
Technology
OutputInput
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INPUT
OU
TPU
T
Product Engg Design
& Process Design
Purchasing &
Inventory Control
Production Planning
& ControlCapacity
Panning
Packing & Storing
PROCESS
Labour
Material
Capital
Other
Resources
Goods
Services
Maintenance
Management
Quality
Control
Process
Improvement
FACILITY LOCATION
PLANT LAYOUTForecasting
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Operations Management BoundaryProduct developmentForecastingFacility location identificationCapacity planningProcess planning
Plant layoutResource managementProduction planning and control
Job design
MaintenanceInventory & Quality managementPurchasing& Warehouse managementMaterials management
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PRODUCTS
PEOPLE
PARTS
PLANTS
PROCESSESPLANNING AND CONTROL SYSTEMS
6Ps OF OPERATIONS MANAGEMENT
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Finance Management Human ResourceManagement
Marketing
Management
Operations Management
INTERDEPENDENCY
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NPD
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Product Idea (2003)
To Use Tata Ace Plant Rudhapur ( 2008)
Technology/Knowledge Partnership (2005
Prototype(2006)
Manufacturing Plant (2006)
Conceptualization Of Small Car (Nano)(2004)
Launch( March 23rd) And Rollout (May June 2009)
To Shift Manufacturing Plant To Sanand (2008)
Decision On Dealership And Distribution (2007)
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A380 Seatingcapacity
525 (3-class)644 (2-class)853 (1-class)
A380 cost US$317.2-337.5 Million
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Project began on 1988 November under the headship of , Jean Roeder
AIRBUS A380 PRODUCT DEVELOPMENT STAGE
What is new product ?
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What is new product ?
A new product is any product which is perceived by the
customer as being new
Repositioned product of existing oneOffering the existing product at low price and so on..
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WHY NEW PRODUCT DEVELOPMENT
Surplus Capacity
Explorative Mind Of Management
Changing In Customer Preference
Technological Change
Government Policy
International Marketing Environment Changes
NEW PRODUCT DEVELOPMENT
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NEW PRODUCT DEVELOPMENT
Robust Design
Modular Design
Standardization
Detailed Engineering
Design
Production Process
Design &
Development
CAD/CAM
VIRTUAL REALITY
TECHNOLOGY
VALUE ANALYSIS
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PLC (PRODUCT LIFE CYCLE )
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PRODUCTION PROCESS
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Production Process
INTERMITTENTPRODUCTION PROCESS CONTINUOUSPRODUCTION PROCESS
1. Projects
2. Job Process3. Batch Process
1. Line Process
2. Continuous Flow Process
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INTERMITTENT PRODUCTION PROCESS
Volume Of Production Is Less
Varity Is High
General Purpose Machinery
Highly Skilled Labor
Lower Capacity Utilization Of Resource
Simple Material Handling Equipments( rarely
complex)
Higher Degree Of Flexibility
Customer Driven Production
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INTERMITTENT PRODUCTION PROCESS TYPE -2
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Higher level of Customization
Specifications Are Given By CustomerQuantity Produced Is Small In Size (Low Volume)
Higher Degree Of Flexibility In Production
Handel Different Variety Of ProductComplexity depends on products
No Order In Process Flow( No Line Flow)
Higher degree of divergence
Higher Degree Of Control Required
Lower degree of Standard Quality Control
Low Equipment Utilization
Multiple skilled labors
JOB SHOP PROCESS
Machine Shop
Printing Press
Hair Dressing
INTERMITTENT PRODUCTION PROCESS TYPE -3
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BATCH PROCESS
Multiple products
Moderate low volume and Is Made Into Batches
Low degree of Order In Process Flow(Disconnected line flow)
Moderately complex workSpecialized Skilled Labors Are Required
Slow Production Process
Resource Utilization Less
Higher Work In Progress
Idle Time Higher
Work content of each product will be broken down in to number of modules.
Workers will be divided in to worker/groups perform specific operations in
each module .
After the completion first operation the module will send to next operation and
so on till the completion of product.
Electronic Instruments
Electric Motor
CONTINUOUS PRODUCTION PROCESS
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CONTINUOUS PRODUCTION PROCESS
Large and continuous demand for product.
High investment on special purpose ,automatedmachines ,fixed path material handling equipments.
Costly control systems.
Operation cycle time less.
Unit cost of production is less due to large volume of
production.
Specialized Skilled Labors Are Required.
Higher investment in safety measures .
Systematic human resource management .
Product layout etc.
Quality control mechanism
CONTINUOUS PRODUCTION PROCESS TYPE -1
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Assembly Line Or Mass Production
Few Major Product Variety
Connected line
High Volume
High Repetitive Work
Assembly Line Almost FlexibleSpecialized Labor Required
Predetermined Sequence Of Operations
Large Investment
Operation Cycle Time Almost LessWork In Progress Almost Nil
Production Planning And Control &Line Balancing Required
Good Inventory Management
Qualit Control Mechanism
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Pro uct-Process Matr x or
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Pro uct Process Matr x orProcesses
(1)(1) (2)(2) (3)(3) (4)(4)
Low-volumeLow-volume Multiple products with lowMultiple products with low Few majorFew major High volume, highHigh volume, highproducts, madeproducts, made to moderate volumeto moderate volume productsproducts standardization,standardization,to customerto customer higherhigher Continuous FlowContinuous Floworderorder volumevolume
ProcessProcess
CharacteristicsCharacteristics
(1)(1)
Complex and highlyComplex and highlycustomized process,customized process,unique sequence ofunique sequence of
taskstasks
(2)(2)
Disconnected lineDisconnected lineflows, moderatelyflows, moderatelycomplex workcomplex work
(3)(3)
Connected line, ,Connected line, ,highly repetitive workhighly repetitive work
(4)(4)
Continuous flowsContinuous flows
LessCom
plexity,LessDiv
ergence ,
MoreLineFlows
LessCom
plexity,
LessDivergence ,
MoreLineFlows
Less Customization and Higher VolumeLess Customization and Higher Volume
Product DesignProduct Design
Continuous
process
Job
process
Line
process
Large batch
process
Small batch
process
Batch
Proce
sses
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Customer-Contact Matrix for
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2007 Pearson Education
Cus o e Co ac a oService Processes
Less Customer Contact and CustomizationLess Customer Contact and Customization
ServiceService PackagePackage
Front office
Hybrid office
Back office
(1) (2) (3)High interaction with Some interaction with Low interaction withcustomers, highly customers, standard customers, standardized customized service services with some options services
Process
Characteristics
(1)Flexible flows,
complex work with
many exceptions
(2)Flexible flows with
moderate job
complexity
(3)Line flows, routine
work easily
understood by
employeesLessCo
mplexit
y,LessDiverge n
ce,MoreLine
Flo
ws
PLANT LAYOUT
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Plant Layoutis refers to the arrangement of :
Machinery, Equipments ,
Industrial facilities such as room for raw materials ,
Tool rooms ,Maintenance rooms
Employees amenities
For the purpose of achieving the
quickest and smooth production at the
least cost and time.
PLANT LAYOUT
OBJECTIVES OF PLANT LAYOUT
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OBJECTIVES OF PLANT LAYOUTSTUDY
1. Minimize investment in equipment/Labour2. Minimize over all production time.
3. Utilize existing space most effectively
4. Provide for employee convenience, Safety and comfort
5. Maintain flexibility of arrangement and operation.
6. Minimize material handling cost.
7. Minimize variation in types of material handling equipment.
8. Facilitate the manufacturing process.
PLANT LAYOUT
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PLANT LAYOUT
Layout design
Product design
Schedule Design Process Design
FACTORS INFLUENCING LAYOUT
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FACTORS INFLUENCING LAYOUT
1.Materials
2.Product3.Worker
4.Machinery
5.Type of industryf) Extractive =metal from oreg)Analytical= converts raw materials in to various elementsh)Synthetics = assembling the product from various sub components
i) Conditioning = changing the physical form of metals6.Location
7.Policies ,Vision
TYPES OF LAYOUT
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TYPES OF LAYOUT
Five General layout categories
1. Fixed or Static product Layout
2. Process Layout3. Product layout
4. Cellular Layout Or GT
5. Hybrid Layout
FIXED POSITION LAYOUT
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FIXED POSITION LAYOUT
CONSTRUCTIONOR
ASSEMBLY
Raw Material/Parts
Machine & Equipments
Labour Finished Product
Site
PROCESS LAYOUT
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It involves grouping together of like machines in
one department.
Advantage
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g
1. Reduced investment in machinery as they are general purpose
2. Greater flexibility
3. Greater scope of expansion
4. Scope of full utilization of man and machineries
5. Easier to handle breakdown of equipments
Disadvantages1. More Floor Space Requires
2. Difficult In Production Control
3. Production bottlenecks4. Production Time Variation
5. Working Progress
6. Machinery Idle Time
PRODUCT LAYOUT
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PRODUCT LAYOUT
Arrangement machineries in one line.
m1
m1
m1
m1 m2
m2
m2
m2 m3
m3 m4
m4
m4m3
m3
m4
Assembly
Warehouse
Stores
Part a
Part b
Part c
Part d
Advantages
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1.Mechanization of materials handling
2.Avoids production bottlenecks
3.Economy in manufacturing time
4.Better production control
5.Less floor area per unit of production
6.Limited working progress7.Better quality control through earlier detection
Disadvantage
1.Inflexibility2.Expansive layout
3.Expansion in difficult
4.Supervision in a hard process
CELLULAR LAYOUT
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Machines are grouped into cells and the cells functionsomewhat like product layout within a process layout .
CELLULAR LAYOUT
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COMBINED LAYOUT
Plants are never laid out in pure form of one layout
Clubbing of
Product ,Process ,Cellular Or Fixed Position Layouts
SERVICE FACULTY LAYOUT
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No standard formatDepends on service and customer convince
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FACILITY LOCATION
Location Decisions
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Location Decisions
Long-term decisions
Difficult to reverse
Affect fixed & variable costs Transportation cost
As much as 25% of product price Other costs: Taxes, wages, rent etc.
Objective: Maximize benefit of location to firm
COUNTRY REGION
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Site for
production unit
COUNTRY REGION
LOCATION
M j Gl b l A bil C i
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Major Global Automobile Companies
operating in tamilnadu
BMW, Ford, Renault-Nissan, Caterpillar, Hyundai,Mitsubishi Motors and Michelin
Ashok Leyland, Hindustan Motors, TVS Motors, Royal
Enfield, MRF, Apollo Tyres
Electronics manufacturing is a growing
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Electronics manufacturing is a growing
industry in Tamil Nadu
Nokia, Flextronics, Motorola, Sony-Ericsson, Foxconn,Samsung, Cisco, Moser Baer and Dell
Major national and global IT Companies
Verizon, Hewlett-Packard, IBM, Accenture, Ramco
Systems, Computer Sciences Corporation, CognizantTechnology solutions, Tata Consultancy Services,Infosys, Wipro, HCL, Tech Mahindra, Polaris, Aricent,MphasiS, Symantec .
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Cities of Tirupur and Erode are the
country's largest exporters of knitwear
Coimbatore is home to textile,automotive spare sparts and motorpump manufacturing units
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Region Location Decisions
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Region Location Decisions
CORPORATE DESIRES
ATTRACTIVENESS OF REGION (CULTURE, TAXES, CLIMATE,
ETC.)
LABOR, AVAILABILITY, COSTS, ATTITUDES TOWARDS
UNIONS
COSTS AND AVAILABILITY OF UTILITIES
ENVIRONMENTAL REGULATIONS OF STATE AND TOWN
GOVERNMENT INCENTIVES PROXIMITY TO RAW MATERIALS & CUSTOMERS
LAND/CONSTRUCTION COSTS
Factors Affecting Site
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Factors Affecting Site
Site size and cost Air, rail, highway, and waterway systems
Zoning restrictions
Nearness of services/supplies needed Environmental impact issues
Educational institution ,hospitals etc
1995 Corel Corp.
SERVICE FACILITY LOCATION DECISION
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SERVICE FACILITY LOCATION DECISION
Geographical Advantages
Demography
Purchasing Power
Social Class
Competition
Service Quality Of Competitor
Physical Quality Of Competitors
Firms /Managements Policy
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Factor Rating
Proximity to marketAvailability of raw materialTranspiration facility
Availability of cheap laborPolitical issuesLow cost constrictionUtility availabilityClimatic condition
PRODUCTIVITY
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PRODUCTIVITY = OUTPUTINPUT
PRODUCTIVITY = UNIT PRODUCED
INPUT USED
MULTI FACTOR PRODUCTIVITY
LABOUR PRODUCTIVITY = UNIT PRODUCED
LABOUR HOUR USED
= OUTPUT
LABOR+ MATERIALS + CAPITAL ..
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UTILIZATION = ACTUAL OUTPUT
DESIGN CAPACITY* 100
EFFICIENCY = ACTUAL OUTPUT
EFFECTIVE CAPACITY* 100
CYCLE TIME (Lead Time)= Is the end-to-end delay in a business process.
THROUGHPUT =The total amount of raw materials processed by a refinery or
other plant in a given period.
BOTTLENECK