8/8/2019 Om New 1

1/85

8/8/2019 Om New 1

2/85

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

8/8/2019 Om New 1

3/85

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)

8/8/2019 Om New 1

4/85

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)

8/8/2019 Om New 1

5/85

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)

8/8/2019 Om New 1

6/85

GDP FLUCTUATION

8/8/2019 Om New 1

7/85

GDP $1.250 Trillion (2009)GDP GROWTH 8.8% (2010, Q1)

8/8/2019 Om New 1

8/85Source: Union Budget 1991 ,2008 &2010

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

8/8/2019 Om New 1

9/85

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

8/8/2019 Om New 1

10/85

PRODUCT

TANGIBLE INTANGIBLE

ServicesPhysical GoodsNon Physical

8/8/2019 Om New 1

11/85

CLASSIFICATION OF PRODUCTS

Service (Intangible in nature)

Durable (Hard Goods) tangible ,intangible benefits

Non Durable (Soft Goods) tangible ,moderatelyintangible benefit

Business Products

Consumer Products

8/8/2019 Om New 1

12/85

Durable (Hard Goods)

8/8/2019 Om New 1

13/85

FMCG Products

Detergents Toilet soaps

Toothpaste

Shampoos Creams o Powders

o Food products

o Confectionerieso Beverageso Cigarettes

Non Durable (Soft Goods)

8/8/2019 Om New 1

14/85

STAPLES

Goods that consumes purchaseon a regular basis

IMPULSE GOODS

Purchased without any planningor search

EMERGENCY GOODS

Purchased when a particularneeds arises

FMCG

8/8/2019 Om New 1

15/85

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.

8/8/2019 Om New 1

16/85

Comparing Consumer Goods Classes

Nature ofpurchase

8/8/2019 Om New 1

17/85

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

8/8/2019 Om New 1

18/85

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.html

8/8/2019 Om New 1

19/85

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

8/8/2019 Om New 1

20/85

Goods & ServicesGoods & Services

DifferencesDifferences

Intangibility

Perishability

Heterogeneity

Inseparability

8/8/2019 Om New 1

21/85

IMPLICATIONSIMPLICATIONS OF INTANGIBILITYOF INTANGIBILITY

Services cannot be inventoried

Services cannot be patented

Services cannot be readily displayed orcommunicated

Pricing is difficult

8/8/2019 Om New 1

22/85

PRODUCTION

&OPERATIONS MANAGEMENT

8/8/2019 Om New 1

23/85

PRODUCTION

&

OPERATIONS MANAGEMENT

In simply we could say it is the conversion

of certain input in to output through

systematic process..

8/8/2019 Om New 1

24/85

OPERATIONS AS ASYSTEM

Transformation

(Conversion)

Process

Transformation

(Conversion)

Process

Energy

Materials

Labour

Capital

Knowledge

Goods &

Services

Feedback (information) - control overprocess inputs & technology

Technology

OutputInput

8/8/2019 Om New 1

25/85

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

8/8/2019 Om New 1

26/85

Operations Management BoundaryProduct developmentForecastingFacility location identificationCapacity planningProcess planning

Plant layoutResource managementProduction planning and control

Job design

MaintenanceInventory & Quality managementPurchasing& Warehouse managementMaterials management

8/8/2019 Om New 1

27/85

PRODUCTS

PEOPLE

PARTS

PLANTS

PROCESSESPLANNING AND CONTROL SYSTEMS

6Ps OF OPERATIONS MANAGEMENT

8/8/2019 Om New 1

28/85

Finance Management Human ResourceManagement

Marketing

Management

Operations Management

INTERDEPENDENCY

8/8/2019 Om New 1

29/85

NPD

8/8/2019 Om New 1

30/85

http://images.google.co.in/imgres?imgurl=http://www.usbpen.co.uk/images/highres/Pendrive%2520I.jpg&imgrefurl=http://www.usbpen.co.uk/product.php%3Fproduct_id%3D46&h=614&w=1181&sz=254&hl=en&start=10&um=1&tbnid=168PI40HwfKVeM:&tbnh=78&tbnw=150&prev=/images%3Fq%3DPENDRIVE%26um%3D1%26hl%3Denhttp://images.google.co.in/imgres?imgurl=http://cdn.overstock.com/images/products/L10791919.jpg&imgrefurl=http://www.overstock.com/Electronics/SanDisk-Cruzer-Micro-2GB-Pendrive/2576618/product.html&h=650&w=650&sz=54&hl=en&start=2&um=1&tbnid=UG5TBgGkzIbPSM:&tbnh=137&tbnw=137&prev=/images%3Fq%3DPENDRIVE%26um%3D1%26hl%3Denhttp://images.google.co.in/imgres?imgurl=http://www.deepcomputer.nc/osc/images/Image/pendrive.jpg&imgrefurl=http://www.deepcomputer.nc/osc/index.php%3FcPath%3D1%26language%3Den%26osCsid%3D6500431fe94d939709f179d4b458d73a&h=1275&w=1198&sz=130&hl=en&start=4&um=1&tbnid=AEmU90YBQ9OQbM:&tbnh=150&tbnw=141&prev=/images%3Fq%3DPENDRIVE%26um%3D1%26hl%3Denhttp://images.google.co.in/imgres?imgurl=http://www.sidfordprintanddesign.co.uk/photocopyer-image.jpg&imgrefurl=http://www.sidfordprintanddesign.co.uk/photocopying.htm&h=197&w=210&sz=8&hl=en&start=1&um=1&tbnid=j5ZwyOWbkLKLdM:&tbnh=99&tbnw=106&prev=/images%3Fq%3DPHOTOCOPYER%26um%3D1%26hl%3Denhttp://images.google.co.in/imgres?imgurl=http://www.global-b2b-network.com/direct/dbimage/50350172/Electric_Oven.jpg&imgrefurl=http://www.global-b2b-network.com/b2b/93/95/474/279758/sell_convection_oven.html&h=360&w=360&sz=29&hl=en&start=1&um=1&tbnid=f2_2EPjetBTEtM:&tbnh=121&tbnw=121&prev=/images%3Fq%3DOVEN%26um%3D1%26hl%3Denhttp://images.google.co.in/imgres?imgurl=http://www.blackwidowcaralarms.co.nz/products/BW-10000-5%2520SYSTEM.jpg&imgrefurl=http://www.blackwidowcaralarms.co.nz/&h=1858&w=1768&sz=275&hl=en&start=5&um=1&tbnid=Y1_3A6iHytH3CM:&tbnh=150&tbnw=143&prev=/images%3Fq%3DCAR%2BSECURITY%2BSYSTEM%26um%3D1%26hl%3Denhttp://images.google.co.in/imgres?imgurl=http://www.multimedi.com/images/afbeeldingen/glucometers/lifescan/2007/glucometer%2520OTU2_Frontaal_mgdl%2B%2520strip.jpg&imgrefurl=http://www.multimedi.com/Multimedi/Glucometers_lifescan.htm&h=1890&w=1443&sz=206&hl=en&start=14&um=1&tbnid=_UHYscrjC_3l7M:&tbnh=150&tbnw=115&prev=/images%3Fq%3DGLUCOMETER%26um%3D1%26hl%3Denhttp://images.google.co.in/imgres?imgurl=http://www.medisave.co.uk/images/Contour_web.jpg&imgrefurl=http://www.medisave.co.uk/ascensia-contour-glucometer-p-7635.html&h=500&w=429&sz=87&hl=en&start=3&um=1&tbnid=QbpzGeP4xf0VpM:&tbnh=130&tbnw=112&prev=/images%3Fq%3DGLUCOMETER%26um%3D1%26hl%3Denhttp://images.google.co.in/imgres?imgurl=http://www.slipperybrick.com/wp-content/uploads/2006/12/lg-ke850-mobile-phone.jpg&imgrefurl=http://www.slipperybrick.com/search/choco%2Bphone&h=527&w=500&sz=104&hl=en&start=5&um=1&tbnid=ADXoirgTyvWbWM:&tbnh=132&tbnw=125&prev=/images%3Fq%3DMOBILE%2BPHONE%26um%3D1%26hl%3Denhttp://images.google.co.in/imgres?imgurl=http://images.asia.ru/img/alibaba/photo/51600232/GSM_Mobile_Phone.jpg&imgrefurl=http://www.asia.ru/ProductInfo/415669.html&h=311&w=430&sz=55&hl=en&start=7&um=1&tbnid=nY4Q7omiEnkXuM:&tbnh=91&tbnw=126&prev=/images%3Fq%3DMOBILE%2BPHONE%26um%3D1%26hl%3Denhttp://images.google.co.in/imgres?imgurl=http://www.bloganything.net/wp-content/uploads/2006/12/mobile-phone-with-camera.jpg&imgrefurl=http://www.bloganything.net/367/low-cost-mobile-phone-camera&h=340&w=350&sz=45&hl=en&start=10&um=1&tbnid=_TfbPscYuGdYdM:&tbnh=117&tbnw=120&prev=/images%3Fq%3DMOBILE%2BPHONE%26um%3D1%26hl%3Denhttp://images.google.co.in/imgres?imgurl=http://www.samstores.com/_images/products/ETEN%2520M500%2520PDA%2520MOBILE%2520PHONE.jpg&imgrefurl=http://africareadyforbusiness.blogspot.com/2007_10_01_archive.html&h=380&w=380&sz=16&hl=en&start=16&um=1&tbnid=XJNTarNQV4zqJM:&tbnh=123&tbnw=123&prev=/images%3Fq%3DMOBILE%2BPHONE%26um%3D1%26hl%3Denhttp://images.google.co.in/imgres?imgurl=http://www.itreviews.co.uk/graphics/normal/hardware/h874.jpg&imgrefurl=http://www.itreviews.co.uk/hardware/h874.htm&h=302&w=343&sz=18&hl=en&start=12&um=1&tbnid=t-BGtSBl6bo5iM:&tbnh=106&tbnw=120&prev=/images%3Fq%3DMOBILE%2BPHONE%26um%3D1%26hl%3Denhttp://images.google.co.in/imgres?imgurl=http://www.techgadgetforums.com/files/diamond_laptop.jpg&imgrefurl=http://www.techeblog.com/index.php/tech-gadget/strange-laptops-you-dont-see-everyday&h=390&w=390&sz=46&hl=en&start=11&um=1&tbnid=dTudwy73-9I83M:&tbnh=123&tbnw=123&prev=/images%3Fq%3DLAPTOP%26um%3D1%26hl%3Denhttp://images.google.co.in/imgres?imgurl=http://blogs.guardian.co.uk/technology/archives/images/Dell%2520XCPS%2520M2010%2520laptop.jpg&imgrefurl=http://blogs.guardian.co.uk/technology/archives/mobile_computing/&h=372&w=400&sz=27&hl=en&start=13&um=1&tbnid=XcLIcluCGADXMM:&tbnh=115&tbnw=124&prev=/images%3Fq%3DLAPTOP%26um%3D1%26hl%3Denhttp://images.google.co.in/imgres?imgurl=http://www.geekalerts.com/u/superman-laptop.jpg&imgrefurl=http://www.geekalerts.com/tag/kids/&h=469&w=450&sz=55&hl=en&start=9&um=1&tbnid=1D4B6DDmveVZ1M:&tbnh=128&tbnw=123&prev=/images%3Fq%3DLAPTOP%26um%3D1%26hl%3Denhttp://images.google.co.in/imgres?imgurl=http://blog.loaz.com/media/blogs/timwang/mini-Laptop-Sony-Vaio-Vgn.jpg&imgrefurl=http://blog.loaz.com/timwang/laptop-notebook.php&h=447&w=551&sz=34&hl=en&start=1&um=1&tbnid=ZGw55_T9paEN1M:&tbnh=108&tbnw=133&prev=/images%3Fq%3DLAPTOP%26um%3D1%26hl%3Denhttp://images.google.co.in/imgres?imgurl=http://images.appleinsider.com/product-red-ipod-mock2.gif&imgrefurl=http://www.appleinsider.com/article.php%3Fid%3D2134&h=390&w=594&sz=62&hl=en&start=7&um=1&tbnid=WRnpH_A9gdnA4M:&tbnh=89&tbnw=135&prev=/images%3Fq%3DIPOD%26um%3D1%26hl%3Denhttp://images.google.co.in/imgres?imgurl=http://www.pmptoday.com/wp-content/uploads/2008/02/ipod-classic-headphone.jpg&imgrefurl=http://www.pmptoday.com/category/firmware/&h=400&w=332&sz=39&hl=en&start=1&um=1&tbnid=F07dEpU4Abtf3M:&tbnh=124&tbnw=103&prev=/images%3Fq%3DIPOD%26um%3D1%26hl%3Denhttp://www.google.co.in/imgres?imgurl=http://tatanano.inservices.tatamotors.com/tatamotors/images/stories/nano_images/logo.gif&imgrefurl=http://tatanano.inservices.tatamotors.com/tatamotors/index.php%3FItemid%3D203%26id%3D182%26option%3Dcom_content%26task%3Dview&usg=__ApyDGrR7Jvv9BoqHWRUPNci-dsM=&h=42&w=136&sz=5&hl=en&start=20&tbnid=Ul5ShzFSSPV4fM:&tbnh=28&tbnw=92&prev=/images%3Fq%3DTATA%2BNANO%2BLOGO%26hl%3Den%26sa%3DX

8/8/2019 Om New 1

31/85

http://www.google.co.in/imgres?imgurl=http://tatanano.inservices.tatamotors.com/tatamotors/images/stories/nano_images/logo.gif&imgrefurl=http://tatanano.inservices.tatamotors.com/tatamotors/index.php%3FItemid%3D203%26id%3D182%26option%3Dcom_content%26task%3Dview&usg=__ApyDGrR7Jvv9BoqHWRUPNci-dsM=&h=42&w=136&sz=5&hl=en&start=20&tbnid=Ul5ShzFSSPV4fM:&tbnh=28&tbnw=92&prev=/images%3Fq%3DTATA%2BNANO%2BLOGO%26hl%3Den%26sa%3DX

8/8/2019 Om New 1

32/85

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)

8/8/2019 Om New 1

33/85

8/8/2019 Om New 1

34/85

http://upload.wikimedia.org/wikipedia/commons/a/a4/Airbus_A380_cockpit.jpg

8/8/2019 Om New 1

35/85

http://upload.wikimedia.org/wikipedia/commons/a/a4/Airbus_A380_cockpit.jpghttp://upload.wikimedia.org/wikipedia/en/9/9e/Singaporebusinessclassa380.JPG

8/8/2019 Om New 1

36/85

http://upload.wikimedia.org/wikipedia/en/9/9e/Singaporebusinessclassa380.JPG

8/8/2019 Om New 1

37/85

8/8/2019 Om New 1

38/85

8/8/2019 Om New 1

39/85

http://upload.wikimedia.org/wikipedia/commons/5/52/A380-trent900.JPG

8/8/2019 Om New 1

40/85

http://upload.wikimedia.org/wikipedia/commons/5/52/A380-trent900.JPG

8/8/2019 Om New 1

41/85

A380 Seatingcapacity

525 (3-class)644 (2-class)853 (1-class)

A380 cost US$317.2-337.5 Million

http://en.wikipedia.org/wiki/File:Emirates_logo.svghttp://en.wikipedia.org/wiki/File:2007_Qantas_Logo.svg

8/8/2019 Om New 1

42/85

Project began on 1988 November under the headship of , Jean Roeder

AIRBUS A380 PRODUCT DEVELOPMENT STAGE

What is new product ?

8/8/2019 Om New 1

43/85

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..

8/8/2019 Om New 1

44/85

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

8/8/2019 Om New 1

45/85

NEW PRODUCT DEVELOPMENT

Robust Design

Modular Design

Standardization

Detailed Engineering

Design

Production Process

Design &

Development

CAD/CAM

VIRTUAL REALITY

TECHNOLOGY

VALUE ANALYSIS

8/8/2019 Om New 1

46/85

PLC (PRODUCT LIFE CYCLE )

8/8/2019 Om New 1

47/85

PRODUCTION PROCESS

8/8/2019 Om New 1

48/85

Production Process

INTERMITTENTPRODUCTION PROCESS CONTINUOUSPRODUCTION PROCESS

1. Projects

2. Job Process3. Batch Process

1. Line Process

2. Continuous Flow Process

8/8/2019 Om New 1

49/85

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

8/8/2019 Om New 1

50/85

INTERMITTENT PRODUCTION PROCESS TYPE -2

8/8/2019 Om New 1

51/85

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

8/8/2019 Om New 1

52/85

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

8/8/2019 Om New 1

53/85

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

8/8/2019 Om New 1

54/85

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

8/8/2019 Om New 1

55/85

Pro uct-Process Matr x or

8/8/2019 Om New 1

56/85

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

8/8/2019 Om New 1

57/85

8/8/2019 Om New 1

58/85

Customer-Contact Matrix for

8/8/2019 Om New 1

59/85

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

8/8/2019 Om New 1

60/85

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

8/8/2019 Om New 1

61/85

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

8/8/2019 Om New 1

62/85

PLANT LAYOUT

Layout design

Product design

Schedule Design Process Design

FACTORS INFLUENCING LAYOUT

8/8/2019 Om New 1

63/85

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

8/8/2019 Om New 1

64/85

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

8/8/2019 Om New 1

65/85

FIXED POSITION LAYOUT

CONSTRUCTIONOR

ASSEMBLY

Raw Material/Parts

Machine & Equipments

Labour Finished Product

Site

PROCESS LAYOUT

8/8/2019 Om New 1

66/85

It involves grouping together of like machines in

one department.

Advantage

8/8/2019 Om New 1

67/85

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

8/8/2019 Om New 1

68/85

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

8/8/2019 Om New 1

69/85

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

8/8/2019 Om New 1

70/85

Machines are grouped into cells and the cells functionsomewhat like product layout within a process layout .

CELLULAR LAYOUT

8/8/2019 Om New 1

71/85

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

8/8/2019 Om New 1

72/85

No standard formatDepends on service and customer convince

8/8/2019 Om New 1

73/85

FACILITY LOCATION

Location Decisions

8/8/2019 Om New 1

74/85

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

8/8/2019 Om New 1

75/85

Site for

production unit

COUNTRY REGION

LOCATION

M j Gl b l A bil C i

8/8/2019 Om New 1

76/85

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

8/8/2019 Om New 1

77/85

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 .

8/8/2019 Om New 1

78/85

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

http://en.wikipedia.org/wiki/Coimbatorehttp://en.wikipedia.org/wiki/Coimbatore

8/8/2019 Om New 1

79/85

Region Location Decisions

8/8/2019 Om New 1

80/85

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

8/8/2019 Om New 1

81/85

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

8/8/2019 Om New 1

82/85

SERVICE FACILITY LOCATION DECISION

Geographical Advantages

Demography

Purchasing Power

Social Class

Competition

Service Quality Of Competitor

Physical Quality Of Competitors

Firms /Managements Policy

8/8/2019 Om New 1

83/85

Factor Rating

Proximity to marketAvailability of raw materialTranspiration facility

Availability of cheap laborPolitical issuesLow cost constrictionUtility availabilityClimatic condition

PRODUCTIVITY

8/8/2019 Om New 1

84/85

PRODUCTIVITY = OUTPUTINPUT

PRODUCTIVITY = UNIT PRODUCED

INPUT USED

MULTI FACTOR PRODUCTIVITY

LABOUR PRODUCTIVITY = UNIT PRODUCED

LABOUR HOUR USED

= OUTPUT

LABOR+ MATERIALS + CAPITAL ..

8/8/2019 Om New 1

85/85

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