04/10/2023 Scope Of POM 1
SCOPE OF PRODUCTION AND OPERATION
MANAGEMENT
Presentation made by:Baxi Vishvak 02
04/10/2023 Scope Of POM 2
production management
Administrative discipline for the effective use of resources in on-schedule production of the targeted number or quantity of end products that meet the specified cost, performance, quality, and waste requirements.
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production management
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operations management
Design, execution, and control of a firm's operations that convert its resources into desired goods and services, and implement its business strategy
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operations management
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Scope of production & operation Management
Production Planning & Control Quality Control Material Management Maintenance Management Plant/Facility Location Plant/Facility Layout Inventory Control Product Design Process Design
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Production Planning and Control
Introduction Coordination of materials with suppliers Efficient utilization of people and
machines Efficient flow of materials Communication with customers
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Production Planning and Control
Introduction
A Typical Manufacturing Systems
SUPPLIERS CUSTOMERS Raw Materials Finished Products
Materials Machines
People
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Hierarchical Planning
1. Overall Manufacturing Planning2. Detailed Materials and Capacity Planning3. Execution of Plans
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1.Overall Manufacturing PlanningHierarchical Planning Cont’d
Demand Management Forecasting Order Promising Order Processing Order Entry Spare Parts
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Planning vs. Control
Plans are made Results are compared with plans (control) Results are OK Wait until next control
period Results are not OK Go to Step 1 (Revise
plans)
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Quality Control
Quality control (QC) includes the activities from the suppliers, through production, and to the customers.
Incoming materials are examined to make sure they meet the appropriate specifications.
The quality of partially completed products are analyzed to determine if production processes are functioning properly.
Finished goods and services are studied to determine if they meet customer expectations.
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QC Throughout Production Systems
Raw Materials,Parts, andSupplies
ProductionProcesses
Products andServices
Inputs Conversion Outputs
Control Chartsand
Acceptance Tests
Control Chartsand
Acceptance TestsControl Charts
Quality ofInputs
Quality ofOutputs
Quality ofPartially Completed
Products
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Material Management
It is concerned with planning, organizing and controlling the flow of materials from their initial purchase through internal operations to the service point through distribution.
Material management is a scientific technique, concerned with Planning, Organizing &Control of flow of materials, from their initial purchase to destination.
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AIM OF MATERIAL MANAGEMENT
To get
1. The Right quality
2. Right quantity of supplies
3. At the Right time
4. At the Right place
5. For the Right cost
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Objective of material management
Primary
• Right price• High turnover• Low procurement • & storage cost• Continuity of supply• Consistency in quality• Good supplier relations• Development of
personnel• Good information
system
Secondary
• Forecasting• Inter-departmental
harmony• Product improvement• Standardization• Make or buy decision• New materials &
products• Favorable reciprocal
relationships
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Maintenance Management
A maintenance manager typically is a plant engineer who reports to a plant or manufacturing manager
Maintenance departments are usually split into two groups: Buildings and Grounds Equipment
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Maintenance Activities
Repairs Repair activities are reactive. Breakdowns and malfunctions typically occur
when equipment is in use. Standby machines and parts can speed
repairs.
Preventive Maintenance (PM) Regularly scheduled inspections are
performed. PM activities are performed before equipment
fails. PM is usually performed during idle periods.
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Tradeoff Between Repairs and PM
Annual Cost ($)
Degree of Preventive Maintenance
Minimum TotalMaintenance Cost
PreventiveMaintenance
Cost
Breakdownand Repair
Cost
Total Maintenance
CostsMinimumLevel of
PreventiveMaintenance
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Functional’ Plant Layout
• Common for a large variety of products in batch volumes.
• Similar processes are grouped together.
• Inefficient: Long material transport routes from dept. to dept. Work in progress is high. Tracking of orders can be difficult.
• Advantages: Specialist labour and supervision. Flexibility as material can be rerouted in any sequence
L L
L L
M M
M M
D D
D D
G G
G G
ASSEMBLY1
ASSEMBLY2
Product 2
Material 2
Material 1
Product 1
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Product’ Plant Layout• Mass production where variety
is small and production volumes are very high.
• AKA ‘flow’ or ‘line’ layout.• More efficient, but less flexible
than ‘functional’ layout.• Work in progress is minimised,
and jobs are easily tracked.• Investment in specialised
capital equipment is high, so a reliable and steady demand is required.
• Very sensitive to machine breakdown or disruption to material supply.
ASSEMBLY
L M D G
L M D G
L M D G
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Cellular’ Plant Layout• AKA ‘Group Technology’ • Each cell manufactures products
belonging to a single family.• Cells are autonomous
manufacturing units which can produce finished parts.
• Commonly applied to machined parts.
• Often single operators supervising CNC machines in a cell, with robots for materials handling.
• Productivity and quality maximised. Throughput times and work in progress kept to a minimum.
• Flexible.• Suited to products in batches and
where design changes often occur.
L M
D G
M M
D G
L L
L G
ASSEMBLY
CELL 3
ASSEMBLY
CELL 2
ASSEMBLY
CELL 1
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Other Plant Layouts ‘Fixed Position’ Layout
(right)• Single large, high cost
components or products.• Product is static. Labour, tools
and equipment come to the work rather than vice versa.
‘Random’ Layout • Very inefficient• Small factories, start-up
companies.
‘Process’ Layout• Process industries, e.g.
steelmaking.• The process determines layout.
PRODUCT
MATERIAL
MATERIAL
LABOUR
LABOUR
COMPONENTS
COMPONENTS
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Inventory Control
Stock of items kept to meet future demand
Purpose of inventory management how many units to order when to order
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Types of Inventory
Raw materials Purchased parts and supplies Work-in-process (partially completed)
products (WIP) Items being transported Tools and equipment
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Inventory and Supply Chain Management
Bullwhip effect demand information is distorted as it moves
away from the end-use customer higher safety stock inventories to are stored to
compensate Seasonal or cyclical demand Inventory provides independence from
vendors Take advantage of price discounts Inventory provides independence
between stages and avoids work stop-pages
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Inventory and Quality Management
Customers usually perceive quality service as availability of goods they want when they want them
Inventory must be sufficient to provide high-quality customer service in TQM
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Inventory Costs
Carrying cost cost of holding an item in inventory
Ordering cost cost of replenishing inventory
Shortage cost temporary or permanent loss of sales
when demand cannot be met
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Inventory Control Systems
Continuous system (fixed-order-quantity) constant amount ordered when inventory declines to
predetermined level Periodic system (fixed-time-period)
order placed for variable amount after fixed passage of time
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ABC Classification
Class A 5 – 15 % of units 70 – 80 % of value
Class B 30 % of units 15 % of value
Class C 50 – 60 % of units 5 – 10 % of value
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Safety Stocks
Safety stock buffer added to on hand inventory during
lead time Stockout
an inventory shortage Service level
probability that the inventory available during lead time will meet demand
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Product Design
Uncertainties
Selected design
Design alternatives
Selection method
0
0 .2
0 .4
0 .6
0 .8
1
0 1 2 3 4 5 6
P a re to o p t im a l d e s ig n s
Sc
ale
d O
bje
cti
ve
Va
lue
s N o . o f O p e ra t io n s
Tim e / O p e ra t io n
W e ig h t
C o s t
Objective: Select the product design that accounts for both customer’s requirements and designer’s preferences
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DESIGN VARIABLES & ATTRIBUTES
Design Variables
Set of input variables (parameters) to the design simulation
software (e.g. Motor type, Gear type, Gear ratio, DC voltage,
Ambient temperature)
Performance Attributes
Set of attributes that is the output of the simulation
software,and identifies a product design (e.g. Manufacturing
cost, Weight, Time per operation per battery charge)
Simulation Software
Input Design Variables
Design Attributes
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Strategies for New-Product Introduction
Market Pull (“We Make What We Can Sell”) food industry
Technology Push (“We Sell What We Can Make”) electronics
Interfunctional View personal computers
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New Product Development Process
Concept Development
Product or Service Design
Pilot Production/Testing
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HOUSE OF QUALITY (QFD)
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Design for Manufacturing
Value Analysis (or engineering)Simplification of products and
processes
Modular DesignMultiple products using common
parts, processes and modules.
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Value Analysis
Terms in Value Analysis: Objective: primary purpose of the product Basic Function: Makes the objective possible Secondary Function: How to perform the basic
function
Value analysis seeks to improve the secondary function, e.g. how to open a can or make a tool box
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An Example
(b) Revised design
One-piece base & elimination of fasteners
(a) The original design
Assembly using common fasteners
(c) Final design
Design for push-and-snap assembly
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An Example (continued)
a. Original Design• 24 different parts to assemble
• 7 unique parts to manage in inventory
b. Revised Design• 4 different parts to assemble
• 3 unique parts to manage in inventory
c. Final Design• 2 parts to assemble and manage
Question: How easy would it be to detect an assembly error with each of the designs?
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Process Design
Proc select in manufac
(4)
ProcessAnalysis
Project(2)
Tran
sform
atio
n P
roce
ss
Process viewOps strategy
(1)
Process typesProduct-process matching
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Product and Process
Process: how to make it?FlexibilityLabor skillsCapacity change
Process: how to make it?FlexibilityLabor skillsCapacity change
Product: what to make?VarietyVolume
Product: what to make?VarietyVolume
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Type of Processes
Different processes have different characteristics, requiring different skills and managerial tasks.
It is convenient to identify basic process categories. We can then map the process of interest into one of these basic categories.
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Five Process Categories
Project Building a house, getting married
Job shop Custom furniture, hospital, university
Batch flow Garment, grand piano
Line flow DVD player, hamburger
Continuous flow Cereal, sugar, oil refinery
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Product-Process Matrix
ContinuousFlow
AssemblyLine
Batch
JobShop
LowVolume,One of a
Kind
MultipleProducts,
LowVolume
FewMajor
Products,HigherVolume
HighVolume,
HighStandard-
izationCommercial
PrinterFrench Restaurant
HeavyEquipment
Coffee Shop
AutomobileAssembly
Burger King
SugarRefinery
Flexibility (High)Unit Cost (High)
Flexibility (Low)Unit Cost (Low)
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Matching Process Choice with Strategy
ContinuousFlow
AssemblyLine
Batch
JobShop
LowVolume,One of a
Kind
MultipleProducts,
LowVolume
FewMajor
Products,HigherVolume
HighVolume,
HighStandard-
ization
CommercialPrinter
French Restaurant
HeavyEquipment
Coffee Shop
AutomobileAssembly
Burger King
SugarRefinery
Flexibility (High)Unit Cost (High)
Flexibility (Low)Unit Cost (Low)
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