Production And Operations Management

Operations Management Prepared by: K. Sasikumar

Supply Chain Management The integration of the activities: 1. 2. 3.

Procure raw materials, Transform into final product Deliver them to customers.

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Production System Input – A resource required for the manufacture of a product or service.

Conversion System – Converts inputs (material and human resources) into outputs (products or services) using the production process or technology.

Output – A direct outcome (actual product or service) or indirect outcome (taxes, wages, salaries) of a production system. Prepared by:K.Sasikumar

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Basic Production System

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Types of Production Process  Simple Production System

Start-and-stop production for made-to-order products.  Mass Production – Long run standardized method production process.

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Critical Path Analysis

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Critical Path Analysis Uses Used for Planning and Monitoring the Process Find out the maximum time for an operation to be

completed Identify potential problems in implementing operation Identifies where and when resources (including human ones) are needed Used in decision making process Prepared by:K.Sasikumar

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Production Chart - PERT Chart Building a House

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Production layout

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Gantt Chart

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RESOURCE MANAGEMENT

Human Resource

Infrastructure

Work Environment

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Effectively Handle + Improve processes + Enhance customer satisfaction 11

RESOURCE MANAGEMENT

 Determine

Human Resource

competence.  Provide Training  Evaluate Effectiveness of Action

Infrastructure

Work Environment

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RESOURCE MANAGEMENT

 Building and Fixtures

Human Resource

 Workspace & Utilities.  Plants & Equipments.  Support services.

Infrastructure

Work Environment

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RESOURCE MANAGEMENT

Human Resource

 Manage

Infrastructure

Work Environment

Conditions of environment to achieve the required product conformance.

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Inventory Management Types of Inventory Items: 1. Raw materials: Purchased from suppliers. 2. Work in process: All materials on the production floor in various stages of production. 3. Finished goods: Final products waiting to be sent to customers. 4. Stationeries: Used in administration work

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Inventory Control The process of ensuring that the organization has adequate inventories within the limited cost. Type of Inventory Costs:

Ordering (Setup) Costs

Inventory-Holding Costs

Usually fixed cost to setting up the production run. (S -Setup Cost)

Costs associated with carrying raw materials and Storage Cost ( H - Per unit holding cost)

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Economic Order Quantity (EOQ) Economical Order Quantity is defined in order to minimize the Total inventory and Setup costs. Assumptions: Constant per unit holding and ordering costs Constant withdrawals from inventory No discounts for large quantity orders Constant Lead Time for receipt of orders Just-In-Time (JIT) A production control method Used to attain minimum inventory levels by ensuring the Output conformity.

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Economic Order Quantity (EOQ) Model

Q Order Size

R L

L

Time

d Daily Usage Rate

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Manpower Planning 1. Forecasting & the way of achievement No of Employees Specific Skills For what extent

2. Net Labour Requirement=(Gross Req.– Able to Manage ) Activities

Name of the Employees Name-A

Name-B

Name-C

Name-D

Activity NO:01 Activity NO:02 Prepared by:K.Sasikumar

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Purpose of Job Analysis I. Determining the Job relative worth. II. Aid to supervise the employees by defining each

employees duties and responsibilities III. Providing justification for the existence of the job and requirement of the carder IV. Determining the recruitment needs. V. Help to develop career development path for the employee. VI. Employees are in the same grade level will be paid equal. VII.Types of information obtained through Job analysis. Prepared by:K.Sasikumar

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Types of Information obtained through Job analysis

1.

2.

3. 4.

Job oriented activities performed ( Process, Procedures Used and Activity Records ) Worker oriented activities performed ( Sensing, Decision Making, Performing, Physical Actions and Communications) Job Description : A Statement of Duties, Responsibilities and Job Condition {Physical Working Condition & Work Schedule}. Job Specification : A Statement of Human qualities required to fill the Job { Job Related Knowledge/ Skill (Education, Training, Work experience), Personnel Attitudes, Physical Characteristics} Work Performance: Work Measurement, Work Standards, Error Analysis etc Employee Evaluation: Use Predetermined system & assign 21 Prepared by:K.Sasikumar relative score

Types of Information obtained through Job analysis ( Employee Performance Evaluation Chart) Duties & Responsibilities

Performance

Description Score Very much Satisfactory (Points) Satisfied(80%) (60%)

Fair Poor (50%) (30%)

Total Gained Score

NO:01 NO:02 NO:03 NO:04 TOTAL 100 Advantage of Job Evaluation System 1. Make easy the payment procedure 2. Can convince the employee about the payment system Ex:15,000/= – 400/=x 8 – 18,200/= {(Basic)-(Increment/Year)x(Years)– (Max. Sal.)} 22 Prepared by:K.Sasikumar

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Reasons for Staff Turnover     

Management’s close door policy Un satisfaction Lack of training and lack of attention Lack of Autonomy Disappointment with promotion

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How to appreciate the staffs I. Encourage employees to think like owners II. Improving employees trust through better communication III. Not enough to post your mission statement on the wall. IV. You have got to integrate them into your companies’ culture. V. Employee Recognition. VI. Effective employee reward Programme. VII. Helping to the employees to understand what their jobs are VIII. Asking questions in the motivational way. IX. Having positive influence (Satisfy the employees& Customers

requisition) X. Promoting the right employee XI. Encourage the employees to share their ideas. Prepared by:K.Sasikumar

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Total Quality Management Maximizing customer satisfaction through ongoing improvements. Important Factors: 1. Quality 2. Price 3. Delivery

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Total Quality Management Introduction CONTINUOUS CONTINUOUSIMPROVEMENT IMPROVEMENTOF OFTHE THEQUALITY QUALITY MANAGEMENT MANAGEMENTSYSTEM SYSTEM

Management responsibility Customer s

Measurement , analysis and improvement

Resource Manageme nt

Input Requirement s

Customer s

Service/Product realization

Servic e

Satisfaction

Output

Produc t

Value adding activities Prepared by:K.Sasikumar Information flow

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Total Quality Management To Manage The Quality

Continually Continually Improve Improve Effectiveness Effectiveness

Use Use corrective corrective action action to to improve improve your your service service to to your your customers. customers.

Maintain Maintain

Show Show evidence evidence that that you you are are doing doing what what you you said said you you were were doing. doing.

Implement Implement

Do Do what what you you wrote wrote down. down.

Document Document

Write Write down down what what you you

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Continuous Improvement Arranging infrastructure Using 5S: Seiri : Short out unnecessary items in the work place Seiton : Arrange necessary items in good order. Seiso : Clean the work place completely. Seiketsu : Maintain work place comfortable by repeating Seiri, Seiton, Seiso. V. Shitsuke : Train the People to follow the rules. Advantage of 5S: I. Increase the productivity II. Improve the quality III. Cost of production is reduced IV. Target or Delivery date can be achieved V. Improve the operator’s morale I. II. III. IV.

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Problem Solving Tools

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