PRODUCTION AND OPERATION MANAGEMENT

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PRODUCTION AND OPERATION MANAGEMENT

• BB0021-BBA(IV)
• SIKKIM MANIPAL UNIVERSITY

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UNIT-1 BASIC CONCEPTS

• PRODUCTION Manufacturing is the use of machines,
  tools and labor to make things for use or sale.
  The term may refer to a range of human activity,
  from handicraft to high tech, but is most
  commonly applied to industrial production, in
  which raw materials are transformed into finished
  goods on a large scale. Such finished goods may
  be used for manufacturing other, more complex
  products, such as household appliances or
  automobiles, or sold to wholesalers, who in turn
  sell them to retailers, who then sell them to end
  users - the "consumers".
• Manufacturing takes place under all types of
  economic systems.

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FACTORS OF PRODUCTION

• Land and other natural resources.
• Labor (human efforts).
• Capital( factory, building, machinery, tools, raw
  materials).
• Enterprise.

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Boundaries of Production System

• Policy Formulating System
• Control systems
• Intermediate organization systems
• Manufacturing System

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Types of Production

• Job Production
• Continuous Production
• Batch Production

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Production Management

• Production Management refers to the application
  of management principles to the function in a
  factory.The production management team
  (consisting of a production manager and any
  number of assistants) is responsible for
  realizing the visions of the producer and the
  director or choreographer within constraints of
  technical possibility. This involves coordinating
  the operations of various production
  sub-disciplines (scenic, wardrobe, lighting,
  sound, projection, automation, video,
  pyrotechnics, stage management, etc.) of the
  presentation.

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Production Management

• In addition to management and financial skills, a
  production manager must have detailed knowledge
  of all production disciplines including a
  thorough understanding of the interaction of
  these disciplines during the production process.
  This may involve dealing with matters ranging
  from the procurement of staff, materials and
  services, to freight, customs coordination,
  telecommunications, labor relations, logistics,
  information technology, government liaison, venue
  booking, scheduling, operations management and
  workplace safety.

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Objectives of Production Management

• Manufacturing cost
• Product quality
• Manufacturing schedule
• Machinery and equipment
• Materials
• Manpower
• Manufacturing Services

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Operations Management

• Operations management is an area of business
  that is concerned with the production of goods
  and services, and involves the responsibility of
  ensuring that business operations are efficient
  and effective. It is the management of resources,
  the distribution of goods and services to
  customers, and the analysis of queue systems.

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Operations Management

• APICS The Association for Operations Management
  also defines operations management as "the field
  of study that focuses on the effectively
  planning, scheduling, use, and control of a
  manufacturing or service organization through the
  study of concepts from design engineering,
  industrial engineering, management information
  systems, quality management, production
  management, inventory management, accounting, and
  other functions as they affect the organization"

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UNIT-2 DESIGN AND PRODUCT

• Product design can be defined as the idea
  generation, concept development, testing and
  manufacturing or implementation of a physical
  object or service. Product Designers
  conceptualize and evaluate ideas, making them
  tangible through products in a more systematic
  approach. The role of a product designer
  encompasses many characteristics of the marketing
  manager, product manager, industrial designer and
  design engineer.

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Brauns Ten Industrial Principles

• Usefulness
• Quality
• Ease of use
• Simplicity
• Clarity
• Order
• Naturalness
• Aesthetics
• Innovation
• Truthfulness

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Stages of Design
Concept Generation
Screening
Preliminary Design
Evaluation Improvement
Prototyping final design
The concept
The Process
The package
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Stages of Design

• From idea to concept
• Concept screening
• The marketing screen
• The Operations screen
• Finance screen
• Competitor Analysis
• Price-performance targeting
• Financial analysis

• Concept Generation
• Ideas from customers
• Focus groups
• Listening to customers
• Ideas from competitor activity
• Ideas from staff
• Ideas from Research and development
• Reverse engineering

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Requisites of Good Design

• Customer Satisfaction
• Earn Adequate Profit
• Factors affecting Product Design
• Performance factors
• Operating Conditions

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UNIT-3 Product Life Cycle

• The product life cycle (PLC) describes the
  stages a new product idea goes through from
  beginning to end. The five major stages
• Product Development
• Market Introduction
• Market growth
• Market Maturity
• Sales Decline

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Product Life Cycle
Volume
Growth
Decline
Product Development
Introduction
Maturity
Units
Sales
Profits
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Time
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Stages of PLC

• The different stages in a product life cycle are
• Market introduction stage
• cost high
• sales volume low
• no/little competition - competitive manufacturers
  watch for acceptance/segment growth losses
• demand has to be created
• customers have to be prompted to try the product

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Stages of PLC

• 2. Growth stage
• costs reduced due to economies of scale and
• sales volume increases significantly
• profitability
• public awareness
• competition begins to increase with a few new
  players in establishing market
• prices to maximize market share

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Stages of PLC

• 3. Mature stage
• Costs are very low as you are well established in
  market no need for publicity.
• sales volume peaks
• increase in competitive offerings
• prices tend to drop due to the proliferation of
  competing products
• brand differentiation, feature diversification,
  as each player seeks to differentiate from
  competition with "how much product" is offered
• Industrial profits go down

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Stages of PLC

• 4. Saturation and decline stage
• costs become counter-optimal
• sales volume decline or stabilize
• prices, profitability diminish
• profit becomes more a challenge of
  production/distribution efficiency than increased
  sales

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• The product life cycle goes through many phases,
  involves many professional disciplines, and
  requires many skills, tools and processes.
  Product life cycle (PLC) has to do with the life
  of a product in the market with respect to
  business/commercial costs and sales measures.
• In the criticism of the product life cycle,
  Dhalla Yuspeh state
• ...clearly, the PLC is a dependent variable which
  is determined by market actions it is not an
  independent variable to which companies should
  adapt their marketing programs. Marketing
  management itself can alter the shape and
  duration of a brand's life cycle.

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UNIT-4 PRODUCT PLANNING DEVELOPMENT

• ProductIn general usage, product may refer to a
  single item or unit, a group of equivalent
  products, a grouping of goods or services, or an
  industrial classification for the goods or
  services.
• Classification of Products
• Consumer Business Products
• Convenience goods
• Shopping goods
• Specialty goods
• Unsought goods
• Classification of Business goods
• Raw Materials
• Installations
• Accessory equipment etc.

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Product Development

• The entire product development process is
  characterized by a number of factors which
  complicate its conduct.
• Preliminary secreting of new product ideas.
• The time substantial amounts of expenditures are
  authorized for research and development.
• Authorization for prototype manufacture and
  market or use testing.
• The decision regarding full scale manufacture and
  marketing.

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Product Planning Development System

• Phases involved are
• Generating new product ideas.
• Preliminary appraisal of new product ideas
  selection of projects.
• Product and market research.
• Process research
• Prototype testing in production and marketing
• Commercialization

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Determinants of Product Mix

• Technology
• Competition
• Operating Capacity
• Market factors
• Company attributes

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Determinants of Product Mix

• Market factors
• Shifts in customers product mix
• Changes in availability of cost
• Changes in manufacturing processes
• Shifts in location of customers
• Changes in levels of business activity
• Government controls

• Company Attributes
• Marketing performance
• Production capabilities
• RD strength
• Financial slack
• Interest and abilities of the executive group

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UNIT-5 PLANT LOCATION

• Plant Location refers to the area where the
  plant will operate to produce goods or services.
  Site is an important activity which decides the
  fate of the business. A good location may, reduce
  the cost of production and distribution to a
  considerable extent.
• Locating a business involves a large, relatively
  permanent.If the site selection isnt proper all
  the money spent on factory building, machinery
  and their installation will go in waste and the
  owner has to suffer a great loss. While selecting
  a site, it is necessary to consider technical,
  commercial and financial aspects.

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The Problem of Location

• The problem of site selection of a factory can
  be solved in the following three stages
• Selection of the region
• Selection of the locality
• Selection of actual site

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Steps in Plant Location

• Selection of the region or general area
• Selection of the particular community
• Selection of the exact plant site

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Factors Affecting Plant Location

• Selection of Region
• Availability of raw materials
• Power and Fuel
• Transport
• Market
• Meteorological conditions and topography

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Selection of Community

• Labor
• Supplementary complementary
• Industries
• Banking
• Local taxes
• Water

• Momentum of early start
• Personal factors
• Historical factors
• Political stability
• State assistance

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Selection of Plant Site

• Price of land
• Type of soil
• Waste disposal
• Expansion potential
• Commercial Services
• Availability of amenities
• Health of locality
• Statutory considerations

• Flood drought experience
• Right title of the land
• Good scenery
• Attitude of local people
• Technological know-how
• Religious social institutions

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Recent trends in Plant Location

• To locate plants away from cities
• The development of Industrial estates
• Competition among states to develop industries
• Trend towards decentralization
• Pollution control
• Location of industries leading to balanced
  regional development
• Growth of multinational firms, thereby
  transcending the geographical areas of the country

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UNIT-6 PLANT LAYOUT

• According to Mallick and Gaudreau- A floor plant
  for determining and arranging the desired
  machinery and equipment of plant, in one best
  place, to permit the quickest flow of materials
  at the lowest cost and with the least amount of
  handling in processing the product from the
  receipt of raw materials to the shipment of
  finished products.

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• Knowles and Thomson said that plant layout
  involves
• Planning and arranging manufacturing machinery,
  equipment and services for the first time in
  completely new plants.
• The improvements in layouts already in use in
  order to introduce new methods and improvements
  in manufacturing procedures.

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Essential features of Plant Layout

• Departmentation of factory into a number of units
  to facilitate the smooth flow of production
• Arrangement of plant and machinery in a
  systematic and orderly way to quicken the process
  of production
• Placing the right equipments and tools in their
  appropriate places so that they will be readily
  available when required.
• To arrange the material handling equipments and
  other auxiliary services required in the course
  of manufacturing.

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Objectives of Plant Layout

• To facilitate manufacturing process
• To minimize material handling
• To maintain high turnover of semi-finished goods
• Effective utilization of space
• To provide employees comfort and job satisfaction
• To provide effective utilization of labor

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Principles of Plant Layout

• Principle of overall integration
• Principle of minimum distance
• Principle of flow
• Principle of cubic space
• Principle of satisfaction and safety
• Principle of flexibility

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Factory Machine Layout

• Factory layout is one of the components of plant
  layout, the other being machine layout. The
  layout of a factory means the position of the
  departments of shops in the factory, storage
  points in the working areas, including office and
  staff facilities relative to one another.
• Machine layout is another name for plant
  layout(as discussed earlier).

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Types of Plant Layout

• Product Line Layout
• Process or Functional layout
• Combination of product and process layout and
• Fixed position layout

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1. Product or Line Layout

• Straight-line type
• U-shaped type
• Circular type
• Odd-angle type

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Difference b/w Product layout Process layout

• Duplication of equipment
• Production control
• Adaptability in the case of breakdown of
  individual machines
• Material handling cost
• Production time involved

• Accumulation of work in process
• Floor area occupied
• Greater utilization of machines
• Flexibility
• Application

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Topics for Discussion

• COMBINATION OF PRODUCT AND PROCESS LAYOUT
• FIXED POSITION LAYOUT OR STATIC PRODUCT LAYOUT

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TOOLS TECHNIQUES FOR PLANT LAYOUT

• TOOLS
• Process charts and flow diagrams
• Machine data cards
• TECHNIQUES
• Templates
• Model of equipment
• Layout of drawings
• Plot plans

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Layout Procedure

• Plan individual work station
• Calculate the storage space required
• Locate service departments
• Construct master plan
• Check the final layout
• Get official Approval
• Install the approved layout

• Collection of basic data
• Analysis co-ordination of basic data
• Decide the type of machines required
• Decide material handling plan
• Sketch the plot for factory building
• Plan the general flow pattern

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Revision of Layout- Re layout procedure

• Need for revising the original layout arises
  from the following
• Use of an unsuitable site for factory
• Failure to make periodic work simplification
  surveys
• Rapid expansion of the factory
• Shifting the plant to other localities
• Introduction of new product line
• Steps in the re-layout Procedure
• To state the objectives to be accomplished and
  collect data.
• Conduct work-simplification survey
• Develop an improved layout

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UNIT-7 MATERIAL HANDLING

• Material Handling is the movement, storage,
  control and protection of materials, goods and
  products throughout the process of manufacturing,
  distribution, consumption and disposal. The focus
  is on the methods, mechanical equipment, systems
  and related controls used to achieve these
  functions. The material handling industry
  manufactures and distributes the equipment and
  services required to implement material handling
  systems. Material handling systems range from
  simple pallet rack and shelving projects, to
  complex conveyor belt and Automated Storage and
  Retrieval Systems (AS/RS).

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FUNCTIONS OF MATERIAL HANDLING

• To choose production machinery and assist in
  plant layout so as to eliminate as far as
  possible the need of material handling.
• To choose most appropriate material handling
  equipment which is safe and can fulfill material
  handling requirements at the minimum possible
  overall cost.

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Factors of selecting the Material Handling
Equipment

• Material to be moved
• Plant buildings and layout
• Type of production Machines
• Type of material flow pattern
• Type of Production
• Cost of material handling equipment
• Handling Cost
• Life of the equipment
• Amount of care maintenance required for the
  material handling equipment.

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Objectives of Material Handling

• Reduced Cost
• Increased capacity
• Improved Working Conditions
• Improved Customer Service
• Improved Productivity

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Steps in Analyzing Material Handling Problem

• Establish the scope of the study.
• Pinpoint the areas of plant layout to be covered
  by the study.
• Determine volume expected to be handled per unit
  time by the new system.
• Nature type of the materials to be handled.
• Determine the handling cost of the items being
  handled by the present system.
• Determine details of distance to be moved, with
  details of curves, slopes etc.
• Determine how to move the materials.
• Determine the details of the equipment used.
• Determine the time taken for the movement.
• A thorough survey should then be made considering
  the systems approach.

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Basic Handling Systems

• Equipment Oriented Systems
• Material(load) Oriented Systems
• Method(Production) Oriented systems
• Function Oriented Handling Systems

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Material Handling Cost

• Material Handling Cost cost of handling cost
  of transportation cost of packing cost of
  space cost of handling equipment including
  operations, maintenance and depreciation etc.

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Unit Load Concept

• The unit load principle means that it is quicker
  to move a lot of items as a unit than it is to
  move each one of them individually. With machines
  at our disposal, these units can be made for
  machine size rather than man size.
• THANKS..

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UNIT-8 DEMAND FORECASTING

• Any forecast can be termed as an indicator of
  what is likely to happen in a specified future
  time frame in a particular field. Therefore, the
  demand forecast indicates as to how much of a
  particular product is likely to be sold in a
  specified future period in a specified market at
  specified price.
• Accurate demand forecasting is essential for a
  business house to enable it to produce the
  required quantity at the right time. Further, it
  makes the arrangement in advance for
  raw-materials, equipments, labor etc. Some firms
  manufacture on the order basis but in general
  firm produces the material in advance to meet the
  future demand.

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Types of Forecasting

• Forecasting means estimation of quantity, type
  and quality of future work e.g. sales. For any
  manufacturing concern it is very necessary to
  assess the market trends sufficiently in advance.
• Short-Term Forecasting
• Long-term Forecasting

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Purpose of Short-term Forecasting

• To adopt suitable production policy so that the
  problem of overproduction and short supply of raw
  material, machines etc. can be avoided.
• To reduce the cost of raw materials, machinery
  etc.
• To have proper control of inventory.
• To set the sales targets.
• To have proper controls.
• To arrange the financial requirements in advance
  to meet the demand.

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Purpose of Long-Term Forecasting

• To plan for the new unit of production or
  expansion of existing unit to meet the demand.
• To plan the long-term financial requirements.
• To train the personnel so that manpower
  requirement can be met in future.

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Methods of Forecasting

• Survey of Buyers Views
• Collective Opinion or sales force polling
• Trend Projections
• Economic Indicators
• Judgmental approach

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Approach to forecasting

• Identify and clearly state the objectives of
  forecasting-short term or long term market share
  or industry as whole.
• Select appropriate method of forecasting.
• Identify the variables affecting the demand for
  the product and express them in appropriate
  forms.
• Through the use of statistical techniques,
  determine the most probable relationship b/w the
  dependent and the independent variables.
• Prepare the forecast and interpret the results.
  Interpretation is more important to the
  management.
• Forecast may be made either in terms of physical
  units or in terms of rupees of sales volume. The
  latter may be converted into physical units by
  dividing it by the expected selling price.

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Length of Forecasts

• Short-Term Forecasts Period up to 12 months.
• Medium-Term Forecasts Period from one to two
  years.
• Long-term Forecasts Period of three to 10 years.

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Forecasting Demand for new Products

• Project the demand for the new product as an
  outgrowth of an existing old product.
• Analyze the new product as a substitute for some
  existing product or service.
• Estimate the rate of growth and the ultimate
  level of demand for the new product on the basis
  of the pattern of growth of establishment
  products.
• Estimate the demand by making direct enquiries
  from the ultimate purchasers, either by the use
  of samples or on a full scale.
• Offer the new product for sale in a sample market.

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Criteria of A Good Forecasting Method

• Accuracy
• Simplicity ease of Comprehension
• Economy
• Availability
• Maintenance of timeliness

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Presentation of a Forecast to the Management

• Make the forecast easy for the management to
  understand a possible.
• Avoid using vague generalities.
• Always pin-point his major assumptions and
  sources.
• Avoid making undue qualifications.
• Make use of charts and graphs as much as possible
  for easy comprehension.

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Recent trends in Demand Forecasting

• More firms are giving importance to demand
  forecasting than a decade.
• Since forecasting requires closer co-operation
  and consultation with many specialists, a team
  spirit has developed.
• Better kind of data and improved forecasting
  techniques have been developed.
• There is greater emphasis on sophisticated
  techniques such as using computers.
• New products forecasting is still in infancy.
• Forecasts are usually broken down in monthly
  forecasts.

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UNIT-9 PRODUCTION PLANNING CONTROL (PPC)

• Production planning/operations planning involves
  the organization of an overall manufacturing
  /operating system to produce the product.
• The various activities involved in
  production/operations planning are designing the
  product, determining the equipment and capacity
  requirements, designing the layout of physical
  facilities and material handling system,
  determining the sequence of operations and nature
  of the operations to be performed along with time
  requirements and specify certain production
  quantity quality levels.

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Factors determining Production Planning Procedure

• Volume of Production
• Nature of Production Processes
• Nature of operations

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Production Planning System

• Product planning system involves planning the
  activities related to development of the product
  according to market requirements. Process
  Planning System involves planning those
  activities which are necessary to manufacture the
  product according to estimated demand.
• Product planning system is an integration of two
  subsystems namely
• Product planning System
• Process planning system

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Production Control

• Function of Production Control is to
• Provide for the production of parts, assemblies
  and products of required quality quantity at
  the required time.
• Co-ordinate, monitor and feedback to
  manufacturing management, the results of the
  production activities analyzing and interpreting
  their significance and taking corrective action
  if necessary.
• Provide for optimum utilization of all resources.
• Achieve the broad objectives of low cost
  production reliable customer service.

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Elements of Production Control

• Control of planning
• Control of Materials
• Control of Tooling
• Control of Manufacturing Capacity
• Control of activities
• Control of quantity
• Control of Material Handling
• Control of due dates
• Control of Information

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Objectives of PPC

• To deliver quality of goods in required
  quantities to the customer in the required
  delivery schedule.
• To ensure maximum utilization of all resources.
• To ensure production of quality products.
• To minimize the production through-put time.
• Maintain optimum inventory levels.
• Maintain flexibility in manufacturing operations.
• To co-ordinate b/w labor machines and various
  supporting departments.
• To plan for plant capacities for future
  requirements.
• To ensure effective cost reduction and cost
  control.

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Objectives of PPC

• To remove bottlenecks at all the stages of
  production and to solve problems related to
  production.
• To prepare production schedule and ensure that
  promised delivery dates are met.
• To produce effective results for last total cost.
• The ultimate objective is to contribute to the
  profits of the enterprise.
• To establish routes and schedules for work that
  will ensure optimum utilization of labor and
  equipments and machines and to provide the means
  for ensuring the operation of the plant in
  accordance with these plans.

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Stages in Production Planning Control

• Planning- choosing the best course of action
  among several alternatives.
• Operations- execution as per plan.
• Control- Maintaining the performance by comparing
  the actual results with performance standards set
  and taking appropriate corrective action, if
  necessary to reduce variance.

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Principles of PPC

• Type of production determines the kind of
  production planning and the control system
  needed.
• Number of parts involved in the product affects
  expenses of operating PPC department.
• Complexity of PPC function varies with the number
  of assemblies involved.
• Time is a common denominator for all scheduling
  activities.
• Size of the plant has relatively little to do
  with the type of the PPC system needed.
• PPC permits management by exception.
• Cost control should be a by-product of the PPC
  function.

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Levels of Production Planning

• Strategic Planning
• Tactical planning
• Operational planning

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Functions of PPC department
PPC
Production Control Dispatching Expediting Inspecti
on Evaluating Corrective Action
Production Planning Estimating Routing Scheduling
Loading
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Requirements of Effective PPC system

• Sound organizational structure with mechanism for
  proper delegation of authority and fixation of
  responsibility at all levels.
• Information feedback system should provide
  reliable and up-to-date information to all
  persons carrying out PPC functions.
• Standardization of materials, tools, equipments,
  labor, quality, workmanship etc.
• Trained person for using the special tools,
  equipment and manufacturing processes.
• Flexibility to accommodate changes and
  bottlenecks such as shortage of materials, power
  failures, machine break-downs and absenteeism of
  employees.

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Requirements of Effective PPC system

• Appropriate management policies regarding
  production and inventory levels, product-mix and
  inventory turnover.
• Accurate assessment of manufacturing lead time
  and procurement lead times.
• Plant capacity should be adequate to meet the
  demand. The plant should be flexible in order to
  respond to the introduction of new products,
  changes in product mix and production rate.

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UNIT-10 PRODUCTION CONTROL AND SCHEDULING

• Production Control or Shop floor Activity Control

Production Activity Control
Priority Control
Capacity Control
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Objectives of Production Activity Control

• To know the current status of the job.
• To determine what should be the next job to be
  processed and in which work centre?
• To ensure that the correct quantities of
  materials are in the right place at the right
  time and the required capacity and tooling are
  provided.
• To maximize operational efficiency
• To minimize work-in-progress inventory.
• To minimize set-up costs.
• To maintain control of operations by monitoring
  job status and lead times, measuring progress and
  indicate corrective action when necessary.

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Operations Planning and Scheduling

• Loading
• Sequencing
• Detailed Scheduling
• Expediting
• Input-Output Control

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Scheduling Techniques for Job Shop

• The type of scheduling technique used in job
  shop depends on the volume of orders, the nature
  of operations and job complexity.
• Forward Scheduling
• Backward Scheduling

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Priority Sequencing

• Set up costs or change over costs.
• Work-in-progress inventory cost.
• Idle time.
• Number or percent of jobs late.
• Average job lateness.
• Average flow time.
• Average number of jobs in the system.
• Average time to complete a job.

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Single Criterion Priority sequencing Rules

• First come-first served
• Shortest Processing time
• Minimum Processing Time
• Longest Slack job
• Earliest due date
• Truncated shortest processing job first
• Preferred customer order
• Random selection
• Covert
• Least change-over cost

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Dynamic Sequencing Rules

• Dynamic Slack (DS) rule
• Dynamic Slack per Remaining Operation (DS/RO)
  rule.
• Critical Ratio (CR) rule.

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Evaluating Sequencing Rules

• Average flow time
• Average number of jobs in the system or shop
• Average job lateness
• Change over cost

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• Sequencing Models
• Johnsons Rule

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Line Balancing

• Line balancing is, arranging a production line so
  that, there is an even flow of production from
  one work station to the next, i.e. so that there
  are to delays at any work station that will leave
  the next work station with idle time.
• It is defined as the appointment of sequential
  work activities into work stations in order the
  gain a high utilization of labor and equipment
  and therefore minimize idle time.

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Analysis of Line Balancing Problems

• Determine the number of work stations and time
  available at each work station.
• Group the individual tasks into approximately
  equal amounts of work at each work station.
• Evaluate the efficiency of grouping.
• When the available work time at any station
  exceeds that, which can be done by one worker,
  additional workers must be added at that work
  station.

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Determination of Cycle Time (CT)

• Cycle Time (CT) Available time per period /
  Output units required per period
• Cycle time is the time interval at which,
  completed products leave the production line,
  assembly line.

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Determination of the ideal or theoretical minimum
number of workers required in the line

• Ideal or theoretical number of workers required
  in the assembly line/production line (total
  operation or task time) (output units required
  per period) / Available time per period per worker

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Balancing efficiency

• EffB output of task time / input by workstation
  times
• 2. EffB Theoretical number of workers /
  Actual number of workers

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UNIT-11 DISPATCHING FOLLOW-UP

• Dispatch is a procedure for assigning employees
  (workers) or vehicles to customers. Industries
  that dispatch include taxicabs, couriers,
  emergency services, as well as home and
  commercial services such as maid services,
  plumbing, HVAC, pest control and electricians.
• With vehicle dispatching, clients are matched to
  vehicles according to the order in which clients
  called and the proximity of vehicles to each
  client's pick-up location. Telephone operators
  take calls from clients, then either enter the
  client's information into a computer or write it
  down and give it to a dispatcher. In some cases,
  calls may be assigned a priority by the
  call-taker. Priority calls may jump the queue of
  pending calls. In the first scenario, a central
  computer then communicates with the mobile data
  terminal located in each vehicle (see computer
  assisted dispatch) in the second, the dispatcher
  communicates with the driver of each vehicle via
  two-way radio.

95

• With home or commercial service dispatching,
  customers usually schedule services in advance
  and the dispatching occurs the morning of the
  scheduled service. Depending on the type of
  service, workers are dispatched individually or
  in teams of 2 or more. Dispatchers have to
  coordinate worker availability, skill, travel
  time and availability of parts. The skills
  required of a dispatcher are greatly enhanced
  with the use of computer dispatching software.

96
FOLLOW UP

• After dispatching production orders to various
  shops, it is necessary to regulate the progress
  of job through various processes. For this
  purpose, a follow-up section is formed.
• The function of follow-up section is to report
  daily the progress of work in each shop in a
  prescribed proforma and to investigate the causes
  of deviation from the planned performance. This
  section sees that production is being performed
  as per schedule and tries to boost it.

97
UNIT-12 INSPECTION

• Inspection is the process of measuring the
  quality of a product or service in terms of
  established standards.
• An inspection is, most generally, an organized
  examination or formal evaluation exercise. It
  involves the measurements, tests, and gauges
  applied to certain characteristics in regard to
  an object or activity. The results are usually
  compared to specified requirements and standards
  for determining whether the item or activity is
  in line with these targets. Inspections are
  usually non-destructive.

98
Qualities of Inspector

• He should know his job thoroughly. For this
  purpose, technical knowledge and skill in the art
  of inspection is essential.
• He should be intelligent, capable and of good
  grasping power.
• He should understand his responsibility and be
  able to work with patience.
• He must know statistical quality control
  techniques programme well.
• He should be cost conscious therefore not set
  unnecessary strict and narrow limits.
• He should be able to minimize or prevent wastage
  by using a substitute to the material already in
  use.
• He should have the working knowledge of the
  general quality standards.
• He should know the reasons for standard through
  an understanding of materials and processes.

99
Principles of Inspection

• The inspection function for maximum efficiency
  must be independent but co-ordinate with the
  functions of production, planning and sales
  department.
• Improvement in quality performance is achieved as
  a result of changes in engineering specifications
  or manufacturing procedures and not by inspection
  techniques.

100
Inspection Standards

• Inspection standards for raw materials
• Inspection standards for work in process
• Working inspection standards
• Inspection standards for finished product
• Inspection standards of the completed mechanism

101
Function of Inspection Department

• To inspect raw materials
• Metallurgical Metallographical inspection
• Purchase parts inspection
• Work in process inspection
• Tools inspection
• Periodic gauge and other measuring instruments
  inspection
• Finished products inspection
• Salvaging
• Complaints division

102
Kinds of Inspection

• Tools inspection
• First piece inspection
• Working inspection
• Sample inspection
• Operation inspection
• Final inspection
• Pilot Piece inspection

• Key operation inspection
• Functional inspection
• Endurance inspection
• Floor patrolling
• Centralized inspection
• Combined method

103
METHODS OF INSPECTION

• Screening or 100 inspection
• Lot by inspection
• Process inspection

104
Problems of Inspection?

• Where to inspect?
• When to inspect?
• How to inspect?
• How much to inspect?

105
Tools of Inspection?

• Inspection by measurement
• Limit Gauges
• Multiple Gauging
• Air gauges
• Optical contractors
• Non-destructive testing

106
Plant Maintenance

• The principal of plant and equipment maintenance
  which follows the engineering phrasing of the
  proverb, A stitch in time saves nine, is
  anticipating repairs, renewals and
  replacements.It prevents interruption of
  operation due to poor condition of building or
  broken-down machinery and equipment.

107
Need for Plant Maintenance

• For preventing accidents on the machines
• For preventing the breakdown of machines
• For preventing excessive repairs on machines
• For preventing undue wear and tear of machines
• For preventing excessive vibration of machines
• For facilitating proper inspection of machines
• For designing proper layout of machines
• For proper lubrication of machines

108
Importance of Plant Maintenance

• To ensure continuity in production
• To ensure efficiency in production
• To ensure productivity
• To deliver goods on the promised date
• To minimize excessive scraps and wastages
• To increase the life of equipments
• To avoid losses due to poor maintenance
• To ensure good housekeeping

109
Topics to be discussed

• Functions of Plant Maintenance
• Scope for Plant Maintenance Function

110
Organization of Maintenance Department

• The organization of maintenance department
  depends upon the size of the factory and the
  functions to be performed in a factory. The
  maintenance department can be organized under any
  one of the following
• Centralized by trade
• Maintenance coverage by area
• A combination of central and area administration

111
Maintenance System

• Planning and scheduling of maintenance work
• Inspection for maintenance
• Maintenance work order
• Building and equipment records

112
Types of Maintenance

• Corrective or breakdown maintenance
• Scheduled maintenance
• Preventive maintenance
• Predictive maintenance

113
Recent trends in Plant Maintenance

• In recent years, there has been a tendency to use
  a variety of management techniques for plant
  maintenance. These techniques have led to-
• An increase in maintenance efficiency
• Reduced maintenance cost
• Improved services
• Some of these are mentioned below
• Use of computers
• PERT Techniques

114
UNIT-14 TIME, MOTION WORK STUDY

• MOTION STUDY
• Motion study has been defined by F.B.Gilbreth as
  The science of elementary wastefulness resulting
  from using unnecessary, ill-directed
  inefficient motions.
• Motion study consists of dividing work into the
  most fundamental elements possible, studying
  these elements separately and in relation to one
  another and from these studied elements when
  timed, building methods of least waste.

115
Elements of Motion

• Search or find
• Select
• Grasp
• Position
• Assemble
• Plan
• Transport empty
• Transport loaded

• Avoidable delay
• Unavoidable delay
• Rest for overcoming fatigue
• Hold
• Disassemble
• Inspect
• Release load
• Pre-position

116
Rules of Human Motion

• Rules pertaining to the use of the human body
• Rules pertaining to the arrangement of the work
  place

117
Micro-Motion Study

• Micro-motion study is the sub-division of an
  operation into motions and their analysis for the
  improvement of the work cycle. Detailed bodily
  movements, especially highly skilled motions, are
  recorded and the time is measured by taking
  motion pictures at a constant speed with a
  micrometer from the background.

118
Time Study

• The concept of time study was coined by
  F.W.Taylor. Time study is the analysis and
  determination of the time necessary to perform a
  given task. It replaces the old practice of using
  past performance, judgment or trial as a method
  of establishing the time allowed for the
  performance of a task.
• Time study has been defined by Alford and Betty
  as a searching scientific analysis of methods
  and equipments used or planned in doing a piece
  of work, development in practical details of the
  best way of doing it and determination of the
  time required.

119
Work Study

• A management service based on those techniques,
  particularly method study and work measurement,
  which are used in the examination of human work
  in all its contexts, and which lead to systematic
  investigation of all the resources and factors
  which affect the efficiency and economy of the
  situation being reviewed, in order to effect
  improvement. Work study is one of the important
  tools of management which indicates the areas
  requiring investigation so as to set right the
  defects in manufacturing.

120
Techniques of Work Study

• Method study
• Work Measurement

121
UNIT-15 MATERIALS MANAGEMENT INVENTORY CONTROL

• Material Management is a function, which aims for
  integrated approach towards the management of
  materials in an industrial undertaking. Its main
  objects is cost reduction and efficient handling
  of materials at all stages and in all sections of
  the undertaking.
• The grouping of management functions related to
  the complete cycle of material of flow, from the
  purchase and internal control of production
  materials to the planning and control of
  work-in-process to the warehousing, shipping and
  distribution of the finished product.

122
Scope of Materials management

• Materials planning and programming
• Store-keeping
• Purchasing
• Inventory control
• Simplification, codification and standardization
  in stores
• Transportation
• Materials handling
• Disposal of scrap and surplus

123
Objectives of Materials Management

• Right Quality, Right Material, at the right
  price, from right source, at the right time,
  using right mode of transport.

124
Types of Materials

• Raw Materials
• Purchased parts
• In-process material
• Finished products
• Supplies
• Equipment items

125
Organization of Purchase Department

• Buying section
• Follow-up section
• Invoice section
• Stenographic section
• Records and filling section
• Salvaged Materials Disposal Section
• Purchase Research section
• Traffic Section

126
Centralization decentralization of Purchase
Department

• Centralization Under centralized purchasing one
  central department makes all purchases for the
  whole organization.
• Decentralization Decentralized purchasing is the
  reverse of centralized purchasing.
• Centralized-Decentralized System Often a
  combination of these two methods may be adopted
  where high value materials are brought centrally
  and materials of low value, and dissimilar
  materials are left to be bought by the individual
  departments. But copies of purchase orders are to
  be sent to the central purchase department to
  ensure uniformity in the terms and conditions.

127
Purchasing Procedure

• Initiation of purchase requisition
• Selection of supplier
• Placing the purchase order
• Receiving inspection of materials
• Passing the invoice received on to the account

128
Storage of Material

• After efficient purchasing, receipt and
  inspection of materials, the next important step
  in materials control system is the storage of
  materials. It refers to the art of preserving the
  goods until required in production. Store keeping
  aims at safeguarding the materials from all kinds
  of loss and damage and ensuring smooth and
  continuous flow of materials into the production
  activities.

129
Functions of Stores Department

• Preparing purchase requisitions for general items
  of stock
• Receiving of goods into stores
• Avoiding damage and deterioration
• Classification and coding of materials
• Issue of materials to production and service
  departments
• Maintaining stock records
• Maintaining proper stock levels
• Verifying stock at regular intervals

130
Types of Stores

• Centralized Stores
• Decentralized Stores
• Centralized stores with sub stores

131
Inventory Control

• It may be defined as the systematic location
  storage and recording of goods in such a way that
  desired degree service can be made to the
  operating shops at minimum ultimate cost.

132
Functions of Inventory Control

• To run the stores effectively.
• To ensure timely availability of material and
  avoid built up of stock levels.
• Technical responsibility for the state of
  materials.
• Stock control system
• Maintenance of specified raw materials, general
  suppliers, work-in-process and component parts in
  sufficient quantities to meet the demand of
  production.
• Protecting the inventory from losses due to
  improper handling and storing of goods and
  unauthorized rmoval from stores.
• Pricing all materials supplied to the shops so as
  to estimate material cost.

133
Techniques of tools of Inventory Control

• Setting stock levels
• EOQ
• ABC Analysis
• VED Analysis
• SDE Analysis
• MNG Analysis
• Perpetual Inventory System
• THANKS..