Lectures notes On Production and Operation Management Prepared by Dr. Sarojrani Pattnaik Dr. Swagatika Mishra Assistant Professor Department of Mechanical Engineering VSSUT Burla .
PRODUCTION AND OPERATION MANAGEMENT(3-0-0) 1. 2. 3. 4. 5. 6. 7. 8. Productivity : Importance, productivity ratio, productivity measurement, productivity index, awareness — improvement — maintenance (A.I.M) proceSs. Production System Models of production system, Product Vs. Services, Process-focused & product focused systems, product strategies, product life cycle, production function. Forecasting : Methods — moving average, exponential smoothing, Regression analysis, coefficient of co-relation, Delphi, Market survey. Facilities Planning : Site location, facilities layout and various types, planning using CRAFT work place design, working conditions — noise illumination etc. Motion study — principles of motion — economy, Time study-standard time. Production Planning & Control : Aggregate planning. Sequencing, Line balancing, Flow control, Dispatching, expediting, Gantt chart, line of balance, learing curve. Project Management — Network scheduling, PERT. Critical path, Most likely time estimate , Resource leveling. 38.Modern Trends in Manufacturing :Basic concepts of CAD,CAM,FMS, CIM, ISO 9000, Quality circle, Kaizen, Kanbans, Poke Yoke' supply chain management.
CHAPTER-I PRODUCTIVITY 1.1 Introduction Production/Operation management is the process which combines and transforms various resources used in the production/operation subsystem of the organization into value added products/services in a controlled manner as per the policies of the organization. Resources used in production/ operation subsystem Value added products/services Transform (In controlled manner as per the policies of the organization) Production/Operation function: Range of inputs Required output (product/service) (Having the requisite quality level) The set of interrelated management activities which are involved in manufacturing certain products is called production management and for service management, then corresponding set of management activities is called as operation management. Examples: (Products/goods) Boiler with a specific capacity, Constructing flats, Car, bus, radio, television. Examples: (Services) Medical facilities, Travel booking services. In the process of managing various subsystems of the organization executives at different levels of the organization need to track several management decisions. The management decisions are Strategic, tactical and operational. Strategic (Top level) Defining goals Making policies Tactical (Middle level) Plant location new product establishment Monitoring of budgets Operational (Bottom level) effective and efficient utilization of resources
Corrections from feedback information: Tight quality check on the incoming raw-material. Adjustment of machine settings. Change of tools. Proper allocation of operations to machines with matching skills. Change in the production plans. 1.2 Productivity: Productivity is a relationship between the output (product/service) and input (resources consumed in providing them) of a business system. The ratio of aggregate output to the aggregate input is called productivity. Productivity = output/Input For survival of any organization, this productivity ratio must be at least 1.If it is more than 1, the organization is in a comfortable position. The ratio of output produced to the input resources utilized in the production. 1.3 Importance: Benefits derived from higher productivity are as follows: It helps to cut down cost per unit and thereby improve the profits. Gains from productivity can be transferred to the consumers in form of lower priced Products or better quality products. These gains can also be shared with workers or employees by paying them at higher rate. A more productive entrepreneur can have better chances to exploit expert opportunities. It would generate more employment opportunity. Overall productivity reflects the efficiency of production system. More output is produced with same or less input. The same output is produced with lesser input. More output is produced with more input. The proportional increase in output being more than the proportional increase in input. 1.4 Productivity Measurement: Productivity may be measured either on aggregate basis or on individual basis, which are called total and partial measure. Total productivity Index/measure = Total output/ Total input = Total production of goods and services Labour+material+capital+Energy+management Partial productivity indices, depending upon factors used, it measures the efficiency of individual factor of production. 2