PRODUCTION AND OPERATIONS MANAGEMENT PROJECT

download PRODUCTION AND OPERATIONS MANAGEMENT PROJECT

of 19

Transcript of PRODUCTION AND OPERATIONS MANAGEMENT PROJECT

  • 8/7/2019 PRODUCTION AND OPERATIONS MANAGEMENT PROJECT

    1/19

    PRODUCTION ANDOPERATIONS

    MANAGEMENT PROJECT

    JOB SHOP PRODUCTION

    MADE BY

    ABHAY GUPTA 8155 BBS 2 D

    ACHINT GULATI 8165 BBS 2 D

    PRIYAM AGARWAL 8175 BBS 2D

  • 8/7/2019 PRODUCTION AND OPERATIONS MANAGEMENT PROJECT

    2/19

  • 8/7/2019 PRODUCTION AND OPERATIONS MANAGEMENT PROJECT

    3/19

    Index

    Table of Contents

    Production Logistics 4

    Classification of Manufacturing Systems 5

    Production process 6

    Job Production

    What is job shop production 7

    Case Study 1 (construction of a House) 10

    Features of Job shop Production 14

    Advantages of Job Shop production 15

    Disadvantages of Job Shop Production 16

    Comparison between different production processes 17

    Bibliography 19

  • 8/7/2019 PRODUCTION AND OPERATIONS MANAGEMENT PROJECT

    4/19

    Production Logistics

    That part of logistics concerning research, design, development, manuf acture,

    and processing of material. In consequence, production logistics includes:

    standardization and interoperability, contracting, quality assurance, initial

    provisioning, transportability, reliability and defect analysis, safety standards,

    specifications and production processes, trials and testing (including provision

    of necessary facilities), equipment documentation, configuration control, and

    modifications.

    The purpose of production logistics is to ensure that each machine and

    workstation is being fed with the right product in the right quantity and quality

    at the right point in time.

    Need for Logistics in Production

    A simple definition of production logistics is the management of material and

    information flows in a production process, though the larger definition runs

    much wider. Regardless of manual or automated work processes in your

    production, you require a continuous flow and a strict control of the products

    through each step.

    Logistics help solve operational problems like

    Products waiting to be processed which represent lost time Tied up capital Underutilization of machines Occupied floor space

    Logistics helps in the following ways:

    Management of material ensures that each machine and workstationisbeing fed with the right material in the right quantity and quality in the

    right point in time.

    Management of information flow streamlines and controls the flowthrough the value adding processes and eliminates non-value adding

    ones.

  • 8/7/2019 PRODUCTION AND OPERATIONS MANAGEMENT PROJECT

    5/19

    Management ofa p odu tionp o ess prov es the me s to achieveimprove productivity responsiveness and capital e iciency

    Produ tionlogisti scan be applied in e isting as well as new plants

    Classifi ationofManufacturing Systems

    Type of

    Production

    IntermittentProduction

    Job

    Production

    BatchProduction

    ProjectProduction

    ContinuousProduction

    ProcessProduction

    Mass & flowProduction

  • 8/7/2019 PRODUCTION AND OPERATIONS MANAGEMENT PROJECT

    6/19

    PRODUCTION PROCESS

    Job Production

    Definition:Jobproduction means manufacturing ofproductsto meet

    specific customerrequirementsofspecialorder.

  • 8/7/2019 PRODUCTION AND OPERATIONS MANAGEMENT PROJECT

    7/19

  • 8/7/2019 PRODUCTION AND OPERATIONS MANAGEMENT PROJECT

    8/19

    High technology jobs: High technology jobs involve much greater complexity -

    and therefore present greater management challenge. The important

    ingredient in high-technology job production is project management, or

    project control. Examples of high technology / complex jobs include:

    y Film productiony Large construction projects (e.g. like Bandra-Worli Sea Link.)y Installing new transport systems (e.g. Metro trains in Delhi & Mumbai.)

    In this system products are made to satisfy a specific order. However that

    order may be produced-

    only once at irregular time intervals as and when new order arrives at regular time intervals to satisfy a continuous demand

  • 8/7/2019 PRODUCTION AND OPERATIONS MANAGEMENT PROJECT

    9/19

    PRODUCTION AND OPERATIONS

    SYSTEM

  • 8/7/2019 PRODUCTION AND OPERATIONS MANAGEMENT PROJECT

    10/19

    Example: Construction of a house

    Vision Builders is a construction company located in Newyork, USA specializing

    in construction of Row Houses and small bungalows. Vision Builders was

    formed by her sister company Chris Architects Ltd of South Africa in the 2003

    as an American Satellite Office. In such a short span of 6 years Vision Builders

    has become renowned for its efficient working and quality services. The

    construction process used by Vision Builders is given below:

    The Process consists of Five Phases:

    The Program Phase The Design Concept Phase The Design Development Phase The Interior Design Phase The Construction Phase.

  • 8/7/2019 PRODUCTION AND OPERATIONS MANAGEMENT PROJECT

    11/19

    The Program Phase

    In this phase the Vision Builders learns about the customers dreams, his ideas,

    needs, life style, personal tastes, and the home site. In th is phase the Vision

    Builders asks the client to provide:-

    -The topographic survey of the home site, and other legal descriptions of it.

    - A written statement which they call the Program which describes the ideas

    about the new home, customers wants, needs, and their specifications for the

    home.

    - Photos and magazine clippings showing things customer likes or wishes tohave included in the home.

    - A completed questionnaire about specifications of the home.

    The Design Concept Phase

    In this phase Vision Builders studies the entire information client has gathered

    and develops their concepts about how all this can be put together with

    foundation, walls, and roof and how this will co-relate with the site. In this

    phase Vision Builders uses the creativity of its executives to make the concept

    of a house that is according to the needs and wants of the customer and is

    economically suited to the clients budget.

  • 8/7/2019 PRODUCTION AND OPERATIONS MANAGEMENT PROJECT

    12/19

    The Design Development Phase

    After studying the clients ideas and requirements about the house, VisionBuilders begins to design a blue print of the house. The company makes an

    estimate of what will be the cost of making the house, the time required to

    construct the house and gives the estimate to the client. If the blue print is

    according to the clients requirements the interior design phase takes place, if

    the client is not satisfied then the company makes another blue prin t to suit

    the clients requirements.

  • 8/7/2019 PRODUCTION AND OPERATIONS MANAGEMENT PROJECT

    13/19

    The Interior Design Phase

    In this phase Vision Builders makes designs for the interior design of the house.

    The interior design may also be given to a separate interior designer by the

    client or Vision Builders uses its own interior designers.

    If the client is satisfied by the interior design then the construction of the house

    commences. If the client is not satisfied, then a new interior design is madeaccording to clients requirements.

  • 8/7/2019 PRODUCTION AND OPERATIONS MANAGEMENT PROJECT

    14/19

    The Construction Phase

    This is the final phase where the actual construction of the house starts. The

    construction phase consists of various jobs such as ordering of inventories

    (such as wooden logs, concrete, etc) leveling of the plot, installation of

    machineries, etc. The construction stage is the most complicated stage

    because even a minor mistake can change the shape and look of the house and

    make the client unhappy. When the last job of construction is done the

    possession of the house is handled over to the client and Compan y gets the

    balance payment receivable from the client.

    Features of job production system:

    1. Machines and methods employed are of general purpose as productchanges are quite frequent.

    2. Planning and control system are flexible enough to deal with thefrequent changes in product requirements.

  • 8/7/2019 PRODUCTION AND OPERATIONS MANAGEMENT PROJECT

    15/19

    3. A permanent staff of highly skilled employees is necessary in order tomanufacture products of wide range as per the job orders collected.

    4. Schedules are actually nonexistent in this system, as no definite data isavailable on the product.

    5. In process inventory is usually high as accurate plans and schedules donot exist.

    6. Product cost is normally high because of high material and labor costs.7. Large storage space and adequate extra machines in the machine

    storerooms are required to meet customers requirements.

    8. This system is very flexible as management has to manufacture varyingproduct types.

    9. Material handling systems are also flexible to meet changing productrequirements.

    Advantages of job production system:

    1. Job production can change with an evolving market, which allows smallfirms to stay ahead of competitors.

    2. A high level of customization is possible to meet the customer's exactrequirements.

    3. As the work is concentrated on a specific unit, supervision andinspection of work is relatively simple therefore w ork is generally of a

    high quality.

  • 8/7/2019 PRODUCTION AND OPERATIONS MANAGEMENT PROJECT

    16/19

    4. Significant flexibility is possible, especially when compared to Massproduction.

    5. Workers can be easily motivated due to the skilled nature of the workthey are performing.

    6. Business is likely to be able to add value to the products and possiblycreate a unique selling point (USP), both of which should enable it to sell

    at high prices.

    Disadvantages of job production system:

    1. Job production method is the most complex system of production andalso difficult to operate.

    2. Raw material and work in- progress inventories are high due to unevenand irregular flow of work.

    3. Material handling cost is high and large space is required.4. It involves high cost of production as it is labour intensive. This raises

    costs to firms as the payment of wages and salaries is more expensive

    than the costs of running machines.

    5. It requires the use of specialist labour (compared with the repetitive,low-skilled jobs in mass production).

    6. It is slow as compared to other methods (batch production and massproduction).

    7. The lead times required to complete the order can be lengthy.

  • 8/7/2019 PRODUCTION AND OPERATIONS MANAGEMENT PROJECT

    17/19

    8. Comprising all the costs of wages and salaries of labour, materialhandling costs and overall production cost, the selling costs may become

    high.

    9. A firm using job production method does not get the advantage ofEconomies of Scale.

    Comparison between Mass Production, Job Production and Batch Production

    Basis of

    Comparison

    Mass Production Job Production Batch Production

    Meaning

    Mass production

    means production of

    one or two standardproducts on a large

    scale.

    Job production

    means manufacture

    of products as perspecifications given

    by the customer. It is

    a special order

    production.

    Batch production

    means production of

    a number of identicalitems to meet a

    specific order or to

    satisfy continuous

    market demand.

    Method of

    Production

    Here, the flow of

    materials is in a

    straight line. All

    facilities are

    arranged as per thesequence of

    operations.

    Standardization is

    the keynote of mass

    production method.

    Job production is the

    manufacture of a

    single complete unit

    by an operator or a

    group of operatives.It is providing goods

    or services according

    to the needs of the

    customers.

    In batch production,

    the work content of

    each unit is broken

    into a number of

    operations andoperations are divided

    into groups for the

    completion of work

    group wise.

    Flexibility

    Mass production

    method is highly

    inflexible.

    The job production

    method using general

    purpose machines is

    more flexible.

    Batch production is

    more flexible than

    Mass production

    method but is less

    flexible than Job

    production method.

    Capital

    Investment

    Huge capital

    investment is

    required due to the

    duplication of

    machineries.

    The capital

    investment required

    differs from type of

    job undertaken. For

    e.g. a tailor

    Low capital

    investment is required

    as compared to Mass

    production and Job

    production.

  • 8/7/2019 PRODUCTION AND OPERATIONS MANAGEMENT PROJECT

    18/19

    undertaking stitching

    job requires low

    investment whereas

    a road or dam

    constructing

    company requires

    huge capital

    investment.

    Work in

    Process

    Inventories

    Work in Process

    Inventories is small

    as output of one

    process becomes

    input of the next

    process.

    Raw materials and

    work in process

    inventories are high

    due to the uneven

    and irregular flow of

    work.

    Work in Process

    Inventory is high and

    large space is required

    due to production of

    more variety of

    products.

    Skilled/Unskilled

    Workers

    Unskilled or semi-skilled workers are

    used as most of the

    work is machine

    based.

    Highly skilled workersare required in a

    large quantity as

    production is highly

    specialized.

    Semi- skilled andSkilled workers are

    required according to

    the type of

    production

    undertaken.

    Examples Products of mass

    consumption such as

    Colgate toothpaste,

    Lux soaps, etc.

    Smalls jobs such as

    Tailoring or

    hairdresser and Big

    jobs such as

    construction of a

    house, dam or bridge

    building, etc.

    Clothing, bakery and

    electrical goods.

  • 8/7/2019 PRODUCTION AND OPERATIONS MANAGEMENT PROJECT

    19/19

    BIBLIOGRAPHY

    y WWW.GOOGLE.COMy WWW.ANSWERS.COMy WWW.MANAGEMENTNOTES.COMy WWW.WIKIPEDIA.COM