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RVS INSTITUTE OF MANAGEMENT STUDIES & RESEAR
SULUR, COIMBATORE 641 402.1
Production & OperatManagement
Courseobjectives:
This course provides an introduc
concepts and analytical method
useful in understanding the fund
of different types of produ
operations decisions.
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Over view of Production & Operation Manag
2
Introduction, Production System, Plant Location, Plant
and Productivity
Production Planning and Control
Inventory Management and Control, Models of InventoModern inventory systems
Inspection and Quality Control, Total Quality ManagemRecent concepts in Quality Control
Maintenance, Wor study, Method study, Time study ansampling
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Unit 1Contents in POM Unit 1 - Introduction: C
Production, Objecties, !cope of Production and
"anagement, #istorical deelopment, Productio
Classification of production system, $ypes % Plan
&actors influencing plant location. Plant layout: Classification of layout. '(ercise: Problems in Produ
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Unit 2Contents in POM Unit 2 - Production Planning an
Objecties, *ggregate planning, "aster production
+"P!, "aterial re-uirement planning +"P, "P I
re-uirement planning +CP. '(ercise: Problems in
"P.
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Unit )Contents in POM Unit ) - Inentory "anage
Control: $ypes of Inentory, !toc0 leels, "odels of
Purchase model and manufacturing model. "odern
systems: Introduction to I$ and *34*3. '(ercise
in stoc0 leels, "odels of Inentory .
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Unit /Contents in POM Unit / - Inspection and 6uali
$ypes of Inspection, Control Charts% $otal 6uality "a
Concept, &eatures, ai7en model and 8 6uality Co
ecent concepts in 6uality Control: Introduction to
*pproaches, 4enefits and $ypes. '(ercise:Problemscharts.
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Unit 5Contents in POM Unit 5 - "aintenance: Object
or0 study: Objecties, "ethod study: !teps,
techni-ues, !election, '(amine, $ime study: !te
study or0 !ampling: Concepts, !teps, '(ercise:P
!tandard time and ;or0 sampling.
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Tet !ooks:
William !" Stevenson, #$%#, Operations "anagement $Practice, Mc&ra'()ill, %%th *dition"
PannerselvamR, #$%#, Production and Operations "a
P)I+ e' -elhi, .rd *dition"
Mars /rea(up in the e0am+ 85 < % $heory and 25 < %
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Production Planning and Control
1 Introduction
% !trategic >ecisions % $op leel
% $actical >ecisions % "iddle leel
% Operational >ecisions % 4ottom leel
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Strategic -ecisions
1 Ware house location
1 -istri/ution systems
1 2uilding ne' plant
1 Mergers 3 ac4uisitions
1 e' product planning
1 Quality assurance planning
1 R3- planning
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Tactical -ecisions
1 Pricing a product
1 Product improvement through value analysis
1 Maintenance
1 2udget analysis
1 Credit evaluation
1 Plant layout
1 Re'ard system design1 2uying e4uipments
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5perational -ecisions
1 Inspect the ra' material
1 Price discount at salesman level1 Scheduling of maintenance manpo'er
1 Machine loading
1 5rder entry
1 2uying soft'are
16pproving loans"
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Production & Operations managemProduction planning is an exercise of intelligent anticorder to establish how an objective or a need fullled
circumstances which are invariably restrictive. The oplanning is either dropping the whole idea or the forma new plan in-line with the objective.
1 Planning phase determines the optimal schedule sequence of operations, economic batch quantity, massignment and dispatching priorities for sequencin
1Action phaseprovides guidelines for implementinplans into practice.
1 Control phaseprovides necessary guidelines to coproduction system through the feedbac mechanisminvolves follow up of the production plans.
1)
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Production & Operations managemObjectives of Production Planning and Control:
". #ystematic planning of production activities to achieve the hige$ciency in production of goods%services.
&. To organi'e the production facilities lie machines, men, etc.,
stated production objectives with respect to quantity and qua
cost.
(. )ptimum scheduling of resources.
*. +oordinate with other departments relating to production to a
regularbalanced and uninterrupted production ow.
. To conform to delivery commitments.
. /aterials planning and control.
0. To be able to mae adjustments due to changes in demand anorders.
1/
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Production & Operations managem1 Production planning and control has three phanamely:
A. Planning Phase
B. Action Phase
C. Control Phase
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Planning Phase
1 Prior planning
Pre(production planning
16ctive planning
6ctual production planning 'hich includes various activities dire
to the production"
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Production & Operations managem
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Production & Operations managem
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Functions of production planning and co
1 !ntegrates information on forecasts
1 )rders
1 Production capacity
1 )n-hand inventory quantities
1 1ills of material
1 2or in process1 #chedules and production lead times.
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Production & Operations managemF!C"#O!$ OF P%OC"#O! P'A!!#!( A! C
2@
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Production & Operations managem1Aggregate planning is essentially a )big
approach to planning.
1Planners usually try to avoid focusing on i
products or services,unless the organi-a
only one major product or service.
1#nstead they focus on a group of similar pr
services or sometimes an entire product o
line.
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Production & Operations managem1Aggregate planning
1 /arying the si-e of the 0or1 force
1 Building and utili-ing inventory through constant 0or1 forc
1 $ubcontracting
1 Overtime utili-ation
1 #f a single strategy is used to meet the demthen it is called as a pure strategy.
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Production & Operations manage
1 Consider the 23ampleof Beta Corporation.
1
"he forecast for a groupof items is reproducedhere.
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Production & Operations managem1 $uppose that the 4rm estimates that it
567 per unit to increase the production rate
1 %s. 877 per unit to decrease the production
1 %s. 67 per unit per 9uarter to carry the
inventory and
1 %s. 577 per unit if subcontracted.
Compare the cost incurred if pure strate
follo0ed.
2/
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Production & Operations managem
1 (iven these costs evaluate the follo0mi3ed strategy.1 "he company decides to maintain a constaproduction rate of 867 units per 9uarter a
1permits 87 overtime 0hen the demand ethe production rate.
1"he incremental cost of overtime is %s. 86unit.
1 #t plans to meet the e3cess demand by hir4ring of 0or1ers.
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Production & Operations managem
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