Unit 3 Project Mgt

8/3/2019 Unit 3 Project Mgt

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Production &Operations

Unit 3


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Production & Operation

ManagementProduction/operations management is the process,which combines and transforms various resourcesused in the production/operations subsystem of the

organization into value added product/services in acontrolled manner as per the policies of theorganization .The set of interrelated management activities, whichare involved in manufacturing certain products , is

called as production management . If the sameconcept is extended to services management, thenthe corresponding set of management activities iscalled as operations management.


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SCOPE OF PRODUCTION AND OPER ATIONS MAN AG E MENT

L ocation of facilities2. Plant layouts and material handling

3. Product design4. Process design5. Production and planning control

6. Quality control7. Materials management8. Maintenance management


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C L ASS IFICA TION OF

P R ODU C TION SYS TEMJOB SH OP P R ODU C TIONB A TCH P R ODU C TIONM ASS P R ODU C TIONC ONTINUOU S P R ODU C TION


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JOB SH OP P R ODU C TION

Job shop production are characterizedby manufacturing of one or few

quantity of products designed andproduced as per the specification of customers within prefixed time andcost. The distinguishing feature of thisis low volume and high variety of products.


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Ch aracteristics

The Job-shop production system is followed whenthere is:1. H igh variety of products and low volume.

2. Use of general purpose machines and facilities.3. H ighly skilled operators who can take up each jobas a challenge because of uniqueness.4. L arge inventory of materials, tools, parts.5. Detailed planning is essential for sequencing the

requirements of each product, capacities for each workcentre and order priorities.


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A dvantages of job shop

productionBecause of general purpose machines andfacilities variety of products can be

produced.2. Operators will become more skilled andcompetent, as each job gives them learningopportunities.

3. Full potential of operators can be utilised.4. Opportunity exists for creative methodsand innovative ideas.


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L imitations of job shop

productionH igher cost due to frequent set upchanges.

2. H igher level of inventory at alllevels and hence higher inventorycost.

3. Production planning is complicated.4. L arger space requirements.


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B A TCH P R ODU C TION

form of manufacturing in which the job passes through the functional

departments in lots or batches and each lot may have a different routing. It is characterized by the manufactureof limited number of productsproduced at regular intervals andstocked awaiting sales.


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C haracteristics of Batch

production systemWhen there is shorter production runs.2. When plant and machinery are flexible.

3. When plant and machinery set up is usedfor the production of item in a batch andchange of set up is required for processingthe next batch.

4. When manufacturing lead time and costare lower as compared to job order production


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A dvantages of batch

productionBetter utilisation of plant and machinery.2. Promotes functional specialisation.

3. C ost per unit is lower as compared to joborder production.4. L ower investment in plant and machinery.5. Flexibility to accommodate and processnumber of products.6. Job satisfaction exists for operators.


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L imitations of batch

productionMaterial handling is complex becauseof irregular and longer flows.

2. Production planning and control iscomplex.Work in process inventory is higher

compared to continuous production.4. H igher set up costs due to frequentchanges in set up.


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M ASS P R ODU C TION

Manufacture of discrete parts or assemblies using a continuous

process are called mass production.This production system is justified byvery large volume of production.


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C haracteristics of Mass

productionS tandardisation of product and process sequence.2. Dedicated special purpose machines having higher production capacities and output rates.

3. L arge volume of products.4. S horter cycle time of production.5. L ower in process inventory.6. Perfectly balanced production lines.7. Flow of materials, components and parts is

continuous and without any back tracking.8. Production planning and control is easy.9. Material handling can be completely automatic.


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A dvantages of mass

productionH igher rate of production with reducedcycle time.

2. H igher capacity utilisation due toline balancing.3. L ess skilled operators are required.

4. L ow process inventory.5. Manufacturing cost per unit is low.


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C ONTINUOU S P R ODU C TION

Production facilities are arranged asper the sequence of production

operations from the first operations tothe finished product


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C haracteristics of

C ontinuous productionDedicated plant and equipment with zeroflexibility

Material handling is fully automated.3. Process follows a predeterminedsequence of operations.4. C omponent materials cannot be readily

identified with final product.5. Planning and scheduling is a routineaction.


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A dvantages of continuous

productionS tandardisation of product and process sequence.2. H igher rate of production with reduced cycle time.3. H igher capacity utilisation due to line balancing.

4. Manpower is not required for material handling as itis completely automatic.5. Person with limited skills can be used on theproduction line.6. Unit cost is lower due to high volume of production.


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L imitations of continuous

productionFlexibility to accommodate andprocess number of products does not

exist.2. Very high investment for settingflow lines.

3. Product differentiation is limited.


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Objectives of Production

ManagementR IGH T QU A L ITYR IGH T QU A NTITYR IGH T TIMER IGH T M A NUF AC TUR ING C OS T


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OPE RA TION S

M A N A GEMENTOperation managers are concernedwith planning, organizing, and

controlling the activities which affecthuman behavior through models.


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C ASELET

S heena had worked for the same Fortune 500 C ompany for most 15 years. A lthough the company had gone through some tough times, things werestarting to turn around. C ustomer orders were up, and quality and productivityhad improved dramatically from what they had been only a few years earlier due company wide quality improvement program. S o, it comes as a real shockto S heena and about 400 of her co-workers when they were suddenlyterminated following the new C EOs decision to downsize the company. A fter recovering from the initial shock, S heena tried to find employment elsewhere.Despite her efforts, after eight months of searching she was no closer tofinding a job than the day she started. H er funds were being depleted and shewas getting more discouraged. There was one bright spot, though: S he wasable to bring in a little money by mowing lawns for her neighbors. S he gotinvolved quite by chance when she heard one neighbor remark that now thathis children were on their own, nobody was around to cut the grass. A lmost

jokingly, S heena asked him how much hed be willing to pay. S oon S heenawas mowing the lawns of five neighbors. Other neighbors wanted her to workon their lawns, but she didnt feel that she could spare any more time from her

job search


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H owever, as the rejection letters began to pile up, S heena knew she hadto make an important decision in her life. On a rainy Tuesday morning,she decided to go into business for herself taking care of neighborhood lawns. S he was relieved to give up the stress of jobhunting, and she was excited about the prospects of being her ownboss. But she was also fearful of being completely on her own.Nevertheless, S heena was determined to make a go of it. A t first,business was a little slow, but once people realized S heena wasavailable, many asked her to take care of their lawns. S ome peoplewere simply glad to turn - the work over to her; others switched fromprofessional lawn care services. By the end of her first year inbusiness, S heena knew she could earn a living this way. S he alsoperformed other services such as fertilizing lawns, weeding gardens,

and trimming shrubbery. Busin ess became so good that S heenahired two part-time workers to assist her and, even then, she believedshe could expand further if she wanted to.

Unit 3 Project Mgt

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