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FOOM Unit 4

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Jaspreet Singh
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7 views

FOOM Unit 4

Uploaded by

Jaspreet Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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UNIT-IV

MAINTENANCE
MANAGEMENT

• It is concerned with day-to-day problem of keeping the physical plant

in good operating condition.

• Maintenance is primarily concerned with a day-to-day problem of

machinery equipment in maintaining good working conditions. It is

essential to ensure a continuous production flow by utilising

maximum capacity of plant.


TYPES OF MAINTENANCE STRATEGY

(S. Srivastava, 2012)


OBJECTIVE
 Minimizing loss of productive time

 Minimizing loss of productive Cost

 Minimizing the repair time & repair cost

 Minimizing the loss due to production stoppage

 Efficient use of maintenance personnel & equipment’s

 To keep all productive assets in good working

 To maximise efficiency & economy

 To improve the quality of products & to improve productivity


INVENTORY MANAGEMENT

• As Amazon.com well knows, inventory is one of the most expensive

assets of many companies, representing as much as 50% of total

invested capital.

• The objective of inventory management is to strike a balance between

inventory investment and customer service.


Lot size - the qty of an
Inventory Management - The inventory item that
planning and controlling of management either buys
inventories to meet the from a supplier or

competitive priorities of the manufactures using internal

organization. processes.

Inventory – A stock of
material used to satisfy Ex. - Car
customer demand or to m/f, Paint
Company,
support the production beauty
of services or goods. Parlor
• Types of Inventory to accommodate the functions of inventory:

(1) raw material inventory,

(2) work-in-process inventory,

(3) maintenance/repair/operating supply (MRO) inventory, and

(4) finished-goods inventory.


Consist of Raw
Demand is
material and WIP
influenced
inventories. These
by market
items are required
conditions,
as input or
not by
components to
inventory
serve products
decisions.
/services.
Ex:
Wholesale It should be
and retailer, calculated, not
service forecasted
support Use Material
inventory resource planning,
such as ERP; JIT
stamps and
mailing label
for the post
Demand independent
on the demand of
other items; sales-
forecast and supply
chain management
MANAGING INVENTORY
ABC INVENTORY ANALYSIS
• ABC analysis divides on-hand inventory into three classifications on the

basis of annual dollar volume. ABC analysis is an inventory application of

what is known as the Pareto principle (named after Vilfredo Pareto, a

19th-century Italian economist). The Pareto principle states that there are

a “critical few and trivial many.” The idea is to establish inventory policies

that focus resources on the few critical inventory parts and not the many

trivial ones. It is not realistic to monitor inexpensive items with the same

intensity as very expensive items.


QTY

Purchasing

Maintain
WHY TO USE ABC

• Ensure control over the costly items

• Reduction in the storage expenses

• Resource allocation

• Increased economy
EOQ MODEL
ASSUMPTIONS
Number of order =
Annual order cost =
Where D = Annual demand in units
Q = Order size
O = Ordering cost per order

The formula for calculating daily demand is:

Reorder level = Demand during lead time = Lead time Daily demand
Annual holding cost =
Where Q = Order size
H = Holding cost per unit per year
Thus, the total inventory cost is calculated by the following formula:
TC = Annual ordering cost + Annual holding cost

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