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Introduction to production

Production/Operations Management involves the planning, coordinating, and executing of systems that create goods and services. It encompasses various aspects such as product design, production planning, facility location, and layout design, which are essential for efficient operations. Additionally, it includes process selection and capacity planning to meet customer demands effectively.

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6 views

Introduction to production

Production/Operations Management involves the planning, coordinating, and executing of systems that create goods and services. It encompasses various aspects such as product design, production planning, facility location, and layout design, which are essential for efficient operations. Additionally, it includes process selection and capacity planning to meet customer demands effectively.

Uploaded by

benittoben003
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Introduction to

production/operations management.
Production/Operations Management

The management of systems or processes that


create goods and/or provide services.

– Planning

– Coordinating

– Executing
Operations: A Transformation Process
Feedback

Inputs Outputs

Workers
Managers Performanc
Goods
Equipment e
Operations Services
Facility
and
Materials processes
Land
Energy

Information

Lead time The time between ordering a good


or service and receiving it.
Scope of operation management
• Design of product
Operation management will provide the manufacturer the
ideas for products and services design by collecting and
analysis of the various information’s from all sources including
market research, customer view points, the organisation’s
research and development (R&D) department if one exists,
competitors or relevant developments in new technology.
• Design of production system
Design of production system provides guidelines on how this
can be achieved using techniques such as simplification,
standardization and modularization.
• Production planning and control
Operations Management helps in systematic planning of production in
any organisation.
• Selection of location
The operation’s management will need to address the issue of facility
location. This must be considered in terms of the need to serve
customer markets effectively and to meet long-range demand
forecasts.
• Layout of plant
Layout design of plant concerns the physical placement of resources
such as equipment and storage facilities. Layout design is important
because it can have a significant effect on the cost and efficiency of an
operation and can entail substantial investment in time and money.
• Selection of plant and equipment:
Determines the technical capability to manufacture the
product. This covers issues such as ensuring materials
are available to make the product to the specification
required, and ensuring the appropriate machinery and
skills are available to work with these materials.
• Research and development
New Product Development
Advancement in manufacturing technology
Process Selection and System Design

Facilities and
Forecasting Capacity Equipment
Planning

Product and Layout


Service Design

Process
Technological Selection Work
Change Design
• Process selection
– Deciding the way for production of goods or
services
• Major implications
– Layout of facilities
– Location
– Capacity planning
Types of Production Processes

• Job Shop

• Batch Process

• Assembly Line

• Continuous Process

• Project
Job Shop
• Variety of products

• Customization

• Variable time production

• Low volume, fluctuations in volume

• Small scale operations

• Process layout

• e.g., fabrication units, machine shop


Batch Process

• Goods produced in discrete batches (or lot sizes)

• Moderate processing demand

• Economies of scale

• Process flow more or less routine

• Little or no variability in product selection - known in


advance

• e.g., apparel manufacturer


Assembly Lines
• Worker paced assembly line
e.g., fast food outlet
• Machine paced assembly line
e.g., automobile assembly
• Large to medium volume/standard products
• High processing turnover
• High degree of labour & equipment utilization
• Routing & scheduling fixed
• System fairly inflexible
Continuous Process
• Continuous rapid movement of goods

• High volume operations

• Highly standardized product

• Product based layout

• High levels of automation

• e.g., oil refinery, paper, fertilizer


Project

• Unique

• Customized-High Variety

• Dedication of resources/Sharing across


projects

e.g., construction, software


Layout
• The physical arrangement of human and
capital resources
• An operation is a group of resources
performing all or part of one or more
processes
Types of layout
• Process layout
• Product Layout
• Hybrid Layout
• Fixed-Position layout
Factors affecting layout
• Nature of materials
• Types of machines and equipments
• Types of manufacturing process
• Human factor
• Characteristics of the building
Selection of location

• Proximity to Customers
• Proximity to suppliers
• Proximity to labour
What is Capacity planning?
• capacity can be taken as a measure of an
organisation’s ability to provide customers with
services or goods in the amount requested and
at the time requested.
Identifying Capacity Requirements

• Measuring Demand
• Measuring Capacity
Evaluating Capacity Plans

• Level Capacity
• Chase Demand
• Demand Management
Types of decisions
• strategic decisions
• Tactical decisions
• operational decisions

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