M1-5

Module 1 – Introduction to Production and Operations Management

1.1 Introduction and Meaning

• Production/Operations Management (POM): Process that transforms resources into value-added products/services while aligning with organizational policies.

• Production Management: Involves planning, organizing, directing, and controlling production functions to create value-added products.

• Operations Management: Extension of production management to service sectors.

• E.S. Buffa's Definition: Decision-making focused on ensuring production meets specifications on quality, quantity, and schedule efficiently.

1.2 Historical Evolution of Production and Operations Management

• Over two centuries, POM has driven economic growth, starting with Adam Smith’s specialization of labor in the 18th century.

• F.W. Taylor's Scientific Management: Applied Smith’s theories in the early 20th century, improving productivity through analysis.

• Shift in the 1970s from "Production Management" focused on manufacturing to "Operations Management" encompassing both manufacturing and service sectors.

1.3 Concept of Production

• Production Function: Concerned with transforming inputs into outputs of required quality.

• Defined as a step-by-step conversion through mechanical/chemical processes to create or enhance product utility.

• Types of Products:

  • Custom-made (e.g., custom boilers)

  • Standardized (e.g., mass-produced cars).

• Importance of understanding production processes for efficiency and quality optimization.

1.4 Production System

• The planned transformation of resources to create products/services.

• Key Characteristics:

  • Organized activities with objectives.

  • Transformation of inputs into useful outputs.

  • Integration with other organizational systems.

  • Feedback mechanisms for continuous improvement.

• Production typologies include Job Shop, Batch, Mass, and Continuous Production systems.

1.5 Objectives of Production Management

• Produce goods/services of the right quality, quantity, on time, and at the right cost.

  • Right Quality: Balanced against customer needs and production costs.

  • Right Quantity: Avoids excess inventory or shortages.

  • Right Time: Ensures timely delivery based on optimal resource utilization.

  • Right Manufacturing Cost: Control production costs to align with targets.

Module 2 – Plant Location and Layout

2.1 Introduction and Meaning

• Plant Location: Critical strategic decision for establishing organizational efficiency.

• Conversion Process Significance: Efficiency in transferring products to customers.

• Location decisions involve significant investment and are hard to change, impacting competitiveness.

2.2 Need for Selecting a Suitable Location

• New Organization Considerations:

  • Cost vs. long-term alignment with business goals.

• Existing Organizations:

  • Review due to market changes or expansion.

• Global Location Strategies:

  • Deal with cultural, economic, and geographical complexities.

2.3 Factors Influencing Plant Location

• General Factors: Proximity to customers/suppliers, labor, transportation.

  • Controllable Factors: Facility design, technology.

  • Uncontrollable Factors: Economic climate, regulations.

• Manufacturing Organizations Emphasize:

  • Raw material proximity and transport infrastructure.

• Service Organizations Focus on:

  • Market proximity and workforce availability.

2.4 Location Theories

• Alfred Weber’s Theory: Optimal location minimizes transportation and labor costs using factors like material index and labor cost distortions.

2.5 Plant Layout

• Definition: Physical arrangement of production facilities impacting efficiency.

• Key Principles:

  • Integration of men, materials, machines.

  • Minimum distance for travel of materials and manpower.

  • Maximum flexibility for future alterations.

2.6 Classifications of Layout

• Types of Layout:

  • Process Layout: Best for batch production.

  • Product Layout: Used when high volume of one product is required.

  • Combination Layout: Used for environments needing flexibility and efficiency.

  • Fixed Position Layout: Suitable for large products needing assembly on-site.

  • Group Layout: Flexibility for variation in batch sizes.

Module 3 – Material Handling

3.1 Introduction

• Material Handling Definition: Movement of products in various states, recognized as a significant cost factor in manufacturing.

3.2 Objectives of Material Handling

• Minimize Costs: Streamline processes to reduce waste.

• Minimize Delays: Ensure timely material availability using strategies like Kanban systems.

• Safety Improvements: Implement safe practices to reduce worker injuries.

3.3 Principles of Material Handling

• Planning Principle: Plan operations strategically.

• Systems Principle: Integrate handling activities for efficiency.

• Safety Principle: Prioritize safe handling methods.

3.4 Selection of Material Handling Equipment

• Factors to Consider: Material types, layout constraints, production flow, cost considerations.

• Engineering Factors: Include dimensions and structural strength of the equipment.

Module 4 – Materials Management

4.1 Introduction and Meaning

• Materials Management: An integrated approach focusing on cost reduction and efficient handling of materials through various stages.

4.2 Scope of Materials Management

• Functions:

  • Material planning and control, purchasing, stores management, inventory control, standardization.

4.3 Objectives of Materials Management

• To reduce costs, ensure quantity, quality, and timely delivery.

4.4 Purchasing Procedures

• Ensure strategic procurement at minimum costs while maintaining supplier relationships.

Module 5 – Production Planning and Control

5.1 Introduction to Production Planning and Control

• Role: Optimize production processes and manage resources efficiently.

5.2 Phases of Production Planning and Control

• Comprises planning, action, and control phases to ensure synchronized production activities.

5.3 Objectives of Production Planning and Control

• Maintain systematic planning, effective resource utilization, and achieve production targets.

5.4 Scheduling and Methods

• Effective scheduling ensures efficient utilization of resources and minimizes production disruptions.