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.