UNIT - I INTRODUCTION TO PRODUCTION AND OPERATION

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DBA 1651PRODUCTION MANAGEMENTNOTESUNIT - IINTRODUCTION TO PRODUCTION ANDOPERATION MANAGEMENT1.1 Introduction1.2 Learning objectives1.3 System1.3.1 Business System1.3.2 Production System1.3.3 Production and Operations Managements1.4 History of operations Management1.5 Types of operation system1.5.1 Flow Shop1.5.1.1Continuous Production1.5.1.2Mass Production1.5.1.3Batch Production1.5.2 Job Shop1.5.3 Project Production1.6 Production activities and communication link1.7 Computer Integrated Manufacture ring (CIM)1.7.1 CIM sub systems1.7.2 Functional Areas of CIM1.7.2.1 Computer aided production planning1.7.2.2 Computer aided process planning1.7.3 Conceptual frame work of CIM1.7.4 Group Technology1.7.4.1 Definition1.7.4.2 History of GT1.7.4.3 Advantages of GT1.7.4.4 Organizational Suitability for GT1.7.4.5 Group technology in CIM1.8 Global Supply Chain1.8.1 Global Complexities1.8.2 How to transform into Global Supply Chain1Anna University Chennai

DBA 1651PRODUCTION MANAGEMENTUNIT - INOTESINTRODUCTION TO PRODUCTION ANDOPERATION MANAGEMENT1.1 INTRODUCTIONThis unit starts with a definition of a system. In this unit production system andits objectives are explained along with the components of a system. The history ofoperations management is portrayed. The various functions of production system andtheir interlinking are explained through a flow chart. The components of computer,integrated manufacturing and their purpose are dealt. Finally, the recent trend in theoperations, namely, Global Supply Chain is introduced in this unit.1.2 LEARNING OBJECTIVES To know the importance of the production system in an organization. To understand the link between various activities of the production system. To comprehend the history of operations management. To understand the components of computer integrated manufacturing1.3 SYSTEMIt consists of elements or components. The elements or components areinterlinked together to achieve the objective for which it exists. Eg: human body,educational institutions, business organizations.Components of a system:The input, processing, output and control of a system are called the componentsof a system.Anna University Chennai2

DBA 1651PRODUCTION MANAGEMENTNOTESFigure 1.1 - Components of a There are two types of control, namely Proactive Control and ReactiveControl.Proactive Control:When an operation is carried out on a product in a workstation, the qualityinspector goes to the workstation and inspects the product. When the samples that hehas taken for the inspection are not confirming to the quality, he stops the machine andidentifies the reason for the deviation and corrects the problem, so that the producedproduct thereafter conform to the specifications. This type of control prevents anymajor quality setback after the production. This is an example for proactive control.Reactive Control:In a planning period, usually the quality target is fixed. Suppose, an organizationfeels to fix 5% defective is safe in the targeted production quantity and assumes that atthe end of the planning period it finds that the defective output exceeds the targeteddefective products. Then, it has to find out the reason for the deviations, namely, whetherthe problem is due to the method of doing the work or the resources used in the process.Then the planner uses this knowledge to prevent any problem in the future. Thus aReactive Control is a post morterm case.1.3.1 Business System:The business organization is classified into different subsystems based on thefunctions like marketing, production/operation, finance and human resource etc.3Anna University Chennai

DBA 1651PRODUCTION MANAGEMENTFigure 1.2 – Business SystemNOTESMarketingFinanceHuman ResourceProduction/OperationEach subsystem will have more sub subsystems.1.3.2 Production / Operation SystemFigure 1.3 – Production / Operation SystemInputTransformation OutputProcess1. To produce the required quantity.CapitalMan PowerGoodsMaterialInformationObjectivesServices2. To achieve the required quantity.3. To meet the delivery time.4. Economical way of doingOperations ManagementOperation system is either manufacturing sector or service sector. The inputrequirements are shown in figure1.3 The transformation process, in which part of thevalue addition takes place to get the required quantity of the product or services withthe targeted quality within the specified time period, is carried out in a most economicalway. Operation Management Plan coordinates and controls all the activities in theoperation system to achieve the stated objectives.Thus (the activities listed in the diagram) the Operations Management activities,ensure the objective of quantity, quality, delivery time and economical way of doingwork. The communication link between the various activities are shown in the figure1.3.Each activity is dealt in detail in different sections of this material. This figure(figure1.3) will be very much appreciated after getting a clear understanding of all theactivities.Anna University Chennai4

DBA 1651PRODUCTION MANAGEMENT1.3.3 What is operation management (OM)?NOTESOperation Management is a way or means through which the listed objectivesof an operating system is achieved. There is always a confusion between the word OM& PM (Production Management). It is accepted norm that OM includes techniqueswhich are enabling the achievement of operational objectives in an operation system.The operation system includes both manufacturing sector as well as servicesector, but when you use the word PM, you should be careful to note that it refers tothe manufacturing sector but not the service sector. Suppose, you are designing a layoutfor the hospital you should say that you are applying Operations Management Techniquenot the Production Management Technique.When you design a layout for a manufacturing sector you can say that you areapplying Production Technique or Operation Technique or vice versa.From, the above discussion we can come to a conclusion that productionmanagement is a subset of Operations Management.Review questions –1.What are the components of a system?2.What are the differences between the Production Management and the OperationsManagement?3.List the objectives to be fulfilled by an Operation System.1.4 HISTORY OF OMTable 1.1 – History of OMYear /Period of Concept/Tools and System lution of Production system18thCenturyNew Technology for Production ProcessManagementAdam Smith andharles Babbage1895Scientific Management Principles (Work Study)Motion Study for Psychological FactorsActivity Scheduling ChartGanttF.W.T. TaylorFrank & LillianGilbreth Henry1935Hawthrone Studies of Worker MotivationElton Mayo1950’sOperation Research for Decision Making Longterm Medium term, Short term decision byMany Researcher5Anna University Chennai

DBA 1651PRODUCTION MANAGEMENTCritical Path Method (CPM), Program Evaluationand Technique (PERT), Waiting-Line TheoryNOTES1970’sComputers for Inventory Control MaterialResource Planning (MRP)IBM, JosephOrlicky,Oliver Wieght1980’sJust In Time (JIT), Total Quality Control (TQC)Kanban System, CAD/CAM, ComputerIntegrated Manufacturing (CIM) FlexibleManufacturing System (FMS)Toyota1990’s1.Total QualityManagement (TQM), Concurrent (CIM),Engineering, Value Engineering2. Business Process Engineering3. Supply Chain ManagementAsqc(U.S.). IOS(England),Michael HammerOracle, SAP(Germany)2000’sLogistics, Enterprise Resource Planning (ERP),E-Commerce, E-BusinessReview questions 1. What is the contribution of GANTT?2. Who is the father of Scientific Management?1.5 TYPES OF OPERATION SYSTEMThe type of Operation System to be adopted should be known to the people,and then only you may choose the system based on the nature of the product that youare going to manufacture. The types of operation system are classified based on thefollowing criteria.Product flow pattern in conversion systemOutput of the productSpecification of the outputFigure 1.5 - Types of Operation SystemProduction Flow PatternOutput of the productSpecification of the outputCustomizedFlow shopContinuousProductionAnna University ChennaiJob shopBatchProductionFlow shopMassProduction6GoodsServicesStandard

DBA 1651PRODUCTION MANAGEMENTThe characteristics of the Operation System based on the product flow pattern:NOTES1.5.1 Flow ShopIn this kind of production, the productive resources are arranged according tothe sequence of operation required by the product design.Assume that you are engaged in the ready to wear clothing, if you want toadopt the flow shop production, then the productive resources are kept according tothe sequence of operations required by the product likeCuttingJoining by sewingAdding, buttons, zippers etcQuality checkingPackagingMostly Flow shop production are adopted when there is untapped market for theproduct, customers are price sensitive and more competition in the market.Flow shop production as shown in the figure is further divided into ContinuousProduction, Mass Production and Batch production.1.5.1.1 Continuous ProductionThe industries involved in the following activities are classified as Continuous Production Oil refining.Fertilizer production.Chemical processing etc.In this type of production the product flows continuously without muchinterruption.This type of production lacks in flexibility.1.5.1.2 Mass ProductionThe industries involved in the following activities are classified as the Mass ProductionIndustries:Auto ManufacturingTV ManufacturingCigarettesThis kind of flow shop produces the same type of output, it has little flexibility comparedto Continuous Production.1.5.1.3 Batch ProductionThe industries involved in the following activities are classified as the IntermittentProduction. Shoe manufacturing Bottling plant Cloth manufacturing7Anna University Chennai

DBA 1651NOTESPRODUCTION MANAGEMENTHere the basic design of the product is the same but the specification of the productdiffers. The production gets interrupted when the system switches over to other typeof the product specification. The products are similar in nature but not identical.The Characteristics of Flow Shop Production:Refer Table1.2Table 1.2 - The Characteristics of Flow shop ProductionProductThe products are standardized.ConversionSpecial purpose equipments, designed for the specificResourcesprocess of the product.Work forceSpecialized people, doing the repetitive jobs.WorkforceJob satisfactionJob satisfaction among the employee is low because ofthe repetitive nature of job, results in boredom, moreturnover and absentees.Work-in-progressinventoryProductive resources are balanced that result in less workin progress inventory.Cycle timeCycle time per unit is relatively lowCost of productionCost of production per unit is relatively low.Quantity of productionComparatively quantity of production is moreVarietiesProducts to be produced of less variety.FlexibilityThis kind of production lacks in flexibility.Small change in the product design needs the change inproduction system abnormally.Production planning andcontrolSince less varieties of product are produced for longerperiod, the production planning and control activities areinbuilt in the system itself, so the production planning andcontrol activities are not a complex one.1.5.2 Job ShopIn the case of Job Shop Production, the products are mostly customizedproducts. Based on the customer requirements, the products are produced. Theproductive resources are kept according to the function.Anna University Chennai8

DBA 1651PRODUCTION MANAGEMENTThe industries involved in the following activities are classified as the Job Shop production: Auto repairing Hospital Machine shopThe Characteristics Of Job Shop Production.Table 1.3ProductThe products are of order based mostly non standardized.Conversion of ResourcesGeneral purpose equipment, grouped according to theirNOTESfunctions.Work ForceSkilled people, doing multi skilled work.Work force satisfactionJob satisfaction among the employee is high because theoperator role is multifaceted.Work in ProgressThere is lot of waiting time for the product to beInventorymanufactured in the system that results in more in processinventory.Cycle timeBecause of more waiting time for the product in theproduction line that results more manufacturing cycle timecomparatively.Cost of ProductionCost of production per unit is relatively high.Quantity of productionSince it is order based production, quantity produced perunit type is relatively less.VarietiesThe production system capable of producing more type ofproducts.FlexibilityThis system has more flexibility any change in the designof the product could be incorporated without much problem.Production Planningand ControlThe arrival, the operations demanded and the operationstime required by the order mostly uncertain. This makesthe jobs of production planning and control difficult.1.5.3 Project ProductionThis refers to the industries involved in the production of one type of complexproducts like, ship construction, dam construction, bridge construction, research anddevelopment etc.9Anna University Chennai

DBA 1651NOTESPRODUCTION MANAGEMENTProject production consists of many activities where the activities are interlinked,time phased and resources committed.In this kind of production, scheduling the activities is important so that you cancomplete the project within the time and budget constraint. The resources, namely,manpower, machines, material are brought to the workplace where the product ismanufactured. There is no movement of the product.Review Questions1.2.3.4.Which type of the production system in the process inventory is less?In which type of production system flexibility is more?Tell the important characteristic of Batch Production about the product?In which type of production system there is no product movement?1.6 COMMUNICATION IN POMAs it is mentioned in

DBA 1651 PRODUCTION MANAGEMENT 1 NOTES Anna University Chennai 1.1 Introduction 1.2 Learning objectives 1.3 System 1.3.1 Business System 1.3.2 Production System 1.3.3 Production and Operations Managements 1.4 History of operations Management 1.5 Types of operation system 1.5.1 Flow Shop 1.5.1.1Continuous Production 1.5.1.2Mass Production 1.5.1.3Batch Production 1.5.2 Job File Size: 2MBPage Count: 268Explore furtherLectures notes On Production and Operation Managementvssut.ac.inPRODUCTION MANAGEMENT - NIT Cwww.nitc.ac.in(PDF) INTRODUCTION OF PRODUCTION AND OPERATION MANAGEMEN www.academia.eduProduction and Operations Management PDF Book Free .books.askvenkat.orgLectures notes On Production and Operation Managementwww.vssut.ac.inRecommended to you based on what's popular Feedback