Manufacturing & operations management

 Production Systems
 Plant Location & Layout
 Production Planning & Control
 Maintenance Management
 Inspection
 Work Study
 Lean Production Systems

Nishant Wasatkar MOM

 Production can be defined as the process of
converting inputs into desired output thereby
adding value to some entity.

 Production function brings together people,
machines & materials to provide goods &
services satisfying the wants of people.


Adjustments Monitor
Needed Output

INPUTS Conversion
Process Outputs
Labour
Materials Goods &
Equipment Services
Capital Comparison

Actual Vs
Planned


 Manufacturing Cycle Time/ Lead Time
 Inventory
 Work in progress (WIP)
 Material Handling (Manual/Automated)
 General Purpose Machines (GPM)
 Special Purpose Machines (SPM)
 Product Layout
 Process Layout


Milling

Assembly
& Test Grinding

Drilling Plating

Process Layout - work travels
to dedicated process centers


 Primary Objective:
To produce goods & services of quality
accepted by customer, in desired quantities,
according to time schedules & at minimum
cost.


 Effectiveness:
Producing right kind of goods & services
that satisfy customers needs.
 Efficiency :
Maximizing output of goods & services
with minimum resource inputs.
 Quality:
Ensuring that goods & services produced
conform to pre-set quality specifications.


 Lead Time:
Minimizing mfg. cycle time by reducing
delays, waiting time and idle time.
 Capacity Utilization:
Maximizing utilization of manpower,
machines and rest of resources.
 Cost:
Minimizing cost of producing goods or
services.


 Planning:
◦ Product selection & design
◦ Process selection & planning
◦ Facility Location
◦ Facility layout and materials handling
◦ Capacity planning
◦ Forecasting
◦ Production Planning


 Organizing
 Work study & job design

 Controlling
◦ Production control
◦ Inventory control
◦ Quality control
◦ Maintenance & replacement
◦ Cost reduction & cost Control


 The factory system was a method
of manufacturing first adopted in England at
the beginning of the Industrial Revolution in
the 1750s and later spread abroad.
 Traditionally, each worker used to create a
separate part of the total assembly of a
product. In factory system all resources of
productions were bring together under one
roof.


Manufacturing system need to interact with both
internal & external environment.

 Internal  External
Environment: Environment:
◦ Engineering ◦ Customers
◦ Marketing ◦ Competitors
◦ Personnel ◦ Suppliers
◦ Accounts/Finance ◦ Labor Unions


 The selection of manufacturing system is a
strategic decision. The system selected
should ensure
◦ Desired output
◦ Required Quality
◦ Cost effectiveness


TYPES OF MANUFACTURING
SYSTEMS

INTERMITTENT CONTINUOUS
PRIDUCTION PRODUCTION

PROJECT JOBBING BATCH MASS/FLOW PROCESS
PRODUCTION PRODUCTION PRODUCTION PRODUCTION PRODUCTION


 Definite beginning and definite end.
 Non uniform requirement of resources
 Involvement of different agencies
 Fixed Position layout
◦ E.g. production of ships, aircrafts, construction of
buildings, bridge etc.
 High cost overruns
◦ Often delays takes place in projects which are very
expensive due to cost of factors of production &
penalties.


 Personnel Problems
◦ If labor are borrowed from outside for short
duration, involvement in project will be limited.
◦ Since project has a limited period, the staff starts
spending more time for getting prepared for next
project.
◦ Generally sites of project are in underdeveloped region &
it may change from project to project which causes
dislocation of the normal life.
 Scheduling & Control
◦ As large number of activities involve in project
completion by different agencies with strict
precedence, scheduling & control becomes complex &
very important.


 Small production runs.
 Discontinuous flow of materials
◦ Imbalance in operation wise work content leads to
discontinuity in materials flow.
 Disproportionate manufacturing cycle time
◦ Lack of materials/components, imbalanced work
flow, design changes, design errors detected during
manufacture, inaccurate work measurements etc
will lead to extended mfg cycle time.
 General purpose machines & process layout.


 Highly skilled labor
 Highly competent knowledgeable supervision
 Large work in progress
 Limited functions of production planning &
control
◦ Materials are indented & purchased on receipt of orders.
◦ Tools control function is simple. Standard tools are
stocked while special tools are either made or purchased
on request.
◦ Process planning activity is almost absent.
◦ The scheduling activity is decentralized. A schedule is
prepared to show the start and completion date of each
major component of the product.


 Short runs
 Skilled labor in specific trades
 Supervisor to possess knowledge of a specific
process.
 General purpose machines & process type
layout.
 Manual material handling
 Mfg cycle time affected due to queues
 Large work in progress
 Flexibility of production schedules
 Need to have production planning & control.


 Continuous flow of materials
 Special purpose machines & product type
layout
 Mechanized materials material handling
 Low skilled labor
 Short manufacturing cycle time
 Easy supervision
 Limited work in progress
 Lesser flexibility in production schedules.


 Process production is characterized by
manufacture of a single product produced
and stocked.
 Special purpose machines with built in
controls
 Highly mechanized materials handling
 Virtually zero manufacturing cycle time
 Low skilled labor
 Supervisor to be process specialist
 Negligible work in progress


 High product variety require highly skilled
labor, general purpose machinery, detailed &
sophisticated production planning & control
systems.
 Low product variety enables the use of low
skilled labor, highly automated mass
production processes using special purpose
machinery and simple production planning &
control systems


JOBBING

BATCH

MASS

PROCESS

ONE DEGREE OF REPETITIVENESS MANY


 Fixed cost are high for continuous process &
low for intermittent process
 While variable costs are more for intermittent
process & less for continuous process.
 Intermittent process therefore will be cheaper
to install and operate at low volumes &
continuous process will be economical to use
at high volumes.


Total Cost (Intermittent) Total Cost
(Continuous)
Variable Cost
(Intermittent)

Variable Cost
(Continuous)

Fixed Cost
Cost
(Continuous)

Fixed Cost
(Intermittent)

Intermittent Continuous
Manufacturing Manufacturing Range
Range Volume Nishant Wasatkar MOM

 Flexibility implies ability of manufacturing
system to manufacture variety of products.
 Greater flexibility will be achieved in
intermittent production which also results in
higher inventories, long mfg lead times &
complex planning & control.


 Efficiency measures the speed and the cost of
manufacturing system.
 Depending on sales volume & product variety
process has to be considered which will give
the best efficiency in terms of machines &
manpower utilization.
 Environment brings new technologies, as
market preferences change the
manufacturing system has to be changed
accordingly. E.g. Furniture manufacturer.


Manufacturing & operations management

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