CONTROL OF Production and Operations

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IntroductionProduction and operations are tightly

knitted activities which influence an

organizations performance. For

manufacturing units, the conversion of

inputs to outputs is viewed as the

production activity

For example, milk is the raw materialused to produce curd, milk powder ,

and butter milk.


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The various activities involved in theproduction process like heating,

cooling, and freezing are called

production operations.The non production operations included

the procurement of milk and

transportation of curd , milk powder ,and butter to the customers.

Introduction


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When production and operations arecombined and synchronized, they

Are classified as supply chain

management . The goal of supply

chain Management is to ensure that

the organization produces thoseproducts which are being demanded

by the market by the right quantities.

Introduction


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For example , in the case of Frito

lays , potatoes are the raw

material and the spices and oil

used in the production process

are the consumables.Land is used to house the factory

where the production process is

carried out . Various machine areused for cleaning and peeling the

potatoes, and cutting them into

different shapes and sizes.

Control of production and operations -


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The employees supervise the

production process and are the human

resources involved in the production

process.

A variety of information like the recipe

for each type of potato chip and

automated settings on the plant whichcontrol the production process are

examples of information in the

production process.

Control of production and operations


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The objective of controlling the

production activities or

operations is to ensure optimal

utilization of productioncapacities, minimize wastages

and reduce down time ofmachines



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Take for incidence , hospital, here, the twoimportant control parameters would be To

ensure that there is a doctor available as

and when the patience come in forTreatment and the wait time is low. And

another control parameter would be to

Synchronize the mix of doctors availablewith the time of the day when they are

needed



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For example, those belonging to the outpatience category generally coming

during Morning hours and evening hours.

Therefore there are more doctors andspecialist Available like eye specialist,

gynecologist , and skin specialist during

the out patience Hours. The controlparameters should also address the

question of which patience Should get

priority



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The production controls dependent on two broadvariables. The nature of the Production process

and the degree of mechanization involved in the

production Process.

Process production of carbonated drinks like

sprite or Fanta, the controls would be With

respect to the quantity of water to be channelize

in the production process, the Quantum of thesoft drinks concentrate to be added and the

machine settings with Reference to the capping

of the bottles and the carbonation process

Production controls


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Discreet production , to make a

ceiling fan the blades, the metallic rod ,

the motor ,The central hub in which the

motor rests, the plastic molding in the

form of a cup Are all produced or

procured, and electrical wires areintegrated into the product. All these

raw materials and components are

assembled together to form a fan.

Productioncontrols


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Productivity is a measure of theorganizations efficiency in terms o

ratio of Out puts to inputs. The higher

the numeral value of this ratio, thegrater the Efficiency. It is an important

tool for mangers because it helps them

track Progress in terms of the efficientuse of resources in producing goods

and Services

Measuring production performance


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Measuring production performance

Labor productivity= goodsproduced/ man-hours spent

Material productivity = goods

produced/ material usedTotal productivity = goodsproduced / labor+ capital+ energy+

technology+ materials


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Decision making in production control

often depends on the appropriate use oquantitative inputs in a timely manner.

For example the queuing theory model

can be used to find out the probability o

machines breaking down on a given

day using various inputs like the

number of machines, their average

breakdown rate, and the replacement

time required.

Production control reports


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For effective production control, managementrequires regular reports on Various

production-related parameters and activities

like

Production efficiency report

Production planning report

Daily production reportDowntime analysis report

Shift handover report

Production control reports


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Quality controls

In an air conditioner, the speed and directionof air flow reflects the circulation

capability of the air conditioner, the tike it

takes to cool a room of a givendimension reflects the quality of the

compressor , the power which it consumes

in an hour reflects the quality of the electricaldesign and compressor design, and

the space which it occupies reflects the

quality of the physical design


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Inventory control

The objective of inventory control is tomaintain stocks of material at various

stages of production in the desired

quantities so that production cancontinue uninterrupted by shortages,

while at the same time , keeping the

overall cost of production to the

minimum.


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Purchasing controlThese controls will track the costs of material being

procured, the effectiveness of the vendors in terms ofthe quality and timeliness of supplies, and rejection

rates.

A centralized purchasing systems allows pooling of all

the requirements so that The benefits of bulkpurchasing can be realized in a decentralized

purchase in systems, the procurement mangers of

different departments purchase the needed material

according to their specific requirements. This

methods gives each department the flexibility to alter

its purchasing policy based

on its specific requirements.


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The main goal of supply chainmanagement is to completely

synchronize every supply chain cycle

with the customer's final demands.

It aims at controlling and monitoring the

supply chains of the vendors as well.

Take for instance, a car manufacturing

company called Indus.

Supply chain management


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Supply chain management

It procures seats from a vendor V, who , in

turn, buys foam from X, the wheels andbearings used in seats from Y, and the fabric

used in the seats from Z. if the demand fro

Indus cars go up, its ability to meet thedemand will depend on its Ability to procure

the seats in an adequate number from V,

which in turn, will depend On the abilities ofX,Y and Z to fulfill the requirements of V.

hence it is important to monitor the supply

chins of the vendors also.


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Performance assessment of the Supply

chain management

Inventory turnover

cycle time

customer order

promised cycle timecustomer order actual

cycle time

cash to cash cycle time

supply chain cycle time

defects per million

opportunities


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Information systems in production and

operations management

Operations information systems are nowdesigned to automatically initiate, plan, and

execute the logistics of stock movement from

the warehouse to the braches or thecustomer locations. Third party transportation

companies like DHL also facilitate the

Tracking of the exact location of the shipmentat any given point of time, en route

to the destination

Documents

CONTROL OF Production and Operations