Upload
rvs2012hari
View
230
Download
0
Embed Size (px)
Citation preview
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 1/32
Operations
Management
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 2/32
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 3/32
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 4/32
Productivity:
Productivity measures the effectiveness of a
conversion process. It is the ratio of the units of
output to the units of input.
Output
Productivity = _______
Input
Thus,productivity is a measure of the efficiency
with which inputs are converted into outputs.
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 5/32
Productivity vs. Throughput
Throughput measures the rate of out put; It
quantifies how fast an organization
develops and produces products. Productivity is about the efficiency of
production while throughput is about the
production cycle time.
Throughput’s dimension is ‘output per
week’
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 6/32
Productivity vs. Throughput
Productivity is important, but Throughput
should not be ignored.
DISCUSSION
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 7/32
How to improve Productivity?
Chose the right capacity of the plant.
R&D
Right plant location Right plant layout
Right plant, machinery, equipments
Right production process
Right quality of raw material
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 8/32
How to improve productivity?
Scientific management techniques
Attitude & willingness of employees
Knowledge of employees acquired through training &
education
Improved skill level of employees
Workers participation
Conducive work environment
Effective Leadership
Strategic decisions
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 9/32
Objectives of productionmanagement
Discussion
Efficiency objective
Effectiveness objective Quality objective
Lead time objective
Capacity utilization objective
Cost objective
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 10/32
Functions of an organization
Financing function
Purchasing function
Production function Marketing function
Personnel function
R&D ALL OTHER FUNCTIONS REVOLVE AROUND
PRODUCTION FUNCTION.
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 11/32
Definition: OperationsManagement
O.M. is the planning, scheduling and
controlling of the activities that transform
inputs by way of raw materials, capital,machinery, labour, information,
enterprise(i.e.,management) and time into
outputs in the form of goods and services
of higher value than the inputs.
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 12/32
Evolution of Production /Operations Management
Adam Smith: Brought out his book ‘Wealth
of Nations’ in 1776. Advocated ‘Division of
Labour’ Division of labour:
Repetitive job -> higher skills ->greater output
-> improved quality -> savings of time ->improved productivity
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 13/32
Evolution of Production /Operations Management
Charles Babbage: Brought out his book ‘The
Economy of Machinery and Manufacture’ in
1883. – Demonstrated the benefits of
specialisation – studied the operations involved
in a Pin manufacturing industry and found
specialisation in the specific tasks improves
productivity- His emphasis on specialisationlater developed into ‘Workmen Trades’ (fitter,
welder, painter, machinist etc.,)
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 14/32
Evolution of Production /Operations Management
F.W. Taylor ( 1859 – 1915)
-scientific management
-emphasised the importance of training- developed ‘Methods Study’
- developed ‘Time & Motions Study’
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 15/32
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 16/32
Evolution of Production /Operations Management
Henry Ford:
Mass Production & Conveyor based
assembly line – (1913) HarringtonEmerson:
-Book: The twelve principles of efficiency
(1913) - Suggested labour efficiency as the basis
for payment of wages.
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 17/32
Evolution of Production /Operations Management
Henry Gantt:
-Introduced Gantt Chart (1913) as a practical
tool for charting the production schedules &machine loading schedules.
F.W. Harris:
-Developed Economic Lot Size & EOQ(Economic Ordering Quantity), a scientific
method of inventory control system.
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 18/32
Evolution of Production /Operations Management
Walter Shewhart:
-Introduced the concept of statistical Quality
Control to industry; Pioneered the concept of
control charts for monitoring production. ( 1924)
F.H. Dodge, H.G. Roming & W. Shewhart:
- Developed the concept of sampling inspection &
published statistical sampling tables. (1931)
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 19/32
Evolution of Production /Operations Management
L.H.C. Tippeh:
- Developed the concept of ‘Work sampling’-a
statistical sampling method – made a large no.
of random spot observations – observed distinct
types of work activities – estimated the time
devoted to each given activity. ( 1937)
- 1950 – ‘Operations research’ techniques wereextended from military to Industry. Helped in
better decision making.
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 20/32
Evolution of Production /Operations Management
L.D. Miles:
- developed Value Engineering & Value analysis -
1950’s)
1958 – CPM & PERT techniques were
introduced.
1960 – Concept of Production Management was
amplified to include non-manufacturing organizationslike hospitals, transport organizations, banks,
educational institutions etc., The word ‘Production mgt’.
Was replaced with ‘Operations Mgt.’
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 21/32
Evolution of Production /Operations Management
1970’s : number of computer packages
were introduced.
1980’s: JIT ( Just in time)
Quality Circles
CAD / CAM
GT(Group technology)
FMS ( Flexible Manufacturing System)
CMS (Cellular Manufacturing System)
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 22/32
Functions of Production Management
Planning: (Planning the conversion process)
Consists of: Product selection & design, Process selection,
facility location, facility layout and materials handling,
forecasting, capacity planning, production planning.Organising (Organising for conversion)
Consists of work study and job design
Controlling: (Controlling the conversion process)
Consists of production control, inventory control, quality
control, maintenance & replacement, cost control
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 23/32
Evolution of Production /Operations Management
1990’s onwards……………
Integration of Production & Operation
Management with Commerce, Economics,Technology etc.,, Now, a production
manager should have knowledge in all
these domains.
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 24/32
Challenges facing OperationsManagement
Impact of Globalisation
Influence of Social Responsibility
Influence of environmental responsibility Evolution of new technologies
Role of knowledge management
Adapting to changes in a dynamic businessenvironment
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 25/32
Challenges facing OperationsManagement (Globalisation)
Different parts of the world have different cultures,
economic conditions, market needs, demography etc.,
Business process Outsourcing (BPO) has become a
common feature. Operational practices which were successful in one part
of the world may fail to succeed if implemented ‘as it is’
in another part of the world; minor modifications may be
necessary. Production units in different parts of theworld may be required to develop their own area-
specific approach to operations management in order to
survive and perform well.
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 26/32
Challenges facing OperationsManagement (Social Responsibility)
Operations must result in profit for the business
and value for shareholders; but operations must
not result in bad impact for the community or
social environment within the country orglobally.
Operations should ensure safety of
workers/employees and should ensurewellbeing of consumers.
Should avoid ethically ambiguous activities.
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 27/32
Challenges facing Operations Management(Environmental responsibility)
Pollution prevention
Waste minimization
Recycling
Identification of environment-friendly production
process
Relationship with regulators
Knowing the environmental rules/regulations of the
region/country
Conducting environmental audits
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 28/32
Challenges facing OperationsManagement (New Technologies)
Adapting to the latest technology
Developing a versatile R & D strategy and culture
Problem with new technology: Technologists
view a new technology largely in terms of itsfunctionality; Operations managers on the other
hand are concerned with the practical usability
of the technology,how it can be integrated into
the existing operating system, its cost-benefit
conditions, its overall impact etc.,
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 29/32
Challenges facing Operations Management(Knowledge management)
Operation managers must equip
themselves with all-round business
operation knowledge and should build ateam with members having such
knowledge.
Knowledge about global market.
Ability to think globally
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 30/32
Challenges facing Operations Management(Dynamic Business environment)
Competitive Business Environment
Changing customer needs and requirements
Govt. rules & regulations Unpredictable product life cycle
Changing financial markets, economy and
political conditions
Customers’ demand for more and more value of
products/services.
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 31/32
Product vs. Service
Products are tangible entities; Services are intangible
entities.
Products are generally standardized in nature and
hence they can be mass-produced and stored; Servicescustomized and hence can not be mass produced or
stored.
Products have more of material component and their
production is more machine intensive than labourintensive; Services have less or no material component
and they are more labour intensive.
8/13/2019 Operations Management Unit 1 PPT
http://slidepdf.com/reader/full/operations-management-unit-1-ppt 32/32
Product vs. Service
Manufacturing processes of products require
none or very limited customer participation;
Service requires participation of customer.
Measuring the quality of a product is
comparatively easier than measuring the quality
of a service since service has both objective
and subjective elements. Products are returnable; Services are not
returnable.