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IntroductionName Junaid Nasir
Qualification BE ( Mechanical) NED
MBA IBAPGD Comp. Science IBA
Experience 29 years in Engineering
Sector at top managementpositions, teaching and
consultancy at reputable
university and organizations
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Introduction
• COO of Alupak Ltd and Alucan Ltd
• Ex Deputy Managing Director of
Adamjee Engineering (Pvt.) Ltd
• Travelled 20 countries for trainings, business
development, procurement of Plants, Machines
and Raw Materials
• Visited more than 150 companies including
65 foreign companies to get trainings, business
development and for auditing QMS.
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RESPECT
DISCIPLINE
TENSION FREE
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By : Junaid Nasir
Reference Books
• Productions & Operations Management
by Barry Render and Jay Heizer
• Productions & Operations Management
by Stevenson
• Modern Production & Operation
Management by Elwood S. Buffa and
Rakesh K Sarin
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By : Junaid Nasir
Course Plan
• Introduction, Production/OperationsSystem, Operation Strategy
• Decision Making
• Case Study• Process Management
• Management of Technology
•
Work Force Management• Learning Curves
• Total Quality Management
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By : Junaid Nasir
Course Plan
• Inventory Control• Statistical Process Control
• Location and Layout
• Capacity• Supply Chain Management
• Forecasting
•Project Management
• Network Analysis, CPM & PERT
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By : Junaid Nasir
Advise from Rector
Attendance
• All absences will be strictly recorded. No late comings
will be allowed and will be considered as an absence.
• For Executive sessions (Saturday and Sunday), of 3
hours each, 2 absences are allowed out of 15 sessions.
•
Any student exceeding this limit would be awarded an FGrade and the faculty has to bring this to the notice of
the concerned Head of the Department and Academics
Department.
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By : Junaid Nasir
Advise from Rector
Dress Code• IoBM expects its students to reflect its values and
standards in every way, and especially in the way they
dress and conduct themselves. This will enable them to
make a positive impression and project a professionalimage wherever they go.
• In order to achieve the above stated objectives, the
following guidelines must be strictly observed:
· All clothing worn by students should be well laundered.
· Clothes should be inoffensive in terms of cuts and
style, or by way of messages printed on them.
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By : Junaid Nasir
Advise from Rector
• ·Female students may only wear jeans provided their tops are of mid-thigh length. They should also be modest
and avoid transparent materials and short lengths for
sleeves and trousers/ shalwars.
• ·Only light make up, jewelry and perfume is permitted.
• ·Male students are only allowed full length trousers or
jeans. For footwear, they must wear dress shoes,
moccasins, joggers or sandals with back straps.
• ·Male students should maintain proper haircuts and
refrain from piercing their ears and faces.• No variations or violations in all of the above will be
permitted and students doing so will be marked absent in
their respective classes.
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By : Junaid Nasir
Advise from Rector
Mobile Phones• Students should not be allowed to use or play with
mobile phones in the classroom. In case they are
using one, phones should be confiscated and
handed over to the Administration Department.
Absences during mid-terms
• Students tend to miss classes during examinations.
This must be discouraged by awarding a penalty inthe form of marks as well as attendance.
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By : Junaid Nasir
Examination
• N –
1 policy is no longer in place andnow only two mid-terms and final
examination will take place.
• Marks Distribution
• 40% Final
• 30% Mid terms (15% each)
• 30% Sessional
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By : Junaid Nasir
Examination
Sessional Marks
• Two quizzes 10 (4th and 9th weeks)
• Assignments 10 ( 4 assignments to
be submitted in
5th, 8th, 10th and
12th weeks, no late
submission is
allowed)
•
Presentations 10
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By : Junaid Nasir
Operations Management
Operations management is the set of activities that creates value in the form of
goods and services by transforminginputs into outputs
Production is the creation of goods andservices
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By : Junaid Nasir
Operations Management
• Essential functions:
–Marketing – generates demand
–Operations –
creates the product
–Finance/accounting – tracks
organizational performance, pays
bills, collects money
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By : Junaid Nasir
Organizational Functions
• Marketing
– Gets customers
Operations creates product or service
Finance/Accounting Obtains funds
Tracks money © 1995 Corel Corp.
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By : Junaid Nasir
Why Study OM?
• OM is one of three major functions(market ing , f inance, and operat ion s ) of
any organization.
• We want (and need ) to know howgoods and services are produced.
• We want to understand what operations
managers do.• OM is such a costly part of an
organization.
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By : Junaid Nasir
Why Study OM?
• What Operations Managers Do
• Plan - Organize - Staff - Lead - Control
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By : Junaid Nasir
Ten Critical Decisions
1. Service, product design2. Quality management
3. Process, capacity design
4. Location5. Layout design
6. Human resources, job design
7. Supply-chain management8. Inventory management
9. Intermediate and short term scheduling
10.Maintenance
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By : Junaid Nasir
Ten Critical Decisions
• Serv ice and product design – What product or service should we offer?
– How should we design these products and
services?
• Qual ity management
–
Who is responsible for quality? – How do we define quality?
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By : Junaid Nasir
Ten Critical Decisions
• Process and capaci ty design
– What processes will these products
require and in what order? – What equipment and technology is
necessary for these processes?
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By : Junaid Nasir
Ten Critical Decisions
• Locat ion
– Where should we put the facility
– On what criteria should we base thislocation decision?
• Layou t design
– How should we arrange the facility? – How large a facility is required?
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By : Junaid Nasir
Ten Critical Decisions
• Human resources and job design – How do we provide a reasonable work
environment?
–
How much can we expect our employeesto produce?
• Supp ly chain management
–
Should we make or buy this item? – Who are our good suppliers and how many
should we have?
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By : Junaid Nasir
Ten Critical Decisions
• Invento ry , material requ iremen ts planning,
– How much inventory of each item should
we have?When do we re-order?
• Intermed iate, short term, and pro ject
schedul ing
– Is subcontracting production a good idea?
– Are we better off keeping people on thepayroll during slowdowns?
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By : Junaid Nasir
Ten Critical Decisions
• Maintenance
– Who is responsible for maintenance?
–
When do we do maintenance?
Si ifi E i O i
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Significant Events in OperationsManagement
Th H it f
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The Heritage of Operations Management
Division of labor (Adam Smith 1776 and Charles Babbage 1852)
Standardized parts (Whitney 1800)
Scientific Management (Taylor 1881)
Coordinated assembly line (Ford/Sorenson/Avery 1913)
Gantt charts (Gantt 1916)
Motion study (Frank and Lillian Gilbreth 1922
Quality control (Shewhart 1924; Deming 1950)
Computer (Atanasoff 1938)
CPM/PERT (DuPont 1957)
Th H it f O ti
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The Heritage of OperationsManagement
Material requirements planning (Orlicky 1960)
Computer aided design (CAD 1970)
Flexible manufacturing system (FMS 1975)
Baldrige Quality Awards (1980)
Computer integrated manufacturing (1990)
Globalization(1992)
Internet (1995)
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Significant Events in OM
Division of labor (Smith, 1776)
Standardized parts (Whitney, 1800)
Scientific management (Taylor, 1881)Coordinated assembly line (Ford 1913)
Gantt charts (Gantt, 1916)
Motion study (the Gilbreths, 1922)
Quality control (Shewhart, 1924)
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Significant Events
CPM/PERT (Dupont, 1957)
MRP (Orlicky, 1960)
CAD Flexible manufacturing systems (FMS)
Manufacturing automation protocol (MAP)
Computer integrated manufacturing (CIM)
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New Challenges in OM
Local or national focus
Batch shipments
Low bid purchasing
Lengthy product
development
Standard products
Job specialization
Global focus
Just-in-time
Supply chain
partnering Rapid product
development,
alliances
Masscustomization
Empowered
employees, teams
From To
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Characteristics of Service
Intangible product
Produced & consumed
at same time
Often unique High customer
interaction
Inconsistent productdefinition
Often knowledge-
based
Frequently dispersed
© 1995 Corel Corp.
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Goods Versus Services
Can be resold
Can be inventoried
Some aspects of
quality measurable
Selling is distinctfrom production
Reselling
unusual
Difficult toinventory
Quality difficult
to measureSelling is part of
service
Goods Services
G d V S i
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Goods Versus Services -Continued
Product istransportable
Site of facilityimportant for cost
Often easy to
automateRevenue generated
primarily fromtangible product
Provider, notproduct istransportable
Site of facilityimportant for customer contact
Often difficult to
automateRevenue generated
primarily fromintangible service.
Goods Services
Ch i Ch ll f th
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Changing Challenges for theOperations Manager
Past Causes FutureLocal or nationalfocus
Low-cost, reliable worldwidecommunication andtransportation networks
Global Focus
Batch (large)
shipments
Cost of capital puts pressure on
reducing investment ininventory
Just-in-time
shipments
Low-bidpurchasing
Quality emphasis requires thatsuppliers be engaged in productimprovement
Supply-chainpartners
Lengthyproductdevelopment
Shorter life cycles, rapidinternational communication,computer-aided design, andinternational collaboration
Rapid productdevelopment,alliances,collaborativedesigns
Ch i Ch ll f th
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Changing Challenges for theOperations Manager
Past Causes FutureStandardizedproducts
Affluence and worldwide markets;increasingly flexible productionprocesses
Masscustomization
Job
specialization
Changing sociocultural milieu.
Increasingly a knowledge andinformation society.
Empowered
employees,teams, and leanproduction
Low costfocus
Environmental issues, ISO 14000,increasing disposal costs
Environmentallysensitiveproduction,
Greenmanufacturing,recycledmaterials,remanufacturing
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The Productivity Challenge
The Economic System Transforms
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The Economic System TransformsInputs to Outputs
The economic system
transforms inputs to outputs
at about an annual 2.5%increase in productivity
(capital 38% of 2.5%), labor
(10% of 2.5%), management
(52% of 2.5%)
Land, Labor,
Capital,
Management
Goods and
Services
Feedback loop
Inputs Process Outputs
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Typical Impact of Quality Improvement
Parts per man hour
95
100
105
110
115
Year A Year B Year C
Cost per unit decreased
$1.50
$1.75
$2.00
$2.25
Year A Year B Year C
Average worker's annual
cash compensation
increased
24000
25000
26000
27000
Year A Year B Year C
As productivity improved Costs were pared Wages increased
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Measure of process improvement
Represents output relative to input
Only through productivity increases can
our standard of living improve
Productivity
Productivity Units produced
Input used =
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Multi-Product Productivity
Productivity =
Output
Labor + material + energy + capital + miscellaneous
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Measurement Problems
Quality may change while the quantity of
inputs and outputs remains constant
External elements may cause an increase or decrease in productivity
Precise units of measure may be lacking
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Productivity Variables
Labor - contributes about 10% of the annual
increase
Capital - contributes about 32% of the annualincrease
Management - contributes about 52% of the
annual increase
Key Variables for Improved Labor
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Key Variables for Improved Labor Productivity
Basic education appropriate for the labor
force
Diet of the labor force
Social overhead that makes labor available
Maintaining and enhancing skills in the midst
of rapidly changing technology andknowledge
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Service Productivity
Typically labor intensive
Frequently individually processed
Often an intellectual task performed by
professionals
Often difficult to mechanize
Often difficult to evaluate for quality
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By : Junaid Nasir
Productivity
ProblemA company makes 2000 (9000 per dayGeneral
tyre) tires per day with the following resources
Labour 400 hours per day @ Rs 50 per hour ( 8 hour shift)
Raw material 20,000 kg per day @ Rs 100 per kg
Energy Rs 100,000 per dayCapital Rs 200,000 per day
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Productivity
ProblemWhat is the labour productivity per labour hour?
What is the multifactor productivity for thesetires?
What is the percent change in multifactor productivity if labour hours is reduced to 380,
material is reduced by 10% and energy cost is
reduced by 30% for the same production?
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By : Junaid Nasir
Productivity
Answers• 5 tire per labour hour
•
•
0.000862 tire per rupee
• Multiple productivity tire 0.0009574 per rupee
(11.07% increase in productivity)
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By : Junaid Nasir
Productivity
ProblemThree employees processed 600 insurance
policies last week. They worked 8 hours per day,
5 days per week. Calculate labour productivity
for the week.
A team of workers made 400 units of a product
which has a cost of Rs 10. The labour, materialand over head costs of making the product are
Rs 400, Rs 1000 and Rs 300. Calculate
multifactor productivity.
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By : Junaid Nasir
Productivity
Answers
• 5 policies per labour hour
• 2.35
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