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Factors influencing OPC system in an
organization
1. Type of production system
What do we want to produce?
Out put characteristics of the product
The product-process matrix
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2. Management policies
Plan for meeting seasonal or occasional
increase in demand
Distribution of work
Degree of centralization Maintenance policies
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Type of production system
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Types of Processes and Operations Systems
FLOW L
OR CONTI
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Product-process matrix
TURNKEY
JOB-ORDER
BATCH
MASS
FLOW
PROCESS
PRODUCE TO ORDER PRODUCE TO STOCK
QUANTITY OF PRODUCTION
TYPES
OF
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What do we want to produce?
Product selection
Out put characteristics of the product Volume Variety
Production rate Demand rate
How do we produce?
Produce to order Produce to stock
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Turnkey projects
Project form of production
1. Single variety
2. Single volume
3. Made to specific order
4. The characteristics are similar to jobbingproduction where very small quantity is
produced to specific orders
5. Static layout6. Ship building
7. Bridges
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R/M
Operation I
Operation I
STATIC LAYOUT
Operation II
Operation II
Ope
rati
onIII
Ope
rationIII
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Jobbing production
Production of large variety in small volumes
Fabrication shops
Characteristics
1.Small production runs
Very small volumes, 2 to 3 or 4
Customer specific
2.Flow of materials Imbalance in operation wise work content
Flow is not continuous
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3. Manufacturing cycle time, lead-time Inadequate standard times
Lead time is large
Design changes & errors
Unbalanced work content
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4. Layout of plant and equipment Flexibility to accommodate variety
GPMs
Minimum setup times Material handling equipment with flexibility
Process layout
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FUNCTION LAYOUT IN JOB SHOP
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6. Labour skills
Highly skilled and qualified
Interpret and follow engineering drawings Set and run the machines
7. Supervision
Highly skilled and qualified Span of control is small as the job is
technical and variety is high
8. WIP Quantity is large Jobs remain as inventory at different
stages due to unbalanced operations
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Functions of OPC in Jobbing production
Materials control
Procurement of materials is againstspecific customer order
No advance procurement
Tools control
Standard tools kept in stock
Special tools are made against order
Process planning
Handled by operations function
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Customers order (specifications, drawings)
handed over to operations
Scheduling
Decentralized
All major parts are scheduled (starting &
completion dates) and schedule is passed on
to operations
Progressing
Periodic production meetings
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Batch production
When products are required by customers
in large variety and in limited volumes Auto industry out-sources parts for different
models
Steering wheels, different for differentmodels
Production system works with batches of
inventory moving from one function to another
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Characteristics
1. Short production runs
large variety in small volumes producedseveral times in batches
Batches are stocked as inventory in F/G
store or in WIP stores awaiting withdrawal produced to order (Customer specific),
some times produced to stock
2. Flow of materials In batches, hence intermittent,is notcontinuous
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3. Labour skill Worker sets and runs the machines
Skills required are high4. Supervision
Skills are specific to the function beinghandled
As workers are qualified and skilledamount of supervision required is less
5. Layout & equipment
Function layout GPMs
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Q
P
R
1 2 3 4
P
Q
R
FUNCTION/PROCESS LAYOUT
WIP
STORE 1
WIP
STORE 2
WIP
STORE 3
WIP
STORE 4
F/G
STORE
P
F/G
STORE
Q
F/G
STORE
R
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6. Material handling
Trolleys and bins
Forklifts
7. Manufacturing cycle time
Large lead times due to batches
8. WIP
Large WIP
9. Flexibility
As the job can be easily shifted to anothermachine of same function flexibility is high
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Functions of OPC inBatch production
OPC in batch production is complex due to
variety production
Detailed route sheets and schedules are
required
Every machine is to be individually
scheduled
Progressing & monitoring to be done
meticulously
Expediting function is important as the
activities are complex
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Materials control & Tools control
Scientific stock control using models
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Mass and Flow productionWhen products of same variety are
required by customers in large quantity
Standard products
Discrete products made to stock
Bolts and nuts
Assembly line for automobiles
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Characteristics
1. Long production runs
Single variety in large volumes Produced to stock
2. Flow of materials
Flow is continuous from work station to workstation
3. Machines and plant layout
SPMs and product layout
4. Material handling
Mechanized, conveyers, elevators etc
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2 41
P
3
LINE /PRODUCT LAYOUT
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5. Labour skill
Low skill as activities are repetitive
6. Manufacturing cycle time Lead-time is short as work-stations are
balanced
7. Quality of supervision
Routine
8. WIP is low as there is no inventory instages
9. Flexibility
low, production line is sensitive tomachine breakdown and absenteeism
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Functions of OPC inmass and flow
production
Materials control is very crucial
All other functions are simple
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Continuous and process production
When same product is required bycustomers in large quantity
Continuous products, made to stock
Cement
Sugar
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Management policies
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1. Plan for meeting seasonal or
occasional increase in demand
Option I
Plan the plant capacity for seasonal peak
and during off season use the capacity for
producing other products to balance the
capacity
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Option II
Plan the plant capacity for off seasonal least
demand and during season manage the
peak demand by intensive working and out
sourcing
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2. Distribution of work
Normal functions and optional functions
In some companies only normal functions
are assigned
In some companies some optional
functions are also assigned
In large companies the functions are
assigned to OPC cells
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3. Degree of centralization
CentralizedOPC is handled by staff specialists
Advantages and disadvantages
DecentralizedOPC is handled by line staff
Advantages and disadvantages
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Semi centralizedA new trend in companies
Area of OPC for staff specialistsMaterials planning
Outsourcing
Process planningProgressing and follow up
Capacity planning
Man power availabilityMaintenance planning
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Area of OPC for line staff
Shop-floor planning
Man power allocation
OPC within stipulated schedules given by
staff specialists
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MAINTENANCE
SYSTEMS
BREAK DOWN
MAINTENANCE
PREVENTIVE
MAINTENANCESCHE
SCHEDULED
MAINTENANCE
PREDICTIVE
MAINTENANCE
INSPECTION
LUBRICATION
4. Maintenance policies