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Production/Operations Plan

Production/Operations Plan

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Production/Operations Plan

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  1. Production/Operations Plan Ace Institute Of Management BDP - Operations Plan

  2. Outline of Presentation I. Why Production/Operations Plan? II. The content of Production/Operations plan III. Few Tips BDP - Operations Plan

  3. “The Only Place Where Success Comes before Work is the Dictionary” - Vidal Sassoon BDP - Operations Plan

  4. Why Production/ Operations Plan? • To find the answer to following: • Where do we locate our facility? • How big should our facility be? • Chronologically, what are the steps needed to establish our facility? • Which technology will I use? Why? • Where will I get the technology from? • What equipment(s) will be needed? • What raw materials will be needed? • Will I manufacture all parts by myself or outsource some of it? BDP - Operations Plan

  5. Contd. Why Production/Operation Plan? • How will I buy the inputs/raw materials? From where? • What will be the layout of the production process/service? • How will I maintain my inventory level? • How do I define and maintain quality of my product/service? BDP - Operations Plan

  6. Company Mission Business Strategy Functional Area Strategies Functional Area Marketing Operations Fin./Acct. Decisions Decisions Decisions Linking corporate objective with Production/ Operational Planning POM Strategy Flexibility (design, Volume) Low cost Faster Delivery Quality Broader Product line After sales service How are we going to achieve these? BDP - Operations Plan

  7. 10 Production/Operations decisions 1. Product design, Product Specifications 2. Quality management 3. Process, capacity design 4. Location 5. Layout design 6. HR, job design 7. Supply-chain management 8. Inventory management 9. Production/Operations Scheduling 10. Maintenance (after sales service) BDP - Operations Plan

  8. Putting Production/Operational plan in the BP BDP - Operations Plan

  9. What are the Product attributes/ Specifications • Physical Attributes of product/service • Compositions (constituents of product/service) • Packaging sizes/options available BDP - Operations Plan

  10. Cream separation Storage Past. Milk Storage Pasteurization Packaging How is your product made/delivered? Give a brief process flow chart: Ghee out Raw Milk in Milk out (in 500 ml pouches) BDP - Operations Plan

  11. What kind of a process are you following? (process design) • Introduction of technology E.g. • Manual • Batch • semi automatic • Automatic • Continuous production etc. • What are the reasons for selecting the technology? • Which are the key equipments in the production process? • Who is/are the suppliers of technology BDP - Operations Plan

  12. How big is your plant/facility (capacity) • What is the key measure of “capacity”? • What is the installed/designed capacity? • What is the capacity utilization schedule? • How to meet the excess demand (e.g. seasonality)- inventory policy, sub-contracting etc. BDP - Operations Plan

  13. Where do you locate your production facility? • Where is your plant/facility located? • Why did you choose it there, What are the advantages, constraints of this location? • Is the land your own or rented? If rented, for how many years is it rented? • Where do you get your key input materials (raw materials) BDP - Operations Plan

  14. What is your “quality” policy/plan? • Dimensions of quality for your product (product itself, user, process, value etc.) • The firms views on quality • How is the quality measured? • How will you maintain and communicate your “quality”? E.g. TQM, ISO 9000, SQC, after sale service, warrantee, guarantee etc. BDP - Operations Plan

  15. Few Tips BDP - Operations Plan

  16. Do not exaggerate your production capabilities Do not try to over sell your technology/ production plan. Acknowledge if there are any limitations in your production/ operational plan. This can only help you later. BDP - Operations Plan

  17. Be “fact” based • Do not write too much flowery and poetic statements. Provide exact data/facts as far as possible BDP - Operations Plan

  18. Exercise economy in your writing • Avoid highly technical jargons. Remember your plan will be read by mostly “non-technical” persons. • Do not write too many pages in this section. Nobody wants to read BP with long technical details • Use “appendix” section for more detailed and complicated aspects such as drawings, blue prints BDP - Operations Plan

  19. Follow the 4 C’s rule • Clear – as to what u intend to achieve out of this plan and business • Complete – wrt all aspects of the business • Consistent – Strategy selected should be consistent across all functions and depts • Concrete – wrt facts and figures (no “wishy-washy” stuff! BDP - Operations Plan