Introduction to production and operations management

Introduction to production and operations management

Contents Production and Operations Management – An overview Objectives of Production and Operations Management Forecasting Quality Management – Strategic Issues Process Analysis and Design Effective Product Design Supply Chain Management and Capacity Planning Facilities Planning Materials Management and Warehouse Inventory Management Materials and Resource Planning Production Planning and Operations Scheduling Process Configuration Strategies Management of Technology Planning Team Work and Job Design Project Management – Planning Development Strategies Change Management Work Study and Industrial Engineering

Introduction Wegmans food markets • Wegmans Food Markets, Inc., is one of the premier grocery chains in the United States.Headquartered in Rochester, NY • Wegmans operates over 70 stores. The company employs over 23,000 people, and has annual sales of over $2billion

Introduction Superstores Many of the company’s stores are giant 100,000 sq.ft. superstores, double or triple the size of average supermarkets. A superstore typically employs from 500 to 600 people Each store is little different. Among the special features in some stores are a dry cleaning department, a wokery, and a salad bar. Some stores feature a Market Cafe that has different food stations, each devoted to preparing and serving a certain type of food. For example, one station has pizza and other Italian specialties, and another oriental food. There is also a sandwich bar, a salad bar and a dessert station.

Introduction Ordering • Each department handles its own ordering. Although sales records are available from records of items scanned at the checkouts, they are not used directly for replenishing stock. Other factors, such as pricing, special promotions, local circumstances must all be taken into account. However, for seasonal periods, such as holidays, managers often check scanner records to learn what past demand was during a comparable period

Introduction Quality • Quality and Customer satisfaction are utmost in the minds of Wegmans management and its employees • Managers are responsible for checking and maintaining products and service quality in their departments. Moreover, employees are encouraged to report problems to their managers

Production The very essence of any business is to cater needs of customer by providing services and goods, and in process create value for customers and solve their problems. Production and operations management talks about applying business organization and management concepts in creation of goods and services.

Production Production is a scientific process which involves transformation of raw material (input) into desired product or service (output) by adding economic value. Production can broadly classified as follows:- 1 Production through separation 2 Production through modification 3 Let us discuss each one in detail CLICK HERE Production by assembly

Concept of production The ‘Johari Window’ is based on a four-square grid. Production is defined as “the step-by-step “ conversion of one form of material into another form through chemical or mechanical process to create or enhance the utility of the product to the user The ‘Johari Window’ is made up of a window with four 'panes’. The window is a square pane with a cross in the middle of it. This cross divides the window into four panes. Thus production is a value addition process. At each stage of processing, there will be value addition

Continuous production-Advantages and Disadvantages • Flexibility to accommodate and process number of products does not exist • Very high investment for setting flow lines • Product differentiation is limited • Standardisation of product and process sequence • Higher rate of production with reduced cycle time • Higher capacity utilization due to line balancing • Manpower is not required for material handling as it is completely automatic • Person with limited skills can be used on the production line • Unit cost is lower due to high volume of production

Operation strategy Operational strategy is essential to achieve operational goals set by organization in alignment with overall objective of the company. Operational strategy is design to achieve business effectiveness or competitive advantage

Objectives of production management • Right quality Right quality does not mean “best quality”. The quality of the product is based upon the customers requirements. The quality is determined by the cost of the product and the technical characteristics depending on the specific requirements.

Purpose of Forecasting The purpose of forecasting is to help the organization manage the present and to prepare for the future by examining the most probable future demand pattern. However, forecasting has its constraint, for example, we cannot estimate a pattern for technologies and product where there are no existing pattern or data.

Focus of TQM Involvement of all employees in the process Appropriate reward for quality improvement and suggestions Selection of suppliers Maximum customer satisfaction Organization structure to support the process

Process design Effective process strategy deals with raw material procurement, customer participation, technology investment, etc. In order to achieve a good process design, effective process strategy is required, which deals with a singular line items required to manufacture the end product Process design requires a broad view of the whole organization and should not have a myopic outlook A successful process design has to take into account the appropriateness of the process to overall organization objective

Facility layout Facility layout is an arrangement of different aspects of manufacturing in an appropriate manner to achieve desired production results. Facility layout considers available space, final product, safety of users and facility and convenience of operations

Factors affecting facility layout 1 2 3 4 The design of the facility layout should consider overall objectives set by the organization Optimum space needs to be allocated for process and technology A proper safety measure to avoid mishaps Overall management policies and future direction of the organization

Materials and Resource Planning Material requirement planning is an information system for production planning based on inventory management. The basic components of material planning are: 1 Material planning provides information that is required for raw material and products that are available for production • Material planning provides information of production planning and scheduling but also provides information about dispatch and stocking 2 3 • Material planning ensures that inventory levels are maintained at its minimum levels

Types of process flows A synthetic process is one in which different components come together in order to form a single product. Synthetic processes employ “synthesis”, which is defined as many inputs joining together to form a “whole”. The purest example of synthesis is “many-to-one”. However, in reality this is mostly reinforced by a relatively synthetic process, which combines “the many” to form “a few” instead

Advantages of work study 4 Meets delivery commitments 3 Better management-worker relations It helps to reduce the product cost through elimination of waste and unnecessary operations 2 1 It enables the achievement of a smooth production flow with minimum interruptions

Learn Management the Easy Way with the Help of Downloadable Power-point Presentations - Learn at Your Own Pace. This is a DEMO Course On – Production and Operations Management. The Complete Course Consists of 130 Slides. 79 Courses Added So far with more than 15,000 Slides+New Courses Added Every Week. – Click here to Go to All Courses ManagementStudyGuide.com

Introduction to production and operations management