Production & Operations Management

Case Study Pursuit of Productivity

Amol, Hemang, Pratik, Manoj, Kewal, Nitin, Omkar, Shailendra

SMBA - 16

Introduction
Production = A system takes inputs and converts them into outputs. The conversion process is the predominant activity of a production system Productivity = output/input (e.g. 100 units/machine-hour, in manufacturing, 20 customers/teller-hour, in service)

Pursuit means The act of striving for or chasing.

Measurement of Productivity ?
Productivity measurement: important but difficult. Measurement of output: 1. Aggregate Unit 2. Sales 3. Production Volume Measurement of input: 1. Labor 2. Capital 3. Raw material 4. Energy 5. Information

Today's Factors Affecting OM

Global Competition. Quality, Customer Service, and Cost Challenges. Rapid Expansion of Advanced Technologies. Continued Growth of the Service Sector. Scarcity of Operations Resources. Social-Responsibility Issues.

Relationships of Input and Output affecting Productivity

Output and Input (But the increase in input is proportionally less than increase in output) Output while input stays the same Output while input is Output stays the same while input Output while input even more.

Factors affecting Productivity in India

Labour Inefficiency Low volume of production Lack of specialised training Lack of process automation and standardisation Man Hours Wastage

Productivity Improvement Techniques

Value Engineering Quality Circles Operations Research Training Job Enrichment & Enlargement Material Management

Just In Time
Over production lead to increase in various costs JIT helps in improving the overall production flow i.e.
Less waste and, in turn, less rework Set up times are reduced Less stock Efficiency is increased

First Time Right

Lack of knowledge to worker can lead to huge loss of productivity. Information usually exists but it is not meaningfully organized or deployed. Empower the front end employee with all information required to process the whole cycle of delivery Faster and Output is Stronger.

Application Assembly Optimization

In 2009, IBM invented a global approach called Application Assembly Optimization. Breaking the rigid process of Broader based work into Component based work. Result jump in 20-30% productivity. Because of people get specialized in small window of work , their know-how and errors

Workplace Application
(Service Sector) Process: Two eye Process (Double check) Total 35 products. 1. Specialist with few (atleast 5) products. Enabling Faster output. 2. Increasing the database of knowledge and process of the product. Hence sending correct unit from very first time enabling less in errors and increasing in productivity. Impact - If unit is issued incorrect, Business, Quality, and Reputation affects severely.

Agenda for Action

Transform Process flow Improve intelligence around data Innovate Business Models Upgrade Technology Increase Pace of Talent Development Adopt a Result-only work environment

Our Thoughts on Productivity

Productivity is an attitude of mind Productivity means doing something better today than yesterday

Productivity means continuous improvement