Production And Operation

Management
What Is Production Management?

Production Management involves understanding of the
characteristics of various types of production systems,
identification of the dynamics of the different phases of
the management process, realizing the potential of
different analytical tools, learning the nuances of the
implementation of these tools, visualizing the impact of
various uncertain situations and developing the ability to
react under various scenarios to achieve consistently
excellent business results. These organizations achieved
superior quality, higher productivity, perfect delivery
performance, overall customer satisfaction and enterprise
excellence all with lower cost.
Integrated Production Management
Indian industries spends billions of dollars on
warehousing, inventory control, physical
distribution, production management etc.
In 1980s, problems like:
Labor shortage, increased global competition, shortage
& rising cost of energy, need for increased
productivity, increased cost of carrying inventories,
increased attention to quality & reindustrialization
influences the need for improved management.
Integrated Production Management Continue
According to the need of improved management of
materials in the factory & warehouse, production
management is included in Material Management.
MATERIAL MANAGEMENT: it is procuring, storing,
handling, controlling, packaging, inspecting &
transporting materials as well as providing customer
service.
In general: it can be defined as providing safely the
right amount of the right material at the right place,
at the right time, and at the right cost without
damage.
Today PRODUCTION MANAGEMENT is much
more than simply handling material. It involves:
Handling material
Storing material
Controlling material
Traditionally Production Management has been
manifested with references to manufacturing as
value adding & Production Management as
cost adding.
In 1980s, Productivity, Quality and Inventories
represent three major targets of opportunity.
Design of Production Management System
It includes layout design & structural design in facilities
design.
Facilities Design is related to Product design, Process
design & Schedule design.
Product designers specify what the end product is to
be in terms of dimensions material composition,
packaging.
Process planner determines how the product will be
produced.
Schedule designer (production planner) specifies the
production quantities & schedules the production
equipment.
Integrated Production System
Today we have factories with segregated technology.
We need technologically integrated factories. It will
become a reality in individual companies only if
strategic manufacturing plans are developed & such
plans include material handling strategies.
Attempts by industries to implement automation in
manufacturing have tended to create islands of
automation, rather than automated systems.
Robots, flexible manufacturing systems, numerically
controlled machine centres etc.are good examples.
INVENTORIES
Inventory is a list for goods and materials, or those
goods and materials themselves, held available in
stock by a business. Inventory are held in order to
manage and hide from the customer the fact that
manufacture/supply delay is longer than delivery
delay, and also to ease the effect of imperfections in
the manufacturing process that lower production
efficiencies if production capacity stands idle for
lack of materials.
The attention being paid to inventory management by Toyota
Production System (Japan).
Just-in-Time:- it refers to production of the necessary
materials being performed JIT. Each process must accurately
produce the required amount of product within a carefully
controlled period of time.
Autonomation:- More than one defects control. It is realized
by quality control of the products & the autonomous defects
control established through quality circles.
Kanban:- It is the information system supporting JIT. The
type & quantity of material required are entered on a material
requisition form called a kanban.

Andon:- It is an electric board that is visible to every
plant employee. It is used by employees to signal the
need for assistance & prevent a stoppage of the
assembly line.
Yo-I-Don:- it means ready, set, go. It provides one
method of smoothing the flow in a process.

According to MONDEN-in its simplest terms, the
Toyota production system might be interpreted as a
special case of material requirements planning.
Material Control
It is required to reduce in-process inventories.
Material control includes not only traditional
inventory control, but also the location of material in
in-process storage, and its orientation.
Previously noted, in batch manufacturing 95% of the
manufacturing cycle spends as in-process inventory.
Proper planning of the storage & control is the key to
an effective manufacturing system.
Apple and Strahan note, parts that comprise these
inventories are typically stored in a manner that
makes poor use of building space, provides limited
accessibility to individual part numbers, and
represents a low level of location control.
Factors governing in-process storage by Apple &
Strahan :
1. Inventory size and allocation
2. Unit load design
3. Inventory location
4. Control of status, location, and quantity
5. Storage mode.
System Productivity
Productivity is not always enough, with rapid
technological advancement & futuristic
manufacturing equipment & processes,
networked systems tend to become more &
more complex. And this has necessitated
organizations to revisit their systems &
procedures as to how effective & efficient
they prove to be.
Certain Key Aspects of System Productivity
Analytical Supply Chain Management
Solutions
Scientific ABC analysis
Dynamic control of Inventory
Dynamic scheduling-fulfillment-based
planning through ERP
Broad based Outsourcing
CAPITAL PRODUCTIVITY
Capital:- It refers to financial wealth, especially that
used to start or maintain a business, sometimes
referred to as Cash flow.
Capital deployed in plant, machinery, buildings,
distribution system etc.& it need to be productive.
Reasons for low productivity:
Demand fluctuations
Uncertainties of production owing to breakdowns
Inventories
Various Methods Of Capital
Productivity:

Outsourcing
Methods of Improvement
Balancing of workstations
Rationalization of packaging methods
Quality circles

LABOR PRODUCTIVITY
Productivity: proper utilization of available resources to
achieve the best results with minimum cost.
Labor productivity: It is defined by the OECD to be "the
ratio of a volume measure of output to a volume
measure of input.
Output per worker corresponds to the "average product
of labor" and can be contrasted with the marginal
product of labor, which refers to the increase in
output that results from a corresponding (marginal)
increase in labor input.
LABOR PRODUCTIVITY continue.
Frederick W. Taylor in his "Task Study" said,
"Human work Can be made infinitely more
productive not by 'working harder' but by
"working smarter'.
How to increase labor productivity:-
Balancing operations in assembly line
Reallocation of workers
Setting up productivity norms and evaluation
of Production Operations

TRAINING
The term training refers to the acquisition
of knowledge, skills, and competencies
as a result of the teaching of vocational
or practical skills and knowledge that
relate to specific useful competencies.
The dictionary meaning of Training is
practical education in any profession or
art.



TRAINING
In practical terms, Training would mean
imparting competencies to do a particular act
in a particular manner.

A life office would like to impart training to
its prospective clients and the existing clients
in certain processes that would ensure smooth
relationship between the clients and the life
office.


TRAINING continue..

So, we can say that Training will:-
Improve Productivity
Reduce Cost
Make Production Competitive

THANKS.
PRODUCTION AND
OPERTAION MANAGEMNT
UNIT-2
ADVANCED METHODOLOGIES
OF PRODUCTION
Advanced methodologies of
production
Production Systems contain the machinery, which are
used to transform materials to the desired shapes,
having the requisite properties induced into them for
obtaining specific performance parameters.
Production process includes obtaining raw materials,
store them & move them from one stage of operation
to the next, sometimes outside the plants. Tracking
them throughout the process is a stupendous task.
Optimization at every stage is necessary to
derive competitive advantage.
To optimize, Advanced methodologies in
aspect s like material handling, scheduling,
Just In Time, Lean Manufacturing,
packaging, logistics get the support of data
base management systems, online
transmission & processing of information
that initiate & follow activities.
CAD-computer aided design
CAD is the software aids in creating or
modifying an existing design. Images of
different components can be seen as
assembled ,section-view etc. with great
accuracies.
With it we can send drawings via internet or
intranet to concerned person.
Corrections & incorporations can be made very
quickly.
CAD-computer aided design
With it, the efficiency of designers increases by nearly 5
times. The software can generate the volume,
weights of components as also other engineering
parameters like centre of gravity, deflections under
estimated loads & various other design parameters
on complicated forms.
This aids in reducing the time required to make a design
or modify a product & thus concept market period
gets drastically cut.
CIM, computer Integrated
Manufacturing
Integration occurs when a broad range of
manufacturing & supporting activities are
linked.
Activities include engineering design, production
planning, shop control, order processing,
material control, distribution etc.
Information flow across all functions takes place
with the help of computers.
CIM, computer Integrated
Manufacturing
CIM helps in avoiding accumulation of materials
resulting in better throughput & better
utilization of space. Identifying shortages,
ensuring faster deliveries becomes easy with
CIM.
Transmission, processing, distribution &
feedback happen with CIM resulting rapid
production & reduced indirect costs.
Split- Case Order Fulfillment Methods &
Mechanization
Split-case order: Fulfillment of orders which
need different merchandise in different
quantities requires that cases will have to be
split, and pieces picked, repacked in cartons &
ship to the customer.
Mechanization: it helps in improving
identification, pick-up & repacking the
materials in addition to relieving monotony of
the workers.

ORDER PICKING METHODS
Items should be picked & packed in a logical manner & assigned
to personnel as per customer requirements, so that their
productivity is maximized.
Accuracy of fulfillment of order is ensured by 2 basic factors:
1. Order Extent- It is defined as the number of order to be
picked simultaneously by a picker in an assignment.
Discrete order: Single order is selected at a time.
Batch order: the merchandise requirements of many orders
are put together & selected for pick up in the geographical
area which is covered in a single pass.

ORDER PICKING METHODS
Coverage extent: the physical area to be traversed by the
picker in selecting merchandise for an assignment
within the picking zone. The zones are identified
within the picking area.
Tour picking: the entire picking area is considered for
picking merchandise.
SORTING- It is done for the purpose of easing the
operation of matching orders, merchandise & the
customers for whom they are done. Sort immediate
or by merging a number of order & batches are made
to consolidate the priorities for execution. This
method is called Merge & Sort.
ROUTING: when orders are routed among
the zones where picks are required, we
call them Routing the picks. When orders
are routed from zone to zone, in a
particular order, whether any picks are
there or not, we call them Chaining.
When multiple zones are covered
simultaneously in different zones we call
them parallel routing.
ORDER PACKING METHODS
When split-case is executed it becomes
necessary that the merchandise is repacked for
shipment to meet the requirements of the
customers.
In first method, they are picked & packed. This
method is used where customer use the
merchandize directly.
CLASSIFICATION SCHEMES
D iscrete Order Picking or B atch Order Picking
Z one picking or T our picking
BS Batch order picking-sort immediate
BM Batch order picking- sort immediate
ZR Zone picking with routing
ZC Zone picking with chaining
ZP Zone picking in parallel.
For example: BSDZCA- batch order picking, sort
immediate discrete order picking, zone picking with
chaining and Assemble.
CHOICE OF OPTIMAL FULFILLMENT
STRATEGIES
General order characteristics:
Number of line-items
Quality of pieces per line- item
General order categories:
1. Wholesale distribution
2. Retail distribution
3. Direct marketing
4. Consumer Distribution
The performance measures to be satisfied by the choice
of strategy are to minimize the costs involved &
maximize desirable characteristics.
Communication of Picking Directives
For efficient process of order picking by personnel, we need
accurate, timely & sufficient information.
Various Techniques:-
1. Reports- Customers order either in the printed format
generated by the customer or converted to one by the
marketing deptt., pick lists, packing slips, stock location
reports, delivery notes.
Labels: These labels are bar coded for item sorting & order
verification.
Radio frequency Terminals: coding & bar coding for
identifying orders for routing & sorting.
Communication of Picking Directives
2. Display Light- These computer activated
lights are used to direct order selectors to
items & locations to pick order or batch
requirements. They call for the attention of the
personnel & alert them.
Order Picking & Packing Economics
The main cost factors can be divided into two
categories: Capital Costs & Operating Costs.
Capital costs- it includes facilities, material handling
systems, weighing systems, supporting & facilities
goods which are used over a long time.
Operating Costs- include labor, consumable supplies,
insurance, utilities, taxes etc.
Incidental costs- those associated with damages,
resolution of errors, return handling, inventory
shrinkage etc.
Space & Storage Equipment Costs
Split case picking & packing functions & the
space required for them can be broadly
categorized as-
1. On line storage
2. Replenishment aisles
3. Picking aisles
4. Packing work space
5. Material handling space
Storage Density Vs. Velocity
Storage Density refers to quantity of material or number
of items that can be stored in a unit of volume, say
10 cubic meter.
Velocity refers to the speed with which materials are
moved to the next point in the supply chain.
The major costs that are necessary to be incurred for an
on-line storage system are space & equipment costs.
Capital Costs for on-line storage
Mechanization Costs
Picking and Packing costs
Order assembly and packing system costs.


THANKS.
PRODUCTION AND OPERATION
MANAGEMENT
UNIT-3
OPERATIONS MANAGEMENT


OPERATIONS MANAGEMENT


Operations management is an area of business that is concerned with the
production of goods and services, and involves the responsibility of
ensuring that business operations are efficient and effective. It is the
management of resources, the distribution of goods and services to
customers, and the analysis of queue systems.
APICS The Association for Operations Management also defines
operations management as "the field of study that focuses on the
effectively planning, scheduling, use, and control of a manufacturing
or service organization through the study of concepts from design
engineering, industrial engineering, management information
systems, quality management, production management, inventory
management, accounting, and other functions as they affect the
organization"

Management activities encompasses in Operation
Management

People- direct or indirect workforce;
Parts- the components, sub-assemblies or even
products.
Processes- methodologies, technology, tooling,
fixtures for establishing, maintaining & improving
productivity;
Planning & control- information management
system which initiates, directs, monitors & collects
feedback to enable efficient use of resources.

SCOPE OF OPERATIONS
Operations research plays an increasingly important
role in both the public and private
sectors. Operations research addresses a wide variety
of issues in transportation, inventory planning,
production planning, crew planning, communication
network design and operation, computer operations,
financial assets and risk management, revenue
management, market clearing and many other topics
that aim to improve business productivity.

OPERATION STRATEGY
OPERATIONS: It is one of the major functions of any business
organization Marketing discovers the destination for the product or
service that is produced.
The operations functions should be guided by strategies which are
consistent with the organization strategy. COMPETETIVENESS is
at the core of all strategies.
Different functional areas with their own capabilities & constraints
have to be integrated for the overall corporate strategies.
Operation Strategy is formulated to leverage the advantages, absorb the
consequences of the variable nature of various functions & provide
a dependable implementation programme.
Formulation of Strategy
Formulation of Strategy depends on the assessments of
strengths, understanding of the weaknesses, the
nature of external environment & the resilience of
the internal environment. The policies derived from
the operations strategy should be amenable to go
along with other functions.
ORGANIZATION STRATEGY should be such that the
strategies of different functions are designed to lend
support to one another.


OPERATIONS STRATEGY
takes under its umbrella the following:


Quality
Time
Flexibility
STRATEGIC MANAGEMENT PROCESS
The organizational processes depend upon the:
Structure of the organization
The hierarchical levels
Decision arrival mechanism
Communication systems
Authorization processes
Implementation procedures
Feedback & monitoring devices
To formulate and implement strategies.
Purpose of Strategies
To leverage the companys advantages
To prepare for the eventualities of uncertain external
happenings
To maximize the chances of success in the endeavors
To ensure effective & efficient process
To avoid loss
The actual activities which result in outcomes are called
Operations.
The Operations Strategy would consider the
following:
Additional machinery or sub-contracting
Methods to improve productivity
Revamping assembly lines
Measures to improve motivation
Promoting existing employees or hire new ones
Identifying & developing new suppliers
Look for opportunities to reduce costs
STRATEGIC DECISION MAKING
Decision making is the crucial management function.
Decisions commit the organization & its members to
perform activities which have financial
repercussions & affect the functioning of others who
are connected with those.

Factors which form the basis of decision making:
Environmental Scanning
Core Competencies
Environmental Scanning- Becoming aware
about the threats & opportunities and their
impact on the firm by a process of analysis.
Core competencies- The unique strengths on
the basis of which the entrepreneur started the
organization.Some additional strengths &
competencies have been acquired to augment
the existing business built.
The developments and improvements both in
knowledge and skills make the core strengths
better.
CORE PROCESSES
Core processes of an organization are determined
by the core competencies.
Four main core processes are:
Customer relationship
New product/ service development
Supplier relationship
Order fulfillment
DIFFERENTIATION STRATEGIES
Differentiation is a process by which a company
distinguishes itself from its competitors and
their offerings.
The difference should be perceived by the
customers as- important, distinctive, superior
& affordable. Nonetheless, they have to make
the companys offerings I.e. products &
services profitable.
Tools for implementation of Operations
Set of specialized techniques are known as tools which
can be standardized for ease of implementation and
control.
IMPLEMENTATION OF OPERATIONS:
Implementation is the process of executing the planned
operations.Estimating, routing, loading are the
planning processes and dispatching and progressing
are processes which are conducted while the
manufacturing is going on.We call the former
PLANNING and the latter CONTROLING function.
Put together they are considered
IMPLEMENTATION.
Tools for implementation of Operations
Tools for implementation: GANTT charts are used to
record progress comparing the actual against the
planned activities and keep track of the flow of the
material.
Line Balancing & Line of Balance are two more tools to
ensure that machining centers are loaded uniformly.
Simulation Models are used to predict utilization of
Machines and Production levels.
Microsoft Operations Manager 2005 is a useful tool in
this regard.
INDUSTRY BEST PRACTICES
Each industry would have developed over years or
decades. Materials would have changed, processes
would have changed. All products & services are
meant to serve needs of the customers, are undergo
continuous changes both in shapes & features.
Industry best practices open up the field for
benchmarking by companies which need to improve
their performance.
Pragmatic Bench Marking
It is a method of measuring a companys processes,
methods, procedures and in a way all functions in
great detail. Benchmarking is used to understand
how these got into the system and what
circumstances brought them about.
The metrics that could be used are- number of pieces
per hour, cost per unit, number of breakdowns per
week, customer alienation per week, return on
investment, number of returns from customers in a
month and inventory turnover.
Types Of Benchmarking
Process benchmarking- Business Process
Financial benchmarking
Performance benchmarking
Product benchmarking
Strategic benchmarking
Functional benchmarking
Benchmarking Operation
Planning
Analysis
Integration
Action
It is necessary to set achievable targets keeping in view
the availability of resources, technology and spread
awareness about the importance of what is attempted
& how success improves the image of the company.

The BCG Growth-Share Matrix is a portfolio
planning model developed by Bruce Henderson of
the Boston Consulting Group in the early 1970's. It
is based on the observation that a company's
business units can be classified into four categories
based on combinations of market growth and
market share relative to the largest competitor,
hence the name "growth-share". Market growth
serves as a proxy for industry attractiveness, and
relative market share serves as a proxy for
competitive advantage. The growth-share matrix
thus maps the business unit positions within these
two important determinants of profitability.
This framework assumes that an increase in
relative market share will result in an increase
in the generation of cash.
The four categories are:
Dogs - Dogs have low market share and a low
growth rate and thus neither generate nor
consume a large amount of cash. However,
dogs are cash traps because of the money tied
up in a business that has little potential. Such
businesses are candidates for divestiture.

Question marks - Question marks are growing rapidly and
thus consume large amounts of cash, but because they have
low market shares they do not generate much cash. The
result is a large net cash consumption. A question mark
(also known as a "problem child") has the potential to gain
market share and become a star, and eventually a cash cow
when the market growth slows. If the question mark does
not succeed in becoming the market leader, then after
perhaps years of cash consumption it will degenerate into a
dog when the market growth declines. Question marks must
be analyzed carefully in order to determine whether they are
worth the investment required to grow market share.
Stars - Stars generate large amounts of cash because
of their strong relative market share, but also
consume large amounts of cash because of their high
growth rate; therefore the cash in each direction
approximately nets out. If a star can maintain its
large market share, it will become a cash cow when
the market growth rate declines. The portfolio of a
diversified company always should have stars that
will become the next cash cows and ensure future
cash generation.
Cash cows - As leaders in a mature market, cash cows
exhibit a return on assets that is greater than the market
growth rate, and thus generate more cash than they consume.
Such business units should be "milked", extracting the profits
and investing as little cash as possible. Cash cows provide
the cash required to turn question marks into market leaders,
to cover the administrative costs of the company, to fund
research and development, to service the corporate debt, and
to pay dividends to shareholders. Because the cash cow
generates a relatively stable cash flow, its value can be
determined with reasonable accuracy by calculating the
present value of its cash stream using a discounted cash flow
analysis.
Under the growth-share matrix model, as an
industry matures and its growth rate declines,
a business unit will become either a cash cow
or a dog, determined solely by whether it had
become the market leader during the period
of high growth.
THANKS.
PRODUCTION AND
OPERATION MANAGEMENT
UNIT-4
PRODUCTION
TECHNIQUES
INTRODUCTION
A technique is a procedure used to accomplish a
specific activity or task:
Technology, the study of or a collection of
techniques
Skill, the ability to perform a task
Scientific technique, any systematic method
to obtain information of a scientific nature
Production Techniques
o Production Techniques encompass the work systems,
their design and the processes of planning &
production control techniques.
o Deploying existing resources, reinforcing them with
new equipments, identifying new vendors, updating
their technology, resolving quality problems,
identifying bottlenecks in the flow of materials and
information.
o SUITABILITY of various techniques & their
combinations has to be viewed with flexibility for
increasing or decreasing capacity to meet the market
compulsion.
Production Techniques
o Reducing inventory has become very important.
Assurance of quality has become fundamental for an
organizations existence because processes involved
are automated & the flow cannot be interrupted.
o From concept to product, the periods are
shrinking.
o Computerization and Information Technology are
facilitating the various processes to make them
accurate, timely & savings in cost.
Automated Production Systems
All operation systems are based on the
following criteria:
o Output of the product- whether they are goods
or services
o Specification of the product- standards or
customized
o The flow pattern- whether it is job shop or
batch production, assembly or continuous.
Evolution of the Production System
The goods required by society were produced in
small quantities by craftsmen who would know the
needs of the community and produced them by their
own hands with simple tools. He would be
responsible for the design, procurement of the
required materials and the processes, he considered
fit. Repeated performance would improve their
skills. But as demand increases, more people get
involved in the process, apprentices would join these
craftsmen & additional suppliers. They uses sources
like horses, oxen, wind & water mills for power.
o Division of labor became necessary to achieve efficiencies &
the jobs that became specialized.Invention of petrol & diesel
led to mass production.
o Frederick Taylor introduces the science of management.
Observation, documentation, analysis became the backbone
of achieving efficiencies.
o Special purpose machines, numerically controlled machines
and robots maximize the production.
o ASRS-automated storage & retrieval systems and AGVS-
automated guided vehicle systems and many more automated
systems cost huge sums but beneficial for long term benefits.
Automated Flow Lines
o When several automated machines are linked by a transfer
system which moves the parts by using handling machines
which are also automated.
o After completing an operation on a machine, the semi-finish
parts are moved to the next machine in the sequence
determined by the process requirements and the flow line is
established. Human Intervention may be needed to verify that
the operations are taking place according to standards.
o Automated flow lines are beneficial to balance times that
different machines take to complete the operations assigned
to them.
Automated Flow Lines
The global trends are favoring flexibility in
the manufacturing systems. As the cost
involved in changing the set up of automated
flow lines are high, the Automated Flow Lines
are considered only when the product is
required to be made in high volumes over a
relatively long period.
Automated Assembly Lines
o An assembly line is a manufacturing process in
which parts (usually interchangeable parts) are added
to a product in a sequential manner using optimally
planned logistics to create a finished product much
faster than with handcrafting-type methods.
o Mass production via assembly lines is widely
considered to be the catalyst which initiated the
modern consumer culture by making possible low
unit costs for manufactured goods.

Automated Assembly Lines
Assembly line uses proven and developed automation
solutions to allow the customer to carry out assembly
operations and the required production test parameters.
Assembly line automation is a specialist area that combines many
elements of automation and engineering.

Flexible Manufacturing Systems
A flexible manufacturing system (FMS) is a
manufacturing system in which there is some amount of
flexibility that allows the system to react in the case of
changes, whether predicted or unpredicted. This
flexibility is generally considered to fall into two
categories, which both contain numerous subcategories.
The first category, machine flexibility, covers the system's
ability to be changed to produce new product types, and
ability to change the order of operations executed on a
part. The second category is called routing flexibility,
which consists of the ability to use multiple machines to
perform the same operation on a part, as well as the
system's ability to absorb large-scale changes, such as in
volume, capacity, or capability.

The main advantages of an FMS is its high flexibility in
managing manufacturing resources like time and effort in
order to manufacture a new product. The best application
of an FMS is found in the production of small sets of
products like those from a mass production.
An Industrial Flexible Manufacturing System (FMS)
consists of robots, Computer-controlled Machines,
Numerical controlled machines (CNC), instrumentation
devices, computers, sensors, and other stand alone systems
such as inspection machines. The use of robots in the
production segment of manufacturing industries promises
a variety of benefits ranging from high utilization to high
volume of productivity.

The production of each part or work-piece will require a
different combination of manufacturing nodes. The movement
of parts from one node to another is done through the material
handling system. At the end of part processing, the finished
parts will be routed to an automatic inspection node, and
subsequently unloaded from the Flexible Manufacturing
System.
Advantages
Productivity increment due to automation
Preparation time for new products is shorter due to flexibility
Saved labor cost, due to automation
Improved production quality, due to automation
However, it is not always necessary that on increasing
flexibility productivity also in

Global Trends in Rapid Prototyping
A prototype is an original type, form, or instance of
something serving as a typical example, basis, or
standard for other things of the same category.
Prototyping is a process by which a new product is
developed in small numbers so as to determine the
suitability of the materials, study the various
methods of manufacture, type of machinery required
& to develop techniques to overcome problems that
may be encountered when full scale manufacture is
undertaken.
It helps in confirming the design and any shortcomings
can be rectified at low cost.
Building Manufacturing Flexibility
Flexibility has three dimensions in the manufacturing field:
o Variety
o Volume
o Time
Manufacturing flexibility has become the cornerstone of
operations strategy in the 2000s.
The ability to improve/maintain market share because
Customer orders can be delivered soon after receipt of the
order
Production can quickly be shifted from product to product
Production capacity can be increased rapidly
New products can be developed and introduced into
production quickly and inexpensively


PRODUCTION AND
OPERATION MANAGEMENT
UNIT-5
FACILITY
MANAGEMENT
FACILITY MANAGEMENT
In business, facility management (or facilities
management) is the management of building, estates
which encompasses both building fabric and services.
The services are sometimes considered to be divided into
"hard services" and "soft services.
Hard services includes such things as ensuring that a
building's air conditioning is operating efficiently,
reliably, safely and legally.
Soft services includes such things as ensuring that the
building is cleaned properly and regularly or monitoring
the performance of contractors (e.g. builders,
electricians).
FACILITY MANAGEMENT
The term "facility management" is similar to
"property management" but often applied only
to larger and/or commercial properties where
the management and operation is more
complex.

FACILITY PLANNING PROCESS
It is the most important function of management. We will
consider them in two parts:
Facility location
Facility lay-out
FACILITY LOCATION- Facility location, also known as
location analysis, is a branch of operations research
concerning itself with mathematical modeling and solution of
problems concerning the placement of facilities in order to
minimize transportation costs, avoid placing hazardous
materials near housing, outperform competitors' facilities, etc.

FACILITY LOCATION
Factors influencing plant location are:
General Factors-
Availability of land
Availability of inputs
Closeness to market places
Communication facilities
Infrastructure- power, water
Transport
Government support- subsidies etc.
Housing & recreation- educational facilities
Special Factors-
Economic stability- outside investments
Cultural factors
Wages
Joint ventures- support of big time players
Methods for Plant Location:-
1. Rating Plan Method
2. Factor Rating Method
3. Point Rating Method
4. Break-Even Analysis
5. Centre of Gravity Method
Refer book for details.

FACILITY LAYOUT
Layout means the positioning of various equipments,
machineries, department facilities etc to maximize
productivity and valuable space utilization. It has to be
considered with a view to accommodate additional
machines.Different types of layouts are in vogue depending
upon the product, process and the type of production.
Always consider the Manufacturing systems while planning for
Layout. It has to be considered with a view to accommodate
additional machines.
FACILITY LAYOUT IS OF TWO TYPES:
Machine layout
Product layout

MACHINERY LAYOUT
The processes involved in getting things done have to be
detailed out in terms of materials required, the sequence
of the various activities of the process & their movements
from one location to another.
In it the essence of planning is the determination of
activities that need to be performed at a future date to
meet demands that have been forecast based on market
surveys.
Another main consideration is the material handling that
is required for the raw materials, goods in process and the
finished goods.
PRODUCT LAYOUT
These are also called production lines or assembly lines. They are designed
and laid out in such a way that only a few products are capable of
being manufactured or assembled.Materials flow through the various
facilities. These use special machines to perform specific operations to
produce only one product at one time. So, companies set different set
of machines for different operations.
The operation times, the sequence of movements, routing procedures are
highly standardized to meet production requirements which are
synchronized with many such products to complete finished goods to
meet demands.
The skill required of the workers is low, supervision is minimal. Training
needs are small. The MAIN concern is to keep a check on the
processes so that QUALITY is assured.
OPTIMIZATION OF RESOURCE
UTILIZATION
Resources can broadly classified under three categories:
First category- land, machinery, equipments, tools, raw
materials, inventory, power etc.
Second category- Processes, technology, techniques etc.
Third category: People both inside & outside the
organization, employees, suppliers, customers, members
of the society.
All the resources have inherent potential of enabling the
realization of the goals f the organization. It is the
responsibility of the management to identify the strengths
that all these factors have and utilize them for achieving
productivity.
Resources will have constraints in terms of their availability-
quantities and timeliness.
Reasons why companies still build up inventories :
Customer Service- created inventory helps speed up
delivery, thus meeting the need of the customer. An old
customer tends to stay with you if you are able to give
immediate delivery or he may be tempted to try a new
supplier.
Ordering Cost- frequent reordering increases the cost of
procurement. Higher quantities may bring in entitlement
of discounts. Further price increases will not affect us.
In the shop floor longer runs lead to higher productivity
& minimize the set up costs.
Labor & equipment utilization will be high as quantities
produced per set up is high.
Reduced transportation costs- both inbound & outbound.
WORK CENTRE LOCATIONS
A work centre is a production facility comprising of one or
more machines and one or more workmen considered as a
single unit for purposes of estimation of capacity. This unit may
have a single operation or a number of them conducted on the
input items.In many organizations, they are even considered as
cost centers. Each work centre receives information along with
material that enter it. The material also leaves the work center
with information.Activities conducted on the basis of
information that flows with material. Some centers have to
close as a matter of necessity, some need not be & some need to
be as far away as possible. THANKS..
PRODUCTION & OPERATION
MANAGEMENT
UNIT-6
TOTAL QUALITY
MANAGEMENT
INTRODUCTION
What is quality?
Dictionary has many definitions: Essential
characteristic, Superior, etc.
Some definitions that have gained wide acceptance in
various organizations: Quality is customer
satisfaction, Quality is Fitness for Use.

The American National Standards Institute (ANSI)
and the American Society for Quality (ASQ) define
quality as:
The totality of features and characteristics of a product or
service that bears on its ability to satisfy given needs.

WHY QUALITY?
Reasons for quality becoming a cardinal priority for
most organizations:
Competition Todays market demand high quality
products at low cost. Having `high quality reputation
is not enough! Internal cost of maintaining the
reputation should be less.
Changing customer The new customer is not only
commanding priority based on volume but is more
demanding about the quality system.
Changing product mix The shift from low volume,
high price to high volume, low price have resulted in
a need to reduce the internal cost of poor quality.
WHY QUALITY?
Product complexity As systems have become more
complex, the reliability requirements for suppliers of
components have become more stringent.
Higher levels of customer satisfaction Higher
customers expectations are getting spawned by
increasing competition.

Relatively simpler approaches to quality viz. product
inspection for quality control and incorporation of
internal cost of poor quality into the selling price,
might not work for todays complex market
environment.
Quality perspectives
Everyone defines Quality based on their own perspective
of it. Typical responses about the definition of quality
would include:
1. Perfection
2. Consistency
3. Eliminating waste
4. Speed of delivery
5. Compliance with policies and procedures
6. Doing it right the first time
7. Delighting or pleasing customers
8. Total customer satisfaction and service
Determinants of Quality
Quality of design: design means specifications of
materials, finishes, characteristics & other features
incorporated in products. So, design as per
specifications or parameters.
Conformance to design: degree to which
manufactures product meets the parameters.
Utilization conditions: It refers to the necessity of the
customer being informed so that the purpose for
which the product was made is realized.
After sales service: to make sure that product is
functioning as per expectations.

System View of Quality
System consists of a number of elements which have specific
functions of their own, but give support and receive support from
one another to deliver outputs as though they come from a single
unit.
Design ensures that information flow, feedback & monitoring take
place to make the system efficient.
Quality Control is exercised by mainly two methods:
First, by designing the equipments, processes, manufacturing
methods, technologies to ensure that quality parameters are
obtained without fail. Robustness is built into all aspects so that in
the inputs or extreme working conditions dont affect the quality
characteristics.
Second, All processes have equipments,
tools, methodologies, movements,
facilitating goods & people who have their
behaviors exhibited depending on their
knowledge, skills & abilities.
To anticipate & plan for their proper
designed performance within the
permissible deviations so as not to affect
quality is the mechanism for assuring
quality.
This is quality control system.
Q.C.TECHNIQUES
Techniques are specific activities & procedures
adopted using data for determining a particular
aspect of quality for arriving at decisions which are
conclusive. Each technique is developed & checked
by Senior consultant or personnel.
Quality at the source: This concept of quality makes
the production worker responsible for inspection of
his own work & take corrective action. Since,
inspection is done immediately after a job s done, the
cause of the error with clarity & aids in faster
rectification.
QC TOOLS
7 basic tools for achieving quality:
1. Flow chart
2. Check sheet
3. Histogram
4. Pareto analysis
5. Scatter diagram
6. Control chart
7. Cause & Effect diagram


ACCEPTANCE SAMPLING
Statistical procedure used in quality control.
Acceptance sampling involves testing a batch of data
to determine if the proportion of units having a
particular attribute exceeds a given percentage.
The sampling plan involves three determinations: (1)
batch size; (2) sample size; and (3) maximum number
of defects that can be uncovered before rejection of
the entire batch. This technique permits acceptance
or rejection of a batch of merchandise or documents
under precisely specified circumstances.
ACCEPTANCE SAMPLING
Acceptance sampling is an important field of
statistical quality control that was popularized
by Dodge and Romig and originally applied by
the U.S. military to the testing of bullets during
World War II. If every bullet was tested in
advance, no bullets would be left to ship. If, on
the other hand, none were tested, malfunctions
might occur in the field of battle, with
potentially disastrous results.

ACCEPTANCE SAMPLING
Definition of Lot Acceptance Sampling Dodge
reasoned that a sample should be picked at random
from the lot, and on the basis of information that was
yielded by the sample, a decision should be made
regarding the disposition of the lot. In general, the
decision is either to accept or reject the lot. This
process is called Lot Acceptance Sampling or just
Acceptance Sampling
The main purpose of acceptance sampling is to decide
whether or not the lot is likely to be acceptable, not to
estimate the quality of the lot.
PRODUCTION & OPERATION
MANAGEMENT
UNIT-7
BUSINESS PROCESS
MODELING
Business Process Modeling
Business Process: It refers to the techniques and
activities used as a part of business process
management discipline.
Business Process Modeling(BPM): It is an activity
performed by business analysts within a
company. Analysts use BPM tools to model both
the current state of an enterprise and the
intended futures state. To move from the current
state to the future state may or may not require
IT developments, although that is common.
Business Process Modeling
BPM: It refers to a set of activities which
organizations can perform to either optimize
their business processes or adapt them to new
organizational needs. It is synonymously used to
refer to the software tools themselves.
Business System: A combination of people and
automated applications organized to meet a
particular set of business objectives.
Business Process
Business process is a total response that a business
undertakes utilizing resources & delivering
outputs that create value for the customer. The
Business Process:
Has a goal
Uses specific inputs
Delivers specific outputs,
Collects resources,
Performs a number of activities in some order;
Creates value for the customer.

Logical Process Modeling
It is the representation of putting together all the activities of business
process in detail & making a representation of them. The initial data
collected need to be arranged in a logical manner so that links are
made between nodes for making the workflow smooth. The steps are:
Capturing relevant data in detail to be acted upon,
Establishing controls and limiting access to the data during process
execution,
Determining as which task in the process to be done & subsequent
tasks in that process,
Making sure that all relevant data are available for all the tasks that
need to be in the order determined,
Making available the relevant & appropriate data for that task,
Establishing a mechanism to indicate acceptance of the results after
every task or process to have the assurance that flow is going ahead
with accomplishments in the desired path.
The Logical Process Model improves control on
the access to data & identifies who is in
possession of data at different nodes in the
dataflow network that has been structured.
Few of the logical modeling formats are given
below:
Process description- with task sequences &
data addresses.
Flow charts- with various activities &
relationships
Flow diagrams
Function hierarchies
Function dependency diagrams
Data Driven Approach to Process Definition
This approach is most commonly used in relational
& object-oriented analysis efforts, analyzes the life
cycle of each major data entity type.
This approach defines a process for each phase or
change the data undergoes, the method by which the
data is created, the reasons for the change & the
event that causes the data to achieve its terminal
state.
This method assures that all data actions are accounted
for & that there are meaningful association between
the data and its processes.
Process definition also helps you know
when a process should be broken into
smaller, sequential processes. If the
definition of a process is ambiguous or
lengthy, it is usually a candidate for
decomposing into sequential processes.
All the functions are decomposed to
processes, and all processes are
ultimately decomposed into sequential
processes.

Construct the Process Model Diagram
The business analyst can now use process modeling software
to construct diagrams to represent graphically the
business process under consideration.
In drawing the diagrams, consider including the following
items:
The starting point of the process; it is possible that we
have multiple beginnings & different activities starting
simultaneously and running parallel.
The task that are done during process execution and their
sequence and dependencies.
Nodes in the path which show the activities that should be
completed before starting further activities.
Decision points- take decision between choosing the path or
whether the process should continue or not.
The points at which the process path divides creating two or
more paths for activities combine & lead to another activity.
The end of the process. We may have one or more.
The model is built upon data that get input at various stages of the
process, data that get accumulated at nodes for further
distribution & identifying activities that go along the path.All
through the diagrams we ensure that all data are made
available and verify whether desired results are being derived.
Logical Process Modeling will of great assistance to system
architects & developers to produce efficient & scalable
applications.
Logical vs. Physical Database Modeling
After all business requirements have been gathered for a
proposed database, they must be modeled. Models are created
to visually represent the proposed database so that business
requirements can easily be associated. Server model diagrams
represent a detailed picture of the database as being
transformed from the business model into a relational database
with tables, columns & constraints.Basically, data modeling
serves as a link between business needs and system
requirements.
Two types of data modeling are :
Logical Modeling
Physical modeling
Logical Modeling
Logical modeling deals with gathering business
requirements & converting those requirements into a
model. The logical model revolves around the needs
of the business, not the database, although the needs
of the business are used to establish the needs of the
database. Logical modeling involves gathering
information about business processes, business
entities (categories of data) & organizational units.
Logical Modeling should accurately render a visual
representation of the activities and data relevant to a
particular business.The outcomes are- Entity
Relationship diagram & Business process diagrams.
Physical Modeling
Physical modeling involves the actual design of a
database according to the requirements that were established
during logical modeling. Physical modeling deals with the
conversion of the logical, or business model, into a relational
database model. When physical modeling occurs, objects are
being defined at the schema level. A schema is a group of
related objects in a database. A database design effort is
normally associated with one schema. The objects here are
tables created on the basis of entities & attributes.The
outcomes are server model diagrams showing tables &
relationships with a database.
Business Analyst
His main responsibility is to collect in detail business
problems, the requirements of the business people. He has
to liaise between them to break down data, see through
the logical steps that need to be taken and fill the gaps to
enable the experts in technology to provide solutions.
His knowledge, skills & functions are:
Lead the team members to a consensus,
Identify or gather the requirements of the business
process that are critical, he needs to question concern
people, verify the statements that are made, locate any
gaps & arrange in the logical process for creating
uninterrupted dataflow.

Identify the core requirements,
Question business area experts & seek
relevant information,
Make sure that the requirements can be
subjected to tests & the results are
verifiable; analysts most important skill
will be in his capacity to separate the grain
from the chaff to know which are critical,
vital & important bits of information from
a huge mass of data he is confronted with.
Workflow Vs BPM

BPM is loosely coupled, not fixed like workflow. BPM is all
about managing exceptions, about keeping them within
your controlled business environment.
Comparing BPM and Workflow management is like
comparing a car and a train: a train(workflow) will get
you from A to B, but you dont have many options on
routing, on timing, and no exceptions are allowed. The
route is planned in meticulous detail. It is capable of
carrying large volumes of passengers.
In a car(BPM), the passenger has autonomy and a direct
interaction with the environment. The flexibility to get
from A to B is also very much higher & can be changed at
any time, depending on the circumstances.
PRODUCTION AND
OPERATION MANAGEMENT
UNIT-8 PROJECT
MANAGEMENT- PLANNING
PROCESS
PROJECT MANAGEMENT
Project Management is the discipline of planning, organizing,
and managing resources to bring about the successful
completion of specific project goals and objectives. A project is
a finite endeavor (having specific start and completion dates)
undertaken to create a unique product or service which brings
about beneficial change or added value. This finite
characteristic of projects stands in sharp contrast to processes,
or operations, which are permanent or semi-permanent
functional work to repetitively produce the same product or
service. In practice, the management of these two systems is
often found to be quite different, and as such requires the
development of distinct technical skills and the adoption of
separate management philosophy, which is the subject of this
article.
PMBOK (Project Management -- Body of
Knowledge as defined by the Project Management
Institute PMI):"Project management is the
application of knowledge, skills, tools and techniques
to project activities to meet project requirements."
DIN 69901 (Deutsches Institut fr Normung -
German Organization for Standardization): "Project
management is the complete set of tasks, techniques,
tools applied during project execution"
Understanding Project Management
The primary challenge of project management is to
achieve all of the project goals and objectives while
adhering to classic project constraintsusually
scope, time and budget. The secondaryand more
ambitiouschallenge is to optimize the allocation
and integration of inputs necessary to meet pre-
defined objectives. A project is a carefully defined set
of activities that use resources (money, people,
materials, energy, space, provisions, communication,
motivation, etc.) to achieve the project goals and
objectives.
Definitions related to Project Management
PROJECT- A project is a finite endeavor (having specific
start and completion dates) undertaken to create a unique
product or service which brings about beneficial change
or added value. This finite characteristic of projects
stands in sharp contrast to processes, or operations,
which are permanent or semi-permanent functional work
to repetitively produce the same product or service. In
practice, the management of these two systems is often
found to be quite different, and as such requires the
development of distinct technical skills and the adoption
of separate management philosophy .
Definitions related to Project Management
MANAGEMENT- Management in business and
human organization activity is simply the act of
getting people together to accomplish desired goals.
Management comprises planning, organizing,
resourcing, leading or directing, and controlling an
organization (a group of one or more people or
entities) or effort for the purpose of accomplishing a
goal.

PROJECT CYCLE- A project cycle basically
consists of the various activities of operations,
resources and the limitations imposed on them.
Definitions related to Project Management
PROCESS- A process is thus a specific ordering of work activities
across time and space, with a beginning and an end, and clearly
defined inputs and outputs: a structure for action. ... Taking a
process approach implies adopting the customers point of view.
Processes are the structure by which an organization does what is
necessary to produce value for its customers.
RESOURCE- It refers to manpower, machinery, money and
materials required in the project.
SCOPE- It refers to the various parameters that affect the project in
its planning, formulation & executions.
PROJECT COST- It is budgeted expenditure of the project.
NEED FOR PROJECT MANAGEMENT
A project require huge investments which should not
go waste
A loss in any project would have direct or indirect
impact on the society
Prevent failures in projects
Scope of the project activity may undergo a change
Technology used may change during the course of
project execution
Consequences of negativity in project related
problems could be very serious
Changes in economic conditions may affect a project
.
PROJECT MANAGEMENT PRINCIPLES

Project management can be considered to
have five dimensions
a) Features
b) Quality
c) Cost
d) Schedules
e) Staff

Project Management Knowledge Area
Project
Management
Project Time
Management
Project Human
Management
Executing
Processes
Project Scope
Management
Project Quality
Management
Project risk
management
Project
Communication
Management
Project Cost
Management
Project Integration
Management
PROJECT MANAGER
A project manager is a professional in the field of
project management. They have the responsibility of
the planning, execution, and closing of any project.
A project manager is the person accountable for
accomplishing the stated project objectives.
The successful project manager focuses on this as
his/her main concern and attempts to reduce risk
significantly, often by adhering to a policy of open
communication, ensuring that project participants
can voice their opinions and concerns.
RESPONSIBILITIES OF PROJECT MANAGER

1. Budgeting and cost control
2. Scheduling tasks
3. Allocating resources
4. Tracking project expenditures
5. Ensuring technical quality
6. Manage relations with the customer and
company
PROJECT FAILURES
Project being initiated at random at all levels.
Project objective not in line with business objective
Project management not observed
Project manager with no prior experience in the related project
Non-dedicated team
Lack of complete support from clients
No prioritization of project activity from an organizational position
One or more of the stages in the project mishandled
Less qualified/ non-dedicated manpower
Absence of smooth flow of communication b/w the involved
parties

ESSENTIALS OF PROJECT MANAGEMENT
PHILOSOPHY
PROJECT EVALUATION & SELECTION CRITERIA
Following criterions has to be considered:
1. Relevance: is the project relevant to the defined scope in terms of the
deliverable product & service.
2. State-of-the-art technical: Check if the state-of-the-art
methodologies are adequately described
3. Relevance to market
4. Creative
5. Potential
6. Project management & work plan
7. Effort justification: Are the efforts in line with the work and the
objectives to be achieved?
How does Project Management add value ?
Projects may be completed with one or more of
the following:
1. Stretched deadline
2. Over stresses team
3. Wasted resources
4. Unmet customer functional requirements
5. Overshot budget
A good project management methodology
provides a framework for the processes
Steps of Good Project Management
1. Define the project
2. Reduce it to a set of manageable resources
3. Obtain appropriate and necessary resources
4. Build a team to perform the project work
5. Plan the work and allocate the resources to the tasks
6. Monitor and control the work
7. Report progress to senior management and/or the project
sponsor
8. Close down the project when completed
9. Review it to ensure that the lessons are learnt and widely
understood
Project Management Players
Individuals and organizations
That are actively involved in the project
Whose interests may be affected (positively or negatively) by the
outcome (success or failure) of the project
Exert influence over the project and its results
Players are also called stakeholders of the project
Project manager: the individual responsibilities for managing the
project
Customer: the individual or organization who will use the products
the end result of the project
Performing organization: the enterprise whose employees are most
directly involved in doing the work of the project
Sponsor: the individual or group within or external to the
performing organization that funds the project
Project Planning
Project planning is part of project management, which
relates to the use of schedules such as Gantt charts to
plan and subsequently report progress within the project
environment.
Initially, the project scope is defined and the appropriate
methods for completing the project are determined.
The main objectives of scoping boundaries are:
1. Define the project boundaries
2. Explicitly stating the objectives that the project will
cover
3. Implicitly providing direction to the project and
enabling assessment of the final products quality .
Outline of the project Plan
1. Context for the Project
2. Purpose and Objectives of the Project
3. Tasks, Milestones, and Deliverables
4. Uncertainties, Risks and Opportunities, and Planned
Responses
5. Critical Success Factors
6. Use GANTT Chart of tasks to monitor and control
the project deliverables
Tasks involved in Scoping
Establish project objectives which could be identified from clients through
workshops & interviews.
Establish scope of investigation in order to determine the dimension that
apply to the project & identify the constraints.
Identify initial requirement and validate them against the project
objectives.
Identify the criteria for assessing the success of both the final project
product & the process used to create it.
Identify outline solution to illustrate the feasibility of achieving the
defined business requirements for the project.
Identify Training requirement to determine the probable client training &
technical writing.
Review project scope.


PLANNING TOOLS
Project Organization and Structure
Project Management Team
Key Stakeholders
Identify management level personnel who are official to the
success
Document the responsibilities of stakeholders
Stage Teams
Identify appropriate personnel required for the stage, define
the team structure and appoint team leaders
Business Key resources
Determine training requirement
Assess the capabilities and skills of all those identified as part
of the project organization.
PROJECT PROCESSES
Project process is classified into two main
categories:
Project management process Project
management process is defined by the
organization. It describes and organize the
work of the project.
Product oriented process Product oriented
process is defined by the life cycle. It
specifies and creates products and related
works.
PROCESS GROUPS
INITIATING
PROCESSES
CONTROLLING
PROCESSES
CLOSING
PROCESSES
EXECUTING
PROCESSES
PLANNING
PROCESSES
Connection between Process Groups in a
phase

It consists of the following
I nitiating processes: recognition to start and
establishing commitment.
Planning processes: devising and maintaining a
workable scheme to accomplish the business need
Executing processes: coordinating people to carry
out the plan.
Controlling processes: monitoring and measuring
progress and taking remedial action
Closing processes: Formalizing acceptance and
bringing project to an orderly end.
Process Interactions

The individual processes are linked and outputs
1. Inputs: it refers to the client documents converted
to action plans to be acted upon.
2. Tools and techniques: It refers to the mechanisms
applied on to the inputs to the inputs to create
desired outputs
3. Outputs: It refers to the documents that are results
of the process
4. Process Interactions Initiating Processes: Every
process is initiated by management group decision
which results in the next phase of the project.
Planning Processes

1. Planning has the major importance
2. Plans are nothing planning is everything
3. Planning processes are highly interdependent
4. If the cost is unacceptable, scope and time
may need to be redefined
Executing Processes
1. Interactions depend on the of the work
2. They are dynamic & dependent on Team
innovations
Controlling Processes

1. Measuring project performance [time, cost,
quality]
2. Identifying variances from the plan
3. Updating project plans
4. Taking corrective action
Closing Processes
1. Review of the project
2. Findings
3. Analysis of the project performance with
respect to various processes
Customization

1. Large projects may need details A
detailed project management plan might be
necessary to indicate every detail in the
initial stages.
2. Smaller projects may need relatively less
details A detailed plan may not be required
in the initial stages.
3. Process details might change for other
reasons Resources identification might be
required for scope definition.
PROJECT INITIATION
DECISIONS ON THE ABOVE
COMMISSIONING, FINE TUNING & FINAL
MODIFICATIONS TO THE DELIVERABLES
FINAL DOCUMENTATION, SUBMISSION
TO GOVT.& OTHER AGENCIES
DESIGN OF PROJECT & TENDER
PREPARATIONS
ISSUING WORK ORDERS
ASSESSMENT OF TENDERS
COMMENCEMENT OF WORK
INFRASTRUCTURE, HUMAN RESOURCE
MANAGEM,ENT IN PROJECT
EXECUTION OF PROJECT AS PER PLAN
Delivery of the Project- Product or Service
LEGAL APPROVALS FOR PROJECT
PRODUCTION
AND
OPERATIONS MANAGEMENT

UNIT-9
PROJECT IMPLEMENTATION,
CONTROL AND CLOSURE
INTRODUCTION
A production process may be considered very
important in todays growing industries. The project
managers have to keep in mind the various problems
that may be encountered during the executing the
project. Also the manager must understand the
change processes in a project to bring about any
changes, it has to be through a proper process plan of
change. The important aspect of any such process
introduction or any change is to execute it correctly
and then review the process post execution and
finally documenting.
PROJECT MANAGEMENT LIFE CYCLE
Analysis and Evaluation Phase
This is the initial phase of any project. In this phase
information is collected from the customer pertaining to the
project and the requirements are analyzed. The entire project
has to be planned and it should be done in a strategic manner.
The project manager conducts the analysis of the problem and
submits a detailed report to the top management. The report
consist of project justification, details on what the problem is,
methods of solving the problem, list of the objectives to be
achieved, project budget and the success rate of completing
the project. The report must also contain information on the
project feasibility, and the risks involved in the project.
The important tasks of this phases are as follows -

Specification requirements Analysis (SRA): It has to be conducted
to determine the essential requirements of a project in order to
achieve the target.
Feasibility study: To analyze whether the project is technically,
economically and practically feasible to be undertaken.
Trade-off analysis: To understand and examine the various
alternatives which could be considered
Estimation: To estimate the project cost, effort required for the
project and functionally of various processes in the project
System design: Choose a general design that can fulfill the
requirements.
Project evaluation: Evaluate the project in terms of expected
profit, cost and risks involved
MARKETING PHASE
A PROJECT PROPOSAL IS PREPARED BY
A GROUP OF PEOPLE INCLUDING THE
PROJECT MANAGER. THIS PROPOSAL
HAS TO CONTAIN THE STRATEGIES
ADOPTED TO MARKET THE PRODUCT
TO THE CUSTOMERS.
PROJECT MONITORING AND CONTROL
Any project aimed at delivering a product or a
service has to go through phases in a planned
manner in order to meet the requirements. It is
possible to work according to the project plan only
by careful monitoring of the project progress. The
methodology of PERT (Programme Evaluation
Review Technique) and CPM (Critical Path Method)
may be used to analyze the project. In the PERT
method one can find out the variance and use the
variance to analyze the various probabilistic
estimates pertaining to the project. Using the CPM
one can estimate the start time and the finish time for
every event of the project in its WBS (Work
Breakdown Structure).
STEPS OF MONITORING AND
CONTROLLING A PROJECT

1. Preliminary Work
2. Project Progress
3. Stage Control
4. Resources
5. Quality Control
6. Progress Control
7. Approvals

Refer Book for details

CHANGING PROJECT MANAGEMENT
PROCESS
1. Request for a change Identify need for a change based on which a
formal request from either a member of the project learn or a client or a
coordinator or Key stakeholder to make a change is to be made.
2. I dentify Alternative Solution Evaluate the change request and identify
several alternative solutions. Assess the alternatives with respect to the
functional scope, schedule, effort and cost.
3. Decide on the Actions for the change Present the change request,
alternatives solutions and recommendation to the project management
team. The project management team is required to accept the
recommendation, choose an alternative solution, or request further
investigation.
4. I mplement Change Make appropriate schedule and other project plan
adjustments to accommodate the change, communicate these to team
members, monitor progress and execute quality control on the changes.
TOOLS FOR CHANGING A PROCESS
Change Management System (CMS): It is a methodology
which requires collection of all formal documented
procedures, defining how project performance will be
monitored and evaluated, how project plans could be updated,
how various measures can be implemented to control the
change process.
Configuration Management (CM): Identify the
configuration items and define the naming and numbering
scheme, structure the changes, define a backup procedure,
and follow the methods for tracking the status of
configuration items. Identify and define the responsibility and
authority of the CMS.

RISK MANAGEMENT


Risks are those events or conditions that may occur
and whose occurrence has a harmful or negative
impact on a project. Risk management aims to
identify the risks and then take actions to minimize
their effect on the project. Risk management entails
additional cost. Hence risk management can be
considered cost-effective only if the cost of risk
management is considerably less than the cost
incurred if the risk materializes.
FOUR IMPORTANT COMPONENTS IN RISK
MANAGEMENT
Risk Assessment- Identify the possible risks and assess the
consequences by means of checklists of possible risks, surveys,
meetings and brainstorming and reviews of plans, processes and
products. The project manager can also use the process database to
get information about risks and risk management on similar
projects.
Risk Control-Identify the actions needed to minimize the risk
consequences. This is also known as risk mitigation. Develop a risk
management plan. Focus on the highest prioritized risks.
Prioritization requires analyzing the possible effects of the risk
event in case it actually occurs. This approach requires a
quantitative assessment of the risk probability and the risk
consequences. For each risk determine the rate of its occurrence
and indicate whether the risk is low, medium or of high category.


Risk Prioritizing -Rank the risk based on the probability
and effects on the project; for example, a high
probability, high impact item will have higher rank than
a risk item a medium probability and high impact. In
case of conflict use judgment.
Risk Mitigation-Select the top few risk items for
mitigation and tracking. Refer to a list of commonly used
risk mitigation steps for various risks from the previous
risk logs maintained by the project manager and select
suitable risk mitigation step. The risk mitigation step
must be properly executed by incorporating them into
the project schedule.
PROJECT CLOSURE
COMPLETION OF ALL ACTIVITIES AND
BENEFITS
It implies that on successful completion of a project, it has not
drifted from its intended course and plans. Otherwise it would
have resulted in a change and may also kick start another project
affecting the main project.
The project member are acknowledgement for the completion of
the project, motivating them to take up more projects wherein the
members would be able to confidently handle and take care of all
the problems based upon their learning from earlier project.
POST IMPLEMENTATION REVIEW
After every stage of a project is implemented, it
may so happen that there could be a minor
change or modification which has to be
reviewed which has to be reviewed. A review
may by in the following form:
1. Final product review
2. Outstanding project work review
3. Project Review
4. Process review

TOOLS THAT MAY BE CONSIDERED FOR POST
IMPLEMENTATION REVIEW
a. Final product evaluation: this may be done through
regularly organized meetings and quality reviews.
b. Outstanding project work evaluation: All outstanding
works of a project can be reviewed to check its output
quality, its performance compared to planned and
evaluate the same.
c. Project review questionnaire may become important if
the review are to be structured and group discussion
may be initiated depending upon the points to be
discussed.
d. Process evaluation: Evaluation of any process is one of
the key issues of project.
FINAL PROJECT REPORTING AND
DOCUMENTATION
After completion of a project stage and the project as a whole, it is
documented. Reports are prepared to indicate the details. The
objectives of the stage and the project and the corresponding plans
should be reviewed and items that are still open should then be closed
or resolved. The outstanding items should be passed on to the person
responsible for the subsequent work. It is necessary to document every
stage of the project. Every review meeting by the project team and any
other members of the project organization and follow ups have to be
well documented. Also various metrics could have been used during
the course of the project and necessary changes in the stages. Effects
on the process and the corresponding metrics are evaluated and
documented.
UNIT-10
MODERN TRENDS IN
PROJECT
MANAGEMENT
INTRODUCTION
In todays world, a manager is often faced with the
challenges of newer competition arising out various
business facets. His task is to understand the
problem & quickly analyze it and solve it. For this
the manager must know the recent trends in the
Industry to apply them to his problem solving
methodology. A problem may lead to another
problem if not addressed properly & hence the entire
focus should be understand and develop new
solution techniques to tackle the problems.
PROJECT MANAGEMENT INFORMATION
SYSTEM (PMIS)
An information system dealing with project
management tasks is known as PMIS. It mainly
aimed at providing the management at different
levels with information related to the system of the
organization. It helps in decision-making in arriving
at optimum allocation of resources.
It also holds schedule, scope changes, risk
assessment and actual results. A good PMIS is
possible to be developed from the team members and
not from the systems administrators of the company.
Aspects of PMIS
The four major aspects of a PMIS are:
1. Provide information to the major stakeholders is the right
information at the right time.
2. Assist the team members, stakeholders,managers with necessary
information and summary of the information shared to the higher
level managers.
3. Assists the managers in doing what if analyzes about project
staffing, proposed staffing changes and total allocation of
resources.
4. Help organizational learning by helping the members of the
organization learn about Project management.
MODERN TRENDS IN PROJECT
MANAGEMENT
1. PERCEPTION: The perception of a manager in current
trends in project management is to obtain result. A more
result-cum-profit oriented corporate strategy lays greater
emphasis on maximized efficiency of operations.
Various tools used currently are:
Continuous business process improvement
Force field analysis
Information risk management
Management assurance measure
SEI-CMM & ISO certification
(Software Engg.Instt.capability maturity model).
Strategic Inflection point
2.PROJECT DEVELOPMENT PROCESS
CYCLE: In order to improve project
performance, the company must assure quality
and quality control at every stage of the project
throughout the project life cycle.
Various Steps-
a. Planning for review
b. Conducting the review
c. Take actions on findings
d. Do continuous improvement
e. Critical Success factors
f. Results and benefits of the Project Quality
reviews

PROJECT MANAGER: He enable the
necessary adjustments and taking the actions
needed to achieve the project goals finishing the
project on time, scope and budget.Project
manager process helps in terms of discipline
and control, for the customer because, in the
way that process is anticipating potential
problems to the customer and finally for the
sponsor.
MACRO ISSUES
1. Evolving Key Success Factors Upfront: In order to
provide complete stability to fulfillment of goals,
one needs to constantly evaluate from time to time,
the consideration of what will constitute the success
of completing a project and assessing its success
before completion.The KSF should be evolved based
on a basic consensus document (BCD) KSF will also
provide an input to effective exit strategy (EES).Exit
here does not mean exit from the project but from
any of the drilled down elemental activities which
may prove to be hurdles.
2. Empowerment Title (ET): ET reflects the relative importance of
members of the organization at three levels-
Team members empowered to work within limits of their
respective allocated responsibilities, the major change from
bureaucratic systems is an expectation from these members to
innovate and contribute to time and cost.
Group leaders are empowered additionally to act independently
towards client expectation and are also vested with some limited
financial powers.
Managers are empowered further to act independently but to
maintain a scientific balance among time, cost, expectation and
perception apart from being a virtual advisor to the top
management.
3. Partnering Decision Making(PDM):It is a
substitute to monitoring and control. A senior with
better decision making process will work can be
done to manage the future better from past
experience. The key here is the active
participation of members in the decision making
process. This step is most difficult since junior
members have to respond and resist to being
pushed through sheer innovation and
performance.
4.Management By Exception (MBE)
Practice whereby only the information that indicates
a signicant deviations of actual results from the
budgeted or planned results is brought to the
managements notice. Its objective is to facilitate
managements focus on really important tactical and
strategic task. In MBE, the decision that cannot be
made at one level of management is passed on to the
next higher level.
5. Knowledge Factor(K): Knowledge is the most
powerful mover of the wheels of progress. K
factor is an index of the extent to which one can
manage today with yesterdays knowledge content
and also the extent to which todays knowledge
will be used tomorrow. It is important for leaders
to recognize the knowledge potential of the
younger members.It is the task of every team
members to maximize the K-factor in all
directions.
Modern Mantra Of Project Management
DMAIS
Define:Benchmark, customer requirement, process flow map,
quality function deployment, project management plan.
Measure:Data collection, defect metrics, sampling.
Analyze:Cause and effect, failure modes and effect analysis,
decision and risk analysis, root cause analysis, reliability
analysis.
I mprove:Design of experiments, modeling, robust design.
Standardize: Control charts, time series, procedural
adherence, performance management, preventive activities.
New Horizons in Project Management
1. Believing in discontinuity
2. Owning the problems & sharing the solutions
3. Breaking the status quo mentality
4. Stepping out of comfortable zone
5. Human capital by passing financial
6. Transform work culture from 5 to 7 dimension
7. Real number of encounters replacing number of
years of experience
8. Seeking meaning out of change
9. Detachment from the fruits of results

UNIT-11
SUPPLY CHAIN
MANAGEMENT
INTRODUCTION
Supply chain management (SCM) is the
management of a network of interconnected
businesses involved in the ultimate provision
of product and service packages required by
end customers. Supply Chain Management
spans all movement and storage of raw
materials, work-in-process inventory, and
finished goods from point-of-origin to point-
of-consumption (supply chain).
Supply Chain Management
Supply chain management is a cross-functional approach to manage
the movement of raw materials into an organization, certain aspects
of the internal processing of materials into finished goods, and then
the movement of finished goods out of the organization toward the
end-consumer. As organizations strive to focus on core competencies
and becoming more flexible, they have reduced their ownership of
raw materials sources and distribution channels. These functions are
increasingly being outsourced to other entities that can perform the
activities better or more cost effectively. The effect is to increase the
number of organizations involved in satisfying customer demand,
while reducing management control of daily logistics operations. Less
control and more supply chain partners led to the creation of supply
chain management concepts. The purpose of supply chain
management is to improve trust and collaboration among supply
chain partners, thus improving inventory visibility and improving
inventory velocity.
SUPPLY CHAIN
Implementation Steps of SCM
1. Study the strengths & weaknesses within the enterprise as
well as of External agencies involved.
2. Understand the organization objectives.
3. Study the existing systems & identify the gaps & propose
solutions to plug the loopholes.
4. Evolve consensus & test fire individual solutions.
5. Integrate solutions which are adjudged successful into the
mainstream.
6. Study overall impact after all proposals in a section are
implemented review consensus.
7. Finalize SCM document, circulate & implement.
Domain Applications
SCM can be easily applied & integrated with-
ERP systems
Design systems like auto-CAD, Pro-E
R & D systems
ISO 9000 systems
Accounting & financial systems
Costing systems
Manufacturing systems
SUPPLY CHAIN DECISIONS
Strategic
Strategic network optimization, including the number, location, and size
of warehouses, distribution centers and facilities.
Strategic partnership with suppliers, distributors, and customers, creating
communication channels for critical information and operational
improvements such as cross docking, direct shipping, and third-party
logistics.
Product design coordination, so that new and existing products can be
optimally integrated into the supply chain, load management
Information Technology infrastructure, to support supply chain operations.
Where-to-make and what-to-make-or-buy decisions
Aligning overall organizational strategy with supply strategy.

Tactical
Sourcing contracts and other purchasing decisions.
Production decisions, including contracting, scheduling,
and planning process definition.
Inventory decisions, including quantity, location, and
quality of inventory.
Transportation strategy, including frequency, routes, and
contracting.
Benchmarking of all operations against competitors and
implementation of best practices throughout the
enterprise.
Milestone payments
Focus on customer demand.

Operational
Daily production and distribution planning,
including all nodes in the supply chain.
Production scheduling for each manufacturing
facility in the supply chain (minute by minute).
Demand planning and forecasting, coordinating
the demand forecast of all customers and sharing
the forecast with all suppliers.
Sourcing planning, including current inventory
and forecast demand, in collaboration with all
suppliers.
Inbound operations, including transportation from
suppliers and receiving inventory.

Production operations, including the
consumption of materials and flow of finished
goods.
Outbound operations, including all fulfillment
activities and transportation to customers.
Order promising, accounting for all constraints
in the supply chain, including all suppliers,
manufacturing facilities, distribution centers,
and other customers...

Major Decision Areas in SCM
1. LOCATION DECISION- The geographic placement of
production facilities, stocking points, & sourcing points is
the natural first step in creating a supply chain. Once the
size, number & location of these are determined so are the
possible paths by which the product flows through to the
final customer.
2. PRODUCTION DECISION- The strategic decisions
included what products to produce & which plants to
produce them in allocation of suppliers to plants to the
customer markets. The operational decisions focus on
detailed production scheduling.
3. INVENTORY DECISIONS- Inventories exist at every
stage of the supply chain as either raw materials, semi-
finished or finished goods. They can also be in process
between locations. Their primary purpose is to buffer
against uncertainties.
4. TRANSPORTATION DECISIONS- The best choice of the
mode is often found by trading-off the cost of using the
particular mode of transport with the indirect cost of
inventory associated with that mode. Since transportation is
more than 30% of the logistics costs, operating efficiently
makes good economic sense. Shipment sizes routing &
scheduling of equipment are the key in effective
management of the firms transport strategy.

5. SUPPLY CHAIN MODELING APPROACHES- Due to
the enormity of data requirement, and the broad as scope
of decisions, various models provide approximate
solutions to the decisions they describe. To facilitate a
concise review of the literature, and at the same time
attempting to accommodate the polarity in modeling, we
divide the modeling approaches into 3 areas: network
design, rough cut methods & simulation methods.
a) Network design method; This model cover the 4 major
decision areas, provide normative models for the strategic
decisions. It focus more on the design aspect of the supply
chain, the establishment of the network and the associated
flows on them.
b) Rough Cut Methods; It give guiding policies for
the operational decisions. These models typically
assume a single site and add supply chain
characteristics to it, such as explicitly
considering the sites relation to the others in the
network.
c) Simulation Based method- With this method a
comprehensive supply chain model can be
analyzed, considering both strategic &
operational elements. However, one can only
evaluate the effectiveness of a pre-specified
policy rather than develop new ones.
THE 7 PRINCIPLES OF SCM
1. Group customer by needs
2. Customize the logistics network
3. Listen to signals of market demand & plan
accordingly
4. Differentiate the product closer to the customer
5. Strategically manage the sources of supply
6. Develop a supply chain wide technology
strategy
7. Adopt channel spanning performance measures

Integrated Supply Chain
It is the process to integrate and manage the SCM as
one entity. Its constituent parts include suppliers,
production, distribution, services & customers
network linked together by the feed forward flow of
material and feedback flow of information, to satisfy
customer needs at reasonable cost and best practices
involved in the fields related to these constituents
parts.
COLLABORATIVE SUPPLY CHAIN
An organization has to manage the flow of all the items in its
supply chain. Supply chain is the flow of materials,
information, money and services from various sources to the
customers.
TYPES OF SUPPLY CHAIN
1) Upstream supply chain (inbound logistics):- activities of a
manufacturing company with its suppliers
2) Downstream supply chain (outbound logistics) :- activities
involved in delivering the products to the final customers.
3) Internal supply chain:- in house processes for transformation
the inputs from the suppliers into the outputs.
INTERNET & SUPPLY CHAIN
The process of moving product from manufacturer to
consumer -- the supply chain -- has to be
streamlined, and it must be seamless. The Internet
may provide the right vehicle. It does offer
efficiencies in information management, inventory
management and payment vehicles. It makes
possible the "just-in-time" inventory function the
channel really wants, and simultaneously offers the
illusion of removing the middleman consumers
consider costly. The reality, of course, is that
distribution is critical to the supply chain.
The Web offers your supply chain enormous potential and
entirely new methods for streamlined coordination between
your business and channel partners, including third- and
fourth-party providers.
Put simply, the Internet enhances supply chain performance
and supply chain is crucial to your e-commerce success. As
the supply chain evolves in the information age, the
Internets capability to support tight coordination between
business and channel partners means that all the
information, transactions, and decisions that are the
essence of synchronized supply chains will flow through
the Web. Using the Internet to connect the systems of your
supply chain partners will become the medium through
which the essential processes of managing and
synchronizing your supply chains are carried out.
As you know, in the traditional supply chain, buying and
selling materials means establishing long term relationships
with vendors, distributors and retailers, with multiple
inventory sites, long lead-times and fixed margins. Yet
today, the marketplace, being the oldest of all business
activities, is being reinvented. Companies can now buy and
sell across a wide spectrum of emerging Internet enabled
marketplaces.
This has become necessary due to customers ever
increasing demands. Customers whether they are business
customers or individual consumers are looking beyond cost
as the sole arbiter of value. They are demanding innovation
and personalization of not only the products but of the
associated service and delivery.

FINANCIAL SUPPLY CHAIN
It is not possible to realize an effective SCM without
streamlining the balance among inflow, outflows and
parking of funds.
The main OBJECTIVES of financial supply chain
management are:
Fiscal discipline and control- To create awareness
among functionaries regarding the need to realize the
importance of conservation of funds and maintain
their own internal system and to exercise as system
of scientific control of utilization of funds.
I ntegrated Networking of I nformation- A well
designed SCM could be made to function better
through a scientifically designed system of
information networking.
Multidimensional Financial management
cockpit- While it is extremely difficult for the
most efficient finance manager to take decisions.
SCM would be in a position to place him a
management cockpit to take decisions easily.


Control of I nventory and idling of assets- SCM
integration with finance will provide an ideal
platform for clarity with regard to the exact level
of inventory which is the bone of any organization.
The top management will then provided with
greater clarity with regard to the balance between
justified and unjustified inventory. The finance
manager through SCM would be in a position to
provide proactive guidelines to various
functionaries.
THANKS.
PRODUCTION AND OPERATION
MANAGEMENT
UNIT-12
PLANT LAYOUT &
MATERIAL HANDLING
MATERIAL HANDLING
Material Handling is the movement, storage, control and
protection of materials, goods and products throughout
the process of manufacturing, distribution, consumption
and disposal. The focus is on the methods, mechanical
equipment, systems and related controls used to achieve
these functions. The material handling industry
manufactures and distributes the equipment and services
required to implement material handling systems.
Material handling systems range from simple pallet rack
and shelving projects, to complex conveyor belt and
Automated Storage and Retrieval Systems (AS/RS).
LINE BALANCING PROBLEM
Assembly lines are best suited for the study
and analysis of the Line Balancing Problem,
called Assembly Line Balancing (ALB). All
ALB are categorized by Ghosh & Gagnon as
to falling into four categories as under:
SMD- Single Model Deterministic
SMS- Single Model Stochastic
MMD- Multi/Mixed Model Deterministic
MMS- Multi/Mixed Model Stochastic
ORDER PICKING
Order picking is process by which items or products
for which supply is to be made have to be retrieved
from specific storage location. It is found to take
60% of labor activities in the warehouse. Since it is
critical to the business to meet customers demand
expeditiously and accurately, lot of attention is being
given to this aspect of operations. In the supply
chain: storage, retrieval and delivery do not add
value to the product, but are necessary.
Types of Equipments for efficiency in Process
Horizontal Travel: These are in the aisle, picker to
part systems. The picker, a worker walks or rides a
vehicle and picks the item or product and puts into
the cart or vehicle. He may also pick an place the
item on a conveyor. The storage system could be
pallet racks, shelves, storage drawers or gravity flow
racks.
Person Abroad: In this system the picker is on a
platform of the vehicle, he can move up as also
horizontally along the aisle.
Part to Picker: These are mechanized systems. Here a
storage/retrieval device carries the trays or bins to the
person picking. These act on the instructions received
through a remote control device with the picker. More than
one picker can also access the system.
Special Equipment: For high throughput and space
efficiency special equipment are made which are in the
form of moveable shelves, rotary racks, mobile shuttles that
travel in lanes, which has dispensing mechanisms that eject
items on a conveyor belt.
Workplace Equipment: Items can be kept on a work bench
and be picked up. The cart also are used to keep items for
being picked up.
DESIGN CONSIDERATION
Design considerations arise due to:
Total number of products that are to be stored.
Number of products received per shift.
Total numbers retrieved per shift.
Labor force.
Management Information System
Variability in: Sizes of bins, racks etc. Choices b/w
carts, carousals, vehicles, conveyors, automatic item
pickers can be made as also the space for locating
and moving them.
ERGONOMICS
Ergonomics is the scientific discipline concerned
with designing according to human needs, and the
profession that applies theory, principles, data and
methods to design in order to optimize human well-
being and overall system performance.
Ergonomics is a science concerned with the fit
between people and their work. It takes account of
the worker's capabilities and limitations in seeking to
ensure that tasks, equipment, information and the
environment suit each worker.

ASPECTS OF ERGONOMICS
There are five aspects of ergonomics: safety, comfort, ease of
use, productivity/performance, and aesthetics.
Safety - Medicine bottles: The print on them could be larger
so that a sick person who may have impaired vision (due to
sinuses, etc.) can more easily see the dosages and label.
Ergonomics could design the print style, color and size for
optimal viewing.
Comfort - Alarm clock display: Some displays are harshly
bright, drawing ones eye to the light when surroundings are
dark. Ergonomic principles could redesign this based on
contrast principles.
Ease of use - Street Signs: In a strange area, many times it is difficult
to spot street signs. This could be addressed with the principles of
visual detection in ergonomics.
Productivity/performance - HD TV: The sound on HD TV is much
lower than regular TV. So when you switch from HD to regular, the
volume increases dramatically. Ergonomics recognizes that this
difference in decibel level creates a difference in loudness and hurts
human ears and this could be solved by evening out the decibel
levels. Voicemail instructions: It takes too long to have to listen to all
of the obvious instructions. Ergonomics could address this by
providing more options to the user, enabling them to easily and
quickly skip the instructions.
Aesthetics - Signs in the workplace: Signage should be made
consistent throughout the workplace to not only be aesthetically
pleasing, but also so that information is easily accessible.
Approaches for Shop Floor Sequencing of Material
Handling Jobs
Sequencing decides the order in which jobs are loaded on
different machines. The purpose is to take the job through the
technological steps in which the processing needs to be done
for the transformation that is to be effected on the material
that is getting processed.
The major concerns are about the quantities that need to be
processed and the time that the different operations require.
Our concern is to reduced inventory, minimum movement and
timely availability. This needs an integration of information
about all the factors and make decisions which accommodate
and optimize utilization of resources.
PRODUCTION & OPERATION
MANAGEMENT
UNIT-14
VALUE ENGINEERING
Value Engineering

Value engineering (VE) is a systematic method to improve the
"value" of goods and services by using an examination of function.
Value, as defined, is the ratio of function to cost. Value can
therefore be increased by either improving the function or reducing
the cost. It is a primary tenet of value engineering that basic
functions be preserved and not be reduced as a consequence of
pursuing value improvements.
Value engineering is sometimes taught within the project
management or industrial engineering body of knowledge as a
technique in which the value of a systems outputs is optimized by
crafting a mix of performance (function) and costs. In most cases
this practice identifies and removes unnecessary expenditures,
thereby increasing the value for the manufacturer and/or their
customers.

Value engineering is sometimes taught within the project
management or industrial engineering body of knowledge as
a technique in which the value of a systems outputs is
optimized by crafting a mix of performance (function) and
costs. In most cases this practice identifies and removes
unnecessary expenditures, thereby increasing the value for the
manufacturer and/or their customers.
Value engineering began at General Electric Co. during World
War II. Because of the war, there were shortages of skilled
labor, raw materials, and component parts. Lawrence Miles
and Harry Erlicher at G.E. looked for acceptable substitutes.
They noticed that these substitutions often reduced costs,
improved the product, or both. What started out as an
accident of necessity was turned into a systematic process.
They called their technique value analysis.

Value engineering is often done by systematically following
a multi-stage job plan. Larry Miles' original system was a
six-step procedure which he called the "value analysis job
plan." Others have varied the job plan to fit their
constraints. Depending on the application, there may be
four, five, six, or more stages. One modern version has the
following eight steps:
Preparation
Information
Analysis
Creation
Evaluation
Development
Presentation
Follow-up
Relevance of VE in modern manufacturing
Modern manufacturing can be seen from two
important perspectives: Quality and Cost. The main
thrust is on Quality, timely delivery at the least price.
Value analysis looks at the manufacturing activities
with a view to make the components simpler,
processes faster and the products better.In the
manufacturing activities power drives many machine
elements w.r.t. one another to obtain the
transformation on the materials that result in
becoming parts.Modifications may be made to effect
savings.
Aim of Value engineering
The aim of value engineering is to effect
economies by investigating every
opportunity & discovering new
materials,methods to achieve high quality
performance. The aim of Value Engineering
is listed as:
1. Product Simplification
2. Better and less costly material
3. Improved product design
4. High efficiency in the processes
5. Economy in all activities
Approaches of Value Engineering
1. PRE-SOURCING
As an extension of the internal processes where
higher value is sought to be realized for the same
cost, suppliers of materials and services are
involved at the design stage. Suppliers are in a
position to provide suggestions for design changes
that will help making operations more
efficient.Their inputs will help in ensuring higher
quality at lower costs.This procedure of involving
suppliers from the design stage is called Pre-
sourcing.
2. SUPPLIER EVALUATION AND
CERTIFICATION
Evaluation is done for the processes and quality assurance
measures.A first hand assessment by a team should look
into the following facilities which are part of the
manufacturing system:
1. Material procurement
2. Inspection and issue procedures
3. Production planning and control system
4. Quality control methods
5. Process of design & evaluation
6. Management information system
7. Labor relations & compensation system
8. Culture of productivity & quality
Summary
Some organizations empower their suppliers with
self-certification which means that the inspection
conducted by the supplier is accepted as the
inspection done by the organization's inspectors. The
result that we will be able to treat the supplier as our
partner and this enhances involvement and
cooperation and the resultant synergy produces
quality.Suppliers are taken into confidence to
achieve reliable supplies and improve profits.
UNIT-15
QUANTITATIVE MODELING
AND WORKFORCE
MANAGEMENT
Introduction
During management decision-making, two approaches should
be kept in mind: Qualitative and Quantitative.
QUALITY of the decision depends on the individuals
knowledge, analytical capability and judgment.It is suitable
for small matter, whose consequences are not very serious.
But decisions which involves complex issues and the data is
varied I.e. factors are different fields having different impacts
on the result, we try to QUANTIFY the data.For e.g.: We
make models, apply quantitative techniques and try to
conduct activities so that minimum disruptions take place.
The workforce that conduct activities have to allocated work,
trained and motivated for improving performance.
Quantitative Approach
Solving a problem using models consists of
the following steps:
1. Definition of the problem- Determine the
purpose of studying the problem.
2. Constructing a mathematical model-
Reformulate the physical problem into a
form which can be analyzed.We convert it
into a model.
3. Testing the model and its solution

Quantitative Models
1.LINEAR PROGRAMMING: This technique is often used for optimizing
a given objective like profit or revenue maximization or cost
minimization. When there are limited resources and they have to meet
competing demands, distribution of the resources is the critical issue.
2.TRANSPORTATION MODEL: It is concerned with goods from
manufacturing centers or warehouses which have to be supplied to
depots or retail outlets. The demand & supply position of the places
where they are required or produced and the cost of transportation is
considered in the model. To economize we use this model.
3. ASSIGNMENT MODEL: Allocating jobs or persons to machines,
awarding different projects to contractors, so that maximum returns
occur or less expenses are incurred calls for the use of this model.
4. INVENTORY CONTROL MODEL:Inventory models consider the
frequency of placing orders, the quantities per order considering the cost
of placing an order, the number of pieces that are to be kept in reserve,
the rate of consumption, the lead time required for the supplier, costs
involved in storage.Depending upon the probabilities of patterns of
consumption and supply, we have different models which give solutions
to optimize.
5. SIMULATION MODEL: These models are used when we will not be able
to formulate mathematical models. So, we develop a model which
resembles a real life situation and based on the pattern, we predict and
plan our procurement, production, delivery etc.
6. PERT & CPM: When projects are undertaken with a number of activities,
some happening in sequence, with gaps of weeks or months and some
happening simultaneously & resources are of great variety needing a lot
of coordination, it is important to estimate the time required for
completion.Delayed completion may entail penalties. In this model we
adopt special methods to make the system efficient.
WORKFORCE MANAGEMENT
Work management concepts of workers contribution
for productivity.Productivity is achieved by creating
an environment which is conducive for efficient
working. By adopting good practices which instill a
sense of purpose, cooperative behaviors & openness,
workers become willing partners in the process of
manufacturing, which gives them life and pride.
Rewards are important for recognizing good work
that are done.For that purpose measurement of work
and determining efficiency levels are important.

WORK PRACTICES
Work practices are ways of doing any work which has been in
vogue and found to be useful. These are determined by motion
and time study conducted over years and found to be efficient
and practiced. Any method improvement that is conducted may
change the practice but only after trials have shown that they
increase the comfort of the worker and get the job done faster.
WORK ENVIRONMENT
Work environment in which tasks are performed affects
productivity greatly. The combination of temperature, humidity
and air movements produce a level of comfort or discomfort
considering whether they are within a range.These depend on
the conditions to which employees are accustomed. A
temperature range of 24 to 32 degree Celsius would be
suitable.Good illumination at the work place helps productivity.
WORK STUDY
When analysis of work methods is conducted during the period
when a job is done on a machine or equipment, we say that work
study is being conducted. The study helps in designing the
optimum work method and standardization of the work method.
This study enables the methods engineer to search for better
methods, higher utilization of man and machine and
accomplishment of higher productivity. This study gives an
opportunity to the workmen to learn the process of study and will
be able to offer suggestions for improved methods. This encourages
workmen participation.This course is in alignment with the
principle of continuous improvement and helps the organization in
the long run.
WORK MEASUREMENT
It can be defined as a systematic application of various
techniques that are designed to establish the content of work
involved in performing a specific task. The task is performed
by a qualified worker.ILO defines a qualified worker as one
who is accepted as having the necessary physical attributes,
possessing the required intelligence and education and having
acquired the necessary skill and knowledge to carry out the
work in hand to satisfactory standards of safety, quantity and
quality. With this we arrive at the standard time for a
task.This will be used to fix performance rating of other
workers.
WORKFORCE PRODUCTIVITY
Productivity is the ratio of the number of pieces produced to the
number of hours spent on them. This takes into consideration a
number of things like machine capability, workers skill, his
motivation, the environment. Various methods by which
productivity is sought to be improved, like:
1. Measure all aspects across all functions of the organization, so
that all personnel that nobody is spared or favored. Uniformity
and fairness are guaranteed to ensure performance.
2. Establish reasonable goals of production. They should be neither
to low for letting complacency or too high to be attempted.
3. Treat complaints about the working conditions as opportunities to
make corrections and seek higher productivity.
SUMMARY
Models represent a physical system in a
mathematical form so that by changing the variables,
depending on the factors under consideration, we
will be able to predict the effect on the outcomes.
These are used to take decisions for deployment of
resources so that optimization is achieved.