OPERATIONS MANAGEMENT

Lecture 17

Standardization
Standardization: The extent to which there is absence of variety in a product, service, or process. It refers to the setting of fixed size, type and measurement in addition to quality of different products being manufactured by different organizations in an industry. It is an agreement whereby each manufacturer undertakes to follow the set standards. Precautions for setting standards: i. Consumer s need to be protected and reorganized ii. Preserving the quality for a long period iii. Improving adaptability

Standardization
Kinds of Standards: 1. Industrial Standards: Specification, size, quality 2. Consumer Standards: General outlook, labeling Merits of Standardization: i. To the Manufacturer:
a. b. c. d. e. f. Fewer parts to deal with in inventory and in manufacturing Reduced training costs and time More routine purchasing, handling and inspection procedures Orders fill able from inventory Opportunities for long production runs and automation Need for fewer parts justifies increased expenditures on perfecting designs and improving quality control procedures

Standardization
Merits of Standardization: i. To the Manufacturer: g. Less technical and special machines required h. Less wastage of raw material and time ii. To the Wholesalers: a. Elimination of slow moving stock b. Easy buying and selling c. More attraction d. Less investment for high turnover

Standardization
iii. To the Consumers: a. Availability of better quality products b. Cost and quality assurance c. Reasonable prices Demerits of Standardization: i. Designs may be frozen with too many imperfections remaining ii. High cost of design changes increases resistance to improvements iii. Decreased variety results in less consumer appeal.

Simplification
Meaning: It is a process to eliminate and reduce the large number of designs, sizes and variety (if possible) and select more profitable items, which are greater in demand. However, simplification has a limitation that it cannot be executed for job order (type of process selection) Steps involved in simplification: a. Group efforts of many manufacturers and producers b. Voluntary recommendations by government and private agencies

Simplification
c. Progress by individual manufacturer: i. Development by the engineering department ii. Improvement made if any weaknesses found iii. Improvement in market channels iv. Selection and rejection accordingly v. Untraditional markets (export, rural areas) Objectives of Simplification: i. Better goods on the same price ii. Same goods on lower prices iii. Large turnover iv. Large investment v. Increase in labour efficiency vi. Satisfying consumers need