1.

Production techniques
Equipment design Process design Plant layout Material handling system design

2. Capacity management
Forecasting demand Delivery commitment Facility location Resource allocation

3. Industrial engineering
Method study Work measurement

4. Production planning and control

Estimating, Forecasting Routing Scheduling Dispatching Progressing

5. Inventory control
Purchasing Storing Controlling stocks

6. Quality control
Inspection Quality control and Quality Assurance(SQC) Reliability

7. Maintenance
Spare parts inventory control Equipment replacement Service and repair

HISTORY OF OM
F.W.Taylor - Scientific methods (1878) Gilbreths - principles of motion economy (1911) H.Gantt Scheduling system (1912) Henry Ford Mass production (1913) F.W.Harris EOQ (1915) W.Shewhart SQC (1924) Mayo Human relations movement (1930)

Alignment of corporate and operations strategy

Corporate strategy

Market analysis

Competitive priorities

New product development Performance gap Operations strategy Competitive capabilities

Corporate strategy
Environmental scanning Core competencies Core processes

Operations strategy
When new products are to be developed and introduced? When new facilities are needed? What new technologies are to be developed? What production schemes to be followed?

Competitive priorities
Cost Quality Delivery Flexibility Service

New product development

Need identification Feasibility study Detailed engineering design Process design and development Product evaluation and improvement Product use and support

Elements of Operations strategy

Positioning the production system Focus of factories and service facilities Product/service design and development Technology selection and process development Allocation of resources to strategic alternatives Facility planning

Types of production systems

Job shop Batch Repetitive or assembly line continuous

Type

Job shop

Batch

Repetitive Continuous or assembly

Standardized goods Highly standardized goods

description

Customized goods

Semi standardized goods

advantages

Wide variety

flexibility

Low unit cost High volume efficient Low flexibility, High cost of down time

Very efficient Very high volume

disadvantage Slow, high cost per unit, Complex planning & scheduling

Moderate cost, Moderate scheduling complexity

Very rigid, Lack of variety, costly to change, very high cost of downtime

JIT production
A highly coordinated processing system in which goods move through the system and services are performed, just as they are needed.

JIT philosophy
A system of lean production used mainly in repetitive operations. Require very little inventory. Eliminate sources of potential disruption. Quick and low cost setups Special layouts and work pulled. Cooperated effort.

Seven types of waste

over-production motion (of operator or machine) waiting (of operator or machine) conveyance processing itself inventory (raw material) correction (rework and scrap)

JIT philosophy @ Toyota

Management decisions on a long-term philosophy, even at the expense of short-term financial goals. Create continuous process flow to bring problems to the surface Use the "pull" system to avoid overproduction Level out the workload (heijunka).

Build a culture of stopping to fix problems, to get quality right from the first Standardized tasks are the foundation for continuous improvement and employee empowerment. Use visual control so no problems are hidden Use only reliable, thoroughly tested technology that serves your people and processes.

Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others. Develop exceptional people and teams who follow your company's philosophy. Respect your extended network of partners and suppliers by challenging them and helping them improve.

Go and see for yourself to thoroughly understand the situation (Genchi Genbutsu) Make decisions slowly by consensus, thoroughly considering all options (Nemawashi); implement decisions rapidly Become a learning organization through relentless reflection (Hansei) and continuous improvement (Kaizen)

Benefits
Reduced inventory levels High quality High flexibility Reduced lead times Increased productivity and equipment utilization Reduced scrap Reduced space requirements

Characteristic
Customer contact

Goods
Low

Services
High

Uniformity of input
Labor content Uniformity of output

high
Low High

Low
High Low

Measurement of productivity
Inventory Evaluation

Tangible
Much Easier

Intangible
Little Difficult

Factors affecting process design

Nature of product demand Degree of vertical integration Product and volume flexibility Degree of automation Level of product quality Degree of customer contact

Stages in PPC
Planning Operations Control

Production planning and control

PPC is defined as the planning, direction, and coordination of the firms material and physical facilities towards the attainment of predetermined production objectives in the most economical manner.
It is the nerve center of the entire production system.

Functions of PPC
Materials Methods Machines & equipment Routing Estimating Loading

Scheduling Dispatching Expediting

Inspection evaluation

Objectives of PPC
Quality goods in required quantities. Maximum utilization of all resources. Minimize product throughput time. Maintain optimum inventory levels. Flexibility in operations. Capacity planning for future requirements.

Remove bottlenecks at all stages. Ensure effective cost reduction. Ensure delivery dates are met. Ensure operation of the plant in accordance with the plans. Contribute to the profit of the enterprise.