Lectures notes On Production and Operation Management Prepared by Dr. Sarojrani PattnaikDr. Swagatika Mishra Assistant Professor Department of Mechanical Engineering VSSUT Burla .
PRODUCTION AND OPERATION MANAGEMENT(3-0-0) 1.Productivity:Importance,productivityratio,productivitymeasurement, productivityindex,awareness—improvement—maintenance(A.I.M) proceSs. 2.Production System Models of production system, Product Vs. Services, Process-focused & product focused systems, product strategies, product life cycle, production function. 3.Forecasting : Methods—moving average, exponential smoothing, Regression analysis, coefficient of co-relation, Delphi, Market survey. 4.Facilities Planning : Site location, facilities layout and various types, planning using CRAFT work place design, working conditions—noise illumination etc. 5.Motion study—principles of motion—economy, Time study-standard time. 6.Production Planning & Control : Aggregate planning. Sequencing, Line balancing, Flow control,Dispatching,expediting, Gantt chart, line of balance, learing curve. 7.Project Management—Network scheduling, PERT. Critical path, Most likely time estimate , Resource leveling. 8.38.Modern Trends in Manufacturing :Basic concepts of CAD,CAM,FMS, CIM, ISO 9000, Quality circle, Kaizen, Kanbans, Poke Yoke' supply chain management. Text Books 1.Production Systems : Planning, Analysis & Control : By—Riggs, J.L.(4th Edn.) John Wiley & Sons 2.Modern Production/Operation management : By—Buffa, E.S. & Sarin, =,.K.(8`" Edn.) John Wiley & Sons. 3.Production & Operations Management : By Panneer saivem, R.(2'1Edn.) PHI 4.Production & Operations Managem ent : By Chary, S.N.(TMH)
VEER SURENDRA SAI UNIVERSITY OF TECHNOLOGY BURLAHA DEPARTMENT OF MECHANICAL LESSON PLAN FORProduction and Operation Management SUBJECT CODE: 8thSemester LectureTopics to be coveredRemark Lecture 1Productivity: Importance, productivity ratio, productivity measurement, productivity index Lecture 2Awareness–improvement–maintenance(A.I.M)process, Production System, Models of production system Lecture 3Product Vs. Services, Process-focused & product-focused systems Lecture 4Product strategies, product life cycle, production function Lecture 5Forecasting: Methods Lecture 6Moving average,Exponential smoothing Lecture 7Regression analysis, coefficient of co-relation Lecture 8Delphi, Market survey Lecture 9Facilities planning: Site location, facilities layout Lecture 10Types of facility layout,Planning using CRAFT work place design Lecture 11Working conditions–noise illumination etc. Lecture 12Problemson single facility location usingmedian method Lecture 13Problemson single facility location using minimax method and gravity method Lecture 14ProblemsonsinglefacilitylocationusingEuclidean-distance location Lecture 15Motion study, Principles of motion-economy, method study Lecture 16Rulesconcerninghumanbody,workplacelayoutandmaterials handling, Lecture 17Rules concerning tools and equipments design, time conservation Lecture 18Time study and work measurement techniques
Lecture 19Performance rating anddifferent types of allowances Lecture 20Production planning and control-Aggregate planning Lecture 21Sequencing and line balancing Lecture 22Flow control Lecture 23Dispatching, centralized and decentralized dispatching Lecture 24Expeditingand Gantt chart Lecture 25Line of balance and learning curve Lecture 26Project management, network scheduling Lecture 27PERT with problems Lecture 28Problems Lecture 29Critical path method with problems Lecture 30Problems Lecture 31Resource levelling Lecture 32Basicconcepts of CAD, CAM, FMS Lecture 33CIM, JIT, ISO 9000 Lecture 34Quality circle, Kaizen, Kanbans Lecture 35Poke Yoke, Supply chain management Lecture 36Revision of problems Lecture 37Revision of problems Lecture 38Revision of problems Lecture 39Revision of problems Lecture 40Revision of problems
CHAPTER-I PRODUCTIVITY 1.1Introduction Production/Operation management is the process which combines and transforms various resources used in the production/operation subsystem of the organization into value added products/services in a controlled manner as per the policies of the organization. Transform (In controlled manner as per the policies of the organization) Production/Operation function: The set of interrelated management activities which are involved in manufacturing certain products is called production management and for service management, then corresponding set of management activities is called as operation management. Examples: (Products/goods) Boiler with a specific capacity, Constructing flats, Car, bus, radio, television. Examples: (Services) Medical facilities, Travel booking services. In the process of managing various subsystems of the organization executives at different levels of the organization need to track several management decisions. The management decisions are Strategic, tactical and operational. Defining goalsPlant locationeffective and Making policiesnew product establishmentefficient utilization Monitoring of budgetsof resources Resources used in production/ operation subsystem Value added products/services Range of inputsRequired output (product/service) (Having the requisite quality level) Strategic (Top level)Tactical (Middle level)Operational (Bottom level)
2 Corrections from feedback information: Tight quality check on the incoming raw-material. Adjustment of machine settings. Change of tools. Proper allocation of operations to machines with matching skills. Change in the production plans. 1.2 Productivity: Productivity is a relationship between the output (product/service) and input (resources consumed in providing them) of a business system.The ratio of aggregate output to the aggregate input is called productivity. Productivity = output/Input For survival of any organization, this productivity ratio must be at least 1.If it is more than 1, the organization is in a comfortable position. The ratio of output produced to the input resources utilized in the production. 1.3 Importance: Benefits derived from higher productivity are as follows: It helps to cut down cost per unit and thereby improve the profits. Gains from productivity can be transferred to the consumers in form of lower priced Products or better quality products. These gains can also be shared with workers or employees by paying them at higher rate. A more productive entrepreneur can have better chances to exploit expert opportunities. It would generate more employment opportunity. Overall productivity reflects the efficiency of production system. More output is produced with same or less input. The same output is produced with lesser input. More output is produced with more input. The proportional increase in output being more than the proportional increase in input. 1.4 Productivity Measurement: Productivity may be measured either on aggregate basis or on individual basis, which are called total and partial measure. Total productivity Index/measure = Total output/ Total input =Total production of goods and services Labour+material+capital+Energy+management Partial productivity indices, depending upon factors used, it measures the efficiency of individual factor of production.
3 Labour productivity Index/Measure = Output in unit Man hours worked Management productivity Index/Measure =Output Total cost of management Machine productivity Index/Measure=Total output Machine hours worked Land productivity Index/Measure=Total output Area of Land used Partial Measure = OutputorOutputorOutputorOutput LabourCapitalMaterialsEnergy PROBLEMS: Example-1 The input and output data for an industry given in the table. Find out various productivity measures like total, multifactor and partial measure. Output and Input production data in dollar ($) Output 1.Finished units10,000 2.Work in progress2,500 3.Dividends1,000 4.Bonds------- 5.Other income-------- Input 1.Human3,000 2.Material153 3.Capital10,000 4.Energy540 5.Other Expenses1,500 Solution: Total measure =Total Output= 13,500= 0.89 Total Input15,193 Multi factor measure = Total Output=13,500 = 4.28 Human+Material3,153 Multi factor measure =Finished units=10,000 = 3.17 Human+Material3,153 Partial Measure1=Total Output=13,500= 25 Energy540 Partial Measure2=Finished units= 10,000 = 18.52 Energy540
4 Note:For multifactor and partial measures it is not necessary to use total output as numerator. Often, it is describe to create measures that represent productivity as it relates to some particular output of interest. Other fields for the measurement of partial measures of productivity are: BusinessProductivity Measure RestaurantCustomers (Meals) per labour hour Retail StoreSales per square foot Utility plantKilowatts per ton of coal Paper millTons of paper per cord of wood Example-2 A furniture manufacturing company has provided the following data. Compare the labour, raw materials and supplies and total productivity of 1996 and 1997. Output: Sales value of production in dollar ($) 22,000 (in 1996) and 35,000 (in 1997) 19961997 Inputs: Labour10,00015,000 Raw materials and Supplies8,00012,500 Capital equipment depreciation7001,200 Other2,2004,800 Solution: 19961997 a.Partial productivities Labour2.202.33 Raw materials and Supplies2.752.80 b.Total Productivity1.051.04 1.5 Productivity measurement approaches at the enterprises level: As stated above total productivity is expressed as the ratio of aggregate output to the aggregate input. That the total overall performance is captured in this ratio, becomes apparent, if we examine the relationship between this ratio and the age-old performance measure of profit. If the outputs and input for the period for which productivity is measured, are expressed in rupees, then under such restrictive assumptions one can write: Aggregate output =Gross Sales=G (Say) Aggregate input=Cost=C (Say)
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