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Chapter 3
SCOPE OF PRODUCTION AND OPERATIONS MANAGEMENT & Product Design

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SCOPE Basically, this discipline has to decide about a production or operation set-up to generate customer satisfaction at optimum cost. This involves certain long term strategic decisions involved, influencing substantially the whole system. Mostly these decisions are with respect to the Design and Planning aspects.

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TYPE OF DECISIONS REQUIRED TO BE TAKEN IN PRODUCTION MANAGMENT

Long term or Strategic Decisions Short term or Operational Decisions

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Long Term Decisions (1) Product Selection and Design : Choosing the right products , keeping the mission and overall objectives in the mind is key to success. Also, Design of the product , which gives it enough functional and aesthetic value is of paramount importance. It is the design of the product which makes us competitive or noncompetitive.

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Long Term Decisions

(2) Process Selection and Planning: Selection of a process involves taking decisions about technology, machines and equipment. Process Planning , detailing the stages of the process , gives us an idea of optimum automation and mechanization.

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Long Term Decisions

(3) Facilities Location: It involves decision for where to locate our operations or production ? Location should as far as possible cut down on production and distribution cost. (4) Facilities Layout and Materials Handling : The machines should be so arranged that the flow of the production remains smooth. The two major types of plant layout are Product Layout and Process Layout. There should be proper choice of material handling equipments so as to have minimum loss of time and cost on account of handling during production process.

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Long Term Decisions

(5) Capacity Planning : It deals with procurement of productive resources. Capacity refers to a level of output of the conversion process over a period of time. Capacity is planned for short term as well as for long term.

Some tools that help in capacity planning are Marginal costing , Learning curves , Linear planning and Decision trees.

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Short Term Decisions (1) Production Planning :

Planning is a pre-operation activity. Production planning aims at setting the goals or targets and allocating the existing resources viz. men, machines , materials and plant services, among varied production operations so that their best possible use can be made in the light of the set goals or standards.

(2) Production Control :

Controls is a management technique which aims to see that the activities are carried on in line with the predetermined standards. The production control involves the following activities:

(a) Planning (b) Routing Dispatching (d) Follow-up .

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Short Term Decisions (3) Inventory Control :

Inventory Control deals with the control over raw materials, work-no-progress , Finished products , stores supplies, tools etc. The raw materials , supplies etc. should be purchased at Right time , Right quality , in Right Quantity from Right source and at Right price. These five Rs consideration enables scientific purchases. (4) Quality Control: The quality standards are prescribed in terms of specifications like size, colour, shape , tastes etc. The quality control is maintained by testing the actual production and by ascertaining whether they conform to the set standards. The raw material, work-in-progress, finished products etc. are tested at various stages of production.

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Short Term Decisions (5) Method Study :

Methods for performing the repetitive functions should be devised with the help of time and motion study to minimize unnecessary movements and to have maximum efficiency of resources.

(6) Maintenance and Replacement:

This area covers application of preventive methods to avoid machine breakdowns , scheduled and break-down maintenance , policies regarding repair and replacement decisions.

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Short Term Decisions (7) Cost Reduction and Control :

Essentially , cost reduction and cost elimination are productivity techniques. Value engineering , budgetary control , standard costing ,cost control of labor and machines etc. help us to keep our costs optimal. Control function is exercised over the quantity to be produced, quality , expected time needed, inventory consumed and carried and costs incurred . Control system is designed after due cost benefit analysis.

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Types of production systems

(1) Mass production or Continuous (Comodities)

(2) Assembly / Flow-line production system (cars)

(3) Batch production system (Crane / Biscuits..) (4) Job shop (Eye Glasses -spectacles) (5) Projects

(Product / Process)

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Types of production systems Assembly line production system:

In this system, all machines or facilities are arranged as per the sequence of operations. Output of one operation become the input for the subsequent operation. E.g. Automobiles production line.

Batch production system:

In this system, a batch consisting of a certain quantity is made on a machine. The same machine then may be used for another product. Thus , here there are a variety of products and it is not possible to maintain a separate assembly line for each product. E.g. pharmaceutical products.

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Types of production systems Job shop:

Here the production shop accepts customers orders and executes them. It does not have its own product mix. Each order may be unique requiring its own tooling and planning.

E.g.: Cranes, Aeroplanes Projects :

Here , the manufacturing activity is done for a single product and it is not repetitive. E.g. Construction of a bridge or a residential complex or a factory. Manpower , facilities and other resources centre around such products. PERT / CPM or a network analysis is a useful technique to plan and control projects.

E.g.:

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OBJECTIVES of Product DESIGN

Product Development Process
Economic Analysis of Development

Projects
Designing for the Customer Design for Manufacturability Measuring Product Development

Performance

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Typical Phases of Product Development

Planning Concept Development System-Level design Design Detail

Testing and Refinement

Production Ramp-up

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Economic Analysis of Project Development Costs

Using measurable factors to help determine: Operational design and development decisions Go/no-go milestones Building a Base-Case Financial Model A financial model consisting of major cash flows
Sensitivity Analysis for what if questions

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Designing for the Customer

House of Quality

Quality Function Deployment

Ideal Customer Product

Value Analysis/ Value Engineering

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Designing for the Customer: Quality Function Deployment

Interfunctional teams from marketing,

design engineering, and manufacturing

Voice of the customer House of Quality

Water resistance

Energy needed to close door Door seal resistance Check force on level needed Energy ground open door to Accoust. Trans. Window

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Designing for the Customer: The House of Quality

Correlation:
X X X

X
X

* Strong negative
X = Us A = Comp. A B = Comp. B (5 is best) 1 2 3 4

Strong positive Positive Negative

Customer Requirement s Easy to close

Engineerin g Characteris tics

Competitive evaluation

X X AB

AB

Stays open on a hill 5

Customer requirements information forms the basis for this matrix, used to translate them into operating or engineering goals.
The McGraw-Hill Companies, Inc., 2004

Easy to open

XAB A XB X A B

Doesnt leak in rain 3 No road noise 2 Importance weighting Target values

5

Reduce energy level to 7.5 ft/lb Maintain current level Reduce force to 9 lb. Reduce energy to 7.5 ft/lb. Maintain current level Maintain current level

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Relationships:
Strong = 9 Medium = 3 Small = 1

Technical evaluation 4 3 (5 is best) 2

1

B A X

BA X

B A X

B X A

BXA

BA X

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Designing for the Customer: Value Analysis/Value Engineering

Achieve equivalent or better performance at a

lower cost while maintaining all functional requirements defined by the customer Does the item have any design features that are not necessary? Can two or more parts be combined into one? How can we cut down the weight? Are there nonstandard parts that can be eliminated?

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Design for Manufacturability

Traditional Approach We design it, you build it or Over the wall

Concurrent Engineering Lets work together simultaneously

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Design for Manufacturing and Assembly

1.

2.

3.

Greatest improvements related to DFMA arise from simplification of the product by reducing the number of separate parts: During the operation of the product, does the part move relative to all other parts already assembled? Must the part be of a different material or be isolated from other parts already assembled? Must the part be separate from all other parts to allow the disassembly of the product for adjustment or maintenance?

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Measuring Product Development Performance Measures Performance Freq. Of new products introduced Dimension
Time-to-market
Time to market introduction Number stated and number completed Actual versus plan Percentage of sales from new products

Productivity

Engineering hours per project Cost of materials and tooling per project Actual versus plan Conformance-reliability in use Design-performance and customer satisfaction Yield-factory and field

Quality

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End of Chapter 4