1

GOOD EVENING
WELCOME TO THE NEW ACADEMIC
YEAR
ME 711 MANUFACTURING
PLANNING AND CONTROL
AUTUMN 2014-15
Instructor: Prof. A. Subash Babu
Slot 14
Tuesday 17.00
Friday 17.00
Room Number 211
COURSE OBJ ECTIVES
i) realize the basic problems in industry-related to
manufacturing / operational aspects,
ii) understand various approaches available to treat and
analyze these problems
iii) learn various solution procedures for these problems .
iv ) handle real life situations and
v) know more about the changes that have taken place in
manufacturing systems.
TARGET AUDIENCE:
M.Tech / PhD / DD / BTech students
interested in the area of
OPERATIONS MANAGEMENT
HOW MANY OF YOU ARE INTERESTED IN
Manufacturing Industry
Consulting Companies
Academic Institutions
Research and Development
Public Sector
Civil Services
Any job that pays well
MANAGING OPERATIONS - COMMON
2
COURSE METHODOLOGY
Class room discussions
Industry visits / Live projects
Assignments related to the status and future
of manufacturing companies
Problem solving
Case Discussions
Seminars and Presentations
WHAT IS EXPECTED OF THE STUDENTS
TARGET : About 35students
Attendance Minimum 85%asper IITB rules(there
areabout 30lectures of 90minutesthissemester)
Active class participation in cases and problem
solving
Must actively participate in course projects and
assignments
Students must cometotheclass with calculator
COURSE PLAN
Overview of traditional and advanced manufacturing systems
Preplanning: Forecasting, Capacity planning, Aggregate planning,
and Inventory planning; Location and Layout planning
Operations planning : MRP, MRP II, Assembly Lines, CMS (GT),
FMS and JIT Systems
Operation and control: Lot sizingdecisions, Production scheduling,
Lineof balance and Concepts and applications of Theory of
Constraints.
Road map to World Class Manufacturing Systems: Lean
manufacturing, Agilemanufacturing, Quick responsemanufacturing
systems and Intelligent Manufacturing; Management of Technology
Applications of recent developments in IT includingERP, CIM,
eManufacturing, EnterpriseApplication Integration (EAI): Concepts
and applications.
Case studies
Guest lectures/industry visits will bearranged if students evince
interest.
TEXT/REFERENCES
(Additional references will begiven in theclass.) Oneof 1/3/9 can bepurchased.
1.D.D. Bedworth and J.E. Bailey, Integrated Production Control System -Management,
Analysis and Design, John Wiley, 1983.
2.S.Nahmias, Production and Operations Analysis, McGraw Hill ( 4 th Ed.), 2012
3.D Sipper and R.L Buffin Jr, Production, Planning , Control and Integration, McGraw Hill
Intl., 1998
4.L.A. Johnson and D.C. Montgomery, O.R. in Production Planning, Scheduling and Inventory
Control, John Wiley and Sons, 1974.
5.A.C. Hax and D. Candea, Production and Inventory Management, Prentice Hall, 1984.
6.R.G Askin and JF Goldberg, Design and Analysis of Lean Production Systems, John Wiley &
Sons(Asia)Pvt Ltd. , 2003
7.M.T Flaherty, Global Operations Management, McGraw Hill Intl., 1996
8.R Stein, Reengineeringmanufacturingsystem ApplyingTOC, Mercel Dekker,Inc 1996
9.N Slack, S Chambers and R Johnston, Operations Management, Prentice Hall / Pearson
Education, Sixth Ed: 2010
10.J Heizer and B Render ; Operations Management , PrenticeHall, Tenth Ed. 2010
11.M.L Pinedo, Scheduling : Theory , Algorithms , and Systems , Springer, 2008
3
ASSESSMENT PLAN
End Semester 50 Marks
In-semester 70 Marks
Test 1 : 15 Marks
Quizzes 20 Marks ( including surprise)
Group / Individual Assignments 25 Marks
Bonus on overall performance 10 Marks
GRADE WILL BE BASED ON 120 Marks.
(Everything I Do) I Do It For You
INTRODUCTION
Lecture 1
July 22 (Tuesday ), 2014
COMPETITION
How serious is competition in business ?
A short story
4
MANAGEMENT OF MANUFACTURING
SYSTEMS
MANUFACTURING AS A SYSTEM
Inputs Outputs
Conversion
Subsystem
Production System
Control
Subsystem
MANUFACTURING SYSTEMS
Common components are
Input, Conversion capability ,Output
Output monitors, Feedback and Input regulators
Engines for achieving organizational
excellence.
Conversion systems.
Value adding systems.
Vehicle for achieving organizational goals
WHAT ARE THE PERSPECTIVES OF MANAGEMENT ?
INPUTS
Primary Resources (need to organize)
Machines, Materials, Personnel, Capital,
Utilities
Market( need to ascertain)
Competition, Customer Desires, Product Info.
External( need to appreciate)
Legal, Economic, Social, Technological
5
CONVERSION SUBSYSTEM
Physical (Manufacturing)
Locational Services (Transportation)
Exchange Services (Retailing)
Storage Services (Warehousing)
Other Private Services (Insurance)
Government Services ( Deal with Federal,
State, Local)
ALL NEED TO BE FACILITATED
OUTPUTS
Direct
Products
Services
Indirect
Revenue / Profit
Technological Advances / Knowledge
Waste
Pollution
ALL NEED TO BE TARGETTED AND
MANAGED ( Minimise / Maximise)
THE TASKS
Manage inputs
Build capability
Monitor output
Apply feed back / feed forward concepts to
a) regulate input and
b) have appropriate capability
Challenging ?
FACTORS AFFECTING MANUFACTURING
MANAGEMENT DECISIONS
Global Competition
Quality, Customer Service and Cost
Challenges
Computers and Advanced Production
Technology
Growth of Service Sector
Scarcity of Production Resources
Issues of Social Responsibility
6
PRODUCTION AS AN
ORGANIZATION FUNCTION
Can companies compete based only on any
one of the functions such as
marketing,
Finance / accounting,
engineering
selling
Yes ? No ?
Why ?
Why ?
Need to focus and think of global
competitiveness,
That is where the vast majority of a firms
workers, capital assets, and expenses reside.
To succeed, a firm
must have a strong operations function
teaming with the other functions of the
organization
DECISION MAKING IN
PRODUCTION MANAGEMENT
Strategic Decisions
Tactical / Operational Decisions
Control Decisions
STRATEGIC DECISIONS
These decisions are of strategic importance
and have long-term significance for the
organization.
Examples include decisions such as
Product line
New product development
Design of production process
Location of a new factory
Selecting / replacing the machines
7
OPERATIONAL DECISIONS
These decisions are necessary if the ongoing
production of goods and services is to satisfy
market demands and provide profits.
Examples include deciding:
>Which product to make/ dispatch
>How much finished-goods inventory to carry
>Amount of overtime to use next week
>How much raw material to purchase next month
And so on
CONTROL DECISIONS
These decisions concern the day-to-day
activities of workers, quality of products
and services, production and overhead
costs, and machine maintenance etc.,
Examples include deciding:
Labor cost standards for a new product
Frequency of preventive maintenance
New quality control acceptance criteria
Efficiency of a work unit
etc.,
WHAT WILL HAPPEN IF
A company relies only on
Strategic Aspect ?
Operational ( Tactical ) Aspects ?
Control Aspects ?
What will happen if there is
A car without the front view screen
A car only with the front view screen
A car without rear view screen ?
A car only with a rear view screen
A Car without any screens?
A car with every thing but a driver
A car with every thing and a man at steering
who cannot drive
8
WHAT CONTROLS THE
OPERATIONS SYSTEM?
Information about the outputs, the
conversions, and the inputs fed back to
management.
Matching of information with
managements expectations
When there is a difference, how
management takes appropriate corrective
action.