Production and Operations Management

Operations Management
Prepared by:
K. Sasikumar
Supply Chain Management
The integration of the activities:
1. Procure raw materials,
2. Transform into final product
3. Deliver them to customers.
Prepared by:K.Sasikumar 2
Production System
Input
– A resource required for the manufacture of a
product or service.
Conversion System
– Converts inputs (material and human resources)
into outputs (products or services) using the
production process or technology.
Output
– A direct outcome (actual product or service) or
indirect outcome (taxes, wages, salaries) of a
production system.
Basic Production System
Types of Production Process
 Simple Production System
Start-and-stop production for made-to-order
products.
 Mass Production
– Long run standardized method production process.
Critical Path Analysis
Critical Path Analysis
Uses
 Used for Planning and Monitoring the Process
 Find out the maximum time for an operation to
be completed
 Identify potential problems in implementing
operation
 Identifies where and when resources (including
human ones) are needed
 Used in decision making process
Production Chart - PERT Chart
Building a House
Production layout
Gantt Chart
RESOURCE MANAGEMENT
Effectively
Human Handle
Resource +
Improve
processes
+
Work Enhance
Infrastructure customer
Environment
satisfaction
RESOURCE MANAGEMENT
Human  Determine competence.

Resource  Provide Training
 Evaluate Effectiveness
of Action
Work
Infrastructure
Environment
RESOURCE MANAGEMENT
 Building and Fixtures

Human
Resource  Workspace & Utilities.
 Plants & Equipments.
 Support services.
Work
Infrastructure
Environment
RESOURCE MANAGEMENT
Human
Resource
 Manage Conditions
of environment to
Work
Infrastructure achieve the required
Environment
product conformance.
Inventory Management
Types of Inventory Items:
1. Raw materials: Purchased from suppliers.
2. Work in process: All materials on the production
floor in various stages of production.
3. Finished goods: Final products waiting to be sent
to customers.
4. Stationeries: Used in administration work
Inventory Control
The process of ensuring that the organization has
adequate inventories within the limited cost.
Type of Inventory Costs:
Ordering (Setup) Costs Inventory-Holding Costs

Usually fixed cost to setting Costs associated with carrying
up the production run. raw materials and Storage Cost
(S -Setup Cost) ( H - Per unit holding cost)
Economic Order Quantity (EOQ)
Economical Order Quantity is defined in order to minimize the
Total inventory and Setup costs.
Assumptions:
Constant per unit holding and ordering costs
Constant withdrawals from inventory
No discounts for large quantity orders
Constant Lead Time for receipt of orders
Just-In-Time (JIT)
A production control method Used to attain minimum
inventory levels by ensuring the Output conformity.
Economic Order Quantity (EOQ) Model
Q
Order Size
R
L L Time
d
Daily Usage Rate
Manpower Planning
1. Forecasting & the way of achievement
No of Specific Skills For what extent

Employees
2. Net Labour Requirement=(Gross Req.– Able to Manage )

Name of the Employees
Activities
Name-A Name-B Name-C Name-D
Activity NO:01
Activity NO:02
Purpose of Job Analysis
I. Determining the Job relative worth.
II. Aid to supervise the employees by defining each
employees duties and responsibilities
III. Providing justification for the existence of the job and
requirement of the carder
IV. Determining the recruitment needs.
V. Help to develop career development path for the
employee.
VI. Employees are in the same grade level will be paid
equal.
VII.Types of information obtained through Job analysis.
Types of Information obtained through Job analysis
Job oriented activities performed ( Process, Procedures

Used and Activity Records )
Worker oriented activities performed ( Sensing, Decision
Making, Performing, Physical Actions and Communications)
1. Job Description : A Statement of Duties, Responsibilities
and Job Condition {Physical Working Condition & Work
Schedule}.
2. Job Specification : A Statement of Human qualities required
to fill the Job { Job Related Knowledge/ Skill (Education,
Training, Work experience), Personnel Attitudes, Physical
Characteristics}
3. Work Performance: Work Measurement, Work Standards,
Error Analysis etc
4. Employee Evaluation: Use Predetermined system & assign
relative score Prepared by:K.Sasikumar 21
Types of Information obtained through Job analysis
( Employee Performance Evaluation Chart)
Duties & Performance

Responsibilities Total
Description Score Very much Satisfactory Fair Poor Gained
(Points) Satisfied(80%) (60%) (50%) (30%) Score
NO:01
NO:02
NO:03
NO:04
TOTAL 100
Advantage of Job Evaluation System
1. Make easy the payment procedure
2. Can convince the employee about the payment system
Ex:15,000/= – 400/=x 8 – 18,200/= {(Basic)-(Increment/Year)x(Years)– (Max. Sal.)}
Reasons for Staff Turnover
 Management’s close door policy

 Un satisfaction
 Lack of training and lack of attention
 Lack of Autonomy
 Disappointment with promotion
How to appreciate the staffs
I. Encourage employees to think like owners
II. Improving employees trust through better communication
III. Not enough to post your mission statement on the wall.
IV. You have got to integrate them into your companies’ culture.
V. Employee Recognition.
VI. Effective employee reward Programme.
VII. Helping to the employees to understand what their jobs are
VIII. Asking questions in the motivational way.
IX. Having positive influence (Satisfy the employees& Customers
requisition)
X. Promoting the right employee
XI. Encourage the employees to share their ideas.
Total Quality Management
Maximizing customer satisfaction through ongoing
improvements.
Important Factors:
1. Quality
2. Price
3. Delivery
Introduction
CONTINUOUS
CONTINUOUSIMPROVEMENT
IMPROVEMENTOF
OFTHE
THEQUALITY
QUALITY
MANAGEMENT
MANAGEMENTSYSTEM
SYSTEM
Management Customers
responsibility
Customers
Measurement,
Resource analysis and
improvement Satisfaction
Management
Input Service/Product Service Output

Requirements realization Product
Value adding activities

Information flow
To Manage The Quality
Continually
Continually Improve
Improve Effectiveness
Effectiveness
Use
Use corrective
corrective action
action to
to improve
improve your
your service
service to
to your
your
customers.
customers.
Maintain
Maintain
Show
Show evidence
evidence that
that you
you are
are doing
doing what
what you
you said
said
you
you were
were doing.
doing.
Implement
Implement
Do
Do what
what you
you wrote
wrote down.
down.
Document
Document Prepared by:K.Sasikumar 27
Write
Write down
down what
what you
you do.
do.
Continuous Improvement
Arranging infrastructure Using 5S:
I. Seiri : Short out unnecessary items in the work place
II. Seiton : Arrange necessary items in good order.
III. Seiso : Clean the work place completely.
IV. Seiketsu : Maintain work place comfortable by repeating Seiri,
Seiton, Seiso.
V. Shitsuke : Train the People to follow the rules.
Advantage of 5S:
I. Increase the productivity
II. Improve the quality
III. Cost of production is reduced
IV. Target or Delivery date can be achieved
V. Improve the operator’s morale
Problem Solving Tools

Production and Operations Management

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Operations Management

Human  Determine competence.

 Building and Fixtures

 Plants & Equipments.

Ordering (Setup) Costs Inventory-Holding Costs

No of Specific Skills For what extent

2. Net Labour Requirement=(Gross Req.– Able to Manage )

Job oriented activities performed ( Process, Procedures

Duties & Performance

 Management’s close door policy

Input Service/Product Service Output

Value adding activities

To Manage The Quality

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