European University Barcelona
Fall Semester 2014-2015
PRODUCTION
MANAGEMENT
LESSON 1:
INTRODUCTION TO PRODUCTION
AND OPERATIONS MANAGEMENT
Course: Production Management
Professor: ngel Garca Izquierdo (a.garcia@euruni.edu)
Course Description
This course in production and operations management places the emphasis on productivity
analysis so as to improve business orientations and create a competitive edge. Inventory control
systems, materials requirement planning, manufacturing resource planning, and quality controls
are the main issues discussed in this course.
Course Objectives
The course is a presentation of different techniques to manage the productive systems.
To identify the problems to design an optimum system in a long and a short term.
To control the flow of the materials and information, review the bad actions and create new lines
to correct all the anomalies.
Contents
WEEK 1
- Introduction to Production and Operations Management
- Flow Chart
WEEK 2
- Layout Design
- Productivity
WEEKS 3
- Levels of Production Management
- Strategic Production Management: Forecasting
WEEK 4
- Aggregate Production Management: Production Master Plan (PMP)
WEEK 5
- Operative Level of Production Management: Production Scheduling
WEEK 6
- Introduction to Logistics and Purchasing Management
- Review for Mid-Term Exam
WEEK 7
- Mid-Term Exam
WEEKS 8
- Logistics. Economic Order Quantity (EOQ) Strategy
WEEK 9
- MRP: Material Requirement Planning
- JIT: Just In Time
WEEK 10
- Introduction to Quality Management
- SPC: Statistical Process Control
WEEK 11
- Maintenance of Production Systems
- TPM (Total Productive Maintenance)
WEEK 12
- Models of Production Management: LEAN MANUFACTURING
- Review for Final Exam
WEEK 13
- Final Exam
Recommended Book:
Contemporary Operations Management (Text and Cases)
Thomas M. Cook and Robert A. Russell.
INTRODUCTION TO PRODUCTION AND OPERATIONS
MANAGEMENT
A Production company is a system, and a system is always represented as:
INPUTS
OUTPUTS
SYSTEM
INPUTS:
- Raw Materials
- Information
OUTPUTS:
- Products
- Services
Into the system we need RESOURCES:
- Technology
- Machines and tools
- Human Resources
- Policy and Strategies
- Money
- Environment
Examples:
SYSTEM
INPUTS
RESOURCES
OUTPUTS
Automotive
manufacturer
Hospital
Pieces, customers
demand
Patients
Cars
University
Students
Workers,
machines, tools,
Doctors, nurses,
clinical apparels,
beds, medicines
Teachers,
classrooms, PCs,
books,
Healthy people
Graduate people
The system has several OBJECTIVES:
[MAXIMIZE]: Profits, Quality, Customers satisfaction, (PRODUCTIVITY)
[MINIMIZE]: Times, Defects, Customers complaints, (COSTS)
If we analyze this system:
PRODUCTION SYSTEM
Logistics
Costumers
Service
Production
Quality
This is the process
company.
COSTUMERS
SUPPLIERS
Purchasing
Transport
Maintenance
map of a
Product / Service flow
Information flow
The departments in a company can be differenced in:
- Strategic: Show the guidelines to follow.
o Examples: Top Management, Finance, R+D, Marketing.
- Operative: Focused in product/service.
o Examples: Production, Logistics, Purchasing, Sales.
- Supportive: Give help to the other department.
o Examples: IT, Administration, HR, EHS.
In a Production System we have to organize different activities in a:
PROCESS FLOW CHART
It is the description of the activities in a process.
It is a tool to give an idea of the different steps that the product follows from its origin
as raw material as its finish as a good or product.
Decide the process to
describe
Define where it starts and
where it finishes
Draw the activities in a
sequential way
The activities or elements of the process, according to their characteristics, are
represented by different symbols. These symbols are:
Operation: Activity which adds value to the process. To add value, in
process control, is an action that changes colour, shape, physical
characteristics, etc. Examples of operations: drill, paint, assembly,
Inspection: Activity of control. To check if a task is made correctly.
Combination of activities: Two activities made at the same time
(operation and inspection)
Transport: Movement between two points (origin and destination).
Storage: Immobilization of a material in a place for this aim.
Bottleneck: Stop in the process which does not permit the flow
production.
Documentation: Writing any document, necessary in the process
Decision: Part in the process where different options can be chosen,
according to the results till this point.
Examples of a process flow charts:
CIT RON
X4 EFSi
Initia l Stor age
103166- XX X 96 325 334 80
103167- XX X 96 325 333 80
Inspection
Contr ol Shee t
Inse rt
P ar t 1 a nd
P art 2
AV O0010
( a)
Assem bly
P art 1 and
P art 2
Inser t
P ar t 3
Inse rt
P ar t 4
Fina l a ssem bly
AVO0010
( b)
AV O0020
(a )
AVO 0020
( b)
AV O0020
( c)
F echa: 6/2/2008
Rec epc in
de mat eri al
Almac en ami ent o
de mat erial
Operaci n
inspecc i n
Retar do
Doc umento
Transporte
Hoja: 1 de
La be l
De livery
F irma:
F orma to : 02 -09 1 31-F S-10
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