MCE Production and 3-0 Credit

4729 Operations 3.00

Management

Production/manufacturing systems and production environments; functions and aspects of

production/manufacturing planning and control (PPC/MPC); Demand management and
forecasting in production; Plant location and Layout, Material handling, and Scheduling;
Cost concepts and Break-even analysis.
Supply chain management; Aggregate production planning; Independent inventory
models and management; Materials requirements planning (MRP) and dependent demand
resource planning and MRPII/ERP, capacity requirements planning; JIT/lean production
system (LMS); Total productive maintenance (TPM); Work methods and measurement,
manufacturing performance measurements and improvement techniques.
Managing engineering resources – Entrepreneurship (identify business opportunities and
work independently); Human resources management; Project management; Safety at
work.

Books
• Operation Management: Strategy and Analysis, Lee J Krajewski & Larry P Ritzman, (recent edition),
Prentice Hall.
• Operation Managements: Willian J. Stevenson, (recent edition), McGraw-Hill Irwin.
• Introduction to Industrial and System Engineering, Wayne C. Turner, Joe H. Mize, Kennethe E. Case
• The Management of Operations: A conceptual Emphasis, 4th ed., Jack R. Meredith, John Wiley & Sons.

COURSE DELIVERY AND ASSESSMENT

• Mode of teaching and learning: Lectures, class tests, Assignments

(individual and group), Tutorial, software lab (industrial engineering lab)
• Material/Facility etc. required: multi-media, CMOM software, Witness plant
simulation, Microsoft Excel.
• Delivery of class note: normally in advance via a class Spectrum.
• Marking scheme: Course work (tutorial, assignment, case study and lab) 25%,
Class tests 15%, Final exam 60%
• Number of class tests: 2 to 3
• Class test on (week and day): to be decided.
• Number of assignments and case studies: 4+
• Assignment on (week and day): to be decided.
• Submission of assignment (week and day): to be decided.
• Number of tutorials: 2/3
• Attendance expected: min 80%
• Discussion on Final exam: 2 hours exam, total 5 questions, attempt 4 of them
• Anything else!?:

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 From Head of the Department

1. Monitor and take student attendance in every class using the approved
attendance sheet by the Faculty.
2. Class venue and time table cannot be changed without approval of HoD and
Deputy Dean (Academic).
3. Ensure that two tests are conducted before the mid semester break
4. Ensure that ALL students display his/her student ID card when attending the
class.
5. Ensure that ALL students adhere to university dress code.
6. It is COMPULSORY for every student to see the respective academic advisor at
least once in a semester (before the end of the semester). A Lecturer needs to make
note of the student visit in the Online Academic Advisory System
(https://isis.um.edu.my/pa) and put his/her comments.

Humor without Malice

A man noticed Nasruddin digging a hole, and asked him about it.
Nasruddin said, "I had buried something in this field last month, and I've been trying
to find it all morning."
"Well," said the man, "did you have some kind of marking for it."
Nasruddin said, "of course I did! When I was burying it, there was a cloud directly
over it that cast a shadow - but now I can't fi nd that cloud, either!"

Nasruddin went hunting with the village mayor. They found a turkey, and the mayor
shot and missed it.
"Bravo!" Nasruddin shouted.
The mayor angrily turned to him and said, "How dare you make fun of me!"
"I wasn't making fun of you,"
Nasruddin replied. "I was saying bravo to the turkey!"

Hikmah
A person's true wealth is the good deeds that he does in this world . – Prophet
Muhammad (pbuh)

The best religious observance is to do what is commanded and avoid what is

forbidden. – Umar ibn al-Khattab.

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Quotable quotes
• A ship is always safe at shore but that is not what its built for. – Albert Einstein

• Most folks are as happy as they make up their minds to be – Abraham Lincoln

Industrial Engineering (IE)

Definition: Engineering approach applied to all factors - material, machine, method,

money and man (human), involved in manufacturing, assembling and distribution of
products (goods and services).
‘Industrial’ means manufacturing and other organization producing goods and
services.

IE is concerned with the design, improvement, and installation of integrated systems

of people, materials, information, equipment, and energy. It needs specialized
knowledge and skills in mathematical, physical, and social sciences together with
principles and methods of engineering analysis and design to specify, predict, and
evaluate the results to be obtained from such systems.
An industrial engineer is an ‘internal consultant’ who is concerned with the entire
production and distribution, under the circumstances of new and fascinating changes
and challenges.

Role of industrial engineering:

• Designing the products (product engineering)
• Manufacturing the products (manufacturing engineering)
• Providing physical facilities, utilities, and other resources needed to ensure
continued operations of the manufacturing plant (plant engineering).

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 R&D to Product Manufacturing Plant eng for
product engineering to engineering to continued
idea- product design – manufacture production
• Pure • Design of • Process design • Installations
research components • Tooling and • Plant
• Applied • Preparation of equipment services
research specifications • Methods • Maintenance
• Pilot • Product • Layouts & mat • Safety
plant standards handling • Energy
• Product testing • Quality control conservation
• Engineering • Economic
service evaluation

Figure: Industrial engineering functions in manufacturing

Challenges of the Future

• Resources constraint/limitation: optimal use for the satisfaction of human
needs
• Preservation of environment: designing systems and process
• Designing reliable and quality product and process: safe product, and
improved process
• Productivity improvement: technological advancement, searching for
improved work method
• Getting involved into political issues: provide assistance to lawmakers in the
design of social systems.
• Manufacturing excellence and ability to produce high-quality products:
world-class products

Today’s Manufacturing Business Operations Planning & Control

Characteristics of Operations environment
• Global competition
• Rapid technological change
• Customers dictation
• Cost-effective products
• Environmental awareness
• Short & uncertain product life cycle
• Large product variety
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Problems of an Industrial Engineer at the shop floor level
• Receive orders for several products at the same time
• Each product has its own design criteria
• Different and uncertain lead times
• Capacity limitations
• High much inventory
• How to schedule? Complex!

Production and Operations Defined

Production is the intentional act of producing something useful (beneficial) which is
desired by somebody. The output of production is termed as product (goods and/or
service)

Operations are intentional actions (process) to achieve certain predetermined

goals/objectives by changing inputs into outputs (adding value to certain entity).

Value addition:
• Physically: alter, change structurally, sensual (heat when cold), psychological
(feeling of worth from getting a degree)
• Transport: bringing nearer (say, any desired good), taking away (garbage)
• Store: under protected environment
• Inspect: if better understood of an entity’s properties

Production and operations management is the study of concepts, procedures, and

technologies used by engineers, managers, administrators, and employees in the
production and operation of any organizations (Goods and Service).

4 Aspects of this definition are:

1. Deals with process. Production schedulers, quality assurance supervisors, material
managers, department supervisors, personnel managers, and store managers are
primarily operations managers.

2. Management is broadly designing the systems and performing all activities

necessary to operate the system.

3. Subsystems: suitable subdivisions of the system.

4. Main Goal- steady & growing stream profit earning. Other goals.

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Process is an activity or group of activities that takes one or more inputs, transforms
and adds value to them, and provides an output for a customer.

IE or operations management resources:

• Human resources (workers, managers, experts)
• Technology resources (production equipment, robots)
• System resources (computer information systems, production methods)

Issues under Operations management

• Strategic choices: long term, global & competitive priorities, products and
resources (operations strategy)
• Process: process management, technology management, and workforce
management
• Quality: objectives, all processes and work activity
• Capacity, location and layout: long term commitments
• Operating decisions: supply-chain management, demand forecasting, inventory
management, aggregate planning, materials requirement planning, just in time
systems, scheduling, managing projects.
• Efficiency and effectiveness: productivity, doing the thing right or doing the right
thing
• Lead time: how quick an item can be produced
• Flexibility: can produce other outputs? How easily? How fast? Etc.

Operations Management for Decision-making

• Covers the whole range, viz. from short term to long term decision-making.
• Strategic decisions are made at the top level while participatory decision
environment can be ensured at all levels.
• Eying the long-term perspectives, day to day business decisions are taken
attaching due regards on actions.
• Decision making techniques ranges from simple heuristic analysis to higher order
mathematical modeling.

Operations Management and other Functional Areas

• Engineering
• Marketing
• Accounting
• Finance
• Human resources

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Cross-functional Coordination
Function Why coordination with OM?
• Engineering
• Marketing
• Accounting
• Finance
• Human resources

Achieving Cross-functional Coordination

• Unified strategy
• Redesigned organization
• Consistent reward systems
• Adequate decision support systems
• Informal social systems
• Employee selection and promotion

Operations Managers Skill Areas

• Quantitative analysis to solve problems
• Knowledge of information systems to manage vast volume of data
• Concepts of organizational behavior to aid in designing jobs and managing
workforce
• Understanding of international business methods to gain useful ideas about facility
location, technology, and inventory management

Think about your organization

• Corporate strategy
• Competitive priorities
• Capacity
• Location & layout
• Process management
• Inventory
• Product planning and MPS
• Materials management
• Work-force management

Trade-offs in Competitive Priorities

• Fast!

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• Cheap!
• Good!
• Flexible!

Pick any two.

Why a system fails?

• Attitude
• Static: lack of creative-tension
• Lack of customer voice
• Huge inventory
• Quality is secondary
• Practicing Just in case (JIC) technique
• Inadequate training

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 Industrial/Manufacturing Engineering (IE) needs Knowledge of integration
IE is the ultimate of all Engineering (Figure below: Turner et al. 1993). IE is necessary in manufacturing & service
industries and Govt organizations.
IE covers waste elimination, inventory & supply chain management, production scheduling & control, computerized
control and communication systems, project management, quality & reliability, and several other functions.

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 Manufacturing Functions are varied & closely interrelated

Customer HRM and R&D Product & process

management management design

Product & Manufacturing Production

process quality system planning

Equipment Operations Material resources

maintenance scheduling planning

MRP = Materials resources planning; HRM= Human resources management

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 WHERE TO START??

Who are WE? Why ALLAH(SWT)/GOD sent us to this world?

What are the PURPOSES/MISSION of our EXISTENCE?

What are we all ABOUT? For ourselves/Nation?

What is the REASON (Mission) for existence of an organization?

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