Qu. 1 Differentiate between operations and production Management ?

Ans.:- Differentiate between operations and production Management

Production Management Operation Management

Definition

Production management is Operation management is about the

about managing activities management of overall business operations
related to production only which includes production and post-
production stages

Area of Decision making

Related to aspects of Related to the regular business activities in an

production only organization

Found In

It is found in enterprises where It is found in places like Banks,

production is undertaken Hospital,Companies etc which are providing
service

Capital Requirement

More capital requirement Fewer capital requirements

initially
This article discusses a valuable topic for Commerce students which involves
highlighting the differences between Project Management and Operation
Management. Stay tuned to BYJU’S for more such exciting articles.

Top Differences in Commerce:

•Cost Accounting vs Financial Accounting

•What are Assets and Liabilities
•What is Trial Balance and Balance Sheet
•Fixed Assets and Current Assets
•What is Fixed Cost and Variable Cost
•Balance Sheet and Financial Statement

Q.2 Write short note on Facility Layount.?

Ans.:- Facilities Layout

There are three types of workflow layouts that managers can choose from and
how office and factory facilities are approached differently. What are the
criteria of creating an effective and efficient workflow and building a high
standard of production?

Facility layout decisions are based on criteria aimed at creating an effective and
efficient workflow and high standard production.

LEARNING OBJECTIVES

Outline the key considerations in facility design

KEY TAKEAWAYS

Key Points

 There are three types of workflow layouts that managers can choose
from.
 Office and factory facilities are approached differently.
 A facility manager’s industry can also influence the facilities layout design.
Key Terms

 facilities layout: Facility layout is simply the way a facility is arranged in

order to maximize processes that are not only efficient but effective
towards the overall organizational goal.

Introduction

Facilities is defined as the workspace and equipment needed to carry out the
operations of the organization. This includes offices, factories, computers, and
trucks.

The location, design, and layout of an organizations’ facilities are central to

maximising the efficiency of the overall operations system.

In this unit, we’re going to focus on facility design and layout.

Facilities Design and Layout

After choosing the facility’s location, the next stage in operations planning is to
design the best physical layout for the facility. The avaliable space needs to be
assessed with workstations, equipment, storage, and other amenities need to
be arranged. The aim is to allow for the most efficient workflow without
disruption. A workplace that has carefully arranged its layout will allow for a
more effictive and efficient workflow and produce its good or services to a high
standard.

There are three types of workflow layouts that managers can choose from:

 Process layout: arranged in departments (e.g., hospitals).

 Product layout: production line (e.g., a car assembly plant).
 Fixed-position layout: building a large item (e.g., jumbo jet).

Facility Layout Considerations

Facility managers should consider several factors when designing the layout of a
facility to achieve maximum effectiveness.
  Does the design and layout allow for growth or change? Is there a chance
that your company will experience significant growth? Could some other
change come about that could influence the layout of your facility? In
business, anything is possible. Make sure that same is true of your
facilities layout. While making changes is a costly and undertaking them
shouldn’t be taken lightly, your layout should be flexible enough to allow
a redesign if the situation calls for it.
 Is the process flow smooth? If you are running a factory, for example, the
flow should be such that the raw materials enter at one end and the
finished product exits at the other. The flow doesn’t have to form a
straight line, but there should be no backtracking. Backtracking creates
confusion. Employees get confused (“Has that been done yet? “), parts
get lost, and coordination is very difficult. You need to have a smooth
process to be efficient.
 Are materials being handled efficiently? Here simplicity is best.
 Does the facility layout aid the business in meeting its production needs?
Is there enough space and is it used efficiently? Have you allowed enough
space for shipping and receiving? Can different areas of the business
communicate effectively? Does the layout lend itself to promotional
activities? (e.g., showing the facilites to potential customers)
 Does the layout contribute to employee satisfaction and moral?
Numerous studies have linked employee moral to productivity. So
managers should take this point into consideration when designing the
layout of their facilities. How can this be done? Paint the walls light
colors, allow for windows and space, include a cafeteria and a gym. Some
of the options may cost lots of money, but if it increases productivity in
the long run, it is probably worth making the investment.

Facility layout is an arrangement of different aspects of manufacturing in an

appropriate manner as to achieve desired production results. Facility layout
considers available space, final product, safety of users and facility and
convenience of operations.

An effective facility layout ensures that there is a smooth and steady flow of
production material, equipment and manpower at minimum cost.
Facility layout looks at physical allocation of space for economic activity in the
plant. Therefore, main objective of the facility layout planning is to design
effective workflow as to make equipment and workers more productive.

Facility Layout Objective

A model facility layout should be able to provide an ideal relationship between

raw material, equipment, manpower and final product at minimal cost under
safe and comfortable environment. An efficient and effective facility layout can
cover following objectives:

To provide optimum space to organize equipment and facilitate movement of

goods and to create safe and comfortable work environment.

To promote order in production towards a single objective

To reduce movement of workers, raw material and equipment

To promote safety of plant as well as its workers

To facilitate extension or change in the layout to accommodate new product

line or technology upgradation

To increase production capacity of the organization

An organization can achieve the above-mentioned objective by ensuring the

following:

Better training of the workers and supervisors. Creating awareness about of

health hazard and safety standards Optimum utilization of workforce and
equipment Encouraging empowerment and reducing administrative and other
indirect work

Q.3 Explain in detail Material Management ?

Ans.:- Material Management is a system that effectively controls and manages

materials and supplies used in an organization. The goal of material management is
to ensure that the right materials are available at the right time and in the right
quantities, to support the production process and meet customer demand.
Here are some key points to consider when exploring material management:

 Material management plays a crucial role in the success of an organization by

ensuring that materials are available when needed and in the right quantities.
 It helps to minimize waste and reduce costs by ensuring no over-stocking or
under-stocking of materials.
 It helps to improve customer satisfaction by ensuring that orders are delivered
on time and with the correct items.
 The critical components of material management include material
planning, procurement, inventory control, and distribution.
 Material planning involves forecasting demand, determining the materials
needed, and developing a plan to acquire those materials.
 Procurement involves sourcing and purchasing materials from suppliers.
 Inventory control involves managing the flow of materials into and out of the
organization and monitoring inventory levels to ensure they remain within
acceptable limits.
 Distribution involves the physical movement of materials from the
organization to the customer.

Types of Material Management

The following are the different types of material management:

 Inventory Management

Inventory management involves the maintenance of a company's stock of raw

materials, semi-finished goods, and finished products. It includes identifying the
optimal inventory level to be maintained, determining the reorder points, and
ensuring that the inventory is stored correctly.

Inventory management aims to strike a balance between the costs of holding too
much inventory and the costs of running out of stock.

 Purchasing Management

Purchasing management involves procuring raw materials, supplies, and services

required for production. It consists of the selection of suppliers, negotiation of prices,
preparation of purchase orders, and management of supplier relationships.
The objective of purchasing management is to buy the required materials at the best
possible price and quality while ensuring timely delivery.

 Warehouse Management

Warehouse management involves the storage and handling of materials, as well as

the management of the physical movement of goods within a warehouse. It includes
receiving, storing, and shipping materials, as well as managing inventory levels and
the location of materials within the warehouse.

The goal of warehouse management is to optimize the use of space and minimize the
cost of storing and handling materials.

 Material Requirements Planning (MRP)

Material Requirements Planning (MRP) is a computer-based inventory management

system used to plan production schedules and manage the procurement of
materials.

MRP considers the lead time for ordering materials, the time required for production,
and the inventory levels of materials. MRP aims to ensure that suitable materials are
available at the right time and in the correct quantity to meet production needs.

 Transportation Management

Transportation management involves the physical movement of materials from one

location to another. It includes the selection of carriers, negotiation of freight rates,
preparation of shipping documents, and management of delivery schedules.
Transportation management aims to ensure that the materials are delivered on time
and at the lowest possible cost.

Objectives Of Material Management

The following are the five primary objectives of material management:

 Right Material

The first objective of material management is to ensure that suitable materials are
available for production. It involves identifying the materials required for production
and ensuring that they are of the correct quality, specification, and quantity.
By ensuring that the right materials are available, companies can minimize the risk of
production delays and ensure customer satisfaction.

 Right Time

The second objective of material management is to ensure that the right materials
are available at the right time. It involves managing the movement of materials
within the warehouse, reducing lead times, and improving the efficiency of delivery
processes.

 Right Amount

The third objective of material management is to ensure that the right amount of
materials are available for production. It involves determining the optimal inventory
level to maintain and implementing processes to manage the movement of materials
within the warehouse.

By ensuring that the right amount of materials are available, companies can minimize
the risk of stock shortages, reduce the cost of storage and handling, and increase
efficiency.

 Right Price

The fourth objective of material management is to ensure that materials are

purchased at the right price. It involves negotiating with suppliers to obtain the best
possible prices and implementing cost-saving measures, such as reducing waste,
reducing lead times, and improving the efficiency of delivery processes.

 Right Sources

The fifth objective of material management is to ensure that materials are sourced
from the right sources. It involves identifying reliable suppliers, developing
partnerships with suppliers, and ensuring that materials are purchased from
approved suppliers only.

By sourcing materials from the right sources, companies can reduce the risk of
defective materials, minimize the risk of production delays, and ensure customer
satisfaction.