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’ Meaning of Production
î   
Production is the
creation of utilities
Production is a value addition process.
Production is a process by which goods &
services are created
In a manufacturing Organization
Production is the Fabrication of physical
object through the use of Men, materials &
equipments.
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’ Production Management is a process of planning,


organizing, directing & controlling the activities of
the Production function.

Meaning of operations Management


operations Management is concerned with the
activities, concepts & techniques employed in
producing goods & services.
operations Management is the process of
designing, operating,& controlling a productive
system that capable of transforming physical
resources & human talent into needed goods &
services.
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|. Reducing the development & manufacturing time
for new product & services
2. Achieving & sustaining high quality while keeping
cost down
3. Integrating new technologies & control systems
into existing production systems
4. Obtaining, training & retaining qualified workers &
Managers
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of business to accomplish the goals of the firm
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|. Production Planning
2. Production controlling & scheduling
3. Inventory Control
4. Quality control
5. Material handlings
6. Labor control
7. Maintenance & Reliability
8. Cost control& improvement |1
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|. Get to Know the customer


2. Cut that is work that is in Process
3. Cut throughput time
4. Cut setup & change over time
5. Cut flow distance & space
6. Decrease cycle intervals for production
7. Cut number of suppliers to a few goods one
8. Cut number of components of the product or
services
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| . Arrange the work place to climate search
time
||. Cross train for mastery of more than one
job
|2. Record & retain production, quality &
problem data at the work place
|3. Assume that the line people get first
check at problem solving |G
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’ Global Competition
’ Quality, Customer Service, and Cost
Challenges
’ Rapid Expansion of Advanced
Technologies
’ Continued Growth of the Service
Sector
’ Scarcity of operations Resources
’ Social that is Responsibility Issues |[
    
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’ Global Competition
’ Quality, Customer Service, and Cost
Challenges
’ Rapid Expansion of Advanced
Technologies
’ Continued Growth of the Service
Sector
’ Scarcity of operations Resources
’ Socialthat isResponsibility Issues G 
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’ Meaning of Facility Location


By Facility Location mean determining
an areas as well as site for
establishment of an enterprise, the
performance of an organization is
considerably affected by its location.
Facility Location planning involves
choosing the best place from the
available options for setting plant
/service facility.
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|. A company¶s Facility Location affects its
operations & ability to compete
2. In manufacturing organization, location affects
direct costs
3. In service operations Facility Location affects the
demand for the service
4. Long lasting consequences
5. Effective marketing of products & services
6. Prospective location implies respective market area
7. Selection of Good Facility Location enables a
company to provide convenient, dependable
services to its customers.
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8. Facility Location Influence public Relations
      
  
|. Materials & supplies availability &
costs
2. Labor availability & costs
3. Proximity to market
4. Transportation system & costs
5. Utilities & costs
6. Infrastructure availability
7. Environmental regulations
8. Govt. restriction & incentives G/
      
  
*. Community attitude
| . Social infrastructural facilities
||. Proximity to related industry or
services
|2. Site availability
|3. Zoning restrictions
|4. Constructions costs
|5. Climate
|6. Political situation of a particular place.

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|. Proximity to customers & market
2. Transportation facilities & costs
3. Location of competitors
4. Residential density
5. Proximity to support & services
6. Image of the area
7. Visibility of site
8. Local ordinance
*. Community attitude
| . Law & order situation
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|. Changes in availability of input
resources
2. Shift in the structure in the market
3. Undesirable labor situation
4. Relocation of various associates
industries
5. Demolition, Expropriation
6. Merger
7. Change in regulations & law
8. Scientific discoveries ^|
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BEP analysis,
Factors Rating System,
Transportation model

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Location Fixed Cost (TK) Variable Cost Per Unit TC=TFC+TVC
(TK)

TK2 TK62×2 =|24 TCa= TK2 +|24


A =TK |44

TK5 TK38×2 =76 TCb= TK5 +76


B = TK |26

TK6 TK5 ×2 =| TCc= TK6 +|


C = TK |6

TK4 TK7 ×2 =|4 TCd= TK4 +|4


D = TK |8

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|. Nature of manufacturing System
2. Production process
3. Nature of product to manufacture
4. Material handling systems used
5. Volume of production
6. Nature of factory building
7. Availability of floor Place
8. Flexibility required in the system
*. Ease of supervision
| . Accessibility to other related departments
||. Provisions of Factory Act.
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Meaning of Materials Handling:that is
’ Materials Handling involves movement of
materials mechanically or manually in
batches or one by one within the plant.
Movement may be vertical, horizontal or a
combination of two.
’ Materials Handling system is the entire
network of transportation that receive
materials, store materials in inventories,
moves them about between processing
points within & between buildings, &
finally deposits the finished products into
vehicles that will deliver them to
customers.
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|. Materials should move through the facility in direct flow
patterns, minimizing zigzagging or back tracking
2. Related production processes should be arranged to
provide for direct material flow
3. Mechanical materials handling devices should be
designed & located and materials storage locations
should be selected so that human effort expended
through bending, reaching, lifting, & walking is
mini*mized.
4. Heavy or bulky materials should be moved the shortest
distance through locating processes that use them near
receiving & shipping areas
5. The number of times each material is moved should be
minimized
6. Provide for safe handling methods & equipments
7. Replace obsolete handling equipments when more
efficient methods & equipments will improve operations
 .
         
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|. Adaptability
2. Flexibility
3. Load capacity
4. Power & speed
5. Space requirement
6. Easy of maintenance
7. Cost of equipments
8. Safety
*. Efficient manpower availability
| . Supervision required
 /
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|. Conveyers:  &  &   
   " * )  (
Types of Conveyers:
Belt Conveyers
Pipeline Conveyers
Monorail
Chain Conveyers
Conveyers are useful when
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Types of Hoists & cranes:
Overhead traveling cranes
Chain Hoists
Electric Hoists
Elevators
The hoists & cranes are useful when
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’ Definition of Product Design: Product
Design is the structuring of component
parts or activities so that as a unit they
can provide a specific value.
’ Product or Service Design is concerned
with the functional & aesthetic
requirements necessary to meet the
demand of the market place & at the same
time achieve an acceptable rate of return.

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’ Production Planning: - Production
Planning implies formulation,
coordination, & determination of activities
in a manufacturing system necessary for
the accomplishment of desired objectives.
’ Production Planning is the determination,
acquisition & arrangement of all facilities
necessary for future Production of
products.

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’ Production control: - Production control is
the process of maintaining a balance
between various activities during
Production Planning providing most
effective & efficient utilization of
resources.
’ Production Planning & control:-
Production Planning & control can be
defined as the direction & coordination of
firms resources towards attaining the pre
fixed goals
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|. To achieve the highest efficiency in production of
goods
2. To determine the nature & magnitude of various input
factors to manufacture the desired output
3. Establish targets & checking these against
performance
4. To achieve the production objectives in respect of
quality, quantity & cost & timeliness of delivery.
5. Ensure smooth flow of materials by eliminating
bottlenecks, in production
6. Effective utilization of firm resources
7. Conform to delivery commitments
8. Make adjustments due to changes in demand & rush
orders.
-/
ÿ     

’ Intermittent Manufacturing: - In this type


of system the goods are manufactured
specially to fulfill orders made by the
customers rather than for stock.
’ Intermittent Manufacturing systems are
those where the production facilities are
flexible enough to handle a wide variety of
production & sizes.
’ Continuous manufacturing system:- In
this system the items are produced for
stocks & not for specific orders.
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Intermittent Continuous
Manufacturing system manufacturing system

Flexible production process Rigid production system

High product variety Low productivity


Work in process Low
inventory high
Demand can be Continuous demand
discontinuous
Customize product production Standardize product

Wide variety product produces Fewer variety of products are


produced
Flexible sequence schedule Standard set of process & sequence
required in this system used .1
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