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Paper code: 2.24/5.84/3.25

Preeti Nigam
Faculty, Rai University


These slides have been prepared with the help of information
provided by the following authors:

 Chase, Jacobs & Aquilano
 William J. Stevenson
 Panneerselvam
 N.G. Nair

 Meaning, nature, scope and major decision areas
of production management;
 production system: meaning and types
(production to order & production to stock);
 facilities location;
 facilities layout and materials handling;
 line balancing.

The Organization The Three Basic Functions Organization Finance Operations Marketing .

g. E. arranging food for parties . radio travel booking. manufacturing of car.Definition Production/Operations Management is the process which combines and transforms various resources of the organization into value added products/services in a controlled manner as per the policies of the organization.

Decisions at Different Levels of Management Strategic decisions Tactical decisions Operational decisions .

Key Decisions of Operations Managers  What What resources/what amounts  When Needed/scheduled/ordered  Where Work to be done  How Designed  Who To do the work .

Responsibilities of Operations Managers  Planning  Capacity  Location  Products and services  Make or buy  Layout  Projects  Scheduling .

Responsibilities of Operations Managers  Controlling  Inventory Control  Quality Control  Organizing  Degree of Centralization  Subcontracting .

Responsibilities of Operations Managers  Staffing  Hiring/Layoff  Use of Overtime  Directing  Incentive Plans  Issuance of work orders  Job assignments .

Interesting job opportunities present 4. A systematic way of looking at organizational processes is enabled 3. Business Education is incomplete without understanding modern concepts 2. Concept ad tools of OM are used to manage other functions of a business .Why Study Operations Management 1.

Operations Consulting Defined  Operations consulting involves assisting clients in developing operations strategies (i.. etc.) and in improving production (and service delivery) processes. customer intimacy. product leadership. . operational excellence.e.

.Equipment and steps by which production is accomplished  Technology evaluation  Process improvement and reengineering .Factories or service branches where production is carried out  Adding and locating new plants  Expanding. contracting. or refocusing facilities  Parts. Materials or the supplies that go through the system  Make or buy decisions  Vendor selection decisions  Processes. Operations Consulting & the 5 Ps  Plants.

Operations Consulting & the 5 Ps (Continued)  People.Direct and indirect workforce  Quality improvement  Setting/revising work standards  Learning curve analysis  Planning and Control Systems.Procedures and information management uses to operate the system  Supply chain management  MRP  Shop floor control  Warehousing and distribution .

the others tend to get pulled along with it. Theory of Slack Ropes Time Service Quality By pulling on one priority. Flexibility Price Source: Duncan McDougall .

Location (as in transportation) 3. Physical (as in manufacturing) 2. Physiological (as in Healthcare) 6. Storage (as in warehousing) 5. Exchange (as in retailing) 4. Types of Transformation A production system uses resources to transform inputs into desirable outputs. 1. Informational (as in Telecommunications) .

Assembly of High quality workers cars cars Dept Store Shoppers Stock of Promote Sales to goods products satisfied customers . chef Well prepared Satisfied customer food customers Automobile Steel. Healthcare Healthy supplies individuals Airline Traveler Airplane Move to Timely safe destination delivery Hotel Hungry Food. engine Tools. Examples of Transformation Processes System Input Resource Transform Output Function Hospital Patients Nurses.

Inter relationship of production management with other areas of management A Marketing  Identifying customer requirements  Product Life Cycle  Distribution  Product  Price  Customer Feedback on Products .

Inter relationship of production management with other areas of management B Finance  The Operation Budget  Break Even Point Analysis  Working Capitol  Provision of finance for improvements  Provision of info. on general condition of firm .

Inter relationship of production management with other areas of management C Accounting  Cost Data  Special Reports  Data Processing Services D Industrial Engineering  Methods  Work Measurement Information  Plant Layout & Material Handling Info. .

materials and process  Inventory planning & Control . On new products.Inter relationship of production management with other areas of management E Procurement (Materials Management)  Determination of Items to be Purchased  Delivery Schedules  Updating info.

process and new tools for production .Inter relationship of production management with other areas of management F Personnel  Recruitment. hiring and firing of people  Training  Labour relations  Motivation to workers & Safety factors G Research & Development  For ideas concerning new products.

Master Production Schedule 3. Materials Requirement Planning 4. Capacity Planning 5.Techniques and Procedures in OM 1. Maintenance management 6. work study 4. Product design and analysis. Production control techniques 1. Inventory Control . Quality Control 2. Scheduling and control 5. Location and Layout Techniques 3. Feedback and control techniques 1. Aggregate Planning 2. Forecasting 2.

machineries. . dies tools. machineries and materials is called plant.Plant  The Physical means of production such as buildings. service machineries and/or workshop equipments erected and equipped at a given location for the purpose of converting the raw materials to finished goods using men. jigs fixtures.

Location  Location may be defined as a particular area/site/place selected for setting up of a manufacturing/production unit or plant. .

Need for Location Decisions  Marketing Strategy  Cost of Doing Business  Growth  Depletion of Resources .

and operations  Supply chains  Objectives of location decisions  Profit potential  No single location may be better than others  Identify several locations from which to choose  Location Options  Expand existing facilities  Add new facilities  Move .Nature of Location Decisions  Strategic Importance of location decisions  Long term commitment/costs  Impact on investments. revenues.

Making Location Decisions  Decide on the criteria  Identify the important factors  Develop location alternatives  Evaluate the alternatives  Identify general region  Identify a small number of community alternatives  Identify site alternatives  Evaluate and make selection .

Host community 14. Free trade zone 9. Quality of Labour 6. Competitive advantage . Issues in Facility Location 1. Business Climate 3. Government barriers 11. Political Risk 10. Suppliers 7. Infrastructure 5. Other facilities 8. Trading blocks 12. Total costs 4. Environment regulations 13. Proximity to customers 2.

Location Decision Factors Community Regional Factors Considerations Multiple Plant Site-related Strategies Factors .

Regional Factors  Location of raw materials  Location of markets  Labor factors  Climate and taxes .

Community Considerations  Quality of life  Services  Attitudes  Taxes  Environmental regulations  Utilities  Developer support .

Site Related Factors  Land  Transportation  Environmental  Legal .

Multiple Plant Strategies  Product plant strategy  Market area plant strategy  Process plant strategy .

location. location  Good transportation  Customer safety . Service and Retail Locations  Manufacturers – cost focused  Service and retail – revenue focused  Traffic volume and convenience most important  Demographics  Age  Income  Education  Location.

Globalization  Facilitating Factors  Trade agreements  Technology  Benefits  Markets  Cost savings  Legal and regulatory  Financial .

Globalization  Disadvantages  Transportation costs  Security  Unskilled labor  Import restrictions  Criticisms  Risks  Political  Terrorism  Legal  Cultural .

Foreign Governmen .

product and service planning and acquisition of equipment. The decisions may require long term commitments. the geographic location of facilities.Designing and Operating Production Systems  System Design involves decisions that relate to system capacity. . arrangement of departments and placement of equipment within physical structures.

scheduling. project management and quality assurance. .Designing and Operating Production Systems  System Operation involves management of personnel. inventory planning and control.

television. automobile tires.Degree of standardization  Standardized Output means that there is high degree of uniformity in goods or services. computers. televised newscasts. canned foods.  Standardized goods include radio. . pens and pencils. taped lectures and commercial airline service.  Standardized services include automatic car washes. newspapers.

. taxi rides and surgery. window glass cut to order and customized draperies.  Customized goods include eyeglasses.  Customized services include tailoring. custom fitted clothing.Degree of standardization  Customized Output means that the product or service is designed for a specific case or individual.

is a set of activities directed toward a unique goal. E. organizations that do repair work .g.Types of Operations  Project.  Job Shop is an organization that renders unit or lot production or service with varying specifications. usually large scale with a limited time frame. according to customer needs.

 Repetitive Production is a system that renders one or a few highly standardized products or services. .  Continuous Processing is a system that produces highly uniform products or continuous services often performed by machines.Types of Operations  Batch Processing is a system used to produce moderate volumes of similar items.

pictures.s numbers.  Physical Model – e.g.g.s miniature cars.s graphs.g. blue prints. charts. trucks.e. it represents a simplified version of a real phenomenon. airplanes and scale model buildings  Schematic Model.The Use of Models  A Model is an abstraction of reality. formulas and symbols . drawings  Mathematical Model.e.

Recent Trends  Global marketplace  Operations Strategy  TQM  Flexibility  Time Reduction  Technology  Worker Involvement  Reengineering  Environmental Issues .


JOB TYPE PRODUCTION SYSTEM  Job production is the manufacture of a single complete unit by an operator or a group of operators. installing a capital plant in factories . ship building.  Goods are produced according to definite customer requirements  Manufacturing status depends on the receipt of specific items  There is no assurance of continued demand  This type of production is intermittent in nature Examples: Bridge building.

Job Production has following specific characteristics  Resources in a job shop are general rather than specialized  Basic materials with different specifications can be used in many different jobs  Equipments should be adoptable to different users/customers  The skills of employees/operators would be wide enough to enable them to work on any job .

may not be possible to be introduced .Limitations of Job Production  Since each job is distinct in nature hence machines are general purpose and may not be economical or efficient  Machines need to be set up very frequently to suit needs of variety of jobs. value analysis etc. process machine tools are employed on varieties of non standard jobs it may not be used economically  Productive techniques like work study. This may result in loss of production time  Job execution location many times may be out of manufacturing unit  As the resources such as manpower.

BATCH TYPE PRODUCTION SYSTEM  In the batch production the work on any production is divided into operations. The first group will then complete the first operations of all the units. . and the operators are again divided into groups. passing the batch as a whole on the next group and so on until the manufacture is complete on that operation. it means that the work content of each unit is broken into a number of operations not necessarily of equal work content.

 The planning of resources can be done sufficiently and adequately.  Capital investment is low  The planning required to ensure freedom from idle and waste time is considerable. however possibility of underutilization of certain machines and man power can not be ruled out  Cost minimization is one of the criteria for considering the size of a batch  The production control department can derive greatest benefits  Example: Pharmaceutical production. .Salient features of Batch Production  Some degree of specialization of labor is possible.

.MASS PRODUCTION SYSTEM  This type is adopted when one or a few standard products are to be manufactured on large scale. In this system demand for the product is continuous and ongoing. As demand pattern is known well in advance all the resources can be planned very well.

.  Maintenance or breakdown must be attended most efficiently and promptly otherwise it may result into heavy loss of production  There is lot of scope for introducing productive techniques to increase productivity  Product quality can be better controlled in this system Example: Various Electrical appliances. very small numbers of skilled workers are required. Dry battery cells. Etc.  A product wise layout and balance production line can be designed  Semiskilled or even unskilled labor can be utilized.  High output rating automatic machines can be utilized.Salient features of Mass Production  Planning for optimum utilization of resources can be ensured. Electronic components.

.PROCESS PRODUCTION  This system is an extended form of mass production in which manufacturing is carried on continuously through a uniform sequence of operations.

.  Example: Petroleum Refining.Salient features of Process Production  Process production calls for the setting up of highly sophisticated automatic machines as far as possible  In this system usually one principal raw material is transferred in to several products at different stages of the operations. Heavy Chemicals etc.

Process Selection Decisions
 Make-to-stock aims to produce products in
advance and helps to have ready stock
when demands occur. This is applicable
for a product which has no specific
customer at the time of manufacturing.
 E.g. toothpaste, soap etc.

Process Selection Decisions
 Make-to-order aims to manufacture
products only on orders. For e.g. crane
manufacturing, ship, boiler etc.

Six Factors Influencing Process
1. Market conditions
2. Capital requirements
3. Labor
4. Management skills
5. Raw materials
6. Technology

custom jewellery Project Real estate Buildings. Dumpers. Railway coaches Intermittent Medicines. fasteners. Automobile cement assembly line. Automobile Flow furniture assembly line.Process Characteristics Matrix Make to Stock Make to Order Line Flow Soap. bridges. fertilizer. boilers commercial paintings . paste. development. dams. hospital.

This has necessarily increased the importance of the production management at the same time added responsibilities.  With the progress of time new technologies have developed resulting into advance products with large volume being produced. .Functions of Production Management & Production Cycle  The functions of production management were limited and also simple in the earlier days where production was conducted on a low scale using very simple methods and techniques and products manufactured were very simple.

Classification of decision areas Production and operations management functions can broadly be divided into the following four areas:  Technology selection & Management  Capacity Management  Scheduling/Timing/Time Allocation  System Maintenance .

Basic Functions of Production
 Design and development of production process
 Production planning and control
 Implementation of plan and related activities to
produce the desired output
 Administration and co-ordination of the activities of
various components and departments responsible for
producing the necessary goods and services.
 Monitoring and controlling of men, machineries and
 Developing system of monitoring through feed back
 Comparing results and
 Taking corrective actions.

Production Cycle

Production Operations


 Effectiveness and economy while
engineering the production can be studied
as manufacturing the required quantity of a
product of required quality in tune with the
required time by the best and economical
 To realize this objective the tool employed
is known as production planning.

available capacity must be allocated to specific tasks and jobs in operations b scheduling people.  WORK FORCE: people who make the product are ultimate to any production system without which nothing will be produced. In short run. The actions are performed in tune with these pre-set details in this phase.  QUALITY: it is an important operations responsibility. and above all compensation. OPERATIONS The production plan set the standard. The decisions include type of equipment and technology. equipment and facilities. . Inventory control systems are used to manage materials from purchasing. Long run capacities are determined by the size of the physical facilities. raw materials through semi-finished products or work in process to finished products. how much to order and when to order. process flows.  CAPACITY: capacity decisions are aimed at providing the right amount of capacity of the right place. training.  INVENTORY: these decisions determine what to order. It includes selection. layout of facilities etc. hiring.2. Hence this is area of very crucial decisions. Managing work force in a creative productive and humane way is key task for operation. at the right time. supervision. Quality decisions must ensure that quality is built into the product in all stages of production. which are built. firing.  PROCESS: these decisions determine the physical process or facility utilized to produce the product. which requires total organizational support.

3. CONTROL  It is always desirable to compare where we are standing at present and where we want to go and accordingly corrective action can be initiated to bridge the gap .

Design for a prototype is prepared based on technical research and information 3. prepare. Development work to start to develop a designed product 5. 4. which ultimately are to be used on the production.. Pre-production: during this stage all the components of product as nearly as designed are produced under as much as possible. line. STAGES OF PRODUCTION 1. experimenting and testing. 6. Design work to start to produce as basic unit. catalogues etc. equipments. . getting market feed back. raw materials. Actual factory conditions using the tools. Prototype production done to evaluate the product design. These samples are very critically tested with micro accuracies for type tests and performances. Market research: it probes the market in attempt to ascertain the need for a new product 2. Some of them are sent to customers for field trials and feedbacks and criticisms.

This is a confidence building stage for all concerned.  Initially a predetermined build up of finished product is manufactured to ensure and take care of contingence. rejection etc.  Marketing can simultaneously start of the initial orders  The goods then leave for the warehouse and become the responsibility of the sales organization. Manufacturing: the product after all the above steps and after all the corrections are frozen for design and other parameters and then put into full production. .STAGES OF PRODUCTION 7.  Even after all the above steps and pre-production stage all bugs are not ironed out and it is advisable to plan for initially low level to have the damage control within manageable limits.

 Computers have proved to be boon to the designing industry and CAD (Computer Aided Designs) and other specially developed soft wares are available to help the product designers and drafts men. shape. Product designs are further integrated to process designs to establish production systems.  Functional designs are transformed to product design so as to make manufacturing easy and feasible. . It not only helps in efficiency of designing but also for better accuracies and selection of best designs apart from storing and retrieving of the drawings. It also includes functional parameters and technical specifications. standard and pattern of the products to be produced.PRODUCT & PROCESS DESIGN  Design indicates the determination of size.

 It should utilize as far as possible standard parts and aim at simplifications and diversification of the product.  It should be attractive enough to draw the attention of the customers and have utility.Factors to be considered in designing of the product  Product should be fashion leader and not fashion follower. cost effectiveness & salient USP (Unique Selling Points). Normally it is seen that products are designed by adoption of concepts from leaders in the industries. It is a corporate decision and involves discussions with marketing. procurement & engineering departments. It takes care of factors like product life cycle and break-even point analysis. . however large industries have their own R & D departments and do huge investments to be innovative and industry leader. finance.  Selection and optimizing of varieties & models of products to support the marketing and yet remaining economic in production is a challenge to be met by the production management.  Introduction of New Models at regular interval helps in expanding customer base and establishing better Brand equity and good will for the company.

Visualization of need for the product in consultancy with the marketing department and market research done. short listing of components and preparing of bill of inventories with cost projections and other details.STEPS INVOLVED IN PRODUCT DESIGN 1. 2. 3. Preparations for proto type designs. Marketing department makes and submits a brief on the product to be designed to the design department. Preparation of schematic drawings and aesthetic design and design’s portfolios prepared to take corporate feedback and approvals. Preparations of engineering drawings. technical specifications. .

6. Improvements.STEPS INVOLVED IN PRODUCT DESIGN 4. fixtures and other production accessories and preparations of drawings and specifications etc for the same. Design & development of tools. Preparation of PERT (Programme Evaluation & Review Techniques) charts and CPM (Critical Path Method) charts also known as network analysis are drawn to have overall control on the product development work. 5. . corrections and freezing of the designs. jigs. maintenance and reparability. Reviewing the design in relation to Cost analysis. value analysis.

Final cost studies and pricing carried out in consultancy with the procurement and costing departments.STEPS INVOLVED IN PRODUCT DESIGN 7. . to start simultaneously with other developments. 8. Designing of packaging and marketing portfolios and literature etc.

Process Designs defines the steps and processes in sequential order. quantity and economy in the defined time frame. . operations and/or processes to produce the desired product with the shortest possible route and best of engineering practices so as to meet the objects of quality. detailing all the inputs and specifications of tools.PROCESS DESIGN  While product design concerns itself with the Design & Development of the product. machines.

.PROCESS DESIGN  It also ensures best possible layout for the machines. labor and time. It must take care of all the marketing needs including short term and long term corporate goals and visions of the company. knowledge and management. material and men power to achieve highest degree of efficiency in the production process with the least degree of rejections and wastages of material. Thus ensuring optimum utilization of production capacities.  Process design is the most important step of the production system and requires best of the engineering expertise.

work centers. and equipment. with particular emphasis on movement of work (customers or materials) through the system . Facilities Layout  Layout: the configuration of departments.

Minimize unnecessary material handling costs 5. Facilitate attainment of product or service quality 2. Design for safety . Objective of Layout Design 1. Minimize production time or customer service time 7. Avoid bottlenecks 4. Use workers and space efficiently 3. Eliminate unnecessary movement of workers or materials 6.

Importance of Layout Decisions  Requires substantial investments of money and effort  Involves long-term commitments  Has significant impact on cost and efficiency of short-term operations .

The Need for Layout Decisions Inefficient operations For Example: Changes in the design High Cost of products or services Bottlenecks Accidents The introduction of new products or services Safety hazards .

The Need for Layout Design Changes in environmental Changes in volume of or other legal output or mix of requirements products Morale problems Changes in methods and equipment .

Fixed Position Layout 5. Process Layout 2. Product Layout 3. Computerized Layout .Basic Production Layout Formats 1. Group Technology (Cellular) Layout 4.

Basic Layout Types  Product layout  Layout that uses standardized processing operations to achieve smooth. rapid. materials. and workers. high- volume flow  Process layout  Layout that can handle varied processing requirements  Fixed Position layout  Layout in which the product or project remains stationary. and equipment are moved as needed .

Product Layout Raw Finished Station Station Station Station Station Station Station materials 1 22 33 44 item or customer Material Material Material Material and/or and/or and/or and/or labor labor labor labor Used for Repetitive or Continuous Processing .

Advantages of Product Layout  High rate of output  Low unit cost  Labor specialization  Low material handling cost  High utilization of labor and equipment  Established routing and scheduling  Routing accounting and purchasing .

Disadvantages of Product Layout  Creates dull. repetitive jobs  Poorly skilled workers may not maintain equipment or quality of output  Fairly inflexible to changes in volume  Highly susceptible to shutdowns  Needs preventive maintenance  Individual incentive plans are impractical .

A U-Shaped Production Line In 1 2 3 4 5 Workers 6 Out 10 9 8 7 .

B Dept. E Dept. D Dept. F Used for Intermittent processing Job Shop or Batch Processes . C Dept.Process Layout Process Layout (functional) Dept. A Dept.

Process Layout Milling Assembly Grinding & Test Drilling Plating Process Layout .work travels to dedicated process centers .

Advantages of Process Layouts  Can handle a variety of processing requirements  Not particularly vulnerable to equipment failures  Equipment used is less costly  Possible to use individual incentive plans .

Disadvantages of Process Layouts  In-process inventory costs can be high  Challenging routing and scheduling  Equipment utilization rates are low  Material handling slow and inefficient  Complexities often reduce span of supervision  Special attention for each product or customer  Accounting and purchasing are more involved .

materials. and workers. Fixed Position Layouts  Fixed Position Layout: Layout in which the product or project remains stationary. and equipment are moved as needed.  Nature of the product dictates this type of layout  Weight  Size  Bulk  Large construction projects .

Cellular Layouts  Cellular Production  Layout in which machines are grouped into a cell that can process items that have similar processing requirements  Group Technology  The grouping into part families of items with similar design or manufacturing characteristics .

Functional Layout 222 222 222 111 2 Mill Drill Grind 22 444 3333 444 22 33 1111 2222 Assembly 33 44 111333 33 33 44 33 4 33 111 111 33 Heat 111 Gear 3 333Lathes treat cutting 444 .

4444 cut .3333 treat 44444444444444 Mill Drill Gear . Cellular Manufacturing Layout Heat Gear -1111 Lathe Mill Drill -1111 treat cut Heat Mill Drill Grind .2222 Assembly 222222222 treat Heat 3333333333 Lathe Mill Grind .

Cellular Layouts Dimension Functional Cellular Number of moves many few between departments Travel distances longer shorter Travel paths variable fixed Job waiting times greater shorter Throughput time higher lower Amount of work in higher lower process Supervision difficulty higher lower Scheduling complexity higher lower Equipment utilization lower higher . Functional vs.

Service Layouts  Warehouse and storage layouts  Retail layouts  Office layouts  Service layouts must be aesthetically pleasing as well as functional .

The usual assumption is that some form of pacing is present ad the allowable processing time is equivalent to all workstations. The most common assembly line is a moving conveyor that passes a series of workstations in a uniform time interval .Assembly lines It refers to progressive assembly linked by some material handling device.

stand. straight. Line Types Material Handling Devices Belt or roller conveyor. overhead crane Line configuration U shape. human Product Mix 1 product or multiple products Workstation characteristics Workers may sit. branching Pacing Mechanical. walk with the line or ride the line Length of the line Few or many workers .

Line Balancing is the process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements. The assembly line balancing problem is one of assigning all tasks to a series of workstations so that each workstation has no more than can be done in the workstation cycle time and so the unassigned (idle) time across all workstations is minimized. . used would have to be physically modified.Assembly Line Balancing Assembly Line Balancing would occur when for balance purposes workstation size or the no.

Terms  Workstation Cycle Time Time between successive units coming off at the end of the line C = Production Time/ day Required output/ day (units)  Precedence Relationship It specifies the order in which tasks must be performed in the assembly process. Circles represent individual tasks and arrows indicate the order of task performance .

Precedence Diagram 0. .5 min. 1.7 min.0 min. 0.1 min. A Simple Precedence a b Diagram c d e 0. 0.2 min.

Steps In Line Balancing 1. Draw a precedence diagram. Determine Workstation Cycle Time (C) C = Production Time/ day Required output/ day (units) 1. Select a primary rule by which tasks are to be assigned to workstation and a secondary rule to break ties . Determine the no. 2. of workstations required to satisfy the workstation cycle time Nt = Sum of task times (T) Cycle time (C) 1.

of WS (Na)* WS Cycle Time (C) 5. Assign tasks one at a time to the first WS until the sum of the task time is equal to the WS cycle time. Repeat for all WS. If Efficiency is unsatisfactory.Steps In Line Balancing 5. 6. Evaluate the efficiency of the balance Efficiency = Sum of task times (T) Actual No. rebalance using a different decision rule .

500 wagons are required/ day. Production time/day is 420 mins and the assembly steps and times for the wagon are given in the exhibit.The Model J Wagon is to be assembled on a conveyor belt.Numerical Q. of workstations subject to cycle time and precedence constraints. Find the balance that minimizes the no. .

Task Task time (secs) Task that must precede A 45 - B 11 A C 9 B D 50 - E 15 D F 12 C G 12 C H 12 E I 12 E J 8 F.I K 9 J .H.G.

so WS cycle time is 36 secs? . 15 The line runs for 7. suppose an assembly line contains following task time in secs 40.5 hrs/day and demand for output is 750/day.Splitting Tasks  Often the longest required task time forms the shortest Workstation cycle time for the production line. 25. This task time is the lower time bound unless it is possible to split the task into 2 or more workstations  E. 18. 15. 20. 30.g.

Share the task 3. Use a more skilled worker 5. Work overtime 6. Use parallel workstations 4. Redesign . Split the task 2.Solution 1.

Evaluating Locations  Break even Analysis  Transportation Model  Decision based on movement costs of raw materials or finished goods  Factor Rating  Decision based on quantitative and qualitative inputs  Center of Gravity Method  Decision based on minimum distribution costs .

select location with lowest TC 1. Breakeven Analysis Determine FC and VC for each location.Location Problems 1. Single Facility location problem Set of existing facilities with coordinates on X-Y plane and the movement of materials from a new facility to all these existing facilities 3. . Multi facility Location problem Locate several new facilities in relation to a set of existing facilities such that the total cost of transportation between the new facilities and the set of existing facilities is minimized.

g radio. the distance between them and the volume of goods to be shipped. E.Location Problems 4. cell phone towers Cx= ∑dixVi Cy= ∑diyVi ∑Vi ∑Vi . The method assumes that inbound and outbound transportation cost are equal and it does not include special shipping costs for less than full loads. Centroid Method Technique for locating single facilities that considers the existing faculties. TV. This technique is often used to locate intermediate or distribution warehouses.

000.000 4000 .) & C have cost structures as shown for manufacturing a product A 6.Numerical. Find the most economical location for B 7.000.Potential locations A. C 5.000.Breakeven Analysis Q.000 500 an expected volume of 2000 units/yr.000 1500 expected to sell for Rs. 2700/unit.) VC/unit (Rs. B Site FC (Rs.

Numerical. Suppose that the no. (1100. 500). 200). 1200. 800). 900) and (1300.Single Facility Q. (800. (200. . 300). 300. Suppose there are 5 existing plants with locations (400. 800 and 1500. Determine the optimum location of the new plant such that the cost is minimized.Consider location of a new plant which will supply raw materials to a set of existing plants in a group of companies. of tons of material transported per year from new plant to various existing plants are 450.

Centroid Method.400 350 Thousand 25.Centre of Gravity Method Location CoordinaGallons of tes Gas/mth Q.450 450 Oaks .150 250 distributors.Numerical. Coordinates are given.350 450 the plant and distributors appears as Glendale 350. The amount of gasoline shipped to and fromLa Habra 450.75 1500 between its refining plant in Long Beach and its major Anaheim 400.The Hi Octane Refining company needs to locate intermediate holding facility Long Beach 325.

 Please refer to additional notes and explanations written on the white Board alongside the slides. .Class Notes  Delphi Method is covered in Qualitative Method of Forecasting.  Please make note of the Several practice numerical done in the class.

1999. Pearson Education. Tata McGraw Hill. 8th edition. Nicholas J. New Delhi.  2. Prentice Hall of India. Krajewski Lee J. N. Aquilano.Suggested Readings:  1. .. 5th edition.Manufacturing & Services. et al. Chase Richard B. Production & Operations Management.  3. New Delhi. 1999. Larry P.. Paneerselvam. Production and Operations Management. Operations Management: Strategy & Analysis.. & Ritman.Delhi.