OPERATIONS

MANAGEMENT
Operations Management
Operations Management is the planning, scheduling
and controlling of activities that transforms inputs by
way of raw materials, capital, machinery, labour,
information and time into outputs in the form of
products and services of higher value than the inputs.
Decision Areas
Managing Quality
Product Design
Process Design
Location Strategies
Layout Strategies
HR Strategies
Supply chain Management
Inventory Management
Scheduling
Maintenance
Difference between Production & Productivity

Partial Vs Total Productivity

4Ms: Men Machine Material Money

Efficiency Vs Effectiveness
Type of Production Systems
Mass / Flowline
Batch
Job
Projects
Plant Location
A good location reduces the cost of production &
distribution to a considerable extent

Need for Plant Location:

- New Factory
- Expansion
- Relocation
Factors determining the plant location:
Primary….
Supply of Raw Material
Nearness to the market
Transport Facilities
Labour Supply
Availability of Power
Supply of Capital
Secondary
Facilities
Natural Factors
Political Factors
Govt Subsidies and facilities (SEZ…)
Historical & Religious Factors
Initial start & Goodwill
Personal Factors
Miscellaneous Factors (Eg.Vaastu ….Maruti Udyog Ltd)
…and many more.
Urban Vs Rural
Plant Layout
Plant Layout is the physical arrangement of machines,
processing equipment and service departments to
have the best co ordination and efficiency of man
machine and material in a plant.

Principles of Plant Layout…

Factors affecting layout
Types of Industries
Type of production system
Type of product
Volume of product
Desired flexibility
Use of space / Available floor space
Flow of Work, Material & Personnel
Accessibility
Working Environment
Architecture design of the space
Material flow systems
I Type
L Type
U Type
S Type
O Type
Process charts

Operations Process chart

Flow process chart

Types of Plant Layout
Process Layout
Product Layout
Fixed Position Layout
Hybrid Layout
Material handling equipments
Conveyors: Belt, Chain, Roller.
Cranes, Hoists
Forklifts & Industrial Trucks
Principles of Material Handling
INVENTORY MANAGEMENT
Managing the stock of items kept on hand by an
organisation to be used to meet customer demand.

Types of Inventory
- RM Inventory
- WIP Inventory
- FG Inventory
Functions of Inventory
To meet anticipated demand

To smooth production requirements

To avoid over stocking and under stocking

To avail quantity discounts

To hedge against price fluctuations and seasonal demand.

Concept of EOQ
Meaning of EOQ
Types of cost
Reorder level
Assumptions of EOQ
Selective Inventory Control
ABC Analysis
VED Analysis
FSN Analysis
Maintenance Management
It refers to the upkeep and protection of plant,
building & machinery and other fixed assets of a firm
which are subject to deterioration due to their use and
exposure to the environment over a period of time.

Maintenance encompasses all those activities required

to keep the physical facilities and equipments in good
working condition and make necessary repairs when
breakdown occurs, so that the system can perform as
intended.
Major areas of Maintenance
Civil

Mechanical

Electrical
Types
Breakdown Maintenance
Preventive Maintenance
Predictive Maintenance
Routine Maintenance
Planned Maintenance
Some Indices
Maintenance cost index
Frequency of breakdowns
Down time index
Breakdown Maintenance index
Labour cost of planned Maintenance
KAIZEN
Developed by Masaaki Imai
Meaning
Principles
Merits
Limitations
5 s
KANBAN
Literal Meaning “Card Bin”
Coined by Taiichi Ohno
 It is a scheduling system for Regular and just-in-
time (JIT) production.
Six Sigma
Six Sigma ( ) is a process improvement set of tools
and strategies to achieve excellence and perfection.
Developed by Motorola in 1986.
The term borrows its name from the Normal
Distribution.
A six sigma certification is granted to a process which
manufactures products in which 99.99966% Of the
products manufactured are free of defects.
A maximum of 3.4 defects per million are allowed.
DMAIC Model
Learning Curve

A learning curve is a graphical representation of the

changing rate of learning (in the average person) for a
given activity or task.
Concept
Graph
Learning Rate
Limitations
Anti Learning Curve
Quality
The quality of product or service is a customer’s
perception of the degree to which the product or
service meets his or her expectations.

Quality is the performance of the product as per the

commitment made by the producer to the consumer.
Benefits of Quality Control
Minimum Scrap
Reduction in costs
Standardisation or uniformity in products
Reduced Production Bottlenecks & Stoppages
Reduced inspection and Quality Checks
High Customer Satisfaction
Increase in Brand Goodwill & thus higher Sales
Higher Operating efficiency
Sense of pride amongst the Employees
Better utilisation of resources.
Dimensions of Product Quality
Performance
Features
Reliability
Serviceability
Appearance
Customer Service
Safety
Q C TOOLS
Stratification
Data Collection
Check Sheet
Pareto Analysis
Histogram
Ishikawa Diagram
Control Charts
Quality Gurus
Ishikawa
Deming
Philip Crosby
Juran
Feigenbaum
 SELF STUDY

ISO

Ergonomics
 EST ! ! !
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