UNIT - I INTRODUCTION TO PRODUCTION AND …

1 DBA 1651 PRODUCTION MANAGEMENT1 NOTESAnna University and Operations of operations of operation activities and communication Integrated Manufacture ring (CIM) sub Areas of Computer aided PRODUCTION Computer aided process frame work of History of Advantages of Organizational Suitability for Group technology in Supply to transform into Global Supply ChainUNIT - IINTRODUCTION TO PRODUCTION ANDOPERATION MANAGEMENTDBA 1651 PRODUCTION MANAGEMENT2 NOTESAnna University ChennaiINTRODUCTION TO PRODUCTION ANDOPERATION INTRODUCTIONThis unit starts with a definition of a system. In this unit PRODUCTION system andits objectives are explained along with the components of a system.

2 The history ofoperations management is portrayed. The various functions of PRODUCTION system andtheir interlinking are explained through a flow chart. The components of computer,integrated manufacturing and their purpose are dealt. Finally, the recent trend in theoperations, namely, Global Supply Chain is introduced in this LEARNING OBJECTIVES To know the importance of the PRODUCTION system in an organization. To understand the link between various activities of the PRODUCTION system. To comprehend the history of operations management . To understand the components of computer integrated SYSTEM It consists of elements or components. The elements or components areinterlinked together to achieve the objective for which it exists.

3 Eg: human body,educational institutions, business of a system:The input, processing, output and control of a system are called the componentsof a - IDBA 1651 PRODUCTION MANAGEMENT3 NOTESAnna University ChennaiFigure - Components of a systemControl:There are two types of control, namely Proactive Control and Control:When an operation is carried out on a product in a workstation, the qualityinspector goes to the workstation and inspects the product. When the samples that hehas taken for the inspection are not confirming to the quality, he stops the machine andidentifies the reason for the deviation and corrects the problem, so that the producedproduct thereafter conform to the specifications.

4 This type of control prevents anymajor quality setback after the PRODUCTION . This is an example for proactive Control: In a planning period, usually the quality target is fixed. Suppose, an organizationfeels to fix 5% defective is safe in the targeted PRODUCTION quantity and assumes that atthe end of the planning period it finds that the defective output exceeds the targeteddefective products. Then, it has to find out the reason for the deviations, namely, whetherthe problem is due to the method of doing the work or the resources used in the the planner uses this knowledge to prevent any problem in the future. Thus aReactive Control is a post morterm Business System:The business organization is classified into different subsystems based on thefunctions like marketing, PRODUCTION /operation, finance and human resource etc.

5 Processing Input Output Feedback Control DBA 1651 PRODUCTION MANAGEMENT4 NOTESAnna University ChennaiFigure Business SystemEach subsystem will have more sub PRODUCTION / Operation SystemFigure PRODUCTION / Operation SystemOperations ManagementOperation system is either manufacturing sector or service sector. The inputrequirements are shown in The transformation process, in which part of thevalue addition takes place to get the required quantity of the product or services withthe targeted quality within the specified time period, is carried out in a most economicalway. Operation management Plan coordinates and controls all the activities in theoperation system to achieve the stated (the activities listed in the diagram) the Operations management activities,ensure the objective of quantity, quality, delivery time and economical way of doingwork.

6 The communication link between the various activities are shown in the activity is dealt in detail in different sections of this material. This figure( ) will be very much appreciated after getting a clear understanding of all theactivities. Marketing Finance Human Resource PRODUCTION /Operation Capital Man Power Material Information Input Transformation Process Output Goods Services Objectives 1. To produce the required quantity. 2. To achieve the required quantity. 3. To meet the delivery time. 4. Economical way of doing DBA 1651 PRODUCTION MANAGEMENT5 NOTESAnna University is operation management (OM)?Operation management is a way or means through which the listed objectivesof an operating system is achieved.

7 There is always a confusion between the word OM& PM ( PRODUCTION management ). It is accepted norm that OM includes techniqueswhich are enabling the achievement of operational objectives in an operation operation system includes both manufacturing sector as well as servicesector, but when you use the word PM, you should be careful to note that it refers tothe manufacturing sector but not the service sector. Suppose, you are designing a layoutfor the hospital you should say that you are applying Operations management Techniquenot the PRODUCTION management you design a layout for a manufacturing sector you can say that you areapplying PRODUCTION Technique or Operation Technique or vice , the above discussion we can come to a conclusion that productionmanagement is a subset of Operations questions are the components of a system?

8 Are the differences between the PRODUCTION management and the OperationsManagement? the objectives to be fulfilled by an Operation HISTORY OF OMTable History of OM Y ear / Period ofConcept/Tools and System UsedDevelopers/ ConceptOriginators (14-16)Evolution of PRODUCTION system Century 18thNew Technology for PRODUCTION ProcessAdam Smith and CenturyManagementharles Babbage 1895 Scientific management Principles (Work Study) TaylorMotion Study for Psychological FactorsFrank & LillianActivity Scheduling ChartGilbrethHenryGantt 1935 Hawthrone Studies of Worker MotivationElton Mayo 1950 sOperation Research for Decision Making LongMany Researcherterm Medium term, Short term decision byDBA 1651 PRODUCTION MANAGEMENT6 NOTESAnna University ChennaiCritical Path Method (CPM), Program Technique (PERT), Waiting-Line Theory1970 sComputers for inventory Control MaterialIBM, JosephResource Planning (MRP)Orlicky,Oliver Wieght1980 sJust In Time (JIT), Total Quality Control (TQC)ToyotaKanban System, CAD/CAM, ComputerIntegrated Manufacturing (CIM) FlexibleManufacturing System (FMS)1990 QualityAsqc( ).

9 IOS management (TQM), Concurrent (CIM),(England), Engineering, Value EngineeringMichael Hammer2. Business Process EngineeringOracle, SAP3. Supply Chain management (Germany)2000 sLogistics, Enterprise Resource Planning (ERP),E-Commerce, E-BusinessReview questions is the contribution of GANTT? is the father of Scientific management ? TYPES OF OPERATION SYSTEM The type of Operation System to be adopted should be known to the people,and then only you may choose the system based on the nature of the product that youare going to manufacture. The types of operation system are classified based on thefollowing flow pattern in conversion systemOutput of the productSpecification of the outputFigure - Types of Operation System PRODUCTION Flow Pattern Output of the product Specification of the output Flow shop Job shop Flow shop Continuous PRODUCTION Batch PRODUCTION Mass PRODUCTION Goods Services Customized Standard DBA 1651 PRODUCTION MANAGEMENT7 NOTESAnna University ChennaiThe characteristics of the Operation System based on the product flow Flow Shop In this kind of PRODUCTION .

10 The productive resources are arranged according tothe sequence of operation required by the product that you are engaged in the ready to wear clothing, if you want toadopt the flow shop PRODUCTION , then the productive resources are kept according tothe sequence of operations required by the product likeCuttingJoining by sewingAdding, buttons, zippers etcQuality checkingPackagingMostly Flow shop PRODUCTION are adopted when there is untapped market for theproduct, customers are price sensitive and more competition in the shop PRODUCTION as shown in the figure is further divided into ContinuousProduction, Mass PRODUCTION and Batch Continuous ProductionThe industries involved in the following activities are classified as Continuous PRODUCTION Oil refining.