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Semester 2: Operations Management
Introduction: Operations Management - Nature, Scope, Historical Development, Functions - Long term Vs Short term issues - A Systems Perspective - Challenges - Manufacturing Trends in India - Production Design and Process Planning - Types of Production Processes - Plant Capacity - Capacity Planning - Make or Buy Decisions - Use of Crossover Chart for Selection Processes - Types of Charts used in Operations Management.
Operations Management
Introduction to Operations Management
Operations management involves planning, organizing, and supervising production and manufacturing processes. It ensures that an organization operates efficiently and effectively to meet customer demands.
Nature and Scope
The nature of operations management includes decision-making regarding the use of resources, production processes, and optimizing efficiency. Its scope covers areas like supply chain management, quality control, and inventory management.
Historical Development
Operations management has evolved from craft production to mass production, highlighting changes in methods and technology. Early practitioners focused on efficiency, while modern practices incorporate technology and globalization.
Functions of Operations Management
Key functions include process design, capacity planning, inventory management, quality management, and supply chain coordination. Each function plays a crucial role in achieving operational efficiency.
Long-Term Vs Short-Term Issues
Long-term issues focus on strategic planning, sustainability, and market positioning. Short-term issues often involve daily operational challenges, resource allocation, and meeting immediate customer needs.
A Systems Perspective
Operations management should be viewed as a system where different components interact. A systems perspective helps identify interdependencies and improves overall effectiveness.
Challenges in Operations Management
Challenges include adapting to technological changes, managing supply chain disruptions, workforce management, and maintaining quality standards amidst competition.
Manufacturing Trends in India
India's manufacturing sector is witnessing growth driven by digitalization, government initiatives, and a focus on sustainability. Trends such as automation and data analytics are becoming prevalent.
Production Design and Process Planning
Production design involves planning the manufacturing process and determining the resources required. Effective process planning enhances productivity and product quality.
Types of Production Processes
Common types of production processes include job shop, batch, mass, and continuous production. Each type is suited for different product types and production volumes.
Plant Capacity
Plant capacity refers to the maximum output a facility can produce within a given timeframe. Understanding capacity is vital for meeting demand and optimizing resource utilization.
Capacity Planning
Capacity planning involves forecasting future output and ensuring resources align with expected demand. It aims to minimize costs while maximizing production efficiency.
Make or Buy Decisions
Make or buy decisions require evaluating whether to produce goods in-house or purchase them from external suppliers. Considerations include cost, quality, and strategic fit.
Use of Crossover Chart for Selection Processes
Crossover charts assist in visualizing the trade-offs between different production alternatives, helping managers to determine the most cost-effective options.
Types of Charts Used in Operations Management
Charts such as Gantt charts, flowcharts, and Pareto charts are employed to monitor progress, streamline processes, and identify areas for improvement in operations.
Facility Design: Plant Location - Factors to be considered in Plant Location - Location Analysis Techniques - Choice of General Region, Particular community and Site - Multiple Plant Location Decision - Plant Location Trends. Layout of Manufacturing Facilities Principles of a Good Layout - Layout Factors - Basic Types of Layout - Principles of Materials Handling - Materials Handling Equipment - Role of Ergonomics in Job Design.
Facility Design: Plant Location
Factors to be considered in Plant Location
Several factors influence the choice of plant location including proximity to suppliers, transportation costs, labor availability, utility costs, and government regulations. Analyzing these factors can significantly affect operational efficiency and cost.
Location Analysis Techniques
Various techniques can be employed to analyze potential locations. These include cost-benefit analysis, factor-rating systems, and centroid method which assess various qualitative and quantitative factors to find the optimal location.
Choice of General Region, Particular Community and Site
The decision process begins with selecting a general region followed by identifying suitable communities and specific sites. Considerations may include market accessibility, regulatory environment, and community support.
Multiple Plant Location Decision
When deciding on multiple plant locations, companies must assess inter-plant coordination, market coverage, and logistics. It's crucial to ensure that plants are strategically located to reduce transportation costs and improve service levels.
Plant Location Trends
Current trends in plant location include a shift towards sustainability, technological advancement in supply chain management, and an emphasis on urban locations for better market access. Companies are also considering labor market dynamics in their location decisions.
Layout of Manufacturing Facilities
Efficient facility layout enhances productivity and workflow. The layout should be designed to minimize the distance materials travel through the manufacturing process.
Principles of a Good Layout
Key principles include optimizing space utilization, ensuring smooth workflow, facilitating communication between departments, and enhancing safety and ergonomics.
Layout Factors
Factors influencing layout design comprise product type, production process, facility size, and future expansion possibilities.
Basic Types of Layout
The primary layout types include product layout, process layout, fixed-position layout, and cellular layout, each serving different operational requirements.
Principles of Materials Handling
Effective materials handling systems are crucial for production efficiency. Key principles include minimizing handling time, simplifying handling methods, and reducing material damage.
Materials Handling Equipment
Common materials handling equipment includes forklifts, conveyor systems, and automated guided vehicles. Selecting the right equipment is vital for operational efficiency.
Role of Ergonomics in Job Design
Ergonomics plays a key role in designing jobs to improve worker comfort and efficiency. Proper ergonomic practices reduce fatigue and the risk of injury, leading to higher productivity.
Inventory Control and Maintenance: Basic Inventory Models - Economic Order Quantity - Economic Batch Quantity - Reorder Point - Safety Stock - Inventory Costs - Classification and Codification of Stock - ABC Classification - Materials Requirement Planning MRP - JIT - Implications of Supply Chain Management. Maintenance Preventive Vs Breakdown Maintenance - Group Replacement Vs Individual Replacement - Breakdown Time Distribution - Maintenance of Cost Balance -Procedure for Maintenance.
Inventory Control and Maintenance
Basic Inventory Models
Basic inventory models help businesses maintain optimal inventory levels to minimize costs and meet demand effectively.
Economic Order Quantity (EOQ)
EOQ is a formula used to determine the ideal order quantity that minimizes total inventory costs, including ordering and holding costs.
Economic Batch Quantity (EBQ)
EBQ refers to the optimal lot size for production that minimizes total costs, particularly when production runs occur in batches.
Reorder Point (ROP)
ROP is the inventory level at which a new order must be placed to avoid stockouts. It considers lead time and demand during that lead time.
Safety Stock
Safety stock is extra inventory held to prevent stockouts caused by unpredictable demand or supply chain delays.
Inventory Costs
Inventory costs consist of holding costs, ordering costs, and stockout costs. Understanding these costs is essential for effective inventory management.
Classification and Codification of Stock
Classifying and codifying stock helps organize inventory systematically, facilitating easier tracking and management.
ABC Classification
ABC classification is an inventory categorization technique that separates items into three categories based on their importance and value.
Materials Requirement Planning (MRP)
MRP is a production planning, scheduling, and inventory control system that ensures materials are available for production.
Just-In-Time (JIT)
JIT is an inventory management strategy that aligns raw-material orders with production schedules to reduce inventory costs.
Implications of Supply Chain Management
Effective supply chain management can lead to better inventory control, reduced costs, and improved customer satisfaction.
Maintenance: Preventive vs Breakdown
Preventive maintenance is proactive and scheduled, while breakdown maintenance occurs when equipment fails unexpectedly.
Group Replacement vs Individual Replacement
Group replacement involves replacing an entire batch of equipment at once, while individual replacement focuses on repairing or replacing items as needed.
Breakdown Time Distribution
This refers to how the time between equipment failures is distributed, influencing maintenance strategies.
Maintenance Cost Balance
It is essential to balance the costs of maintenance activities with the potential downtime costs due to equipment failure.
Procedure for Maintenance
Establishing a systematic procedure for maintenance ensures regular checks and repairs, minimizing the risk of unexpected breakdowns.
Design of Work Systems and Quality Control: Work Study - Objectives - Procedure - Method Study and Motion Study - Work Measurement - Time Study - Performance Rating - Allowance Factors - Standard Time - Work Sampling Techniques - Job Sequencing and Scheduling. Quality Control Purpose of Inspection and Quality Control - Different Types of Inspection - Acceptance Sampling - The Operating Characteristic Curve - Control Charts for Variables and Attributes Quality Circles TQM Six Sigma, Kaizen.
Design of Work Systems and Quality Control
Work Study
Work study is a systematic examination of how work is performed to improve processes and productivity. It includes objectives such as increasing efficiency, reducing costs, and improving working conditions. The procedure involves gathering data, analyzing work processes, and implementing improvements.
Method Study and Motion Study
Method study focuses on evaluating and improving work methods by eliminating unnecessary movements. Motion study analyzes the motions involved in tasks, aiming to simplify work and enhance productivity by reducing fatigue and improving ergonomics.
Work Measurement
Work measurement involves determining the time required to perform a task under specified conditions. It includes the time study method, which measures actual time taken for completing tasks, and performance rating that assesses the speed of work in comparison to standard performance.
Standard Time
Standard time is the time established for a qualified worker to complete a task at a defined level of performance, incorporating allowances for rest and delays. This metric is crucial in planning and scheduling work.
Work Sampling Techniques
Work sampling techniques involve random observations of the work process to estimate the proportion of time spent on different tasks. This method allows for a broader understanding of work patterns with less intensive data collection.
Job Sequencing and Scheduling
Job sequencing and scheduling are critical for optimizing workflow and resource utilization. Efficient job scheduling minimizes idle time and ensures timely completion of tasks, taking into account task priorities and resource availability.
Quality Control
Quality control involves measures undertaken to ensure that products or services meet specified quality standards. It includes methods for preventing errors and defects, ensuring a consistent level of quality in outputs.
Purpose of Inspection and Quality Control
The purpose of inspection within quality control is to identify defects and ensure that products meet quality standards. This process helps in minimizing waste and maintaining customer satisfaction.
Different Types of Inspection
Inspection methods include 100% inspection, sampling inspection, and in-process inspection. These methods vary in rigor and frequency, depending on production processes and product types.
Acceptance Sampling
Acceptance sampling is a statistical quality control method used to determine if a batch of products should be accepted or rejected based on a sample. It helps in making cost-effective decisions while maintaining quality.
The Operating Characteristic Curve
The operating characteristic (OC) curve visually represents the effectiveness of an acceptance sampling plan, illustrating the probability of accepting a batch given a specific defect rate.
Control Charts for Variables and Attributes
Control charts monitor process variation over time. Variable control charts track data that can be measured, while attribute control charts track data that can be counted. Both help in identifying trends and maintaining process stability.
Quality Circles
Quality circles are groups of workers who meet regularly to discuss workplace improvement, focusing on quality enhancement and problem solving. This approach encourages employee involvement and empowers them to contribute to quality management.
Total Quality Management (TQM)
TQM is a management approach centered on quality, based on the participation of all members of an organization. It aims for long-term success through customer satisfaction and focuses on continuous improvement.
Six Sigma
Six Sigma is a data-driven approach aimed at reducing defects to minimal levels by applying statistical analysis. It emphasizes quality improvement and process optimization.
Kaizen
Kaizen is a philosophy of continuous improvement in the workplace. It encourages all employees to actively engage in suggesting and implementing improvements in their daily work processes.
Service Operations Management: Introduction to Services Management - Nature of Services - Types of Services - Service Encounter - Designing Service Organizations - Service Facility Location and Layout - Service Blueprinting - Waiting Line Analysis for Service Improvement - Service Processes and Service Delivery.
Service Operations Management
Introduction to Services Management
Services management encompasses the planning, delivery, and management of services to ensure customer satisfaction and operational efficiency. It focuses on developing an understanding of service as a product and how to enhance customer experiences.
Nature of Services
Services are intangible, inseparable from the provider, variable in quality, and perishable. The intangibility of services means they cannot be stored, while inseparability indicates that production and consumption occur simultaneously. Variability refers to the changes in service quality, and perishability means services cannot be saved.
Types of Services
Services can be categorized into several types: professional services, personal services, business services, and public services. Each category has distinct characteristics and customer interactions, requiring different management strategies.
Service Encounter
A service encounter is a direct interaction between the customer and the service provider. It is a crucial aspect that influences customer perceptions and satisfaction. Effective management of service encounters involves training staff, understanding customer needs, and ensuring consistent service delivery.
Designing Service Organizations
Designing a service organization involves creating structures, processes, and systems that promote efficiency and customer engagement. It requires aligning organizational goals with service delivery mechanisms to foster a customer-centric culture.
Service Facility Location and Layout
The location of service facilities plays a critical role in accessibility and convenience for customers. Service layout should facilitate smooth flow of customers and make efficient use of space, enhancing the overall customer experience.
Service Blueprinting
Service blueprinting is a visual representation of the service process, highlighting key customer interactions, service processes, and points of contact. It helps organizations identify areas for improvement and ensure consistency in service delivery.
Waiting Line Analysis for Service Improvement
Waiting line analysis involves examining the queues and waiting times experienced by customers. Effective analysis can lead to operational improvements, reduce waiting times, and enhance customer satisfaction.
Service Processes and Service Delivery
Service processes encompass the sequences of activities required to deliver a service. Efficient service delivery relies on well-defined processes, employee training, and the use of technology to streamline operations and improve service quality.
