Production Management

Transcription

1 Production Management Gyan Bahadur Tamang

2 Definitions: Operations Management is the set of activities that creates value in the form of goods or services by transforming inputs into outputs. - Jay Heizer and Barry Render.

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4 Cars that stop or slow down automatically before an object or person in anticipation of a possible crash are not new. But Toyota s latest pre-collision system adds a steering-control feature. In the new system, Toyota uses cameras and a super sensitive radar called millimeterwave, both installed in the front of the vehicle, to detect possible crashes such as a pedestrian crossing the road. The vehicle calculates how braking and steering must be applied to avoid a crash, said chief safety technology officer

5 Definitions: POM is defined as the design, operation and improvement of the transformation process, which converts the various inputs into the desired outputs of the product and services -Kaniska Bedi

6 Supply Chain Illustration 10-6 Copyright 2006 John Wiley & Sons, Inc.

7 Functions of Production/Operations Management

8 Production System

9 Production System The elements are: Inputs-The basic needs or resources of the system (Land, Building, equipment, capital, raw material etc.) Transformation process-value addition process(manufacturing processing, information processing or customer processing)

10 Production Function/System The elements are: Outputs-Desired result of the system, may be goods or services.(output should be of Stakeholders' interest) Random disturbances-both controllable and uncontrollable factors influence, causing the difference between planned and actual output. Feedback Mechanism-Comparing Actual versus Desired output/process of comparison and adjustment

11 Transformations Physical--manufacturing Locational--transportation Exchange--retailing Storage--warehousing Physiological--health care Informational--telecommunications 5

12 Examples of Production Systems S ystem Inputs C onversion O utput (desired) H ospital P atients M Ds, Nurses M edical S upplies E quipm ent H ealth Care H ealthy Individu als R estaurant H ungry Custom ers Food, C hef S ervers A tm osphere P repare Food S erve Food S atisfied C ustom ers Au tom obile P lant S heet S teel E ngine P arts Tools, E quipm ent W orkers F abric ation and A ssem bly of Cars H igh Q uality A utom obiles U niversity H igh School G rads Teachers, B ooks C lassroom T rans ferring of Knowledge and S kills E ducated Individu als 6

13 Goods and Services? Services never include goods and goods never include services. (True or false?)

14 Characteristics of Goods Tangible product Consistent product definition Production usually separate from consumption Can be inventoried Low customer interaction

15 Characteristics of Service Intangible product Produced and consumed at same time Often unique High customer interaction Inconsistent product definition Often knowledge-based Frequently dispersed

16 Goods Versus Services Attributes of Goods (Tangible Product) Can be resold Can be inventoried Some aspects of quality measurable Selling is distinct from production Product is transportable Site of facility important for cost Often easy to automate Revenue generated primarily from tangible product Attributes of Services (Intangible Product) Reselling unusual Difficult to inventory Quality difficult to measure Selling is part of service Provider, not product, is often transportable Site of facility important for customer contact Often difficult to automate Revenue generated primarily from the intangible service Table 1.3

17 Goods and Services Automobile Computer Installed carpeting Percent of Product that is a Good Fast-food meal Restaurant meal/auto repair Hospital care Advertising agency/ investment management Consulting service/ teaching Counseling 100% % Percent of Product that is a Service Figure 1.4

18 Manufacturing and Service Employment Employment (milli ions) Service Manufacturing (est) Figure 1.5 (A)

19 Manufacturing Employment and Production Employment (mill lions) Industrial production (right scale) Manufacturing employment (left scale) (est) Index: 1997 = 100 Figure 1.5 (B)

20 Service Definition A service is a time-perishable, intangible experience performed for a customer acting in the role of a coproducer.

21 Role of Services in an Economy

22 Trends in U.S. Employment by Sector Proportati ion of total employement Service Year Manufacturing Agriculture

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24 Significant Events in OM Figure 1.3

25 History of Operations Cottage System 1850s <1700 Industrial Revolution Civil War TIME Cost Focus # Early Concepts ( ) # Scientific Management Era ( ) # Mass Production Era ( ) Scientific Management Moving Assembly Line Hawthorne Studies 1890s 1910s 1930s Quality Focus # Lean Production Era ( ) Operations Research 1940s Global Competition Service Revolution 1970s 1980s Customization Focus # Mass Customization Era ( ) Mass Customization 1990s 12

26 History of Operations (Significant Events in OM) Cost Focus # Early Concepts ( ) Labor Specialization (Smith, Babbage) Standardized Parts (Whitney) # Scientific Management Era ( ) Gantt Charts (Gantt) Motion and Time Studies (Gilberth) Process Analysis (Taylor) Queuing Theory (Erlang) # Mass Production Era ( ) Moving Assembly Line (Ford/Sorensen) Statistical Sampling (Shewhart) EOQ (Harris) LPP PERT/CPM (DuPont) MRP Quality Focus # Lean Production Era ( ) JIT / CAD Electronic Data Interchange TQM Baldrige Award Empowerment Kanbans Customization Focus # Mass Customization Era ( ) Globalization Internet / E-Commerece ERP Learning Organization Int l Quality Standard Finite Scheduling SCM Mass Customization Build to order

27 History of Operations Management YEAR Concept Tool 1910 Principle of scientific s management Industrial psychology Moving assembly line Economic lot size Time and work study concepts Motion study Activity scheduling chart EOQ applied to inventory control 1930 s Quality control Hawthorne studies of worker Motivation Sampling inspection and statistical tables for quality Control Activity sampling for work analysis

28 Cont d s Multidisciplinary team approaches to complex system problems Simplex Method of linear programming Extensive development of operations research tools Simulation, waiting line 1950 s - operations research tools theory, decision theory, 1960 PERT,CPM s 1970 s Widespread use of computers in business Services quality and productivity Shop scheduling, inventory control, forecasting, project management, MRP. Mass production in the service Sector

29 Cont d s Manufacturing strategy Paradigm JIT,TQC and factory Automation Synchronous manufacturing Manufacturing as a competitive weapon Kanban, CIM, CAD/CAM, robotics etc. Bottleneck analysis, theory of constraints 1990 Total Quality s Total Quality Baldridge quality Award, ISO quality Management function Development, Value and concurrent engineering, continuous Improvement paradigm Radical change paradigm Internet, WWW Business Process Reengineering Electronic enterprise Supply Chain Management SAP/R3, Client/server Software 2000 E-commerce Internet, world wide web (Amazon, ebay, Yahoo!, s America online)

30 Strategic perspective

31 Operations Decision Making Marketplace Corporate Strategy Finance Strategy Operations Strategy Marketing Strategy Operations Management Materials & Customers Input People Plants Parts Processes Planning and Control Products & Services Output The Transformation Process (value adding) 4

32 Industry: Market and Competition Organizational Strategy: Market Share ; ROI; Resource Development Business Expansion; Global Operation POM: Competitive Strategy: Quality ; Cost ; Dependability Flexibility; Speed POM: Operational Strategy: Product, Process, Location, Layout, Human POM: Operational Tactics: Inventory & JIT, Scheduling, Quality, Reliability & Maintenance Result

33 Operations competitive dimensions

34 Competitive dimensions Cost or Price Make the product or deliver the service cheap Quality Make a great product or deliver a great service Delivery Speed Make the product or deliver the service quickly

35 Competitive dimensions Delivery Reliability Deliver it when promised Coping with Changes in Demand Change its volume Flexibility and New Product Introduction Speed Change it

36 Competitive dimensions Other Product Specific Criteria Support it Technical liaison and support Meeting a launch date Supplier after-sale support Other dimensions