Production Management-2003

Production Management: 

Production Management Management II, By KUNAL MOJIDRA 1 Production Management

Production Management: 

Production Management 2 Production Management INPUTS PROCESS OUTPUTS PERFORMANCE MANAGEMENT Inputs = Transformation = Outputs

Major Task Groupings: 

Major Task Groupings 3 Production Management

Product: 

Product Ensure that seller meets needs and wants of customers. Role: Performance Aesthetics Quality Reliability Quantity Production cost Delivery dates 4 Production Management

Plant: 

Plant To make product, we need plant where we will product it. Ares of POM Future Demand (Volume and Timing) Design and layout of factory, equipment, offices Productivity and reliability of equipment Need for (cost of ) maintenance Health and Safety Environmental issues 5 Production Management

Processes: 

Processes Ways to produce Consider: Available capacity Available skills Type of production Layout of plant and equipment Safety Production costs Maintenance requirements 6 Production Management

Programmers: 

Programmers Date, timing and schedules Purchasing patterns eg. Lead time Cash flow Need for/ availability of storage Transportation 7 Production Management

People: 

People Production depends on people whose skill, experience and motivation varies Wages and Salary Safety Training and development Work conditions Leadership and motivation Unionization Communication 8 Production Management

Slide 9: 

Production Management 9 Choice of location Alternatives location options Factors relevant to the facility Being planned Screen location options Using cost-benefit analysis Screen location options using factors & Location rating analysis Best location Choice Initial screening of locations Final selection process

Slide 10: 

Production Management 10 Factors affecting the locations Proximity To Markets Proximity to suppliers Impact Analysis Ease of Funding Availability Of Skilled labour Easy availability Of land Ability to Expand capacity Government policies Required Amenities Location planning

Slide 11: 

Production Management 11 Service/ retail / professional Industrial Revenue focus Rent Management caliber operation policies (hours, wages , rates ) Revenue focus Transportation cost of raw material Shipment cost of finished goods Energy and utility cost Cost of labour , raw material, taxes Other Volume/ revenue Drawing area Purchasing power Competition Advertising / pricing Other Intangible and future cost Infrastructure-roads, power etc Labour - management attitudes Quality of life Skill enhancement & education facility Quality of state and local government Location Strategy

Slide 12: 

Production Management 12 Strategic Importance of Layout Decisions The objective of layout strategy is to develop a cost-effective layout that will meet a firm’s competitive needs

Objectives of Layout: (Arrangement of areas within the facility ): 

Objectives of Layout: (Arrangement of areas within the facility ) Minimize material-handling costs Utilize space efficiently Utilize labor efficiently Eliminate bottlenecks Facilitate communication and interaction Reduce manufacturing cycle time Reduce customer service time Eliminate wasted or redundant movement Increase capacity Facilitate entry, exit, and placement of material, products, and people Incorporate safety and security measures Promote product and service quality Encourage proper maintenance activities Provide a visual control of activities Provide flexibility to adapt to changing conditions Arrangement of areas within a facility to:

Slide 14: 

Production Management 14 Layout Design Considerations Higher utilization of space, equipment, and people Improved flow of information, materials, or people Improved employee morale and safer working conditions Improved customer/client interaction Flexibility

Slide 15: 

Production Management 15 Types of Layout Office layout Retail layout Warehouse layout Fixed-position layout Process-oriented layout Work-cell layout Product-oriented layout

Types of Layout: 

Types of Layout Office layout: Positions workers, their equipment, and spaces/offices to provide for movement of information Retail layout: Allocates shelf space and responds to customer behavior Warehouse layout: Addresses trade-offs between space and material handling 16 Production Management

Types of Layout: 

Types of Layout 4. Fixed-position layout: Addresses the layout requirements of large, bulky projects such as ships and buildings 5. Process-oriented layout: Deals with low-volume, high-variety production (also called job shop or intermittent production) 17 Production Management

Types of Layout: 

Types of Layout Work cell layout: Arranges machinery and equipment to focus on production of a single product or group of related products Product-oriented layout: Seeks the best personnel and machine utilizations in repetitive or continuous production 18 Production Management

Slide 19: 

Production Management 19 Good Layouts Consider Material handling equipment Capacity and space requirements Environment and aesthetics Flows of information Cost of moving between various work areas

Slide 20: 

Unit Extras: POM 20 BASIC LAYOUTS Process layouts group similar activities together according to process or function they perform Product layouts arrange activities in line according to sequence of operations for a particular product or service Fixed-position layouts are used for projects in which product cannot be moved

Slide 21: 

Unit Extras: POM 21 Process Layout in Services Women’s lingerie Women’s dresses Women’s sportswear Shoes Cosmetics and jewelry Entry and display area Housewares Children’s department Men’s department

Process-Oriented Layout: 

Process-Oriented Layout Like machines and equipment are grouped together Flexible and capable of handling a wide variety of products or services Scheduling can be difficult and setup, material handling, and labor costs can be high 22 Production Management

Process-Oriented Layout: 

Process-Oriented Layout Arrange work centers so as to minimize the costs of material handling Basic cost elements are Number of loads (or people) moving between centers Distance loads (or people) move between centers 23 Production Management

Slide 24: 

Unit Extras: POM 24 Manufacturing Process Layout L L L L L L L L L L M M M M D D D D D D D D G G G G G G A A A Receiving and Shipping Assembly Painting Department Lathe Department Milling Department Drilling Department Grinding Department P P

Slide 25: 

Unit Extras: POM 25 A Product Layout: arrange activities in line according to sequence of operations for a particular product or service In Out

Slide 26: 

Unit Extras: POM 26 Description Type of process Product Demand Volume Equipment Sequential arrangement of activities Continuous, mass production, mainly assembly Standardized, made to stock Stable High Special purpose Process Comparison of Product and Process Layouts Functional grouping of activities Intermittent, job shop, batch production, mainly fabrication Varied, made to order Fluctuating Low General purpose Product

Slide 27: 

Unit Extras: POM 27 Workers Inventory Storage space Material handling Aisles Scheduling Layout decision Goal Advantage Limited skills Low in-process, high finished goods Small Fixed path (conveyor) Narrow Part of balancing Line balancing Equalize work at each station Efficiency Process Comparison of Product and Process Layouts Varied skills High in-process, low finished goods Large Variable path (forklift) Wide Dynamic Machine location Minimize material handling cost Flexibility Product

Slide 28: 

Unit Extras: POM 28 Fixed-Position Layouts Typical of projects Equipment, workers, materials, other resources brought to the site Highly skilled labor Often low fixed Typically high variable costs Ex: Ships, Aircrafts, Houses

Slide 29: 

Unit Extras: POM 29 Designing Process Layouts Goal: minimize material handling costs Block Diagramming minimize nonadjacent loads use when quantitative data is available Relationship Diagramming based on location preference between areas use when quantitative data is not available

Slide 30: 

Unit Extras: POM 30 Block Diagramming Unit load quantity in which material is normally moved Nonadjacent load distance farther than the next block STEPS create load summary chart calculate composite (two way) movements develop trial layouts minimizing number of nonadjacent loads Shows predicted movement of product or material within the existing facility with the help of a chart or diagram Block Diagram is a type of schematic layout diagram that includes space requirement

Slide 31: 

Unit Extras: POM 31 Relationship Diagramming Schematic diagram that uses weighted lines to denote location preference Muther’s grid format for displaying manager preferences for department locations

Slide 32: 

Unit Extras: POM 32 Relationship Diagramming: Example Production Offices Stockroom Shipping and receiving Locker room Toolroom A A A O O O O O U U U U E X I A Absolutely necessary E Especially important I Important O Okay U Unimportant X Undesirable

Relationship Diagrams: Example (cont.): 

Relationship Diagrams: Example (cont.) (a) Relationship diagram of original layout Key: A E I O U X Offices Stockroom Locker room Toolroom Shipping and receiving Production

Relationship Diagrams: Example (cont.): 

(b) Relationship diagram of revised layout Offices Stockroom Locker room Toolroom Shipping and receiving Production Key: A E I O U X Relationship Diagrams: Example (cont.)

Slide 35: 

Unit Extras: POM 35 Computerized layout Solutions CRAFT Computerized Relative Allocation of Facilities Technique CORELAP Computerized Relationship Layout Planning PROMODEL and EXTEND visual feedback allow user to quickly test a variety of scenarios Three-D modeling and CAD integrated layout analysis available in VisFactory and similar software

Slide 36: 

Unit Extras: POM 36 Designing Service Layouts Must be both attractive and functional Types Free flow layouts encourage browsing, increase impulse purchasing, are flexible and visually appealing Grid layouts encourage customer familiarity, are low cost, easy to clean and secure, and good for repeat customers Loop and Spine layouts both increase customer sightlines and exposure to products, while encouraging customer to circulate through the entire store

Types of Store Layouts: 

Types of Store Layouts 37 Unit Extras: POM

Hybrids Layouts: 

Hybrids Layouts Cellular layouts group dissimilar machines into work centers (called cells) that process families of parts with similar shapes or processing requirements Flexible manufacturing system automated machining and material handling systems which can produce an enormous variety of items Mixed-model assembly line processes more than one product model in one line

Work Cell: 

Work Cell Reorganizes people and machines into groups to focus on single products or product groups Group technology identifies products that have similar characteristics for particular cells Volume must justify cells Cells can be reconfigured as designs or volume changes 39 Production Management

Advantages of Work Cells: 

Advantages of Work Cells Reduced work-in-process inventory Less floor space required Reduced raw material and finished goods inventory Reduced direct labor Heightened sense of employee participation Increased use of equipment and machinery Reduced investment in machinery and equipment 40 Production Management

Cellular Layouts: 

Cellular Layouts Identify families of parts with similar flow paths Group machines into cells based on part families Arrange cells so material movement is minimized Locate large shared machines at point of use A high level of training, flexibility and empowerment of employees Being self-contained, with its own equipment and resources Test (poka-yoke) at each station in the cell

Parts Families: 

Parts Families A family of similar parts A family of related grocery items

Original Process Layout: 

Original Process Layout C A B Raw materials Assembly 1 2 3 4 5 6 7 8 9 10 11 12

Part Routing Matrix: 

Part Routing Matrix Machines Parts 1 2 3 4 5 6 7 8 9 10 11 12 A x x x x x B x x x x C x x x D x x x x x E x x x F x x x G x x x x H x x x Figure 5.8

Revised Cellular Layout: 

Revised Cellular Layout 3 6 9 Assembly 1 2 4 8 10 5 7 11 12 A B C Raw materials Cell 1 Cell 2 Cell 3

Reordered Routing Matrix: 

Reordered Routing Matrix Machines Parts 1 2 4 8 10 3 6 9 5 7 11 12 A x x x x x D x x x x x F x x x C x x x G x x x x B x x x x H x x x E x x x

Slide 47: 

Copyright 2006 John Wiley & Sons, Inc. 7- 47 Key: S = Saw L = Lathe HM = Horizontal milling machine VM = Vertical milling machine G = Grinder Paths of three workers moving within cell Material movement In Out Worker 1 Worker 2 Worker 3 Direction of part movement within cell S L HM VM G VM L Final inspection Finished part A Manufacturing Cell with Worker Paths

Automated Manufacturing Cell: 

Automated Manufacturing Cell

Advantages and Disadvantages of Cellular Layouts: 

Advantages and Disadvantages of Cellular Layouts Advantages Reduced material handling and transit time Reduced setup time Reduced work-in- process inventory Better use of human resources Easier to control Easier to automate Disadvantages Inadequate part families Poorly balanced cells Expanded training and scheduling of workers Increased capital investment

Flexible Manufacturing Systems (FMS): 

Flexible Manufacturing Systems (FMS) FMS consists of numerous programmable machine tools connected by an automated material handling system and controlled by a common computer network FMS combines flexibility with efficiency FMS layouts differ based on variety of parts that the system can process size of parts processed average processing time required for part completion