Production management-pavani

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Production management and/or Operations management:

Production management and/or Operations management Pavani GRCP HYD

PowerPoint Presentation:

Set of management activities involved in the manufacturing of products (1930’s-50’s) If services, then operations management (from 1970’s) Also as manufacturing management Covers all the activities that go into the making of production Effective planning and control are req

PowerPoint Presentation:

Conversion of inputs into output through a transformation process Plays vital role in achieving an organization's strategic plans or goals Can be called the heart of organization One of the 3 critical parts of any organization Marketing: generates demand Operations: creates the product Finance/accounting: takes organizational performance, pays bills, collects money Most costly part of organization

Historical Events in Operations Management:

Historical Events in Operations Management Era Events/Concepts Dates Originator Industrial Revolution Steam engine 1769 James Watt Division of labor 1776 Adam Smith Interchangeable parts 1790 Eli Whitney Scientific Management Principles of scientific management 1911 Frederick W. Taylor Time and motion studies 1911 Frank and Lillian Gilbreth Activity scheduling chart 1912 Henry Gantt Moving assembly line 1913 Henry Ford

Historical Events in Operations Management:

Historical Events in Operations Management Era Events/Concepts Dates Originator Human Relations Hawthorne studies 1930 Elton Mayo Motivation theories 1940s Abraham Maslow 1950s Frederick Herzberg 1960s Douglas McGregor Operations Research Linear programming 1947 George Dantzig Digital computer 1951 Remington Rand Simulation, waiting line theory, decision theory, PERT/CPM 1950s Operations research groups MRP, EDI, EFT, CIM 1960s, 1970s Joseph Orlicky , IBM and others

Historical Events in Operations Management:

Historical Events in Operations Management Era Events/Concepts Dates Originator Quality Revolution JIT (just-in-time) 1970s Taiichi Ohno (Toyota) TQM (total quality management) 1980s W. Edwards Deming, Joseph Juran Strategy and operations 1980s Wickham Skinner, Robert Hayes Reengineering 1990s Michael Hammer, James Champy Six Sigma 1990s GE, Motorola

Historical Events in Operations Management:

Historical Events in Operations Management Era Events/Concepts Dates Originator Internet Revolution Internet, WWW, ERP, supply chain management 1990s ARPANET, Tim Berners-Lee SAP, i2 Technologies, ORACLE, Dell E-commerce 2000s Amazon, Yahoo, eBay, Google, and others Globalization WTO, European Union, Global supply chains, Outsourcing, Service Science 1990s 2000s China, India, emerging economies

Historical Events in Operations Management:

Historical Events in Operations Management Era Events/Concepts Dates Originator Green Revolution Global warming, An Inconvenient Truth, Kyoto Today Numerous scientists, statesmen and governments

PowerPoint Presentation:

PM is a process of planning, organising, directing and controlling the activities of the production function

Operations Management is::

Operations Management is: 10 The business function responsible for planning , coordinating , and controlling the resources needed to produce products and services for a company

Typical Organization Chart:

Typical Organization Chart 11

OM’s Transformation Process:

OM’s Transformation Process 12

OM Decisions:

OM Decisions 13

Business Information Flow:

Business Information Flow 14

Objectives :

Objectives Major is to produce quality goods and services Optimal use of resources(men, machine, material) By maximizing use of manpower and machines and minimizing wastage of materials Ensuring quality of goods at minimal cost through use of statistical quality control techniques Contributing towards all round productivity through decision making and quantitative techniques

PowerPoint Presentation:

PM deals with decision making related to production processes so that the resulting goods or services are produced according to the specifications, in the amount and by the schedule demanded and out of minimum cost

PowerPoint Presentation:

Lean Production - introduction Lean production is a Japanese approach to management that focuses on cutting out waste, whilst ensuring quality. This approach can be applied to all aspects of a business – from design, through production to distribution. Lean production aims to cut costs by making the business more efficient and responsive to market needs. This approach sets out to cut out all activities that do not add value to the production process, such as holding of stock, repairing faulty product and unnecessary movement of people and product around the plant. The most important aspects of lean are as follows: Just in time production (JIT) Cell production Kaizen (Continuous improvement) Quality Circles Total Quality Management (TQM) and zero defect production - see notes on quality management Time based management Simultaneous engineering

Benefits of JIT :

Benefits of JIT Reduction in inventories Improved quality Shorter lead times Lower production costs Increased productivity Increased machine utilization Greater flexibility

PowerPoint Presentation:

Traditional manufacturing systems use “push” production, where as JIT uses “pull” production. Push systems anticipate future demand and produce in advance in order to have products in place when demand occurs. This system usually results in excess inventory. Pull systems work backwards. The last workstation in the production line requests the precise amounts of materials required.

Push Vs. Pull Scheduling :

Push Vs. Pull Scheduling Push Scheduling • traditional approach • “move the job on when finished” • problems - creates excessive inventory Pull scheduling • coordinated production • driven by demand (pulled through system) • extensive use of visual triggers (production/withdrawal kanbans)

Three Elements of JIT:

Three Elements of JIT

Elements of JIT Manufacturing:

Elements of JIT Manufacturing JIT Manufacturing is a philosophy of value-added manufacturing Achieved by Inventory reduction - exposes problems Kanbans & pull production systems Small lots & quick setups Uniform plant loading Flexible resources Efficient facility layouts

Role of Inventory Reduction:

Role of Inventory Reduction Inventory = Lead Time (less is better) Inventory hides problems

Traditional Process Focused Layout:

Traditional Process Focused Layout Jumbled flows, long cycles, difficult to schedule

JIT Cellular Manufacturing:

JIT Cellular Manufacturing Product focused cells, flexible equipment, high visibility, easy to schedule, short cycles

JIT Goals:

JIT Goals

PowerPoint Presentation:

JIT considers people to be the organization’s most important resource JIT is equally applicable in service organizations, particularly with the push toward time-based competition and the need to cut costs JIT success is dependent on interfunctional coordination and effort

PowerPoint Presentation:

Kanban is the Japanese word for card The card is an authorization for the next container of material to be produced A sequence of kanbans pulls material through the process Many different sorts of signals are used, but the system is still called a kanban

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User removes a standard sized container Signal is seen by the producing department as authorization to replenish Part numbers mark location Signal marker on boxes

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Work cell Raw Material Supplier Kanban Purchased Parts Supplier Sub-assembly Ship Kanban Kanban Kanban Kanban Finished goods Customer order Final assembly Kanban

PowerPoint Presentation:

When the producer and user are not in visual contact, a card can be used When the producer and user are in visual contact, a light or flag or empty spot on the floor may be adequate Since several components may be required, several different kanban techniques may be employed

PowerPoint Presentation:

Usually each card controls a specific quantity or parts Multiple card systems may be used if there are several components or different lot sizes In an MRP system, the schedule can be thought of as a build authorization and the kanban a type of pull system that initiates actual production

Number of Kanbans Required:

Number of Kanbans Required N = number of containers D = demand rate at the withdraw station T = lead time from supply station C = container size S = safety stock

Advantages of Kanban:

Advantages of Kanban Allow only limited amount of faulty or delayed material Problems are immediately evident Puts downward pressure on bad aspects of inventory Standardized containers reduce weight, disposal costs, wasted space, and labor

The Pull System:

The Pull System

Autonomation:

Autonomation Transfers a level of human intelligence to automated machinery Machines detect even a single defective part and immediately stop while asking for help Important component of Lean Manufacturing Strategy for high-production, low- variety operations, particularly where product life cycles are measured in years or decades Jidoka is a Japanese term used for autonomation and being widely used in Toyota Production System (TPS), Lean Manufacturing and Total Productive Maintenance (TPM)

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