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UNIT II
SYLLABUS
Unit I
Introduction to Operations Management, Nature & Scope of Operations Management,
Historical Evolution of Operations Management, Systems Perspectives of Operations
Management, and Relationship of Operations Management with Other Functional Areas,
Operations Strategy, Recent Trends in the Field of Operations Management (12 hours)
Unit II
Product Development: Product Development Process, Concurrent Engineering, Tools and
Approaches in Product Development viz: Quality Function Deployment, Design for
Manufacturability, Design for Assembly, Design for Quality, Mass Customization; Process
Selection and Facilities Layout: Determinant of Process Selection, Process-Product Matrix,
Types of Layouts, Line Balancing; Facilities Location; Work Measurement and Job Design.
(14 hours)
Unit III
Demand Forecasting; Capacity Planning; Resources Planning: Aggregate Production Planning
Materials Requirement Planning, Scheduling; Theory of constraints and Synchronous
Manufacturing; Lean Management and Just in Time Production; Supply Chain Management;
Inventory Planning and Control. (16 hours)
Unit IV
Quality Management, Quality: Definition, Dimension, Cost of Quality, Continuous
Improvement (Kaizen), ISO (9000&14000 Series), Quality Awards, Statistical Quality Control:
Variable & Attribute, Process Control, Control Chart (X , R , p , np and C chart ) Acceptance
Sampling Operating Characteristic Curve (AQL , LTPD, a & b risk ) Total Quality
Management (TQM) (14 hours)
PRODUCT DEVELOPMENT
PRODUCT DEVELOPMENT
PROCESS
PRODUCT DEVELOPMENT
PROCESS
Five phases guide the new product development process for small
businesses:
Idea Generation
This is the initial stage where a business sources for ideas regarding a new
product. Some of the sources for new product ideas include the business
customers, competitors, newspapers, journals, employees and suppliers.
Small businesses may be limited when it comes to technical research-based
idea generation techniques. This stage is crucial as it lays the foundation for
all the other phases, the ideas generated shall guide the overall process of
product development.
Screening
The generated ideas have to go through a screening process to filter out the
viable ones. The business seeks opinions from workers, customers and other
businesses to avoid the pursuit of costly unfeasible ideas. External industry
factors affecting small businesses, such as competition, legislation and
changes in technology, influences the enterprise's decision criteria. At the
end of the screening process, the firm remains with only a few feasible ideas
from the large pool generated.
PRODUCT DEVELOPMENT
PROCESS
Five phases guide the new product development process for small
businesses:
Concept Development
The enterprise undertakes research to find out the potential costs, revenues and
profits arising from the product. The business conducts a SWOT analysis to
identify the strengths, weakness opportunities and threats existing in the market.
The market strategy is set out to identify the product's target group, which
facilitates segmentation of the product's market. Market segmentation is
important as it enables the firm to identify its niche. The identified niche
influences most of the marketing decisions.
Product development entails the actual design and manufacture of the product.
Development commences with the manufacture of a prototype that facilitates
market testing. Based upon the results of the tests, the business owner decides on
whether to undertake large-scale production or not. Favourable results precede
large-scale production and commercialization. The business launches its
promotion campaign for the new product. The market research conducted during
the conception stage influences the timing and location of the product launch.
CONCURRENT ENGINEERING
Since product and process design have such a major influence on the
competitiveness of the enterprise, it is especially critical that the design
function be better integrated with the other functions of the enterprise. This
means integration within the engineering function (e.g., integration of both
product design with process design and integration of electrical, mechanical
and software design), integration of the design and engineering function with
the rest of the enterprise, and integration of the engineering function with
external organizations (customers and suppliers).
This integration will result in the release of more mature product designs
which can be more effectively produced within a company's existing or
planned production system and more effectively supported. New product
design and introduction lead time or time-to-market will be reduced to meet
rapidly changing technology and customer demands and increase enterprise
flexibility.
While many books and articles on "how to do QFD" are available, there is a
relative paucity of example matrices available. QFD matrices become highly
proprietary due to the high density of product or service information found
therein.
The basic idea exists in almost all engineering disciplines, but of course the
details differ widely depending on the manufacturing technology. This design
practice not only focuses on the design aspect of a part but also on the
producibility.
DFM will allow potential problems to be fixed in the design phase which is the
least expensive place to address them. The design of the component can have
an enormous effect on the cost of manufacturing. Other factors may affect
the manufacturability such as the type of raw material, the form of the raw
material, dimensional tolerances, and secondary processing such as finishing.
The design stage is very important in product design. Most of the product
lifecycle costs are committed at design stage. The product design is not just
based on good design but it should be possible to produce by manufacturing
as well. Often an otherwise good design is difficult or impossible to produce.
If these DFM guidelines are not followed, it will result in iterative design, loss
of manufacturing time and overall resulting in longer time to market. Hence
many organizations have adopted concept of Design for Manufacturing.
(1) The DFQ process allows the engineer to identify, plan for and manage factors
that impact the robustness and reliability of the products in the design
process.
(2) DFQ reduces or eliminates the cost of quality that can be envisaged as the
cost incurred in the inspection and rework, in the procurement of
replacement materials. Appropriate DFQ procedure can also avoid defects and
errors, scrap, degradation of factory/machine capacity, re-qualifications/recertifications expenses, and overhead demands
The Design for Quality initiative, which originated from the Office of
Biotechnology Products (OBP), attempts to provide guidance on
pharmaceutical development to facilitate design of products and processes
that maximizes the products efficacy and safety profile while enhancing
product manufacturability.
MASS CUSTOMIZATION
Mass customization is the new frontier in business for both manufacturing and
service industries. At its core is a tremendous increase in variety and
customization without a corresponding increase in costs. At its limit, it is the
mass production of individually customized goods and services. At its best, it
provides strategic advantage and economic value.
This degree of mass customization, however, has only seen limited adoption.
If an enterprise's marketing department offers individual products (atomic
market fragmentation) it doesn't often mean that a product is produced
individually, but rather that similar variants of the same mass-produceditem
are available.
MASS CUSTOMIZATION
As mass production took hold in the hearts and minds of managers during the
past century, the definition of a market shifted from a gathering of people for
the sale and purchase of goods at a fixed time and place to an unknown
aggregation of potential customers.
Facility Layout
Noise and air pollution can be a large factor in certain businesses -- while it
may be convenient to locate a large number of work stations in a small area,
you may need to spread things out to maintain a safe and healthy work
environment.
one building then driving them to an adjacent building for drying and waxing
would waste time and require two buildings rather than one. Locating a dry
and wax station immediately after the wash station in a single building would
be a more efficient facility layout.
Process Selection
Process Flexibilityis as its name implies: how well a system can be adjusted
to meet changes in processing requirements that are interdependent on
variables such as product or service design, volume of production, and
technology.
PROCESS-PRODUCT MATRIX
The Product-Process Matrix was first introduced by Robert Hayes and Steven
Wheelwright in the Harvard Business Review in 1979.
PROCESS-PRODUCT MATRIX
Process Structure
Process Life cycle
Stage
Low Volume
Unique
(One of a
kind)
Low Volume
Multiple
Products
Higher Volume
(Standardised
products)
Project
Jumbled Flow
(Job shop)
Disconnected
line flow (batch)
Connected line
flow (assembly
line)
Continuous flow
(Continuous)
Job shop
Batch
Assembly Line
Continuous
PROCESS-PRODUCT MATRIX
Job Shop: A job shop is the producer of unique products; usually this product
is of an individual nature and requires that the job shop interpret the
customer's design and specifications, which requires a relatively high level of
skill and experience. Once the design is specified, one or a small number of
skilled employees are assigned to the task and are frequently responsible for
deciding how best to carry it out.
Each unique job travels from one functional area to another according to its
own unique routing, requiring different operations, using different inputs,
and requiring varying amounts of time. This causes the flow of the product
through the shop to be jumbled, following no repetitive pattern.
Batch: Firms utilizing batch processes provide similar items on a repeat basis,
usually in larger volumes than that associated with job shops. Products are
sometimes accumulated until a lot can be processed together. When the most
effective manufacturing route has been determined, the higher volume and
repetition of requirements can make more efficient use of capacity and result
in significantly lower costs.
Since the volume is higher than that of the job shop, many processes can be
utilized in repetition, creating a much smoother flow of work-in-process
throughout the shop.
PROCESS-PRODUCT MATRIX
Batch: While the flow is smoother, the work-in-process still moves around to
the various machine groupings throughout the shop in a somewhat jumbled
fashion. This is described as a disconnected line flow or intermittent flow.
Line: When product demand is high enough, the appropriate process is the
assembly line. Often, this process (along with continuous; both are in the
lower-right quadrant of the matrix) is referred to as mass production.
Labourers generally perform the same operations for each production run in a
standard and hopefully uninterrupted flow. The assembly line treats all
outputs as basically the same.
TYPES OF LAYOUTS
Types of Layout
Product layout
Process layout
In this type of layout, the product is kept at a fixed position and all other
material; components, tools, machines, workers, etc. are brought and
arranged around it. Then assembly or fabrication is carried out. The layout of
the fixed material location department involves the sequencing and
placement of workstations around the material or product. It is used in
aircraft assembly, shipbuilding, and most construction projects.
TYPES OF LAYOUTS
Cellular manufacturing
LINE BALANCING
Line Balancing is levelling the workload across all processes in a cell or value
stream to remove bottlenecks and excess capacity. Aconstraintslows the
process down and results ifwaitingfor downstream operations andexcess
capacityresults in waiting and no absorption offixed costs.
FACILITIES LOCATION
Corporate expansion means not only getting more office space, but also
facilities to manufacture and store supplies and products. Choosing a facility
location requires significant financial investment, and therefore prudent
planning, to ensure the location is the most cost-effective and functional of
all your options. Utilize a broad financial view of each proposed site, taking
into account not only its purchase or lease cost but the money put into it over
the long term.
Layout
The physical layout of the facility location will determine whether future
expansion can include adding more facility buildings and enlarging
manufacturing space within the site. Whether buildings and manufacturing
lines must be created by scratch or they are already exist on-site with
minimal renovations is also a consideration.
Cost
FACILITIES LOCATION
Logistics
The site must have adequate transportation routes to get goods to and from
the site. The facility itself must come equipped with adequate electrical and
plumbing to run an effective operation; if they don't yet exist they must be
cheap enough to install at the site.
Labor
A facility requires labor to run. Management staff might relocate from other
areas, but on the ground workers are sourced locally. A facility close enough
to a municipality with a healthy supply of labor to operate it is a must.
Political Stability
FACILITIES LOCATION
Regulations
Community
Facility locations are not temporary; the choice you make will stick with your
company for the long haul. It's therefore key that your company fits with the
community it's associated with. Although the municipality might appreciate
your company's facility because it creates jobs, some might resent your
presence because of aesthetics or environmental factors. Maintaining a
hassle-free relationship with the locals helps ensure your licenses and permits
are easier to obtain and maintain over the life of the site.
1.
Time study: Time Study consists of recording times and rates of work for
elements of a specified job carried out under specified conditions to obtain
the time necessary to carry out a job at a defined level of performance.
2.
3.
Its principles are geared towards how the nature of a person's job affects their
attitudes and behaviour at work, particularly relating to characteristics such as
skill variety and autonomy.
Job rotation: Job rotationis a job design method which is able to enhance
motivation, develop workers' outlook, increase productivity, improve the
organization's performance on various levels by its multi-skilled workers, and
provides new opportunities to improve the attitude, thought, capabilities and
skills of workers. Job rotation is also process by which employees laterally
mobilize and serve their tasks in different organizational levels; when an
individual experiences different posts and responsibilities in an organization,
ability increases to evaluate his capabilities in the organization.