operationplanningandcontrol.pptx for mechanical

Functions of opcs mainly preplanning planning and control

1. OPERATION PLANNING AND CONTROL It is concerned with designing and controlling the production of goods and services ensuring that businesses are efficient in using resources to meet customer requirement

2. Production of goods The process of manufacturing goods and products from raw materials

3. services It is an intangible activity which depends on customer requirements Service Operations: Professional Services Domestic Services Maintenance Services Maintenance Service: It is a set of tasks, activities or actions performed to keep equipment, machinery, systems, facilities, or assets in proper working condition and to prevent issues or failures. the types are: Supporting Facility Facilitating Goods Information Explicit Services Implicit Services

4. Supporting Facility : The physical resources that must be in place before a service can be sold Examples: Hospital, Airplane . Facilitating Goods : The material consumed by the buyer or items provided by the consumer Examples: Food items, Medical history . Information : Information that is provided by the customer to enable efficient and customized service. Examples: Patient medical records. Explicit Services : Benefits readily observable by the senses. Examples: Quality of meal, Attitude of the waiter Implicit Services : Psychological benefits which the customer may sense only vaguely. Examples: Privacy of loan office, Security of a parking lot. Cont.

5. Production system A production converts some inputs like men, material, money, etc into useful outputs like finished products and services. Types of production system: Intermittent Production system: Job Shop Production System Batch Production System Continuous Production System Mass Production System Flow Production System

6. Intermittent Production System An interrupted flow of materials through the plant. In this production system, general purposed machines are used. Characteristics: Most products are produced in small quantity. Machines and equipment's are laidout by process. Work loads are generally unbalanced. Highly skilled operators are required for efficient use of machines and equipment's. Work in process inventory is large. Flexible to suit production varieties

7. Job shop production : It is also known as job order production. It deals with producing the products for fulfilling the customer needs or requirements. In this system, all the orders need different processes and different sequences of technological orders. Ex : Tailor’s shop, Vehicle repair shops,etc.

8. Characteristics : Small Production runs It manufactures one or few number of single designed product strictly according to customer’s specification Flow of materials There is highly discontinuous flow of materials and components at different stages of production due to unbalanced operation-wise work content. Manufacturing Cycle time It is lengthened due to long delays at assembly as well as material processing stages Layout of plant and equipment Process-type layout is used in these production systems as there are changes in operations and sequences from product to product. Cost of production There is high cost involved per unit of production because the firm cannot take advantage of large scale buying and automation. Cont.

9. ADVANTAGES : It requires small amount of investment in equipments and machinery . It is flexible in nature and can be stated early . In the job shop system, a mistake or defect in one operation, does not interrupt the whole process . The risk involved is less and the chances of failure are also less. DISADVANTAGES : The production system of job shop system is very complicated . The job shop system faces difficulty in loading the machines . It requires high inventories . The cost of material handling involved in job shop system is high. Cont.

10. Batch production system: In this type of production, two or more types of products manufactured in lots ( i.e., batches) at regular intervals. Different products are manufactured and stacked and then sold on receipt of orders.   This is generally adopted in medium size enterprises. It is bigger in scale than the job production while it is smaller than that of mass production Examples: Paints, Clothes, Forging machines,etc .

11. Characteristics : Production in Batches Articles are manufactured in batches as per the specific order procured . Division of Labour Division of labour is possible . Flow of Materials Flow of materials is intermittent. Plant Layout Plant layout is of process type. Maintenance Proper maintenance of machinery and equipment is essential. Cont.

12. ADVANTAGES : Plant and machinery are optimally utilized . When compared to job order production, cost per unit in batch production is less . In batch production, investment in plant and machinery is also low . Batch production is flexible in nature to follow any process and number of products . Operators enjoy greater job satisfaction DISADVANTAGES : Due to irregular and longer flows, material handling is difficult . Production planning and control is also complicated in batch production . Due to repetitive modifications in set up, it results in higher set up costs . Due to repetitive modifications in set up, it results in higher set up costs. Cont.

13. Continuous Production System It involves a continuous or almost continuous physical flow of material. This production system uses special purpose machines. It produces the standardized components in large quantities Characteristics : In a continuous production system the flow of production is continuous. It is not intermittent. The products produced in continuous production system are standardized products. In a continuous production system the products are produced on predetermined quality standards. The products are produced in anticipation of demand.

14. Mass Production System: When different parts or assemblies are manufactured with the help of a continuous process, then it is known as mass production. In this type of production, machines are organized in the form of a line or product layout and it involves a very large volume of production. Mass production includes both product and process standardization and similar path is followed by all outputs . Examples: Components of Industrial Products.

15. Characteristics : Production in Large Volumes Production is carried out in large volumes . Short Cycle Time The cycle time of production is short. Machines and Equipments Special purpose machines are used which have the higher production capacities and output rates . Flow of Material Materials, components and parts have continuous flow without any backward movement. Material Handling Material handling is carried out automatically. Cont.

16. ADVANTAGES : The rate of production is high in mass production with less cycle time . Proper utilization of the capacity with the help of line balancing. Mass production does not require high skilled workers, it can be carried out with the help of semiskilled or low skilled workers . Less manufacturing cost per unit . DISADVANTAGES : If one machine stops functioning, then the entire production line would be halt. Alteration in the product design would drastically alter the line layout . Huge investment in production facilities .  In mass production, the cycle time is ascertained with the help of the slowest operation. Cont.

17. Flow Production System: Flow production system deals with continuous physical flow of materials. It is used when the product has fast consumption rate and has continuous demand. Examples: Petrol , Chemicals and automobile plants .

18. Characteristics : Flow of Material In the flow production system, the products pass through the same process. Material Handling Handling of material is done automatically in flow production system. Plant Layout The layout of the plant is designed on the basis of production requirements. Control Methods Sophisticated control methods are used for measuring and controlling the inputs and outputs.   Maintenance Proper maintenance of plants and effective control of quality are the pre-requisites of flow production system. Cont.

19. ADVANTAGES : In continuous production system, the production planning and control is simple when compared to job or batch production . It makes use of specialized machines and procedures for standardizing the items in large quantities . If the management takes the decision for discontinuing a particular line, then same machinery can be used for manufacturing other article . Material handling is minimized . It helps in providing lowest production cost per unit DISADVANTAGES : The effective working of continuous production systems depends on effective plant maintenance and effective quality control . In continuous production system, the managers have to spend significant efforts for the planning before starting the production . As continuous production system makes use of specialized machines, the amount of investment spent on these machines is very high. Cont.

20. Product Planning & Control : The first function of operations management is production planning and control. This involves the planning and coordination of all activities related to the production of goods and services. This includes the development of production plans, the scheduling of production activities, and the control of the production process. With efficient product planning  & management, organizations can ensure that their products are of high quality and meet the needs of their customers.

21. Benefits of Product Planning & Control: Ensure Product Manufacture:  By planning the production process and scheduling activities, product planners can ensure that products are manufactured on time. Improved Product Quality:  By controlling the production process, product planners can ensure high-quality products. Reduced Costs:  Organizations are able to reduce their production costs with efficient planning and coordination of production activities. Customer Satisfaction:  Product planners can ensure customer satisfaction by meeting the customer’s requirements.

22. Finance : The second function of operations management is finance. This involves the management of financial resources. The financing function includes budgeting, forecasting, and accounting. This function aims to ensure that the organization has the funds necessary to meet its objectives. It is essential to understand that finance is not limited to acquiring funds but also how to use them efficiently and effectively. Finance’s role in operations management is finding ways for a better investment.

23. Benefits of Finance: Efficient use of resources:  Finance helps organizations to use their resources efficiently and effectively. It ensures that the organization has the necessary funds to meet its objectives and also provides guidance on how to use those funds efficiently. Improved decision-making:  Finance provides information that can be used to make better decisions. This information can help organizations decide where to invest their resources and allocate their budgets. Increased profitability:  Finance can help organizations increase their profitability. By understanding where the organization’s money is being spent and how it can be used more efficiently, organizations can save money and increase their profits.

24. Product Design : This involves creating efficient methods for manufacturing products and delivering services. They will work closely with engineers and designers to ensure that products are manufactured efficiently and meet quality standards. The function of product design is to create a product that meets the customer’s needs while also being affordable and profitable for the company. It is essential for operations managers to have a strong understanding of production technology and processes in order to be effective at process design.

25. Benefits of Product Design: Improved efficiency:  By designing products and processes that are easy to manufacture and require minimal processing time, operations managers can improve the overall efficiency of the manufacturing process. This can lead to lower production costs and shorter lead times. Reduced Product Costs:  Product planners working in operations management  can often find ways to reduce the cost of materials and components used to manufacture a product. This can be done by redesigning products to use less expensive materials or finding new suppliers offering lower prices. Better Quality Products:  By carefully designing products and processes, operations managers can help to ensure that products are of high quality and meet customer expectations. This can lead to increased sales and improved customer satisfaction.

26. Inventory Management : Inventory management is no doubt one of the crucial functions of operations management. It involves managing the levels of stock in a company to ensure enough inventory to meet customer demand while also avoiding excessive levels of stock that could tie up working capital. Operations managers use a variety of techniques to manage inventory levels, including just-in-time (JIT) inventory systems, economic order quantity (EOQ) models, and supply chain management (SCM) systems. This ensures that the company has the right inventory level to meet customer demand while minimizing the costs associated with holding too much stock.

27. Benefits of Inventory Management: Avoids the costs associated with holding too much stock:  Inventory management helps avoid the costs associated with holding too much stock, such as storage costs and the opportunity cost of tied-up capital. Helps meet customer demand:  By managing inventory levels, operations managers can help ensure that customer demand is met. This is especially important in businesses where customer demand is high, and stock levels need to be closely monitored. Reduces The Stock outs:  By managing inventory levels, operations managers can help reduce the risk of stock outs . This is especially important in businesses where stock outs could lead to lost sales or production disruptions.

28. Quality Control : Operations management ensures that products and services meet the company’s and its customers’ quality standards. This includes establishing quality control procedures and ensuring that employees are adequately trained in quality control techniques. Quality control is an integral part of operations management because it can greatly impact a company’s bottom line. For instance, if a company makes a product that is not up to quality standards, it may have to issue refunds or replacements, which can cost the company money.

29. Benefits of Quality Control: Ensure products and services meet the company’s quality standards:  Quality control procedures help ensure that products and services meet the company’s quality standards. This helps to protect the company’s reputation and bottom line. Reduce the cost of refunds or replacements:  By ensuring that products and services meet quality standards, quality control can help to reduce the cost of refunds or replacements. Increase customer satisfaction:  Quality control can help to increase customer satisfaction by ensuring that products and services meet their expectations.

30. Forecasting : Forecasting is a complex process, and using the most accurate data and methods is essential. Both short-term and long-term planning is involved in forecasting. This helps the company to set production goals and make decisions about inventory levels, capacity, and staffing. Demand planning is a critical component of forecasting. This process involves analyzing past demand patterns and using them to predict future demand. Statistical methods, such as trend and regression, are often used in demand planning. Without accurate forecasting, companies may find themselves with too much or too little inventory, under-utilized capacity, and not enough staff to meet customer demand.

31. Benefits of forecasting: Helps the company to set production goals:  Forecasting helps the company to set production goals by analyzing past demand patterns and using them to predict future demand. Helps the company make decisions about inventory levels, capacity, and staffing:  By forecasting future demand, the company can make better decisions about inventory levels, capacity, and staffing. Helps the company avoid overproduction and production:  Forecasting helps the company to avoid overproduction and underproduction by predicting future demand.

32. Supply Chain Management : When it comes to supply chain management, the functions of operations management become even more critical. In order to ensure that goods and services are delivered on time and within budget, operations managers must coordinate the activities of suppliers, manufacturers, warehouses, and transportation companies. By doing so, they can avoid disruptions in the supply chain and keep costs down . Supply chain management is a vital fragment of operations management and one in which functions must be constantly monitored and improved.

33. Benefits of Supply Chain Management: Reduces overall costs Improves communication and coordination Increases transparency and accountability Decreases turnaround time Enhances customer satisfaction levels

34. Operational Strategy : This strategy is designed to help an organization achieve its long-term goals and objectives. Operations managers must consider the resources available to them, their customers’ needs, and the organization’s overall objectives. By considering all of these factors, they can develop a plan to help the organization achieve its goals. The functions of operations management are essential in the development and implementation of an operational strategy.

35. Benefits of an Operational Strategy: Helps to achieve long-term goals: Operational strategy  Takes into account the needs of customers Utilizes available resources Can be adapted as needed