Introduction to
production and
operations management
Contents
Production and Operations Management – An overview
Objectives of Production and Operations Management
Forecasting
Quality Management – Strategic Issues
Process Analysis and Design
Effective Product Design
Supply Chain Management and Capacity Planning
Facilities Planning
Materials Management and Warehouse
Inventory Management
Materials and Resource Planning
Production Planning and Operations Scheduling
Process Configuration Strategies
Management of Technology
Planning Team Work and Job Design
Project Management – Planning Development Strategies
Change Management
Work Study and Industrial Engineering
Introduction
Wegmans food markets
• Wegmans Food Markets, Inc., is one of the premier
grocery chains in the United States.Headquartered
in Rochester, NY
• Wegmans operates over 70 stores. The company
employs over 23,000 people, and has annual sales of
over $2billion
Introduction
Superstores
Many of the company’s stores are giant 100,000 sq.ft.
superstores, double or triple the size of average supermarkets.
A superstore typically employs from 500 to 600 people
Each store is little different. Among the special features in some
stores are a dry cleaning department, a wokery, and a salad bar.
Some stores feature a Market Cafe that has different food
stations, each devoted to preparing and serving a certain type of
food. For example, one station has pizza and other Italian
specialties, and another oriental food. There is also a sandwich
bar, a salad bar and a dessert station.
Introduction
Ordering
• Each department handles its own ordering. Although
sales records are available from records of items
scanned at the checkouts, they are not used directly
for replenishing stock. Other factors, such as
pricing, special promotions, local circumstances must
all be taken into account. However, for seasonal
periods, such as holidays, managers often check
scanner records to learn what past demand was
during a comparable period
Introduction
Quality
• Quality and Customer satisfaction are utmost in the
minds of Wegmans management and its employees
• Managers are responsible for checking and
maintaining products and service quality in their
departments. Moreover, employees are encouraged
to report problems to their managers
Production
The very essence of any business is to cater needs
of customer by providing services and goods, and
in process create value for customers and solve
their problems. Production and operations
management talks about applying business
organization and management concepts in
creation of goods and services.
Production
Production is a scientific process which involves transformation of raw
material (input) into desired product or service (output) by adding economic
value. Production can broadly classified as follows:-
1
Production through separation
2
3
Production through modification
Production by assembly
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each one in detail
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Concept of production
The ‘Johari Window’ is
Production is defined as
based on a four-square
“the step-by-step “
grid.
conversion of one form of
material into another form
The ‘Johari Window’ is
through chemical or
made up of a window with
mechanical process to
four 'panes’.
create or enhance the
utility of the product to the
user
The
window is a square
pane with a cross in the
middle
of it.
This cross
divides the
Thus production is a value
window into four panes.
addition process. At each
stage of processing, there
will be value addition
Continuous production-Advantages and Disadvantages
• Standardisation of product and process
sequence
• Higher rate of production with reduced
cycle time
• Higher capacity utilization due to line
balancing
• Manpower is not required for material
handling as it is completely automatic
• Person with limited skills can be used on
the production line
• Unit cost is lower due to high volume of
production
• Flexibility to accommodate and process
number of products does not exist
• Very high investment for setting flow lines
• Product differentiation is limited
Operation strategy
Operational strategy is essential to
achieve operational goals set by
organization in alignment with overall
objective of the company. Operational
strategy is design to achieve business
effectiveness or competitive advantage
Objectives of production management
Right quality
Right quality does not mean “best quality”. The
quality of the product is based upon the
customers requirements. The quality is
determined by the cost of the product and the
technical characteristics depending on the specific
requirements.
Purpose of Forecasting
The purpose of forecasting is to help the organization manage the present and to
prepare for the future by examining the most probable future demand pattern.
However, forecasting has its constraint, for example, we cannot estimate a pattern
for technologies and product where there are no existing pattern or data.
Focus of TQM
Appropriate reward for
quality improvement
and suggestions
Involvement of all
employees in the process
Selection of
suppliers
Maximum
customer
satisfaction
Organization
structure to
support the
process
Process design
In order to achieve a good
process design, effective
process strategy is required,
which deals with a singular
line items required to
manufacture the end product
Process design requires a broad view
of the whole organization and should
not have a myopic outlook
A successful process design has to take into account the
appropriateness of the process to overall organization
objective
Effective
process strategy
deals with raw
material
procurement,
customer
participation,
technology
investment, etc.
Facility layout
Facility layout is an arrangement of different aspects of
manufacturing in an appropriate manner to achieve
desired production results. Facility layout considers
available space, final product, safety of users and facility
and convenience of operations
Factors affecting facility layout
1
2
The design of the
facility layout
should consider
overall objectives
set by the
organization
Optimum space
needs to be
allocated for
process and
technology
3
4
A proper safety
measure to avoid
mishaps
Overall
management
policies and future
direction of the
organization
Materials and Resource Planning
Material requirement planning is an information system for production planning based
on inventory management. The basic components of material planning are:
Material planning provides
information that is required
for raw material and products
that are available for
production
1
2
Material planning ensures
that inventory levels are
maintained at its minimum
levels
3
Material planning provides
information of production
planning and scheduling but
also provides information
about dispatch and stocking
Types of process flows
A synthetic process is one in which different components come together in order to
form a single product. Synthetic processes employ “synthesis”, which is defined as
many inputs joining together to form a “whole”. The purest example of synthesis is
“many-to-one”. However, in reality this is mostly reinforced by a relatively synthetic
process, which combines “the many” to form “a few” instead
Advantages of work study
Meets delivery
commitments
Better managementworker relations
3
2
1
It helps to reduce the
product cost through
elimination of waste
and unnecessary
operations
It enables the
achievement of a
smooth production
flow with minimum
interruptions
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