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
Production through
modification
3
Production by
assembly
2
Let us discuss
each one in
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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
• Flexibility to accommodate and
• Standardisation of product and
process number of products does
process sequence
not exist
• Higher rate of production with
• Very high investment for setting flow
reduced cycle time
lines
• Higher capacity utilization due to
• Product differentiation is limited
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
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
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
Process design requiresrequired
a broadto manufacture
the end product
view of the whole organization
and should not have a myopic
A outlook
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
3
Material planning
ensures that inventory
levels are maintained
at its minimum levels
Material planning
provides information of
production planning and
scheduling but also
provides information
about dispatch and
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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