Manufacturing Operations Management
BY
AMAR P. NARKHEDE
Manufacturing Operations Management
Production/operations management is the process,
which combines and transforms various resources used in the
production/operations subsystem of the organization into
value added product/services in a controlled manner as per the
policies of the organization. Therefore, it is that part of an
organization, which is concerned with the transformation of a
range of inputs into the required (products/services) having the
requisite quality level.
The set of interrelated management activities, which
are involved in manufacturing certain products, is called as
production management. If the same concept is extended to
services management, then the corresponding set of
management activities is called as
service operations
management.
Manufacturing Operations Management
For over two centuries operations and production
management has been recognised as an important factor in a
country’s economic growth.
The traditional view of manufacturing management
began in eighteenth century when Adam Smith recognised the
economic benefits of specialisation of labour. He
recommended breaking of jobs down into subtasks and
reorganised workers to specialised tasks in which they would
become highly skilled and efficient. In the early twentieth
century, F.W. Taylor implemented Smith’s theories and
developed scientific management. From then till 1930, many
techniques were developed prevailing the traditional view.
Manufacturing Operations Management
Production management becomes the acceptable term from 1930s
to 1950s. As F.W. Taylor’s works become more widely known, managers
developed techniques that focused on economic efficiency in manufacturing.
Workers were studied in great detail to eliminate wasteful efforts and achieve
greater efficiency. At the same time, psychologists, socialists and other social
scientists began to study people and human behaviour in the working
environment. In addition, economists, mathematicians, and computer
specialists contributed newer, more sophisticated analytical approaches.
With the 1970s emerges two distinct changes in our views. The
most obvious of these, reflected in the new name operations management
was a shift in the service and manufacturing sectors of the economy. As
service sector became more prominent, the change from ‘production’ to
‘operations’ emphasized the broadening of our field to service organizations.
The second, more suitable change was the beginning of an emphasis on
synthesis, rather than just analysis, in management practices.
Manufacturing Operations Management
Evolution of Factory System
The factory system was a method of manufacturing first adopted in
England at the beginning of the Industrial Revolution in the 1750s and later
spread abroad. Fundamentally, each worker created a separate part of the
total assembly of a product, thus increasing the efficiency of factories.
Workers, paid by wage, and machines were brought together in a central
factory. All the processes of production would be carried out under one roof,
and would continue as long as it was practical
Manufacturing Operations Management
The factory system was largely responsible for the rise of the modern city, as
large numbers of workers migrated into the cities in search of employment in
the factories. Nowhere was this better illustrated than the mills and
associated industries of Manchester, nicknamed "Cotton polis", and arguably
the world's first industrial city. For much of the 19th century, production was
done in small mills, which were typically water-powered and built to serve
local needs. Later each factory would have its own steam engine and a
chimney to give an efficient draft through its boiler.
The transition to industrialization was not without difficulty. For example, a
group of English workers known as Luddites formed to protest against
industrialization and sometimes sabotaged factories. They continued a
tradition already established where new machines threatened existing jobs.
Numerous inventors in the textile industry such as John Kay and Samuel
Crompton for example, suffered harassment when developing their machines
or devices.
Manufacturing Operations Management
Types of Manufacturing Systems
•Custom Manufacturing
•Intermittent Manufacturing
•Continuous Manufacturing
•Flexible Manufacturing
Manufacturing Operations Management
Custom Manufacturing
This is one of the oldest manufacturing systems in the world because it goes
back to when products where first made. Basically custom manufacturing is
where one person has the skill that is needed to make a certain product. A
great example of this type of manufacturing is a shoe maker or a candle
maker; it used to be that only one person was required to make these
customized products. Custom manufacturing is still used today but rather
than just one person making the product that is required we have machines
that will do the jobs for us. And if people are doing the manufacturing you
are going to need more than one person to make the specialized product so
you can keep up with the higher demands.
Manufacturing Operations Management
Intermittent Manufacturing
This is also an older style of a manufacturing system. This system was used
when custom manufacturing could not meet the demands of the customers.
Basically what intermittent manufacturing is where more than one of the
same product is being made. This type of manufacturing is actually used
world wide and it is a great way to make more than one product in a short
amount of time, as long as the product is the same product. This type of
manufacturing won't work on multiple products. A great example of this type
of manufacturing is making five pairs of the same shoe rather than one
custom pair of shoes.
Manufacturing Operations Management
Continuous Manufacturing
This is a newer system of manufacturing and it was created when product
demands got to be too much for intermittent manufacturing. Basically this
manufacturing system is an actual assembly line. This system is usually used
when more then one product is being made and it takes more than two
people working together to actually make the product. In this type of
manufacturing system the product moves from one station to the next and
each person at each station has a specific job that they need to do in the
manufacturing process. This type of manufacturing system is great if you are
producing a product that requires you to complete a lot of steps before it
can be considered a finished product, but the drawback to this type of
manufacturing system is that it can be expensive to run.
Manufacturing Operations Management
Flexible Manufacturing
This is actually the newest type of manufacturing system that is being used
currently. This type of manufacturing system uses machines that are
controlled by computers.
This type of manufacturing produces a product just like intermitted
manufacturing and is continuous like continuous manufacturing, but the
thing about this type of manufacturing system is that it cuts out having to
hire people for an assembly line. Not to mention that it is also a great way to
always make the product faster with consistent quality which is a great way
to keep up with the customers demands.
Manufacturing Operations Management
Manufacturing Quality
Quality control is a process by which entities review the quality of all factors
involved in production. This approach places an emphasis on three aspects:
Elements such as controls, job management, defined and well managed
processes, performance and integrity criteria, and identification of records
Competence, such as knowledge, skills, experience, and qualifications
Soft elements, such as personnel integrity, confidence, organizational culture,
motivation, team spirit, and quality relationships.
The quality of the outputs is at risk if any of these three aspects is deficient in
any way.
Manufacturing Operations Management
Manufacturing Quality
Quality Control emphasizes testing of products to uncover defects, and
reporting to management who make the decision to allow or deny the
release, whereas
Quality Assurance attempts to improve and stabilize production, and
associated processes, to avoid, or at least minimize, issues that led to the
defects in the first place
Manufacturing Operations Management
Mass Customization
Mass customization can be described as "enabling a customer to
decide the exact specification of a product or service, and have that
product or service supplied to them at a price close to that for an
ordinary mass produced alternative".
Manufacturing Operations Management
What is PRODUCTION?
Production function is that part of an organization, which
is concerned with the transformation of a range of inputs
into the required outputs (products) having the requisite
quality level.
Manufacturing Operations Management
Definition of PRODUCTION
Production is defined as
“the step-by-step conversion of one form of material into another form
through chemical or mechanical process to create or enhance the utility
of the product to the user.”
Thus production is a value addition process. At each stage of processing,
there will be value addition.
Manufacturing Operations Management
Inputs
• Men
•Material
•Capital
•Information
•Machines
Transformation Process
• Product Design
•Process Planning
•Production Control
•Maintenance
Continuous
•Inventory
•Quality
•Cost
Schematic Design of a simple Production system
Output
•Products
•Services
Manufacturing Operations Management
Characteristics of a Production System
1.
Production is an organized activity, so every production system has
an objective.
2. The system transforms the various inputs to useful outputs.
3. It does not operate in isolation from the other organization system.
4. There exists a feedback about the activities, which is essential to
control and improve system performance.