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SUB:Operations Management (MPRBA-206) : MBA-Trim 2 , Oct 2008 to Jan 2009

UNIT -1:
Visit to Gitam Inst Of Technology, Mech Engg Workshop
1.Introduction on Production &Operations Management (P.O.M)
2.Scope of Production& Operations Mgt (P.O.M)
3.Evolutiontionary milestones
4.Types of Manufacturing systems
5.Service Operations
6.Case Study

                                   ##################################################
#############################
                                   OMba_Tri_Ws 2



Evolutionary mile stones

                                                                            Automation
                                                                               And
                                                         Scientific         Computer
                          Industrial                     management         Integrated
Handicraft                Revolution                                         Systems
    Era
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
  1750         1800             1850            1900          1950     2000
*     Colonial      * Industrial * Financial &Marketing * * Infrmn Expansion
     Expansion       Expansion         Expansion        Dn & Global comptn


Mile Stones:
1)Handicraft Era :
James Watt,1764, : Steam Engine
Adam Smith,1776,: Division of Labour
American Constitution: 1789
 Eli whitney,1790, :Interchangeable parts
2)Industrial Revolution:
Charles Babbage,1832: Economic analysis of work & pay based on skill
requirements.
3)Scientific Management:
Frederic Taylor,1890,: Father of Scientific Management,Training,Time study,
Production standards
Frank & Lilian Gilbreth,1910,:Motion Economy & Human Factors
Henry Ford,1913, : Assembly - Line Mass production
Henry Gantt,1913,:Scheduling systems
W.Shewart,1913,;Statistical Quality Control(S.Q.C)
F.W.Harris,1915,:Economic Ordering Quantity(E.O.Q) model, for Inventory
management (Part of Materials Management)
Elton Mayo,1933,: Attention to behavioural factors
L.H.C.Tippett,1935 : Work Sampling




4)Automation & Computer Integrated Systems:
Post 1930 s:
Individual contributions :
Dantzig,
Deming,
Juran,
Buffa,
Hertzberg,
Wight,
Skinner, etc.
Organisational contributions :
AT&T,
GM,
DUPONT,
IBM,
VOLVO,GE,
SIEMENS,
TOYOTA,
INTEL,
PHILIPS, etc.
Post 1950’s:
 Operations Research(O.R) Techniques,Comutreised Information Systems & Age of
Automation commenced (Logic units provided in equipments)
Current Status:
Robotisation in 70s,
C.I.S(Computer Integrated Systems) in 80s,
 And Production became capable of responding to on line information.
F.M.S(Flexible Manufacturing Systems in 90s for customization & Volumes.
Extensive usage of I.T & C.T is the order of day.
GLOBALISATION ERA OF OPERATIONS(FOR MARKETS) ACCELERATED
DURING 1990S.
Welcome to the GLOBALISATION ERA.

##############################################################
                                OMba_Tri_Ws 3

Types of Manufacturing systems:
Production process involved is categorized as (a)Flow or Continuous Production
&(b) Intermittant Production.
##############################################################
#####
(a)Flow or Continuous Production :
Repeated production,Work moves from one stage to next stage as per set sequence,
standard procedures& sequence,Inputs standardized
Egs: Medical tablets,Fertiliser, car.
              to C
(b) A to B             to D to        E
              to C

( c) Varieties:
(c.1) Mass production , eg: tablets, F.M.C.Gs
(c.2) Process Production:
Analytical :One Raw material into many products, eg. Crude oil into
petrol,diesel,kerosene,tar….
Synthetic: 2 or more Raw materials into one product, eg: Iron ore & others into steel,
many chemicals into soap…
Assembly: (Notation: I, inputs, P parts , F.P is finished product)
I1
       into      P1
I2

I3
     into       P2       into      F.P
I4

I5
     into        P3
I6

Line balance method is used. Eg: Automobile, TV…
Characterictics: use of special purpose machines, high capital for
equipment,Machines capacity to be balanced,Fixed material handling equipments
like Cranes, fork lifts …,online inspection, Less inventory, less space requirement per
unit production,% of man power costs less in total cost,less control,product layout,
Demerits: Disruptions are critical
Requirements:Constant demand for product,inputs of good quality,Preventive
maintenance, high investment
##############################################################
##
(b) Intermittant Production:
Production not continuous & made only when required.
Facilities(Equipment,people..) flexible to handle a variety of products and
specifications.
Characterictics: No single procedure,production of a product non uniform &
intermittent,frequent changes in product design, usage of general purpose
machines,Functional or Process Layout, Components are made for in process
inventory and then assembled,small volume per product,low capital,Specialised
labour,PPC is critical, Labour costs high, Material handling in varying paths,All
similar machines at one location.
Varieties:
JOB PRODUCTION:
single complete unit made by a group of people.eg: ship,Building,Dam..
Work completed individually on each productEg: printing press jobs:operate
printing machine for printing,folding,page
setting,stapling,trimming,binding,packing&transporting.
BATCH PRODUCTION:
Increased production quantities for repeatition,
Due to non uniform demand in the year, switching to other products becomes
essential.
All processes are done for one batch of a product & repeated.
Eg: Export products,Motors,Boilers…
BATCH PRODUCTION may be considered as a combination of Job+Mass
production.
( c)Another categorization:
MULTI PURPOSE PRODUCTION:
System starts in the form of BATCH PRODUCTION and then grows into MASS
PRODUCTION. This is the current trend.

#########################################################

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O Mba Tri Ws2,3

  • 1. SUB:Operations Management (MPRBA-206) : MBA-Trim 2 , Oct 2008 to Jan 2009 UNIT -1: Visit to Gitam Inst Of Technology, Mech Engg Workshop 1.Introduction on Production &Operations Management (P.O.M) 2.Scope of Production& Operations Mgt (P.O.M) 3.Evolutiontionary milestones 4.Types of Manufacturing systems 5.Service Operations 6.Case Study ################################################## ############################# OMba_Tri_Ws 2 Evolutionary mile stones Automation And Scientific Computer Industrial management Integrated Handicraft Revolution Systems Era ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 1750 1800 1850 1900 1950 2000 * Colonial * Industrial * Financial &Marketing * * Infrmn Expansion Expansion Expansion Expansion Dn & Global comptn Mile Stones: 1)Handicraft Era : James Watt,1764, : Steam Engine Adam Smith,1776,: Division of Labour American Constitution: 1789 Eli whitney,1790, :Interchangeable parts 2)Industrial Revolution: Charles Babbage,1832: Economic analysis of work & pay based on skill requirements. 3)Scientific Management: Frederic Taylor,1890,: Father of Scientific Management,Training,Time study, Production standards Frank & Lilian Gilbreth,1910,:Motion Economy & Human Factors Henry Ford,1913, : Assembly - Line Mass production Henry Gantt,1913,:Scheduling systems W.Shewart,1913,;Statistical Quality Control(S.Q.C) F.W.Harris,1915,:Economic Ordering Quantity(E.O.Q) model, for Inventory management (Part of Materials Management) Elton Mayo,1933,: Attention to behavioural factors
  • 2. L.H.C.Tippett,1935 : Work Sampling 4)Automation & Computer Integrated Systems: Post 1930 s: Individual contributions : Dantzig, Deming, Juran, Buffa, Hertzberg, Wight, Skinner, etc. Organisational contributions : AT&T, GM, DUPONT, IBM, VOLVO,GE, SIEMENS, TOYOTA, INTEL, PHILIPS, etc. Post 1950’s: Operations Research(O.R) Techniques,Comutreised Information Systems & Age of Automation commenced (Logic units provided in equipments) Current Status: Robotisation in 70s, C.I.S(Computer Integrated Systems) in 80s, And Production became capable of responding to on line information. F.M.S(Flexible Manufacturing Systems in 90s for customization & Volumes. Extensive usage of I.T & C.T is the order of day. GLOBALISATION ERA OF OPERATIONS(FOR MARKETS) ACCELERATED DURING 1990S. Welcome to the GLOBALISATION ERA. ############################################################## OMba_Tri_Ws 3 Types of Manufacturing systems: Production process involved is categorized as (a)Flow or Continuous Production &(b) Intermittant Production. ############################################################## ##### (a)Flow or Continuous Production :
  • 3. Repeated production,Work moves from one stage to next stage as per set sequence, standard procedures& sequence,Inputs standardized Egs: Medical tablets,Fertiliser, car. to C (b) A to B to D to E to C ( c) Varieties: (c.1) Mass production , eg: tablets, F.M.C.Gs (c.2) Process Production: Analytical :One Raw material into many products, eg. Crude oil into petrol,diesel,kerosene,tar…. Synthetic: 2 or more Raw materials into one product, eg: Iron ore & others into steel, many chemicals into soap… Assembly: (Notation: I, inputs, P parts , F.P is finished product) I1 into P1 I2 I3 into P2 into F.P I4 I5 into P3 I6 Line balance method is used. Eg: Automobile, TV… Characterictics: use of special purpose machines, high capital for equipment,Machines capacity to be balanced,Fixed material handling equipments like Cranes, fork lifts …,online inspection, Less inventory, less space requirement per unit production,% of man power costs less in total cost,less control,product layout, Demerits: Disruptions are critical Requirements:Constant demand for product,inputs of good quality,Preventive maintenance, high investment ############################################################## ## (b) Intermittant Production: Production not continuous & made only when required. Facilities(Equipment,people..) flexible to handle a variety of products and specifications. Characterictics: No single procedure,production of a product non uniform & intermittent,frequent changes in product design, usage of general purpose machines,Functional or Process Layout, Components are made for in process inventory and then assembled,small volume per product,low capital,Specialised
  • 4. labour,PPC is critical, Labour costs high, Material handling in varying paths,All similar machines at one location. Varieties: JOB PRODUCTION: single complete unit made by a group of people.eg: ship,Building,Dam.. Work completed individually on each productEg: printing press jobs:operate printing machine for printing,folding,page setting,stapling,trimming,binding,packing&transporting. BATCH PRODUCTION: Increased production quantities for repeatition, Due to non uniform demand in the year, switching to other products becomes essential. All processes are done for one batch of a product & repeated. Eg: Export products,Motors,Boilers… BATCH PRODUCTION may be considered as a combination of Job+Mass production. ( c)Another categorization: MULTI PURPOSE PRODUCTION: System starts in the form of BATCH PRODUCTION and then grows into MASS PRODUCTION. This is the current trend. #########################################################