Key Concepts in Production and Operations Management

Production Objectives

The main objectives of production are:

1. Right Quality
2. Right Quantity
3. Timeliness
4. Low Manufacturing Cost

Objectives of Production Management

1. To provide customer service
2. Effective utilization of resources
3. To reduce cost of production
4. To improve product quality
5. To fix time schedule
6. Proper utilization of Machinery
7. Material control

Production System Cycle

1. Production is a well-organized activity with pre-established objectives.
2. The production system converts the various inputs into outputs.
3. Production function is integrated with other activities of the organization.
4. A feedback system is necessary to control and improve the system performance.
5. It is a continuous process.

Important Points in Plant Layout

1. Need for plant expansion.
2. Protection of operation equipment.
3. Maintenance requirements.
4. Location

Principles of Plant Layout

1. Principle of integration.
2. Principle of minimum distance.
3. Principle of cubic space utilization.
4. Principle of flow.
5. Principle of maximum flexibility.
6. Principle of safety, security, and satisfaction.
7. Principle of minimum handling.

Types of Capacity

1. Maximum
2. Effective
3. Demonstrated

Guidelines for Calculating Capacity

1. The first step is to describe the general flow of activities within the process.
2. Establish the time period.
3. Establish a common unit of measurement for the entire process.
4. Identify the maximum capacity for the overall process.
5. Identify the effective capacity for the overall process.
6. Determine the demonstrated capacity.
7. Compare the demonstrated, effective, and maximum capacities and take appropriate actions.

Categories of Production

Factory / Process / Operations.

Cost of Quality

1. Prevention costs
2. Appraisal cost
3. Failure costs

Principles of TQM (Total Quality Management)

1. Customer focus
2. Continuous improvement
3. Employee empowerment
4. Team approach
5. Measuring and controlling

Types of Maintenance

Breakdown / Preventive maintenance / Predictive maintenance.

Layout Types

Layouts can be classified into the following five categories:

1. Process layout
2. Product layout
3. Combination layout
4. Fixed position layout
5. Group layout

Production Systems

1. Continuous System
2. Intermittent System
3. Project Process

Factors Influencing Product Design

1. Product features
2. Requirements of customers
3. Availability of capital
4. Availability of technologies
5. Legal factors
6. Availability of employees