Operations Management Fundamentals: Capacity, Kaizen, and Production Systems

Scope of Operations Management and Production Systems

The Scope of Operations Management

1. Location facilities
2. Plant layout and material handling
3. Product design
4. Process design
5. Production Planning and Control: Routing, Scheduling, Dispatching, and Follow-up
6. Quality Control
7. Material Management

Main Types of Production

There are mainly three types of production:

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

Capacity Planning: Importance and Core Principles

Importance of Capacity Planning

1. Capacity decisions impact the ability of the organization to meet demand.
2. Capacity decisions affect operating costs.
3. Capacity is usually a major determinant of initial cost.
4. Capacity decisions often involve long-term commitment of funds.
5. Capacity decisions can affect competitiveness.
6. Capacity planning reduces complexity in manufacturing operations.

Principles of Capacity Planning

1. Agree on a common definition of capacity planning.
2. Select a capacity planning process owner.
3. Identify the key resources to be measured.
4. Compare current utilization to maximum capacity.

Work Study Techniques: Time and Motion Analysis

1. Time Study
2. Motion Study
3. Principles of Motion Study

Core Elements of Motion Study Principles

• Use of the human body
• Arrangement of the workplace
• Design of tools and equipment

Kaizen and Quality Control Benefits

Kaizen: Continuous Improvement Philosophy

Key benefits of implementing Kaizen include:

• Less waste
• People are more satisfied
• Improved commitment
• Improved retention
• Improved competitiveness
• Improved consumer satisfaction
• Improved problem solving
• Improved teams

Objectives of Kaizen

1. To improve quality
2. To improve productivity
3. To improve employee morale

Benefits of Quality Control (QC)

1. Increase in quality consciousness of employees
2. Development of an attitude of problem prevention
3. Promotion of employee motivation
4. Improvement in human relations
5. Utilization of employee problem-solving skills
6. Increased job security
7. Development of safety awareness

Product Design and Production System Cycle

Factors Affecting Product Design

1. Requirements of the customer
2. Production facilities of the manufacturer
3. Availability of materials
4. Method of work

Stages Involved in the Product Development Process

1. Generation of ideas from multiple sources
2. Screening of ideas for further analysis
3. Business analysis of data
4. Development of the product
5. Market testing
6. Commercialization of the product

The Production System Cycle

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