Unit 1

1) scope of production and operations management

 Location of facilities
 Plant layout & material handling
 Product design
 Process design
 Production planning and control
 Quality control
 Material management
 Maintenance management

1. Location of Facilities:
- This involves determining the optimal locations for production facilities, warehouses, and
distribution centers to minimize costs, maximize efficiency, and meet customer demand effectively.
2. Plant Layout & Material Handling:
- Plant layout refers to organizing the physical arrangement of machinery, equipment, and
workstations within a manufacturing facility to optimize workflow and minimize bottlenecks.
Material handling involves the movement, storage, and control of materials throughout the production
process to ensure smooth operations.
3. Product Design:
- Product design focuses on creating goods that meet customer needs and preferences while
considering factors such as functionality, aesthetics, and cost-effectiveness. It involves
conceptualizing, developing, and refining product specifications and features.
4. Process Design:
- Process design entails defining the methods, procedures, and sequences for manufacturing goods
or delivering services efficiently. It includes selecting the most appropriate production techniques,
equipment, and technologies to achieve desired outcomes.
5. Production Planning and Control:
- Production planning and control involve forecasting demand, scheduling production activities,
allocating resources, and monitoring progress to ensure that production targets are met on time and
within budget. It aims to balance capacity with demand while minimizing waste and maximizing
productivity.
6. Quality Control:
- Quality control focuses on ensuring that products or services meet predefined quality standards
and specifications. It involves implementing inspection, testing, and quality assurance processes
throughout the production process to identify and rectify defects or deviations.
7. Material Management:
- Material management encompasses all activities related to sourcing, procuring, storing, and
managing raw materials, components, and finished goods inventory. It aims to optimize inventory
levels, minimize carrying costs, and ensure timely availability of materials for production.
8. Maintenance Management:
- Maintenance management involves maintaining and optimizing the reliability, availability, and
performance of production equipment and facilities. It includes preventive maintenance, predictive
maintenance, and corrective maintenance activities to minimize downtime and maximize operational
efficiency.

2) The Production System

Inputs

 Inputs include facilities, labor, capital, equipment, raw materials, and supplies.
 A less obvious input is knowledge of how to transform the inputs into outputs.
Transformation System

 The part of the system that adds value to the inputs.

 Four major ways
 Alter – physical change
 Transport - relocate
 Store - protect
 Inspect – better understanding

Outputs

 Two types of outputs commonly result from a production system

 Services (abstract or nonphysical)
 Products (physical goods)

3)production system
 2 types
 Intermittent
 Continuous
Types of intermittent

 Job production
 Batch production

Job production-
it is the production of single complete unit by one operator or group of operators. e.g. bridge building
Features-
1. Whole project is taken as single operation
2. Work is to be completed on each operation before passing to next item.
 3. Versatile & skilled labor is needed.
4. High capital investment
5. High capital investment.
Batch production-
It is the extension of job production. Here product is divided into parts/operations & each operation is
to be completed throughout the whole batch before the next operation is undertaken.
In other words, after the production of one batch, the plants & machines become available to other
batch .e.g. chemical industry where different medicines are manufactured in batches. or electronic
instruments

Types of continuous

 Mass
 Process
Mass-
1. Standardization is fundamental feature of system
2. Items are produced in large quantity
3. Continuous flow of material
4. System can produce only one type of product at one time.
e.g. AUTO PARTS.

Process-
1. Emphasizes automation in production.
2. High volume production.
3. Used for high and continuous demand items like petroleum products.
4. Single raw material can yield various products in different stages, like crude oil processing yielding
kerosene and gasoline.

4)responsibilities of POM manager

 Planning the geographical location of the factory – like where to start, how to start
 Purchasing production equipment
 Designing the production process
 Product design
 Capacity planning
 Production control
 Inventory management.
 Supply chain management.
 Quality control
1. Planning the Geographical Location of the Factory:
- The POM manager determines the optimal location for setting up manufacturing facilities,
considering factors like proximity to suppliers, distribution channels, and target markets.
2. Purchasing Production Equipment:
- They are responsible for identifying and acquiring the necessary machinery, tools, and equipment
required for production, ensuring that they align with the company's production goals and budget
constraints.
3. Designing the Production Process:
- The POM manager designs efficient production processes that outline the steps involved in
transforming raw materials into finished products or delivering services. They aim to streamline
workflows, minimize waste, and maximize productivity.
4. Product Design:
- They collaborate with design teams to develop product specifications and features that meet
customer needs and market demands while considering factors like functionality, aesthetics, and cost-
effectiveness.
5. Capacity Planning:
- They forecast demand, assess production capabilities, and determine the optimal capacity levels to
meet customer requirements while maintaining operational efficiency and flexibility.
6. Production Control:
- The POM manager oversees production schedules, monitors progress, and ensures that production
activities are executed according to plan. They address any issues or bottlenecks that may arise to
maintain smooth operations.
7. Inventory Management:
- They are responsible for managing inventory levels, ensuring that sufficient stock is available to
meet demand while minimizing excess inventory and associated costs.

8. Supply Chain Management:

- They coordinate with suppliers, logistics partners, and other stakeholders to ensure a seamless flow
of materials, information, and resources throughout the supply chain, from procurement to delivery.
9. Quality Control:
- The POM manager implements quality assurance processes and standards to ensure that products
or services meet predefined quality criteria. They monitor quality metrics, conduct inspections, and
address any deviations to maintain product integrity and customer satisfaction.

5) industry 4.0
The first industrial revolution, starting in Britain in the late 18th century, used water and steam
power to enable mass production with machines instead of manual labor.
The second industrial revolution, a century later, introduced assembly lines and power from oil, gas,
and electricity, along with improved communication through telephone and telegraph.
The third industrial revolution, in the mid-20th century, brought computers, advanced
telecommunications, and data analysis to manufacturing, with the digitization of factories and
automation of processes.
Now, we're in the fourth industrial revolution, also known as Industry 4.0, which involves
increasing automation and the use of smart machines and factories. This revolution integrates
technologies like the Internet of Things (IoT), cloud computing, analytics, AI, and machine learning
into manufacturing to improve efficiency and productivity. Smart factories collect and analyze data
from sensors and other sources to make better decisions, leading to increased automation, predictive
maintenance, and process optimization. This digital transformation allows for real-time visibility,
predictive maintenance, and improved responsiveness to customer needs, marking a significant shift
in manufacturing practices.
Smart factories use advanced technology like sensors, software, and robotics to collect and analyze
data, leading to better decision-making. By combining production data with information from other
systems like ERP and customer service, these factories gain new insights and visibility. This
technology allows for increased automation, predictive maintenance, and process optimization,
improving efficiency and responsiveness to customer needs. Developing smart factories offers the
manufacturing industry a chance to embrace the fourth industrial revolution by leveraging big data for
real-time visibility and predictive maintenance, ultimately reducing equipment downtime.