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Production/Operation Management

This document provides an overview of production/operations management and its history. It discusses key contributors who developed concepts like specialization of labor, interchangeable parts, scientific management. It also summarizes modern approaches like just-in-time production, total quality management, and continuous improvement methods. The document outlines different types of production processes, factors that influence process design, and objectives of production management systems.

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Janet T. Cometa
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66 views21 pages

Production/Operation Management

This document provides an overview of production/operations management and its history. It discusses key contributors who developed concepts like specialization of labor, interchangeable parts, scientific management. It also summarizes modern approaches like just-in-time production, total quality management, and continuous improvement methods. The document outlines different types of production processes, factors that influence process design, and objectives of production management systems.

Uploaded by

Janet T. Cometa
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Production/Operation Management

Lecture 1
Production/Operation Management
 The management of systems or processes
that create goods and/or provide services

 concern with the conversion of inputs into outputs,


using physical resources, so as to provide the
desired utilities to the customer while meeting the
other organizational objectives of effectiveness,
efficiency and adoptability
Contributors to Manufacturing Management Views

 1776 Specialization of labor in manufacturing - Adam Smith


 1799 Interchangeable parts, cost accounting - Eli Whitney and
others
 1832 Division of labor by skill; assignment of jobs by skill;
basics of time study - Charles Babbage
 1900 Scientific management time study and work study
developed; dividing planning and doing of work
-Frederick W. Taylor
 1900 Motion of study of jobs - Frank B. Gilbreth
 1901 Scheduling techniques for employees, machines jobs in
manufacturing - Henry L. Gantt
 1915 Economic lot sizes for inventory control - F.W.
Harris
 1927 Human relations; the Hawthorne studies - Elton
Mayo
 1931 Statistical inference applied to product quality:
quality control charts - W.A. Shewhart
 1935 Statistical sampling applied to quality control:
inspection sampling plans - H.F. Dodge & H.G.
Roming
 1940 Operations research applications in World War II
-P.M. Blacker and others
 1946 Digital computer - John Mauchlly and J.P. Eckert
 1947 Linear programming - G.B. Dantzig, Williams &others
 1950 Mathematical programming, on-linear and stochastic
processes & others - A. Charnes, W.W. Cooper
 1951 Commercial digital computer: large-scale computations
Available - Sperry Univac
 1960 Organizational behavior: continued study of people
at work - L. Cummings, L. Porter
 1970 Integrating operations into overall strategy and policy,
Computer applications to manufacturing, Scheduling
and control, Material requirement planning (MRP) - W.
Skinner, J. Orlicky and G. Wright
 1980 Quality and productivity applications from Japan:
robotics, CAD-CAM - W.E. Deming and J. Juran
Good Housekeeping – Japanese Style

Kaizen - "continuous improvement"

5S popularized by Hiroyuki Hirano


 Seiri - Sort

 Seiton – Straighten/Sweep

 Seiso - Shine

 Seiketsu - Standardize

 Shitsuke - Sustain
6S
 Sort - Distinguish between what is needed and not needed and
to remove the latter.
 Straighten/Sweep - Enforce a place for everything and
everything in its place.
 Shine - Clean up the workplace and look for ways to keep it
clean.
 Standardize - Maintain and monitor adherence to the first
three Ss.
 Sustain - Follow the rules to keep the workplace 6S-right
—"maintain the gain."
 Safety - Eliminate hazards.
Pareto Phenomenon
1-8
• A few factors account for a high percentage
of the occurrence of some event(s).
• 80/20 Rule - 80% of problems are caused by
20% of the activities.

The vital few and the trivial many


Concept 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.”

At each stage of processing, there will be value


addition.
The Schematic Production System
7 Primary Principles of Production Management

 Shorter set-up times


 Small-scale production

 Empowering employees

 Equipment Maintenance

 Pull Production

 Supplier Involvement

source: http://
info.winman.com/blog/bid/341826/The-Basic-Prin
ciples-of-Production-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.
Types of Processes

 Conversion - e.g., creating steel from iron ore

 Fabrication - e.g., forming steel into cans

 Assembly - e.g., put cans, lids and


ingredients together

 Testing - e.g., testing for sealed weight

7
Process Flow Structures

 Job shop

 Batch

 Assembly Line

 Mass Production

 Continuous Flow
8
Exhibit
Exhibit5.10,
5.10,p.168:
p.168: The
TheProduct
Product--Process
ProcessMatrix
Matrix

Few High
Low Multiple Major Volume,
Volume Products, Products, High
One of a Low Higher Standard-
Kind Volume Volume ization
I. Commercial Flexibility (High)
Job Printer Unit Cost (High)
Shop French Restaurant

II. Heavy
Batch Equipment
Coffee Shop
III.
Automobile
Assembly
Assembly
Line Burger King
IV.
Sugar
Continuous Refinery Flexibility (Low)
Flow Unit Cost (Low)
Source: Modified from Robert Hayes and Steven Wheelwright, Restoring Our Competitive Edge: Competing through Manufacturing (New
York: John Wiley & Sons, 1984). p. 209.
9
Process Flow Design
 A process flow design can be defined as a
mapping of the specific processes that raw
materials, parts, and subassemblies follow as they
move through a plant.
 Common tools to design a process flow:
 Assembly drawing
 Assembly chart
 Operation and route sheet

11
Example: Process Flow Chart
Buffer: Material
Received No,
From Inspect Continue…
Supplier Material for Defects
Defects Found?

Yes

Return to
Supplier for
Credit
13
Objectives of Production Management

to produce goods services of:


 right quality

 right quantity at the

 right time and

 right manufacturing cost


Framework for Managing Operations
Scope of Production and
Operations Management
Virtual Factory

Shift from centralized production to ....

... an integrated network of capabilities

10

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