control of production and operations
TRANSCRIPT
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IntroductionProduction and operations are tightly
knitted activities which influence an
organizations performance. For
manufacturing units, the conversion of
inputs to outputs is viewed as the
production activity
For example, milk is the raw materialused to produce curd, milk powder ,
and butter milk.
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The various activities involved in theproduction process like heating,
cooling, and freezing are called
production operations.The non production operations included
the procurement of milk and
transportation of curd , milk powder ,and butter to the customers.
Introduction
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When production and operations arecombined and synchronized, they
Are classified as supply chain
management . The goal of supply
chain Management is to ensure that
the organization produces thoseproducts which are being demanded
by the market by the right quantities.
Introduction
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For example , in the case of Frito
lays , potatoes are the raw
material and the spices and oil
used in the production process
are the consumables.Land is used to house the factory
where the production process is
carried out . Various machine areused for cleaning and peeling the
potatoes, and cutting them into
different shapes and sizes.
Control of production and operations -
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The employees supervise the
production process and are the human
resources involved in the production
process.
A variety of information like the recipe
for each type of potato chip and
automated settings on the plant whichcontrol the production process are
examples of information in the
production process.
Control of production and operations
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The objective of controlling the
production activities or
operations is to ensure optimal
utilization of productioncapacities, minimize wastages
and reduce down time ofmachines
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Take for incidence , hospital, here, the twoimportant control parameters would be To
ensure that there is a doctor available as
and when the patience come in forTreatment and the wait time is low. And
another control parameter would be to
Synchronize the mix of doctors availablewith the time of the day when they are
needed
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For example, those belonging to the outpatience category generally coming
during Morning hours and evening hours.
Therefore there are more doctors andspecialist Available like eye specialist,
gynecologist , and skin specialist during
the out patience Hours. The controlparameters should also address the
question of which patience Should get
priority
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The production controls dependent on two broadvariables. The nature of the Production process
and the degree of mechanization involved in the
production Process.
Process production of carbonated drinks like
sprite or Fanta, the controls would be With
respect to the quantity of water to be channelize
in the production process, the Quantum of thesoft drinks concentrate to be added and the
machine settings with Reference to the capping
of the bottles and the carbonation process
Production controls
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Discreet production , to make a
ceiling fan the blades, the metallic rod ,
the motor ,The central hub in which the
motor rests, the plastic molding in the
form of a cup Are all produced or
procured, and electrical wires areintegrated into the product. All these
raw materials and components are
assembled together to form a fan.
Productioncontrols
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Productivity is a measure of theorganizations efficiency in terms o
ratio of Out puts to inputs. The higher
the numeral value of this ratio, thegrater the Efficiency. It is an important
tool for mangers because it helps them
track Progress in terms of the efficientuse of resources in producing goods
and Services
Measuring production performance
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Measuring production performance
Labor productivity= goodsproduced/ man-hours spent
Material productivity = goods
produced/ material usedTotal productivity = goodsproduced / labor+ capital+ energy+
technology+ materials
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Decision making in production control
often depends on the appropriate use oquantitative inputs in a timely manner.
For example the queuing theory model
can be used to find out the probability o
machines breaking down on a given
day using various inputs like the
number of machines, their average
breakdown rate, and the replacement
time required.
Production control reports
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For effective production control, managementrequires regular reports on Various
production-related parameters and activities
like
Production efficiency report
Production planning report
Daily production reportDowntime analysis report
Shift handover report
Production control reports
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Quality controls
In an air conditioner, the speed and directionof air flow reflects the circulation
capability of the air conditioner, the tike it
takes to cool a room of a givendimension reflects the quality of the
compressor , the power which it consumes
in an hour reflects the quality of the electricaldesign and compressor design, and
the space which it occupies reflects the
quality of the physical design
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Inventory control
The objective of inventory control is tomaintain stocks of material at various
stages of production in the desired
quantities so that production cancontinue uninterrupted by shortages,
while at the same time , keeping the
overall cost of production to the
minimum.
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Purchasing controlThese controls will track the costs of material being
procured, the effectiveness of the vendors in terms ofthe quality and timeliness of supplies, and rejection
rates.
A centralized purchasing systems allows pooling of all
the requirements so that The benefits of bulkpurchasing can be realized in a decentralized
purchase in systems, the procurement mangers of
different departments purchase the needed material
according to their specific requirements. This
methods gives each department the flexibility to alter
its purchasing policy based
on its specific requirements.
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The main goal of supply chainmanagement is to completely
synchronize every supply chain cycle
with the customer's final demands.
It aims at controlling and monitoring the
supply chains of the vendors as well.
Take for instance, a car manufacturing
company called Indus.
Supply chain management
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Supply chain management
It procures seats from a vendor V, who , in
turn, buys foam from X, the wheels andbearings used in seats from Y, and the fabric
used in the seats from Z. if the demand fro
Indus cars go up, its ability to meet thedemand will depend on its Ability to procure
the seats in an adequate number from V,
which in turn, will depend On the abilities ofX,Y and Z to fulfill the requirements of V.
hence it is important to monitor the supply
chins of the vendors also.
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Performance assessment of the Supply
chain management
Inventory turnover
cycle time
customer order
promised cycle timecustomer order actual
cycle time
cash to cash cycle time
supply chain cycle time
defects per million
opportunities
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Information systems in production and
operations management
Operations information systems are nowdesigned to automatically initiate, plan, and
execute the logistics of stock movement from
the warehouse to the braches or thecustomer locations. Third party transportation
companies like DHL also facilitate the
Tracking of the exact location of the shipmentat any given point of time, en route
to the destination