pom introduction by vmjl

8/7/2019 Pom Introduction by Vmjl

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SUBMITTED TO:- MR.NIMESH BHOJAK

SUBMITTED BY:- VIJAY JAIN(02)MITTAL PATEL(03)

JATIN AGRAWAL(04)

LOKENDRASINGH CHUNDAVAT(05)

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is the study and development of techniques for

the formulation and analysis of management and

related business problems. Operations research

models are often helpful in this process.

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is the application of techniques developed in

mathematics,statistics, engineering and the

physical sciences to the solution of problemsin

business, government,industry, economics andthe social sciences.

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employ mathematical models to reach a wide

variety of business decisions. They give modern managers a competitive edge

Managers do not need to have great mathematicalskills

Familiarity allows one to:

x Ask the right questions

x Recognize when additional analysis is necessary

x Evaluate potential solutions

x Make informed decisions

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like more traditional methods, however,

qualitative methods come in many

varieties. Different researchers focus on

different sources of data: One's own immediate experience

Others' experiences, which we might seek to

understand through:

x their speech or writing,

x their other behaviors,

x their products - technology, artwork, footprints, etc.

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` Production is the creation of goods and services

` Production and/orOperations Managementare

the activities that transform resourcesinto goods

and services

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` It is one of the 3 critical parts of anyorganization: Marketing generates demand

Operations creates the product

Finance/accounting tracks organizationalperformance, pays bills, collects money

` It shows us how goods and services areproduced

` It shows us what POM managers do` It is the most costly part of any organization

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Meat Furniture Restaurant Heavy

Packing Manufacturing Equipment

POM

Materials 79% 40% 38% 42%

Labor 8 15 20 12

Fringes 3 22 16 23

Total 90 77 74 77

S, G & A 9 15 22 20

Int., Taxes,

Profits, etc. 1 8 4 3

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26%

18%

16%

14%

6%

6% 5% 5%3%

1%

E

S G '

F

W

P U

C

F G m

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` Less than 20% of all jobs are in manufacturing

(and they are declining)

` Almost 80% of jobs are in the service sector (and

they are increasing)` Nearly half of all jobs are in POM

` Most POM jobs are professional and/or

managerial

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` Forecasting

` Service, product design..

` Quality management

` Process, capacity design...

`

Location ...` Layout design .

` Human resources, job design..

` Supply-chain management

` Inventory management .

` Scheduling ..` Maintenance ...

Ch. 4

Ch. 5

Ch. 6,6S

Ch. 7,7S

Ch. 8

Ch. 9

Ch. 10,10S

Ch. 11,11s

Ch. 12,14,16Ch. 3,13,15

Ch. 17

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` Quality management Who is responsible forquality?

How do we define quality?

` Service and product design What product orservice should we offer?

How should we design these products and services?

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` Process and capacity design What processes will these products require and in

what order?

What equipment and technology is necessary forthese processes?

` Location Where should we put the facility

On what criteria should we base this location

decision?

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` Layout design How should we arrange the facility?

How large a facility is required?

` Human resources and job design How do we provide a reasonable work environment?

How much can we expect our employees to

produce?

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` Supply chain management Should we make or buy thisitem?

Who are our good suppliers and how many should

we have?

` Inventory, material requirements planning, How much inventory of each item should we have?

When do we re-order?

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` Intermediate, short term, and project scheduling Issubcontracting production a good idea?

Are we better offkeeping people on the payrollduring slowdowns?

` Maintenance Who is responsible for maintenance?

When do we do maintenance?

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` Division of labor (Adam Smith,The Wealth of

Nations, 1776)

` Industrial Revolution

` Standardization of parts (Eli Whitney,1765 -1825) Cotton Gin (1792)

Contract with U.S. for muskets (1798)

x Some doubt about true interchangeabilityx Simeon North (Middletown)

x John Hall (HarpersFerry)

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` Scientific management (Frederick Taylor1865 -

1915) The Principles ofScientificManagement, 1911

x Match employees to jobs

x Provide the proper training

x Provide the proper methods and tools

x Establish legitimate incentives

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` Taylors 4 Principles of Scientific Management: Replace rule-of-thumb work methods with methods based on a

scientific study of the tasks

Scientifically select, train, and develop each worker rather thanpassively leaving them to train themselves

Cooperate with the workers to ensure that the scientificallydeveloped methods are being followed

Divide work nearly equally between managers and workers,sothat the managers apply scientific management principles toplanning the work and the workers actually perform the tasks

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` Coordinated assembly line (Henry Ford 1863 -1947)

` Gantt charts (Henry Gantt 1861-1919)` Motion studies (Frank and Lillian Gilbreth,1922)` Quality control (Shewhart, Juran,Feigenbaum,

Deming, Taguchi, etc.)` CAD` Flexible manufacturing systems (FMS)

` Computerintegrated manufacturing (CIM)

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` Local or national focus

` Batch shipments

` Low bid purchasing` Lengthy product

development cycles

` Standardized products

` Job specialization

Global focus

Just-in-time

Supply chain

partnering Rapid product

development

Strategic alliances

Mass customization

Empowered

employees

Teams

FromFrom ToTo

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Tangible product

Consistent product

definition

Production usually

separate from

consumption

Can be inventoried Low customer

interaction 1995 Corel Corp.

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Intangible product

Produced & consumed at

same time

Often unique High customerinteraction

Inconsistent product

definition

Often knowledge-based Frequently dispersed

1995 Corel Corp.

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` Can be resold

` Can be inventoried

` Some aspects ofquality measurable

` Selling is distinct

from production

Reselling unusual

Difficult to

inventory

Quality difficult to

measure

Selling is part ofservice

GoodsGoods ServiceService

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` Product istransportable

`

Site of facilityimportant for cost

` Often easy toautomate

` Revenue generatedprimarily fromtangible product

Provider, not productis transportable

Site of facilityimportant forcustomer contact

Often difficult toautomate

Revenue generatedprimarily fromintangible service

GoodsGoods ServiceServiceGoodsGoods ServiceService

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0 25 50 75 100255075100

AutomobileComputer

InstalledCarpetingFast-foodMeal

RestaurantMealAutoRepairHospitalCare

AdvertisingAgencyInvestmentManagement

ConsultingServiceCounseling

PercentofProductthatisaGood PercentofProductthatisaService

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Past Causes FutureLocal ornationalfocus

Low-cost, reliable worldwidecommunication andtransportation networks

lobal Focus

Batch (large)

shipments

Cost of capital puts pressure on

reducing investment ininventory

Just-in-time

shipments

Low-bidpurchasing

Quality emphasis requires thatsuppliers be engaged in productimprovement

Supply-chainpartners

Lengthy

productdevelopment

Shorter life cycles, rapid

international communication,computer-aided design, andinternational collaboration

Rapid product

development,alliances,collaborativedesigns

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Past Causes FutureStandardizedproducts

Affluence and worldwide markets;increasingly flexible productionprocesses

Masscustomization

Job

specialization

Changing sociocultural milieu.

Increasingly a knowledge andinformation society.

Empowered

employees,teams, and leanproduction

Low costfocus

Environmental issues, ISO 14000,increasing disposal costs

Environmentallysensitiveproduction,Green

manufacturing,recycledmaterials,remanufacturing

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Theeconomicsystemtransformsinputstooutputsataboutanannual2.5%increaseinproductivity(capital38%of2.5%),labor(10%of2.5%),management(52%of2.5%)

Land,Labor,Capital,Management

GoodsandServices

Feedbackloop

Inputs Process Out puts

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Measure of processimprovement

Represents output relative to input

Only through productivity increases can

ourstandard of living improve

ProductivityProductivityProductivityProductivity UnitsUnits producedproducedUnitsUnits producedproducedInputusedInputusedInputusedInputused====

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He asserted that ten workers could produce

48,000 pins per day if each of eighteen

specialized tasks was assigned to particular

workers. Average productivity: 4,800 pins perworker per day. But absent the division of labor, a

worker would be lucky to produce even one pin

per day.

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In 1907, Henry Ford announced his goal for theFord Motor Company: to create "a motor car for thegreat multitude." At that time, automobiles wereexpensive, custom-made machines.Ford realized he'd need a more efficient way to

produce the Model T in order to lower the price. Heand his team looked at otherindustries and foundfour principles that would further their goal: Interchangeable parts Continuous flow Division of labor

Reducing wasted effort

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improved a five-thousand-year-old job and had

enabled bricklayers to lay brick faster with less

effort and fatigue. On one particularly difficult type

of wall,

where the previou

srecord had been

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20bricks per hour, his methods allowed them to lay

350 bricks, an increase in productivity of over

190%.

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the original notions of Total Quality

Management and continuousimprovement

trace back to a former Bell Telephone employee

named Walter Shewhart. One of W. EdwardsDeming's teachers, he preached the importance

of adapting management processes to create

profitable situations for both businesses and

consumers, promoting the utilization of his owncreation: the SPC chart.

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Partsperman hour

95

100

105

110

115

Year A YearB YearC

Costperunitdecreased

$1.50

$1.75

$2.00

$2.25

Year A YearB YearC

Average worker'sannualcashcompensationincreased

24000

25000

26000

27000

Year A YearB YearC

Productivityimproved Costs werepared Wagesincreased

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` Labor- contributes about 10% of the annual

increase

` Capital- contributes about 32% of the annual

increase` Management- contributes about 52% of the

annual increase

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` Basic education appropriate for the labor force

` Diet of the labor force

` Social overhead that makes labor available

` Maintaining and enhancing skillsin the midst ofrapidly changing technology and knowledge

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` Typically laborintensive

` Frequently individually processed

` Often an intellectual task performed by

professionals` Often difficult to mechanize

` Often difficult to evaluate forquality

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` U.S. is becoming more of a knowledge intensive

service economy

` Globalization

` Total Quality Control` Need for flexibility and innovation

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pom introduction by vmjl

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