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Presentation made by: Baxi Vishvak 02

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Scope Of POM

Administrative discipline for the effective use of resources in on-schedule production of the targeted number or quantity of end products that meet the specified cost, performance, quality, and waste requirements.

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Scope Of POM

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Scope Of POM

Design, execution, and control of a firm's operations that convert its resources into desired goods and services, and implement its business strategy

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Scope Of POM

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Scope Of POM

Production Planning & Control Quality Control Material Management Maintenance Management Plant/Facility Location Plant/Facility Layout Inventory Control Product Design Process Design
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Coordination of materials with suppliers Efficient utilization of people and machines Efficient flow of materials Communication with customers

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Scope Of POM

A Typical Manufacturing Systems


SUPPLIERS Raw Materials Materials Machines People CUSTOMERS Finished Products

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1.

2.
3.

Overall Manufacturing Planning Detailed Materials and Capacity Planning Execution of Plans

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Demand Management Forecasting Order Promising Order Processing Order Entry Spare Parts

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Plans are made Results are compared with plans (control) Results are OK Wait until next control period Results are not OK Go to Step 1 (Revise plans)

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Quality control (QC) includes the activities from the suppliers, through production, and to the customers. Incoming materials are examined to make sure they meet the appropriate specifications. The quality of partially completed products are analyzed to determine if production processes are functioning properly.

Finished goods and services are studied to determine if they meet customer expectations.

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Inputs Raw Materials, Parts, and Supplies

Conversion
Production Processes

Outputs
Products and Services

Control Charts and Acceptance Tests

Control Charts

Control Charts and Acceptance Tests

Quality of Inputs
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Quality of Partially Completed Products


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Quality of Outputs
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It is concerned with planning, organizing and controlling the flow of materials from their initial purchase through internal operations to the service point through distribution.

Material management is a scientific technique, concerned with Planning, Organizing &Control of flow of materials, from their initial purchase to destination.

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To get

1. The Right quality


2. Right quantity of supplies

3. At the Right time


4. At the Right place

5. For the Right cost

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Primary
Right price High turnover Low procurement & storage cost Continuity of supply Consistency in quality Good supplier relations Development of personnel Good information system

Secondary
Forecasting Inter-departmental harmony Product improvement Standardization Make or buy decision New materials & products Favorable reciprocal relationships

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A maintenance manager typically is a plant engineer who reports to a plant or manufacturing manager Maintenance departments are usually split into two groups:

Buildings and Grounds Equipment

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Repairs

Repair activities are reactive. Breakdowns and malfunctions typically occur when equipment is in use. Standby machines and parts can speed repairs.

Preventive Maintenance (PM)


Regularly scheduled inspections are performed. PM activities are performed before equipment fails. PM is usually performed during idle periods.

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Annual Cost ($) Minimum Total Maintenance Cost

Minimum Level of Preventive Maintenance

Total Maintenance Costs Preventive Maintenance Cost Breakdown and Repair Cost
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Degree of Preventive Maintenance


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Common for a large variety of products in batch volumes. Similar processes are grouped together. Inefficient: Long material transport routes from dept. to dept. Work in progress is high. Tracking of orders can be difficult. Advantages: Specialist labour and supervision. Flexibility as material can be rerouted in any sequence
Material 1 Material 2

L
L

L
L

M
M

M
M

ASSEMBLY 1

D D

D D

Product 1

Product 2

ASSEMBLY 2

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Mass production where variety is small and production volumes are very high. AKA flow or line layout. More efficient, but less flexible than functional layout. Work in progress is minimised, and jobs are easily tracked. Investment in specialised capital equipment is high, so a reliable and steady demand is required. Very sensitive to machine breakdown or disruption to material supply.

A S S E M B L Y

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AKA Group Technology Each cell manufactures products belonging to a single family. Cells are autonomous manufacturing units which can produce finished parts. Commonly applied to machined parts.

L
D

M
G

ASSEMBLY
CELL 1

Often single operators supervising CNC machines in a cell, with robots for materials handling.
Productivity and quality maximised. Throughput times and work in progress kept to a minimum. Flexible. Suited to products in batches and where design changes often occur.

M D

M G

ASSEMBLY CELL 2

L
L

L
G

ASSEMBLY CELL 3

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Fixed Position Layout (right) Single large, high cost components or products. Product is static. Labour, tools and equipment come to the work rather than vice versa. Random Layout Very inefficient Small factories, start-up companies. Process Layout Process industries, e.g. steelmaking. The process determines layout.

COMPONENTS MATERIAL LABOUR

PRODUCT

LABOUR COMPONENTS

MATERIAL

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Stock of items kept to meet future demand Purpose of inventory management


how many units to order when to order

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Raw materials Purchased parts and supplies Work-in-process (partially completed) products (WIP) Items being transported Tools and equipment

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Bullwhip effect

demand information is distorted as it moves away from the end-use customer higher safety stock inventories to are stored to compensate

Seasonal or cyclical demand Inventory provides independence from vendors Take advantage of price discounts Inventory provides independence between stages and avoids work stop-pages
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Customers usually perceive quality service as availability of goods they want when they want them

Inventory must be sufficient to provide highquality customer service in TQM

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Carrying cost cost of holding an item in inventory Ordering cost cost of replenishing inventory Shortage cost temporary or permanent loss of sales when demand cannot be met

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Continuous system (fixed-order-quantity)

constant amount ordered when inventory declines to predetermined level


order placed for variable amount after fixed passage of time

Periodic system (fixed-time-period)

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Class A

5 15 % of units 70 80 % of value 30 % of units 15 % of value 50 60 % of units 5 10 % of value

Class B

Class C

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Safety stock

buffer added to on hand inventory during lead time an inventory shortage


probability that the inventory available during lead time will meet demand

Stockout

Service level

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Uncertainties

Selection method

Selected design

Scaled Objective Values

1 0.8 0.6 0.4 0.2 0 0 1 2 3 4

No. of Operations Time/Operation Weight Cost

Pareto optimal designs

Design alternatives Objective: Select the product design that accounts for both customers requirements and 4/14/2012 Scope Of POM 33 designers preferences

Design Variables

Set of input variables (parameters) to the design simulation software


(e.g. Motor type, Gear type, Gear ratio, DC voltage, Ambient temperature)

Performance Attributes
Set of attributes that is the output of the simulation software,and identifies a product design (e.g. Manufacturing cost, Weight, Time per operation per battery charge)
Input Design Variables Simulation Software
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Design Attributes
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Market Pull (We Make What We Can Sell)

food industry
electronics

Technology Push (We Sell What We Can Make)

Interfunctional View

personal computers

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Concept Development Product or Service Design Pilot Production/Testing

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Value Analysis (or engineering)

Simplification of products and processes

Modular Design

Multiple products using common parts, processes and modules.


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Terms in Value Analysis:

Objective: primary purpose of the product Basic Function: Makes the objective possible Secondary Function: How to perform the basic function

Value analysis seeks to improve the secondary function, e.g. how to open a can or make a tool box
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(a) The original design

(b) Revised design

(c) Final design

Assembly using common fasteners

One-piece base & elimination of fasteners

Design for push-and-snap assembly

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a.

Original Design

24 different parts to assemble


7 unique parts to manage in inventory 4 different parts to assemble 3 unique parts to manage in inventory 2 parts to assemble and manage Question: How easy would it be to detect an assembly error with each of the designs?
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b.

Revised Design

c.

Final Design

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Process view Ops strategy (1) Process Analysis Proc select in manufac (4) Project (2)

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Transformation Process

Process types Product-process matching

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Process: how to make it? Flexibility Labor skills Capacity change


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Product: what to make? Variety Volume

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Different processes have different characteristics, requiring different skills and managerial tasks. It is convenient to identify basic process categories. We can then map the process of interest into one of these basic categories.

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Project

Building a house, getting married


Custom furniture, hospital, university Garment, grand piano DVD player, hamburger Cereal, sugar, oil refinery
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Job shop

Batch flow

Line flow

Continuous flow

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Low Volume, One of a Kind Job Shop Batch Assembly Line Continuous Flow
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Multiple Products, Low Volume

Few Major Products, Higher Volume

High Volume, High Standardization


Flexibility (High) Unit Cost (High)

Commercial Printer French Restaurant Heavy Equipment Coffee Shop Automobile Assembly Burger King Sugar Refinery
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Flexibility (Low) Unit Cost (Low) 46

Low Volume, One of a Kind Job Shop Batch Assembly Line Continuous Flow
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Few High Multiple Major Volume, Products, Products, High Low Higher StandardVolume Volume ization
Flexibility (High) Unit Cost (High)

Commercial Printer French Restaurant Heavy Equipment Coffee Shop Automobile Assembly Burger King Sugar Refinery

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