The production planning is to ensure that manufacturing run effectively and efficiently and produces products as required by customers.

Capacity Planning 1. Capicity Size 2. Equipment Used.

Long-term
(years)

Aggregate Planning 1. Facility Utilization 2. Personnel needs 3. Subcontracting Master Production Scheduling 1. MRP 2. Disaggregation of master plan Short-term Scheduling 1. Work center loading 2. Job sequencing

Intermediate-term
(6 to 18 months)

Short-term
(weeks)

Very Short-term
(hours days)

Production plan mainly aims to produe right product

In right quantity. In right quality. In right time.

By the best and least cost method.

HOW???

 Determines the type of quality and material used.

Determine the LOT size to be produced.

Determination of scrap & rejection at each stage of

production. Estimate total cost of production.

 Capacity Options --change capacity: changing inventory levels varying work force size by hiring or layoffs varying production capacity through overtime or

idle time subcontracting using part-time workers Demand Options --change demand: Influencing demand backordering during high demand periods counterseasonal product mixing

Number of working days: Jan 22 Feb 19 Mar 21 Apr 21 May 22 Jun 20

 Raw Materials

Works-in-Process
Finished Goods Distribution Inventory Supplies: Maintenance, Repair and Operating (MRO)

COST ANALYSIS DEPARTMENT

OBJECTIVE

 WATER RESISTANT UPTO 300 METRES. STAINLESS STEEL. SCRATCH FREE GLASS. STOPWATCH AVAILABLE. LEATHER BELT. BATTERIES OF HIGH QUALITY. STYLISH GIVING COMPETITION TO WATCHES IN INDIAN MARKET.

FOR 50000 UNITS.

EXPECTED PRICE- RS. 1,200 MARGIN OF PROFIT- 15% IDEA GENERATION Rs. 25,00,000 IDEA SCREENING & CONCEPT DEVELOPMENT AND TESTING Rs. 12,00,000 BUSINESS ANALYSIS Rs. 40,00,000 BETA TESTING & MARKETING Rs. 45,00,000 TECHINICAL IMPLEMENTATION RS. 60,00,000 COMMERCIALISATION Rs. 1,50,00,000 NEW PRODUCT PRICING Rs. 30,00,000 COMPANY SETTING AND OTHER FIXED COSTS- 1,48,00,000. TOTAL BUDGET- 5,10,00,000.

IDEA GENERATION
ON RESEARCH AND DEVELOPMENT- 15,00,000 EMPLOYEES AND SALESPEOPLE- 3,00,000 IDENTIFYING CUSTOMER NEED- 2,00,000 ANALYSIS OF COMPETITIORS PRODUCTS- 300000 MISCELLANEOUS EXPENSE- 2,00,000 TOTAL- 25,00,000

IDEA SCREENING- 4,00,000 DEMAND FORCASTING TEAM3,00,000 TESTING THE CONCEPT-4,00,000 MISCELLANEOUS EXPENSE1,00,000 TOTAL-12,00,000

IDEA SCREENING & CONCEPT DEVELOPMENT AND TESTING

BUSINESS ANALYSIS
TEAM COMING UP WITH THE ESTIMATE NUMBER OF UNITS- 10,00,000 TEAM ESTIMATING PROFITABILITY- 5,00,000 TEAM FINDING BREAK EVEN POINT- 5,00,000 TEAM FINDING THE SELLING PRICE- 10,00,000 MISCELLANEOUS EXPENSES- 10,00,000 TOTAL-40,00,000

BETA TESTING & MARKETING

PRODUCING MOCK-UP- 20,00,000 PACKAGING- 3,00,000 CONDUCTING FOCUS GROUP INTERVIEWS- 2,00,000 MAKING ADJUSTMENTS WHERE NECESSARY- 5,00,000 OTHER EXPENSES- 15,00,000 TOTAL- 45,00,000

TECHINICAL IMPLEMENTATION
TECHNICAL EXPERT TEAM- 10,00,000 PRODUCTION- 30,00,000 LOGISTICS- 5,00,000 ON QUALITY MANAGEMENT- 5,00,000 OTHER EXPENSES- 10,00,000 TOTAL-60,00,000

COMMERCIALISATION
LAUNCHING THE WATCH- 25,00,000 ADVERTISEMENTS- 50,00,000 OTHER PROMOTIONAL STRATEGY- 25,00,000 DISTRIBUTION OF THE WATCH-30,00,000 OTHER EXPENSES-20,00,000 TOTAL-1,50,00,000

NEW PRODUCT PRICING

TEAM WORKING ON DEVELOPMENT OF NEW PRODUCT- 10,00,000 FORECASTING UNIT VOLUMES, REVENUE AND PROFIT- 5,00,000 ANALYSING COMPETITION- 5,00,000 OTHER EXPENSES- 10,00,000 TOTAL- 30,00,000

FURTHER EXPENDITURE OF RS.1,48,00,000 WILL BE INCURRED ON THE FIXED EXPENSES FOR THE STARTING OF THE ORGANISATION ALL THE ABOVE EXPENSES WILL MAKE THE TOTAL BUDGET OF RS.5,10,00,000.

 Production is the creation of goods and

services Production and/or Operations Management are the activities that transform resources into goods and services

Objectives
Our objective is to demonstrate a Production model on a New Product Development

To provide ideas about goods/services linked up with the production plan

Focus upon steps involved in new product development

Business Model overview

Location
Invent ory HRM

POM
Material req planing

Product

Process

TQM

Layout

Strategies Process focussed Product focussed Efficient use Location selection Job analysis Standard levels Work methods Motivation/incentive system

IDEA SCREENING

PROCESS:

FACTORS:

 Process Should be Efficient in all measures.

Job Order.
Cost effective. Defect free.

Degree of automation.
Maintenance. Desired output quantity.

CONCEPT DEVELOPMENT & TESTING

Inputs

Conversion Subsystem
Control Subsystem

Outputs

 Nearby input market.

Nearby selling market.

Availability of workforce. Transportation cost. Sufficient area.

 Product design
What product or service should we offer? How should we design these products and services? Target customer needs & wants.

25

Total Quality Management : The quality of the product should be the prime motive Defect Free by continuous improvement. Using right tools and methods to increase process efficiency.

TECHNICAL IMPLEMENTATION

Inventory & Just In Time There should be sufficient space for raw material and finished product . Near to machine area. Efficient supplier. Effective communication.

 Job should be scheduled FIFO.

Also done on basis of Customer Type.

Also scheduling dates consideration.

 Analyses the process flow.

Find out loopholes.

Fixing to increase desired o/p.

Time per repetition

Number of repetitions

30

Time per unit

Average

Improvements may create a scallop effect in the curve.

Time
31

 Advancement technology.

Feasibility to achieve target.

Efficient. Flexibility.

 Coordination and synchronization b/w department. Desired work force skilled and unskilled.

Target achievement
No idle time. Right person to right job.

Maintenance
Regular maintenance Cost efficient Process efficient

Purchase Management fundamental objective of purchase management is to make purchase decision to provide the efficient services with minimum costs.
Types of evaluation
General Through Audit

International production and operations management deals with production of goods and services in international locations and markets. It involves management process which has to take into consideration local production market (labor and capital) and international customer requirements .

The very 1st difference is international business environment where not just economics but also international quality standards have to be maintained.

The 2nd aspect is the international stint makes the company more aware of its surroundings thus making it more competitive.

 As IPOM is dynamic in nature, organization has to design

it strategic objectives which cover following points :

Meeting international quality standards Forecasting demand and production design Profitability Minimum production cost Adaptation to modern available technology

 Culture

Business Environment
Quality Standards Pricing

Technology
Economies of Scale Market Segmentation

Usage of resources

Project Management The application of knowledge, skills, tools, and techniques to project objectives to meet stakeholder needs and expectations. Includes : Planning, Organizing, Securing , Managing , Leading, Controlling resources