Atif Imam

Anushaath P

Anuraag Kumar

Devjeet Singh

Dushyant Yadav

Anshul Nivhal

Managing OperationsBLOG ADDRESS:-

mangeoperation.tumblr.com

Productivity & Efficiency

Productivity can be defined as the output produced by a given input:

Productivity = Output/Input

The Productivity of Labor : It is typically measured by unit output divided by some measure of labor

input, such as hours worked or number of employees.

The Productivity of Capital : It is usually measured by sales divided by the total capital invested in a

business.

The Production system : In an organization, it refers to how the flow of work is configured.

Production can be configured in a number of different ways, depending on the nature of the product,

consumer requirements, and available production technologies.

Traditional Production System

Traditional production systems have been categorized into one of four main categories:

Job Shop

These systems are used when items are ordered individually and tend to be unique to the

Production systems used requirements of a particular customer.

Small Batch

These production systems are used when customers order in small batches.

Assembly-Line Production

These systems are used to mass-produce large volumes of a standardized product.

Continuous Flow Production Systems

These systems continuously produce a standardized output that flows out of the system.

Optimizing Work Flow

It is a way to reduce the cost of functioning without compromising product quality.

Companies try to innovate to gain competitive edge over their rivals.

Example

NASA Vs. ISRO

Asset Utilization

Assets can be anything for a company.

Tracks, Building, Equipment etc.

Managing them in such a way to get their total utilization is called asset utilization.

Example

NASA Vs ISRO again

Dad with 2 Sons.

Quality Management

A quality management is a method of management to provide

products , services or processes with characteristics in accordance to

the standards and expectations of the clients .

Next Project

DefineCustomers, Value, Problem Statement

Scope, Timeline, Team

Primary/Secondary & OpEx Metrics

Current Value Stream Map

Voice Of Customer (QFD)

MeasureAssess specification / Demand

Measurement Capability (Gage R&R)

Correct the measurement system

Process map, Spaghetti, Time obs.

Measure OVs & IVs / Queues

Analyze (and fix the obvious)Root Cause (Pareto, C&E, brainstorm)

Find all KPOVs & KPIVs

FMEA, DOE, critical Xs, VA/NVA

Graphical Analysis, ANOVA

Future Value Stream Map

ImproveOptimize KPOVs & test the KPIVs

Redesign process, set pacemaker

5S, Cell design, MRS

Visual controls

Value Stream Plan

ControlDocument process (WIs, Std Work)

Mistake proof, TT sheet, CI List

Analyze change in metrics

Value Stream Review

Prepare final report

Validate

Project $

Validate

Project $

Validate

Project $

Validate

Project $

Celebrate

Project $

Six Sigma Roadmap (DMAIC)

Inventory is the raw materials, component parts, work-in-process, or finished products that are held

at a location in the supply chain.

Costs of Inventory

1.Inventory Holding Costs

2. Component Devaluation cost

3. Price Reduction Cost

4. Return Cost

5. Obsolescence Cost

6. Stockout Cost

Inventory turnover : Measured by number of days it takes to totally replace inventory.

Examples : Walmart, Dell etc.

Managing Inventory

Economic Order Quantity & Setup

Time Economic order quantity

It is the order quantity that minimizes total inventory holding costs and ordering costs. It is

one of the oldest classical production scheduling models. The framework used to determine

this order quantity is also known as Wilson EOQ Model or Wilson Formula.

EOQ = SQRT(2 × Quantity × Cost Per Order / Carrying Cost Per Order)

Setup Time

The existence of a setup time enforces a constraint of time between the replenishments i.e.

to ensure that there is time to make the setup and complete production before

replenishment cycle expires.

Just In Time InventoryPull (demand) driven inventory system in which materials, parts, sub-assemblies, and support items

are delivered just when needed and neither sooner nor later. Its objective is to eliminate product

inventories from the supply chain. As much a managerial philosophy as an inventory system, JIT

encompasses all activities required to make a final product from design engineering onwards to the

last manufacturing operation.

Examples

Fast-Food Restaurants, Computer Manufacturers

Build To Order And InventoryBuild to order (BTO)is a production approach where products are not built until a confirmed order for

products is received. BTO is the oldest style of order fulfilment and is the most appropriate approach

used for highly customized or low volume products.

EXAMPLES :- Rolls Royce

Build to stock, is a build-ahead production approach in which production plans may be based upon

sales forecasts and/or historical demand.

Supply Chain Management and

Information System

Supply chain management (SCM) is

the management of the flow of goods.

It includes the movement and

storage of raw materials,

work-in-process inventory,

and finished goods from point

of origin to point of consumption.

Product Development and

CommercializationCommercialization the process of launching a new

product; it may involve heavy promotion and filling the

distribution networks with the product.

Example

Mahindra cars launched refined Scorpio 2014 with more aggressive look and efficient to maintain its

SUV market.

Design For Manufacturing

The general engineering art of designing products in such a way that they are easy to manufacture.

Example

Toyota works on handles mounted on doors of cars to reduce number of parts from 34 to 5, which

cuts costs by 40 percent and reduced installation time from 12 seconds to 3 seconds.

In Conclusion

As we have seen, managing operations is a central task of an

organization. The skilled and effective management of operations

can increase productivity and lower costs, enabling a firm to

outperform rivals and reach the efficiency frontier in its industry. The

competitive advantage of many enterprises is based on their

superior operating capabilities—their ability to achieve operating

excellence—which in turn is the result of hard work by managers at

the operating level.