Production and Operation Management

Quest- 1 What is Production Management and its objectives? Explain Scope and function of Production Management? Ans:- Production is basically defend as conversion of Inputs into output through transformation process . Input include 5m,s i.e. man , machinery , money , material methods &output is final goods. Examples:- Production Management It is process in which performance of management activities are done with regards to selecting designing operating controlling and finally updating production system. Production as Heant of Organization:- As every department as its own importance, but till the time production departments at produce products how these can be marked for what purpose the funds and man power may be needed and there would be no need of material management without the existence of production  Production Management Functions:- 1 PLANNING:- Planning involve all the activities that establish a future course of action. These action guides for decision making it involves. Production Planning Facilities Planning Designing Conversion Process In Fact Planning phase is divided in to two sub parts PLAANNING Pre- Planning Actual- Planning (i) Product Planning ( i ) Material Planning (ii) Process Design (ii) Methods Planning (iii) Sales forecasting (iii) Manpower Planning (iv) Plant Location (iv) Money (Fund) (v) Plants Layout (vi)Equipment Decision ORGANISING:- Organizing involve activities that establishes of tasks for (organization structure are) and authority. It establishes structure of roles and flow of information with in production System. Determination activities required to achieve Production on rule system goods Assigning authority and responsibility for cawing them out 3. CONTROLLING:- It involves all the activities that assure that actual performance is in adivadance with the planned performance. This is done by developing standard initially Measuring actual performance Finally comparing standard initially Activities involved in controlling Routing Estimation Scheduling Dispatching Inspection Evaluating OBJECTIVES OF PRODUCTION MANAGEMENT To produce quality goods & services Increase profitability through higher efficiency production by improving quality. To give customer more confidence by providing quality products at right price & at right time Optimal use of resources Maximizing use of manpower, Material, Machinery by minimizing Wastage of material Ensuring quality at minimum cost Outstanding Quality Customer Satisfaction Profitability Minimal Cost Right Product at Higher Efficiency Right Time Optimal use off her Productivity Resources Reduction in Wastage Scope of production management Activities related to Designing & Activities related to analysis & Formulation of Production System Control of Production system (1) Production Engineering (2) Production Planning (3) Production Control PRODUCTION ENGINEERING:- It involves various activities like Product designing Selection & operation of size of firm Process designing Location plans Designing tools Plant layout Development & Material handling system Installation of equipment R & D activities PRODUCTION PLANNING:- It involves various activities like Short term production schedule Plan of maintaining records of new material, semi finished, and finished products How to maintaining records of raw material, semi finished and finished product. How to optimally utilize resources of concern over future time in accordance to demand forecast. Material planning PRODUCTION CONTROL:- It involves various activities like Regulate work assignments Service work program Remove discrepancies Control inventory Control work progress Control of quality Quen:- 2 What do mean by production system ? Explain in detail different types of Production system along with their relative advantages & disadvantages? Summarize different product strategies Ans:- Production system:- The frame work with in which conversion process occurs that is called as process system input and output are connected by certain operations or cases which imposed input & termed as production system. BASIC PRODUCTION SYSTEM Continuous Intermittent Production system Production system Mass prod Process Prod Job Prod Batch Prod (1) Continuous Production system Its characteristic is follows Continuous physical flow of material. Modurit having large clement throughout year. Modrit having large clamand throughout year. Production is done for stacks. Standardized inputs & standardized requere a appear Division of labour is done more efficient. Material handling is minimized. Balanced flow of work is ensured. Less supervision is ensured. Small work in progress. Use of productive technique is possible , raised possibly of enjoying low cost of production by (By enjoying economics of scale) Possibility of rigid quality control Preventive maintenance system (PMS) can be easily opera table Example:- cement , sugar , steel , fertilizer production . Mass production Only one of product or maximum 2,3 types of products are manufactured in large Quantities much emphasis is not given on retail consumer orders. Process production:- System used for production of those items whose demand is continuous or high . Here single raw material can be transformed in to different kinds of products at different stage of production process. Example:- (a) Crude oil refinery->kerosene, gasoline etc. (b) Alloy /steel manufacturing Advantages of continuous system:- Reduced labour cost High accuracy, better quality and increased production Educed material handling Minimum wastage because of standardization Better method of material/inventory control Better ROI (return on investment) Disadvantages of continuous systems:- Strict maintenance becomes necessary to avoid productions hold ups Adjustment to new situations and specifications becomes difficult particularly in present days where stock demands causing huge losses. ILINTERMITTENT PRODUCTION SYSTEM Goods are manufactured specifically to fulfill orders by customer rather than producing against stock. Machine and equipment laid are as per processes Flow of material is intermittent. (not continuous) Production facilities are flexible Handle wide variety of products and size (eg:-switch gear industry) Considerable storage between operations is required so that individuals cooperation can be carried out independently for further utilization of man and machines Product manufactured in small quantity Job production:- Production of single complete unit by one operator or group of operatiors e.g. pridge/Dam construction, ship construction. Whole project is considered one operation Work is complete on each project before passing on to next. Each product is a class itself and requires a distinct and separate job for production. Project involves high capital investment. Highly skilled labour is required (with versatile qualities) Batch Production:- Items are processed in lots or batches. A new batch is undertaken for production only when the production of existing is completed It is extension of job processing Example: chemical industry- Different medicines are produced in batches. Printing press Advantages of intermittent production system:- Can adjust to next situation and specification Items can be manufactured according to order Fluctuation in demand can easily be taken care off. Disadvantages of intermittent production system: As production is in small quantity so C.O.P is high. Because skilled labour is needed so security and associated cost of HR pushes overall cost. Initial heavy investment More inventory so large space required. Product strategies:- Product occurs in great diversity. We may classify them on basis of some criteria into various categories PRODUCT STRATEGIES FULLY COUSTOMIZED MIXED PRODUCT STANDARADISED Fully customized product strategies: Separate product for separate customer according to its requirement No inventory Uniqueness Emphasis is on time delivery quality and flexibility Example Dress designed for particular customer Production in small lots according to customer needs Mixed product strategies Sensitive to variety Some flexibility Moderate cost Dependability of supply Quality of products is important Multiple sizes and types of products are there Offshore and by order both the aspects are important on the enterprises strategy Fully standardized product strategies Same product for every customer Off shelf availability (inventory) Emphasis is on minimizing cost Increasing availability Example sugar gasoline steel and aluminum products Production in large volume Q:- 3 What do you mean by facility location ? How his decision is important for any organization. What are various factors affecting location? Ans: FACILITIES LOCATION:- It is defined as selection of suitable location or site for place where the factory or plant to be installed where plant will start its functioning. Significance \ important of plant location:- Location is critical element in determining fixed and variable cost. Depending up on the product production system transformation cost along can total as much as 25% of selling price.(it means % of total revenue of firm is needed to just our freight the expenses of raw material coming in & finished product going out). Choice of location can alter 10% of total production & distribution cost. Examples -: new factory location region with high energy cost, even good mangt. Location fix sum of physical factors of overall plant design like heating & of labour, taxes land, construction fuel etc. Dynamic nature of plant location:- Relocation: a location that is good for particular firm today may not be good tomorrow. It means that it is not having a static (consistent nature).But it is dynamic in nature. The shift of location of plant to some other place is relocation. This is necessary because of following reasons: Shifting from one market to another Changes in nature & availability of materials Changes in pricing policy Expansion decision/ diversification / modernization Undesirable labour situations (unavailability of skilled labour. rise in labour cost need of changed skills etc). Relocation of various associated industries plants. Government regulations Main focus is on minimizing the cost Maximizing the speed of firm by taking optimal location decision Types of Facilities:- (1) Heavy manufacturing (2) Light manufacturing (3) Warehouse manufacturing 1 heavy manufacturing: Construction cost (large plants) Modes of transport Raw material availability Example: automobile plants, steel mills, oil refineries. Light manufacturing:- Proximity to customer (most important) Labour pool Skilled labour Government regulations Example: stereo, TV computer etc. Ware house and Distribution center Receive handle, ship product. Transportation and shipping cost. Proximity to consumer SITE EVALUATION PROCESS This process is conducted by either company individuals or by specified hired agencies (consulting firm) Evaluation process requires large amount of data & information relative to different location factor. Cost data alone for different factor such as construction land, labour & transportation is voluminous Government agencies also publish numerous documents with data & information about potential business sites so as to attract business. Data collection Analysis of data evaluation of data on About various bases of various factors final Sales decision Factors responsible for plant location:- availability of raw Material:- Adequate raw material Minimum technical & delivery problem Regular supply Minimum per unit cost of procuring raw material. Example: - Industry location Textile Bombay and Ahemadabad Jute Calcutta Iron Jamshedpur Steel Jamshedpur Nearness to potential markets :- Mgt. may have close touch to changes in market environment. So as to formulate production policy acc As the distance between market & plant increases It directly increases transportation cost Example: glass, chemical & drug factory are mainly affected by this consideration. . 3. Near to source of operating power:- As in some industry continuous supply of power is important factor. E.g.:-nylon fiber plant Cheap electricity (plant near to hydel power station) Example: - paper and pulp mills, flour mills etc. 4. Supply of labour:- Important input Regular & cheap supply Labour availability with required skills. If required labour will be available near plant then it will be available at cheaper rates. Examples all bangles industry in Jodhpur 5. Transportation & communication:- Transportation for all is req. raw material, work in progress, and finished goods. Plant must be well connected with rail, road water & air transport. Good communication like postal, telecommunications links is of great significance. 6. Inteqration of other group of companies:- If other concerned group of company will be near so they may enjoy some economies. 7. Suitability of Land & Climate:- Climate condition like humidity, temp other atmospheric condition should be favorable. 8. Availability of housing & other amenities:- Good housing Theater Shopping complex Local passenger transport Proper drainage Disposal of waste etc 9. Government regulations:- Example: Delhi authority decision 10. Safety Requirements If it is nuclear, power plant or chemical industry must not be in residential area. 11. Other Factors Special grant, political stability, low rental etc Economic stability Available technology Culture Construction & leasing cost Q= 4. What is plant layout? Explain different kinds of layouts? What are the characteristics of a good layout? How layout is designed? - Ans. PLANT LAYOUT Physical arrangement industrial facility, storage, labour, adjustment & other supporting activities Means:- Placing right equipment Coupled with right method In right place Processing of products in most effective method, through shortest possible distance & time. Results in:- Proper material handling Reduce transportation cost Maximize utilization of floor space Material movement at desired speed at low cost Less working progress & less need of supervision FACTORS CONSIDERED FOR LAYOUT Organization Location of department Type of product, method if production, production process. Production capacity Type of industry. Grouping of machine Material flow pattern Space req. for machine, work area storage etc. Safety factor Health & other factors like ventilation light etc. Provisions for future expansion , diversification Storage system i.e. centralized & decentralized. OBJECTIVE OF PLANT LAYOUT minimum material handling & internal transportation Automatic handling Better control Large unit loads Movement of goods at desired speed at low cost Facilitate manufacturing process. Flexibility of arrangements. Maxi. Utilization of equipment & floor area Care for employee’s safety & convenience. Minimization of worker movement. Better facility of maintenance & inspection. space for future expansion Design layout in such a way that there is mini. Chances of accident. CHARACTERISTICS OF GOOD LAYOUT Mini. Handling between the operations. Mini. Handling distance. Mini. Back tracking Mini. Goods in process Planned material flow pattern Layout adaptable to changing conditions Proper location of services Maxi. Automatic handling Control over noise, dust, humidity temperature etc. Mini. Handling by skilled workers DESIGNINGTHE HANDLING SYSTEM TO THE LAYOUT For efficient material handling careful analysis & evaluation of the entire operation with the objective of implementing a well planned material flow pattern by means of appropriate method & equipment Procedure for this is Understand entire system including production system, handling system, equipment machinery. Examine the system design criteria, like productivity, cost reduction safety, flexibility, quality, working conditions, order flow, optimum space etc. collect data & analyze it developed flow pattern identify activities & their interrelationship Identify movement requirements i.e. path flow org. Analysis material characteristics like quantity, type properties ,unit weight. Establish building characteristics. Feasibility of mechanization Select preliminary handling system & equipments types. Evaluate the alternative. Arrive at discussion Check the selection for compatibility Install the system i.e. implementation. Types of Layouts:- line layout ( product layout) functional layout( process layout ) LINE PRODUCT LAYOUT:- All the equipment required for one part or product together in one deptt. In sequence of operation performed, So that part is completed there and does not have to moved from one department to the other for processing. Example:- Car washes, Cafeterias. Automobile maker, Beverages bottles usually line layout so normally it is S. U. L. N. O. shaped. PRODUCT \ LINE LAYOUT Layout is popular in mass production continuous (Suitability of this method) One product or one type product is an operating area. Product must be standardized and manufactured in high quality. Machines are arranged in a way in which they are used. So operations are performed in sequence. All parts, sub-assembling etc. started at right time so as to be ready a the required time & kept moving until the finished product is available at end of assembly line. DIGRAM OF LINE LAYOUT OF CAR WASHES Waiting cars ADVANTAGES: >It lowers the overall production time as operation without any handling. >Less space is needed for placing machine. >Minimum handling & transportation. >Less work in process. >Higher rate of output because no interpretatrens. >Low cost of manufacturing. >Simple production planning less inspection/supervison. >Better labour & machine utilization. DISADNABTGES >No variety is possible. >No flexible with regard to design changes. >Very high stoppage costs as lines are highly integrated one part of line stops entire line is affected. >High maintenance cost ,capital cost & investment >Less job satisfaction >More coordination required between material production job shop. 2.Process functional layout This department is made up of machine .equipment or process that fell into one category, according to the function performed.the product is fabricated by moving it from department to department according to sequence of operation to be performed on to So each department is responsible for carring out 2 particular processes and not a particular product machine in this type of layout are generally arranged on function basis------ Suitability-for intermittent production system Example wareeeehouse.hospital, university, medical P1 P1 P2 p2 p2 p2 Patient 1 patient 2 Q. 5 Write a note on inventory management along with derivation of economic order quantity (EOQ)? Ans:- Inventory :- Inventory is defined as a usable resource, which is physical and tangible such as material. In the sense, our stock is our inventory, but even then the term inventory is more comprehensive . Though inventory is usable resource it is also an idle resource, unless it is managed efficiently and effectively. Or Inventory means all the material parts, supply, expense, tools and in process or finished products recorded on books by an organization and kept in its stocks, warehouses or plant for some period of time. INVENTORY MANAGEMENT:- It is handling inventory in a proper way. Inventory management boils down to maintain an adequate supply of something to meet the expected demand pattern subject to budgeting considerations. Effectiveness of the material and production functions depands to a large extent on inventory management. Inventory turnover ratio= Annual demand\ Average inventory. (ITOR) I. T. O. R. is index of business performance. Sound management gives a high inventory turnover ratio. CHARACTERISTICS OF INVENTORY:- Inventory serves as a cushion to absorb shocks. An organization has to deal with several customers and vendors. But due to unpredictable behavior, there are fluctuations in demands, supply. Inventory absorbs these fluctuations. Inventory for organizations is a necessary evil. 2. Inventory requires valuable space and consumes taxation and insurance charges. This leads to considerable investment and cause considerable opportunity loss. This capital invested in inventories remains idle till all items present in stocks are not used. On the other hand no organization can work without maintaining some inventory i.e. it is an necessity cost of not having inventories are usually greater than cost of having them. Inventories are the result of many interrelated decision and policies within an organization. Inventories provide production economies. Costs incurred in inventory Inventory carrying cost Shortage cost Ordering cost a) Inventory carrying cost:- Total cost in curred after purchase it includes interest of capital blocked in inventory storage cost Of space required, insurance cost wages paid to the stored department cost of absolute items.dameged, ceterioration, telephone charges etc. b) Ordering cost:-Total cost for purchase department, wages and salary to purchase department, telephone, equipment, calculator, computer, stationery uses draft charges etc. C) Shortage cost :- (absence of inventory) To back orders /cancellation of orders/direct penalty indirect cost in form of lost goodwill total % of the cost of any product is due to inventory cost. INVENTORY CONTROL TECHNIQUES E.O.Q.(economic order quantity) Inventory control deals with 2 basic issues (1) when to order (2) how much to order .The problem of when to order is decided by prescribing the recording level of each of inventory item. The problem of how much to order i.e. what should be size of each order. The issue of how much to order is decided on the basis of economic order quanity (E.O.Q.) E.O.Q. is an important technique of inventory controls.EOQ prescribes the size of order at which ordering cost and inventory carrying cost will be minimum .As both these costs are mutually exclusive, the total of both cost will be minimum at a point where ordering equates carrying cost. ABC Analysis: (Always Better Control) ABC analysis is a basis analytical management tool, which enables top management to place the efforts where the results will be greatest. The technique analyses the distribution of any characteristic by money value of the importance in order to determine priority. Quite a No. of management remembering this simple 20\80-law probability known as patreo,s law of cause and effect can successfully solve problems. The law states that only 20% of effect. ABS analysis underlines an important principle vital few trivial many. There is a division of items. These few items called a items hold the key to business. The B and C items are numerous in number, but their contribution is less than 10% of total number account for a substantial portion of about 75% of total consumption value & such vital few items are called A items, which need careful attention of material managers. Similarly a large no. of bottom items over 70% of total consumption of units are called trivial many account only for about 10% consumption value are known as C class. The items lie between top & bottom is called B category items. A ITEM B ITEM C ITEM High consumption value Moderate value Low consumption value Very strict control Moderate control Low control No safety stock Low safety stock High safety stock Frequent control once in three weeks Bulk ordering once in 6 month Weekly control statements Monthly control reports Quarterly control an analysis Accurate forecast in material Estimate based on past data Rough estimate for planning on present plans Minimization of waste, Quarterly control over surplus Annual review surplus & Obsolete & surplus & obsolete & surplus obsolete items Sed- Vital Essential Desirable All items those, if they are required & but not present in store & production stops. Essential items are those, if they are required & not present , then production efficiency Decreases Desirable: Those items are those if they are required & not present, there is no effect on production. FNSD Analysis: F fast moving N normal moving S slow moving D Dead items On the basis of criteria co. select which are slow moving items and which are non- moving items and which are non-moving items so that they may concentrate more on fast moving items it helps in In controlling obsolete items Decided on issue of item If zero issue of item If zero issue-dead item Q = 6 What is store management? What are the types of store management? Explain function& working of store system? Ans: Stores: Those items which are not in use for some specific duration E.g. spare parts & raw material these are not for some specific duration. E.g. spare parts & raw material these are called stores and the building space where these are kept is known as store room. Storekeeping is the aspect of material control which is concerned with the physical storage of goods, storekeeping includes:- Receiving material Protection of material Issue of material in the right quality, at right time, right place to provide these service promptiy and at least cost. Types of store system CLOSED STORAS SYSTEM:- It is the type in which all which all material are stored in a closed or controlled area, for example-chemical, cement, milk etc. OPEN STORES SYSTEM:- In open stores system there is no specific storage area. In open store system, there are high chances of pilferage. For eg:- bricks, sand etc. STORES SYSTEM CLOSED SYSTEM OPEN SYSTEM All material are stored in closed or There is no specific storage area. Stores Area are maintained in the form of Suitable convenient location No other person than stores personnel every individual has access to any Is permitted in the area storage facility Material can leave or enter the storage area after the receipt of material it is delivered Only by authorized document. To the respective deptt To expedite the production Activity Maximum physical security High chances of pilferage Tight accounting control of inventory material less emphasis on accounting control of material FUNCTION OF STORES SYSTEM 1) RECEIPT Receiving of material is an important function of stores system. The receiving involves much of paper work and it varies from firm to firm. RECEIPT COORDINATION& COOPERATION STORAGE RECORDS RETRWAL VERIFICATION ISSUE HOUSEKEEPING 2) STORAGE It stores and preserves the inventories protecting them from pifferage & deterioration. 3) RETRIVAL It helps easy accessibility to material and ensures optimum space utilization. Material can be located and retrieved with ease. 4) ISSUE It satisfies the demands of consuming deptts proper issue of inventories on receiving the requisition. 5) RECCORDS The keeps proper records of issue and receipt. 6) HOUSEKEEPING The space is kept neat and clean so that material handling, preservation, storage issue and receipt is done satisfactorily. 7) SURPLUS STOCK Scrap and surplus disposal management is function of stores. 8) VERIFICATION Physical verification and purchase initiation to avoid stock outs. 9) COORDINATION & COOPERATION To interface with production and inspection department WORKING OF STORES DEPARTMENT EXPLANATION OF WORKING OF STORES DEPARTMENT Item are ordered by purchase department for production. When a purchase order (stock order) is place, a copy of it is sent to the stores deptt. Indicating quantity and delivery date. Stores section is a place where all material received by stores deptt are kept with protection against deterioration and pilferage. They are stores in such a way that their location is easily identified at time of issues. The stores in charge receive the materials from stores receiving section along with goods inward note (goods receiving report) i) STORE ISSUE SECTION The section handles the issue of material when required by some departments of the enterprise, a storeroom does not always issue a material in the same units in which it is purchased in gross and issued in dozen. ii) ACCOUNTING SECTION The stores accounting deptt has to maintain up-to-date account value of items in stock, so that correct price is charged at the time of issuing the material. When material is issued to the concerned deptts, stock delivery report is sent to stores account section. Maintained for all arrivals, making the receipt triplicate, a copy of which is sent to the account section and other to store section. Stock delivery report is also sent to the purchase deptt. When concerned deptt receive required material, they start work. Q=7:- Write a note on work study? ANS. WORK STUDY Work study is a technique that embraces method study and measurement which are employed to ensure the best possible use of human and work measurement which are employed to ensure the best possible use of human and material resources in carrying out the specific activity. WORK STUDY Systematic recording and critical examination of Application of techniques designed to Existing & proposed viays of doing work as to establish the time for a qualified worker Develop more effective reduce cost. To carry out a specific job at a defined level of performance. PURPOSE OF WORK STUDY To assist management to obtain optimum use of human & material resources Most effective use of resources Evaluation of human work Work study is not limited to shop floor, nor even to manufacturing industry. It can be used in any situation where human work is performed. Work study can also be defined as (BY British glossary) A Management service based on those techniques, particularly method study, a work measurement which are used in examination of human work in all context and which affects efficiency of the situations being reviewed in order to effect improvement. M ETHOD STUDY The systematic recording and critical examination of factors & resources involved in deploying and applying easier and more effective methods and reducing costs. Procedure is S- Select R- Record D- Develop I- Install M- Maintain PROCESS CHARTING The job or process under investigation often consists of a no. of activities. It is to use them conveniently. We use symbols. The modern system of process charity is due to Gilbert’s later development in motion study technique. Later in 1947 the American society of mechanical engineers reduced the No. symbols and standardized the technique. PROCESS CHARTS Charts in witch a sequence of portrayed diagrammatically by means of a set of the process chart symbols. STANDARD SYMBOL NAME OF ACTIVITY DEFINITION OF ACTIVITY OPERATION Modification of an object at one work place object may be changed in any of its physical or chemical characteristics TRANSPORTATION OR MOVEMENT Change in location of an object from one place to another INSPECTION Examination of an object to check on quality or quantity characteristics. DELAY / TEMPOARY STORAGE Retention of an object in a location awaiting next activity. STORAGE Retention of an object in location in Storage which is protected against unauthorized removal. Types of process OUTLINE PROCESS CHARTS An out line chart records an overall picture of process & records only main events. Sequence wise. It considers only the main operations & inspections. E.g. reconditioning of broken shoes FLOW PROCESS CHARTS Is geographic representation of sequence of all operations, transportation, inspection. Delay 7& storage occurring during a process & procedure & include information. Consider describe for analysis such as a time required & distance moved. TWO HANDED PROCESS CHART In this chart activities of a worker or operators both hands & limbs are recorded Chronologically. The symbol implies hold instead of storage. MULTIPLE ACTIVITY CHART ] in this chart the activities of more than one subject are recorded on a common time scale to flow their inter relationship. E.g. reading in a desk of card reader FLOW DIAGRAM The flow is a drawing or a diagram drawn to scale to show the relative position of a machine or equipment jigs & fixtures gangways. Aisles & show the path followed by machine. Three dimensional diagram:- where a subject covers several floor levels as well as different parts of the factory a 3 dimensional flow diagram is useful. Q.8. what do mean by ISO, explain, in detail the concept of ISO? Ans: ISO (INTERNATIONAL STANDARD ORGANISATIO) ISO: 9000 is the series of international standards for quality system. It is practical standard Applicable to both manufacturing as well as service industry The standards were 1st published in 1987 & subsequently revised in 1994. In India:- ISO 9000 British:- BS : 5750 European:- EN:29000 ISO 9000 set out that company could establish document & maintain an effective and economic quality system, which will demonstrate to the company is committed top quality and is able to meet this quality need. ISO 9000: what is quality mgt.? Flow process charts are of three types:- 1 material or product type 2 man type 3 Machinery or equipment type To run up a quality assurance system ISO 9001: there system (9001-9003) described about quality aspects covered. ISO 9002: And know as module 1, 2 & 3 respt. ISO 9003 ISO 9004 what cost of quality operation is appropriate to a project. There standards have been splits in to 20 sections called element to enable the users to implement it easy, effectively & efficiently.. Salient Features ISO 9000: a company adopting ISO must identify an assign responsibility for all factors that effect quality. The supplier shall establish and maintain documentary quality system means of ensuring that product confirm to the specified requirement. Preparation of document quality system procedures, instruction in accordance with the international standards. Effective implementation documented quality system, procedures & instructions. Supplier shall establish & maintain procedure to control all the document & dates that relate to the requirement. The supplier shall ensure that purchase product confirm to the specified req. Supplier shall establish & maintain procedure for verification, storage & maintenance of purchase supplier product. Supplier shall ensure that all the process is carried out under control conditions. Process control:- The incoming product is not use or process until the same has been inspected or verified. The product is being inspected & tested as per quality planned during all the stage of production (testing & inspection). Carrying out all final inspection is accordance with quality plans or documented producers. . control of non confirming products :-the supplier shall maintain & establish procedures to Ensure that the product which does not confirms the specified require ments is prevented from installation or use. corrective action :-the supplier document & maintain procedure for investigating the care of non confirming product & corrective actions leaded to present reoccurrence should be takes all necessary measures to rectify procedure should not be taken care off. Documentation:- the supplier shall document & maintain procedure for pending storage purchasing & delivery of product . Quality records:- the supplier shall maintain records for identification , collection, filling , storage , maintenance extra . Internal quality audits :- the supplier shall carry out quality audits to verify whether quality activities comply with plan mgt. & to determine the effectiveness of quality system Training:- the supplier shall establish & maintain procedures for identifying the training of all personal activities effecting quality during production & installation . Statistical techniques:- where appropriate the supplier shall establish procedures of identifying statistical technique req. for verifying the acceptability of process & product char. Aim & objective of ISI:- 9000 series 1 Increase customer’s confidence in company 2 A shift from system of inspection to quality mgt 3 Gaining mgt. commitment 4 looking quality from art consciousness point of view 5 Giving customer what they need & want 6 Removing the need for multiple assessment of supplier Steps for ISO:- 9000 implementations: understand the standards system & its implementation conduct the necessary training program Line managers should generate documentation outside consultant may be appointed for the purpose it takes a year or a year & a half concerted efforts to achieve ISO:-9000 registration. The control of all documents related to quality is an important req. of ISO:-9000 it covers all rules as drawing, blue prints, work instructions, test procedures, inspection record Calibrates data & quality art records. ISO needs top mgt. commitment & quality policy spelling out intension & direction of an organization as regards quality as formality expressed by top mgt. ISO & TQM total quality mgt. is a mechanism to change a company culture to reach its goal. ISO facilitate this change. ISO is a subset of TQM. It is just a banging of TQM process. TQM process is much more comprehensive. it looks for quality in for dimension . Customer requirement. Mgt. commitment. Total company wide participation (integration). Systematic analysis of quality products. Customer requirements Management Integration Commitment Systematic analysis Q.9 Write a note on PPC (production planning and control) in mass .batch & job production? Conversion process Door Shop Job shop Project Same operation variety of jobs in it is a unique one Repetitively small batches shot affair consist Performed in sequence of many non repetitive Activities which consume Time & resources It is for mass production PPC IN MASS PRODUCTION Mass production believes in break up of task in to its simplest possible element. These are then grouped as per production norms. Assembly line consists of the work station (WS) in sequence. At each work station carefully designed portion of work is done. Assembly lines are interchangeable and replaceable Continuous movement \ flow of the material at uniform average rate Example: automobile, computers, toys assembly DIGRAM OF ASSEMBLIES: WS A = WORK STATION A WS B = WORK STATION B WS N = NTH WORK STATION Large quantity production with standardized products range less variety Ideally it is single product (standard) manufactured on continuous basis for longer period of time. A main factor which helps in deciding to go for either mass\ batch is demand. If demand is high for longer period then to go for continuous otherwise for batch production Smooth flow of material from one WS to other workstation in straight line L. U shape. Small WIP (work in progress) as output of one become input bof other less storage space. Production time \ unit as whole in short. Closely spaced WS reduce material handling. No expertise is necessary to operate systematically. PPC is very simple DEMERITS \ PROBLEMS PPC:- One machine failure results in stoppage of the work of other. Challenging maintenance Lack of flexibility Great changes if products design changed. Production speed is determined by slowest machine line. Balancing is difficult It requires general supervision rather then special type of machine and their possible duplication along the line Grouping of task for WS (work station) Line efficiency = (total station time \ CT No. Of WS) * 100 (LE) Balance delay = (total idle time of all station \ total available working time) * 100 (BD) BD in other words is (100-LE) as a percentage CT = Cycle time ST = Does not exceed CT ST = Station time PROBLEMS AND PROSPECTS OF MASS PRODUCTION: Variable work element times: Work elements vary randomly. The reason for this human element which is variable, fatigue factor and negligence of operator. It may result in Great idle time at some WS Reduction in average production rate of the line Probabilistic balancing method used in this Break down at WS 3. Multi-product production is not feasible because of luck of flexibility 4. Modular production:- To introduce variety in production system this approach is used where minimum number of parts or operation is designed developed. These are called modules these can be combined in a number of ways to offer wide variety of products. 5. GROUP TECHNOLOGY:- Here there is specialization in familiar of the similar parts. Parts requiring particular operations are assigned to different groups technology machines are arranged here in such away that each machine is assigned to production of one of parts. It affects component manufacturer only. 6. Automatic:- Automation work piece indexing Transfer of work pieces from one WS to other 7. Robotics:- Electronics give numerically controlled machines (NCs) and computer numerically controlled machines. PPC IN BATCH PRODUCTION Batch production Varieties of production are there:- Volume of production is not large enough Machines are used to make different products. Flow of material is more complex. Planning of material and logistics play important role then controlling part, as flow of material is more complex so layout is planning keeping in view the volume, flow and variety. In this, there is continuous demand. Here is process layout (functional layout) Similar machines since machines utilization is better. Specialized supervision is required. Not so capital intensive. DEMERITS:- Material handling is complex and costly also since flow of component is irregular and longer distance is there. PPC is elaborate, longer production time. WIP ties up larger capital & space. PROBLEM AND PROSPECTS:- As WIP (work is process) & lead-time is large. Requirement planning is tool to solve this problem (MRP) Another way of reduce WIPPPPP & lead-time is using shorter production run. FMS:- Flexible manufacturing system is also a tool to overcome problem of batch production. These machines though general purpose are versatile enough to perform different operations which are linked by (MMS computerized MMS) Its decreases WIP and increases machine utilization in small batch manufacturing. PPC IN JOB PRODUCTION:- Manufacturing of products to specific customer requirement, small quantity production e.g. engines, boilers, steam engines, ship building. THERE TYPES OF JOB PRODUCTION Small products Small no. of products Small no. products Produced only once produces intermittently produced periodically PPC IS Relatively difficult as every job order is of different nature and have different sequence Specific job orders are is of different WS as per availability of capacity. Production schedule drawn depend on relative priority assigned to various jobs. Scheduling is dependent on assessment of production time. Q=10. What is purchasing? Explain important factors for purchasing. Explain purchase procedure? Ans:- PURCHASING Purchasing is a part of material management purchasing means procurement of goods & service from external agencies. The main objective of purchase department is to arrange the supply of material, spare parts & services or semi-finished goods required by the organization. Objectives of purchasing: Purchase of satisfactory material: The main objective of purchasing is to arrange materials which are most appropriate to the product & are supplied in right quantity & quantity, at right time & right price. 2. To control the quantity of material: To control the quantity of material should be adequate. It should not be too much quantity may unnecessary block the capital whereas too little quantity may affect may the regular supply of production. 3. Proper Negotiation with Suppliers Purchasing includes search foe potential supplier. This ensures timely supply of the material in the most economic manner. Purchase dept. creates goodwill & enhances the reputation of the enterprise. 4. Control proper use of materials The purchase dept. avoids duplication, waste and obsolescence of material and equipments thus it enhances proper use of the material. 5. Co-ordination of different depts. The purchase dept. should develop full co-ordination & maintain close relationship b\w various dept. of organization. 6. Maintenance of organization goodwill: The purchase dept. maintains the quality STDs of the material. Thus, purchasing activity generates the confidence of consumer in the product of the company. CRITICAL FACTORS OF THE PURCHASE MANAGEMENT Price if the material Note:- Other important Question 11. What do you mean by industrial safety and safety Mgt. 12. What do you mean by quality control and quality assurance how they can help in production planning CONVERSION PROCESS INPUT MAN MACHINERY MATERIAL METHODS MONEY OUTPUT GOODS AND SERVICES FEEDBACK PRODUCTION PROCESS Production system Input Conversion Output Hospital Patients Health Cured Patients Oil Refinery Crude Oil Chemical Process Gasoline oil Natural Gas Fast Food Buns, Potatoes Cutting, Frying Burgar MARKETING HRM FINANCE MANAGEMENT MATERIAL MGT. PRODUCTION MANAGEMENT 1. Planning 2. Organizing 3. Controlling Top wash & spray Hot wazar spray Side wash Final rinse Cleanout & hand wipe Car exit Cardiac Laboratory X-ray Surgery Reception Physician Chemist Closed system Stores system Open system FUNCTION OF STORES Production Work Stock reservation Stock order Stores & account section Stores section Stock delivery report Material Receiving report Material Stores issuing section Stores receiving section Method Study Work measurement Method study Work Measurement Results in more effective use of material, plan, and manpower. Making possible planning & control, manning. Higher productivity WORK STUDY WS A INPUT WS B WS N