Production And Operations Management

SECTION 1 STRATEGY TO MANAGE BUSINESS DYNAMICS 1 Understanding Production and Operations Management Introduction Production Increasing the ‘Value’ of Business through Operations Production System and Other Functions Evolution of Production and Operations Management Production Management Organization of Production Function Operations Management Significance of Production and Operations Management in Business Manufacturing Vs Service Operations Manufacturing Operations Service Operations Differences between Production and Operations Management Kinds of Production Systems Nature and Types of Decision-Making in Production and Operations Management Functions of Production and Operations Management Recapitulation Key Terms Objective Type Questions Review Questions References Hints and Answers 2 Operations: Policy and Strategy Introduction Strategic Management Process for Production and Operations Setting the Operations Strategy Implications for Operations Strategy Components of Operations Strategy Productivity Factors Improving Productivity Business Productivity Productivity: The Two Aspects Production Function Wastivity Recapitulation Key Terms Objective Type Questions Review Questions Numerical Problems References Hints and Answers 3 International Production and Operations Management Introduction International Production and Operations Management Evolution of Industrialization in Global Scenario Nature of IPOM Objectives of IPOM Importance of IPOM Comparison between Domestic and International POM Strategic Aspects in IPOM Business Process Outsourcing Knowledge Process Outsourcing Supply Chain Management Transfer of World Class Technology Recapitulation Key Terms Objective Type Questions Questions for Discussion References Hints and Answers 4 Managing Technology in Operations Management Introduction Technology and Operations Management (TOM) Integrating Technology with Production System Technology in Manufacturing Managerial Issues Use of Technology in Design Major Categories of Software Systems in Manufacturing Functional Areas as Independent Operations Automation in Production and Operations Automation Tools Management of Technology Technology Management Process Assessment Technology as a Strategy to Gain Competitive Advantage Categories of E-Services Challenges for Technology and Operations Management Operations Management Software Key Issues and Challenges Recapitulation Key Terms Objective Type Questions Review Questions References Hints and Answers 5 Value Analysis: An Applied Concept for Manufacturing and Service Industry Introduction Basic Features of Value Analysis Objectives of Value Analysis Importance of Value Analysis Benefits of Value Analysis Value Analysis as a Multidisciplinary Approach Activities for Value Analysis VA Team Selection Value Analysis Job Plan Function Analysis System Technique (FAST) Recapitulation Key Terms Objective Type Questions Review Questions References Hints and Answers SECTION 2 PRODUCT AND PROCESS DESIGN AND DEVELOPMENT 6 Effective Product Design Introduction What is Good Design? Objectives of Product Design Guiding Principles in Designing the Product Importance of Product Design Factors Affecting Product Design Key Issues in Product Design Product Selection Product Development Process An Effective Product Design Process Essential Features of Product Development Process Industrial Design Involvement Managing Industrial Design Various Design Considerations Concurrent Engineering Service Design Challenges in Product and Service Design Recapitulation Key Terms Objective Type Questions Review Questions References Hints and Answers 7 Process Design and Analysis Introduction The Process Kudos Process Development Model Process Planning Criteria for Classification of Conversion Process Types of Non-Manufacturing (Services) Operations Manufacturing Process for Tangible Products Process Design Flexible Manufacturing System (FMS) Process Flow Chart: An Overview Recapitulation Key Terms Objective Type Questions Review Questions References Hints and Answers 8 Integrated Product and Process Development Introduction Integrated Product Design Process Elements of IPPD Process Factors Influencing IPPD Decisions Tools of the IPPD Process Inter-relationship of Product Design and Process Design Principles of IPPD Integrated Product Teams (IPTs) Characteristics of Implementation IPPD to Other Practices Optimizing Product and Process Design Recapitulation Key Terms Objective Type Questions Review Questions References Hints and Answers 9 Project Management Introduction Concept of a Project Nature of Projects Characteristics of a Project Categories of Projects Examples of Projects Project Life Cycle Project Management Project Management Activities Importance of Project Management Project Organization Project Management Techniques Activity Cost-Time Trade-offs (Crashing) Scheduling of Service Projects Recapitulation Key Terms Objective Type Questions Review Questions References Hints and Answers 10 Facility Location Introduction Location Viewpoints Definition of Facility Location Possible Mistakes in Selecting the Site Strategic Importance of Facility Location Competitive Excellence in Facility Location Trends in Location Strategy Factors Influencing the Facility Location Important Criteria for Location Determining the Size and Capacity of the Facility Facility Location Procedure Location Selection Methods Services Evaluation Techniques of various Locations Recapitulation Key Terms Objective Type Questions Review Questions References Hints and Answers 11 Demand Forecasting Introduction Forecasting Utility of a Forecast Time Frame of Forecasts Major Characteristics Applicable to Various Forecasts Objectives of Demand Forecasting Forecasting Procedure Measuring Forecast Errors Criteria for Selecting a Forecasting Method Focus Forecasting Recapitulation Key Terms Objective Type Questions Review Questions For Discussion References Hints and Answers 12 Capacity Planning Introduction Strategic Capacity Planning Importance of Capacity Decisions Setting up Production Capacity in an Organization Measuring Capacity Goal of Capacity Planning Determinants of Effective Capacity Need for Capacity Planning Forecasting Demand for Capacity Planning Sources of Capacity Make or Buy Decisions to Enhance Capacity Economics of Scale in Capacity Planning Constraints in Capacity Planning Production Scheduling Input/Output Control Finite Material and Capacity Planning Capacity Control Capacity Planning Terminology Capacity Strategy Capacity Utilization Sizing Capacity Cushion Capacity Focus Capacity Flexibility Planning Service Capacity Key Decisions of Capacity Planning New Models of Capacity Planning with Dynamic Environment CP Tools and Limitations Centralized Vs Hybrid Capacity Planning Global and Indian Trends Future of Capacity Planning Capacity Alternatives Approaches to Finding Out Optimum Capacity Failure of Capacity Planning Capacity Planning Problem Recapitulation Key Terms Objective Type Questions Review Questions References Hints and Answers 13 Facility Layout Introduction Facility Layout Techniques of Design Layout Facility Layout Planning Facility Layout and Its Design The Procedure Types of Facility Layout Assembly Lines Assembly Line Balancing Process-Oriented Facility Layout (Job Shop/Functional Layout) Comparison of Product Layout and Process Layout Fixed Position Layout Cellular/Group Technology Layout Combined or Hybrid Layout Strategic Layout Decision-Making Aspects Facility Layout in Manufacturing Layout for a Service Business Layout for an Office Layout for Commercial Outlets Layout for a Warehouse Systematic Layout Planning Determinants for Selection and Design of Layout Designing Facilities Factory Layout—Focus of Facility Design Recapitulation Key Terms Objective Type Questions Review Questions References Hints and Answers SECTION 4 MEDIUM AND SHORT RANGE PLANNING ISSUES 14 Aggregate Planning Introduction Aggregate Planning Aggregation Equation of Aggregate Planning Problem Need for Aggregate Planning Involvement of Various Business Functions in Formulating Aggregate Plan Aggregate Planning Strategies Hybrid Strategy Developing Aggregate Plan Aggregate Planning Costs Techniques for Aggregate Planning Approaches to Aggregate Planning Objective Techniques to Formulate Aggregate Plan Functional Objective Search (FOS) System Aggregate Planning in Services New Trends in Aggregate Planning Recapitulation Key Terms Objective Type Questions Review Questions Numerical Problems References Hints and Answers 15 Materials and Resource Requirement Planning Introduction Terms Used in MRP Recapitulation Key Terms Objective Type Questions Review Questions Numerical Problems References Hints and Answers Introduction 16 Production Planning and Control Production/Operations Planning and Control (PPC) Objectives of Production Planning and Control Benefits of Production Planning and Control Production Planning Production Control Production Control System (PCS) Importance of Production Planning and Control Procedure of Production Planning and Control Difference between Production Planning and Production Control Classification of Production Planning and Control Functions Stages in Production Planning and Control Function Production Planning and Control in Different Production Systems Elements of Effective Production Planning and Control Utility and Benefits of PPC Functions Constraints of PPC Recapitulation Key Terms Objective Type Questions Review Questions References Hints and Answers 17 Operations Scheduling and Workplace Planning Introduction Operations Scheduling Workplace Planning and Control Production and Operations Scheduling Production Planning and Production Scheduling Interface Scheduling Process-Focused Manufacturing Approaches to Scheduling Loading Sequencing Gantt Charts Scheduling Decisions Scheduling Product-Focused Manufacturing Production Scheduling and Control for Delivery Schedules Production Scheduling for High Volume and Continuous Production Scheduling Service Operations Problems in Service Scheduling Kinds of Service Operations Master Production Schedule (MPS) Workplace Planning and Control Recapitulation Key Terms Objective Type Questions Review Questions Numerical Problems References Hints and Answers 18 Waiting Line (Queue) Management Introduction Waiting Line Problem Economics Service Configuration Recapitulation Key Terms Objective Type Questions Review Questions Numerical Problems References Hints and Answers 19 Inventory Management and Just-in-Time Introduction Objectives of Inventory Inventory Decisions Inventory Models Inventory Costs Balancing Inventory Carrying Costs against Ordering Costs Inventory Management and Control (IMC) Inventory Models Inventory Control Techniques Inventory Management—Evaluating its Efficiency Just-in-Time (JIT) JIT Manufacturing and JIT Purchasing Designing Focused Factories through JIT Production Demand Pull System Kanban System Push System Manufacturing Cycle Time (Throughput Time) Comparison of JIT and Traditional Systems of Operations The JIT Attitude Continuous Improvement (Kaizen) JIT and Lean Management Wastages in Operations Tactical Tools of JIT JIT Implementation JIT in Services Recapitulation Key Terms Objective Type Questions Review Questions Numerical Problems References Hints and Answers 20 Supply Chain Management Introduction Evolution of Supply Chain Management Need for Supply Chain Management Objectives of Supply Chain Management Supply Chain Management and Structure Supply Chain Decisions Handling the Customer and Supplier Interface for SCM Opportunities Created by Supply Chain Management Importance of Supply Chain Management Elements of Supply Chain Management Functions of Supply Chain Management Key Issues in Supply Chain Management Traditional versus Integrated SCM Approaches Supply Chain Management Problems Strategies of SCM Integrating and Coordinating the Supply Chain Integration of Supply Chain Management Components Models for Integrated Supply Chain Management Creating Supply Chain Managing Supply Chain Major Process Parameters to Evaluate Supply Chain Supply Chain Features and their Dynamics Measurement and Evaluation of Supply Chain Efficiency Improving SCM through Structural Changes Virtual Supply Chain Organizations Analytical Hierarchy Process (AHP) Recapitulation Key Terms Objective Type Questions Review Questions References Hints and Answers 21 Warehouse and Materials Management Introduction Warehouse/Stores Management Functions/Scope of Warehouse Significance of Warehouse Management Warehouse Designing (Layout) Measuring Warehouse Efficiency Methods of Stock Verification Materials Management (MM) Materials Planning Materials Budgeting and Control Standardization Simplification Classification and Codification Recapitulation Key Terms Objective Type Questions Review Questions References Hints and Answers 22 Materials Handling–Principles, Operations and Equipment Introduction Materials Handling Developing and Organizing Materials Handling Classification of Materials Handling Systems Factors to be Considered in the Selection of Materials Handling Equipment Selection and Placement of Handling System Analysis and Evaluation of Materials Handling System and its Effectiveness Problem Areas and Safety Measures Materials Handling Equipment Safety Consideration in Materials Handling Recapitulation Key Terms Objective Type Questions Review Questions References Hints and Answers 23 Maintenance Policy and Repairs Introduction Maintenance Maintenance Management Planning and Scheduling of Maintenance Areas of Maintenance Types of Maintenance Other Terms used in Maintenance and epairs Maintenance Services Possible Deficiencies in Maintenance Control Process in Maintenance Management Prerequisites of Preventive Maintenance Essential Elements of Preventive Maintenance Merits and Demerits of Preventive Maintenance Total Productive Maintenance (TPM) Planned Maintenance Technique (PMT) MAPI Method Alternatives for Acquiring Machinery Recapitulation Key Terms Objective Type Questions Review Questions References Hints and Answers SECTION 6 QUALITY IMPERATIVES FOR PRODUCTION EXCELLENCE 24 Quality—A Tool for Achieving Excellence Introduction Continuous Improvement (KAIZEN) Recapitulation Key Terms Objective Type Questions Review Questions References Hints and Answers 25 Quality Control Techniques Introduction Acceptance Sampling Attribute Sampling Sampling Errors Statistical Process Control Operating Characteristic (OC) Curve Six Sigma Process Capability Taguchi Methods ISO-Certification ISO-9000: 2000 Series ISO-14000 Standards Recapitulation Key Terms Objective Type Questions Review Questions References Hints and Answers 26 World-Class Manufacturing Introduction Philosophies and Techniques in World-Class Manufacturing World-Class Manufacturing Recapitulation Key Terms Objective Type Questions Review Questions References Hints and Answers Section 7 Work ImprovementTechniques 27 Work Study and Industrial Engineering Introduction Work Study Method Study Choosing a Measurement Technique Time Study Motion Study Steps in Work Measurement Work Measurement Techniques Job Design Industrial Engineering (I.E.) Recapitulation Key Terms Objective Type Questions Review Questions Numerical Problems References Hints and Answers 28 Quantitative Techniques for Decision-Making Introduction Progressive Approach to Decision-Making Model Optimization-Modelling Process Linear Programming Integer Programming Facility Location Decision Trees Game Theory: Payoff Table or Matrix (Maximin and Minimax) Dealing with Uncertainties and Scenario Modelling Theory of Constraints (TOC) Recapitulation Key Terms Objective Type Questions Review Questions Numerical Problems References Hints and Answers 29 Learning Curves Introduction Learning Curve—A Concept Plotting Learning Curve Learning Curve from Single-Unit Data Assistance Score Learning Curve Predicted Learning Curve Opportunity Cut-off Experience Curve Recapitulation Key Terms Objective Type Questions Review Questions Numerical Problems References Hints and Answers 30 Reliability and Redundancy Introduction Types of Failures System Availability Recapitulation Key Terms Objective Type Questions Review Questions Numerical Problems References Hints and Answers Appendix A: Learning Curve Tables Appendix B: Areas of the CumulativeStandard Normal Distribution1 Appendix C Index