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DEPARTMENT OF MANAGEMENT

Course Code IENG21 Course Title Operations Management Type Lecture Credit Units 3

Course Description:
The course is concerned with designing and controlling the process of production. It also covers redesigning
business operations in the production of goods and/or services. It defines the responsibility of ensuring that the
business operations are efficient in terms of using as few resources as needed and effective in terms of using
customer requirements.

MODULE #2

Introduction to Production and Operation Management

Intended Learning Outcomes

After the completion of this module students should be able to:
1. Discuss the different kinds the production systems.
2. Explain the significance of operations management

PRODUCTION SYSTEM MODEL / DESIGN

Although the terms Production System Model and Production System Design are interchangeably used
in Manufacturing. There are basic differences between the two
Most companies refer to Production Models as organized systems already utilized or applied and to
Production Design as systems in the planning phase.
The production system model includes input (consumed) and output (produced) resources for each process
stage, as well as the sequence of processes required for production. It deals with the actual turning of raw
materials into the nal products
The production system design comprises a linked set of widely ranging activities and involves problems
common to a variety of situations, regardless of the technology and process being used but focusing more on
the ideal plan from resource planning, hardware/software support, manpower and needed logistics to meet and
distribute the nal production outcome
The relationship between a production model engineer and production design engineer may be likened to the
relationship between a building engineer and the building’s architect. To complete a product or service, both
systems must control and limit the differences that will occur during the manufacturing process.
A speci c example is a prototype being prepared by a product design engineer. His design incorporates the use
of 4 types of screws to assemble the nal product. Sourcing for the screws among all the other parts are
included in the design plan. When this was turned-over to the actual production oor, assembly time
considerations and sourcing issues of the 4 different type of screws were raised by the production engineer. This
resulted in modi cation of the design the product to just use 4 similar screws thereby cutting assembly time/
cost and minimizing material costs.

Watch this related Video: https://youtu.be/_kxE73QOY7I

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 Both systems take into consideration the following elements:

Production
Production can be explained as an act of either manufacturing or mining or
growing of goods (commodities) generally in bulk of trade. Production method
employed for making or providing essential goods and services for consumers. It is a
process that puts intangible inputs like ideas, creativity, research, knowledge,
wisdom, etc.
System
System is an arrangement or assembly of inter dependent processes
activities that are based on some logic and function. It operates as a whole and is
designed (build) with an intension to achieve (fulfill) some objective or do some work.

Production System
Production system may be defined as production system utilizes material
funds, infrastructure and labor to produce the required output in form of good.
Production System are the methods and procedures used to produce goods for the
market. Production systems utilize material, capital, transportation and labor
resources to produce and distribute products.

Production system consists of three main components, these are the:

1. Inputs include raw materials, machines, man hours, components, parts,
drawing, instruction and other paper works.
2. Conversion process includes operations (actual production process).
Operations may be either manual or mechanical or chemical. Conversion
process also includes supporting activities which help the process of conversion.
The supporting activities include production planning and control purchase of raw
materials, receipt, storage and issue of materials, and work in progress, testing of
products, quality control, warehousing of finished products and etc.
3. Outputs

Outputs includes finished products, finished goods (parts), and services.

Tangible goods. Consider an example of a manufacturing industry like a sugar
industry. Here, sugarcane is first used as an input, and then the juice of sugarcane is
processed through a conversion process, finally to get an output known as a refined
sugar (used for mass consumption).
Intangible goods. Consider an example from a service industry that of a software
development firm or company. Here, initially written program codes are used as an
input. These codes are then integrated in some database and are provided with a
user- friendly interface through a conversion process. Finally, an output is made
available in form of an executable application program.

 Classification of Production System

1. Job shop production. Job shop production is characterized by

manufacturing of one or few quantity of products designed and
produced as per the specification of customers within prefixed time and
cost
Characteristics of Job Shop Production
The Job Shop Production system is followed when there is:
A. High variety of products and low volume.
B. Use of general purpose machine and facilities.
C. Highly skilled operators who can take up each job as a challenge because of
uniqueness.
D. Large inventory of materials, tools, parts.
E. Detailed planning is essential for sequencing the requirements of each
product.capacities for each work centre and order priorities
F. Batch production

2. Batch Production is defined by the American Production and Inventory

Control Society (APICS), as a form of manufacturing in which the job passes
through the functional departments in lots or batches and each lot may have a
different routing. It is characterized by the manufacture of limited number of
product produced at regular intervals and stocked awaiting sales.

Characteristics of Batch Production

Batch production system is used under the following circumstances:
a. When there is shorter production runs.
b. When plant and machinery are flexible.
c. When plant and machinery set up is used for the production of item in a batch
and change of set up is required for processing the next batch.
d. When manufacturing lead time and cost are lower as compared to job order
production

3. Mass production
Manufactures of discrete parts of assemblies using a continuous process are
called mass production. This production system is justified by very large volume of
production. The machines are arrange in a line or product layout. Product and
process standardization exists and all outputs follow the path.





 Characteristics of Mass Production

Mass production is used under the following circumstances:
a. Standardization of product and process sequence.
b. Dedicated special purpose machines having higher production capacities
and output rates.
c. Large volume of products.
d. Shorter cycle time of production.
e. Lower in process inventory.
f. Perfectly balanced production lines.
g. Flow of materials, components and parts is continuous and without any
back tracking.
h. Production planning and control is easy.
i. Material handling can be completely automatic

4. Continuous production
Productions facilities are arranged as per the sequence of production operation
form the first operations to the finished product. The items are made through the
sequence of operations through material handling devices such as conveyors,
transfer devices, etc.
Characteristics of Continuous Production
Continuous production is used under the following circumstances.
a. Dedicated plant and equipment with zero flexibility.
b. Material handling is fully automated.
c. Process follows a predetermined sequence of operations.
d. Component materials cannot be readily identified with final product.
e. Planning and scheduling is a routine action.

Scope of Production Management

1. - Manufacturing system often produces standardized products in large
volumes. The plant and machinery have a finite capacity. The facilities constitute
fixed costs, which are allocated to the products produced.

2.- Service system present more uncertainty with respect to capacity and cost.
Services are produced and consumed in the presence of the customer.

3. - Project system does not produce standardized products. The Plant,

Machinery, Men and Materials are often brought to project site and the project is
completed. The project is of big size and remains in the site itself after
completion.

 Watch this Video on Lean Production [Toyota System] https://youtu.be/

16-6-Q_nwf4

Additional readings / video

sample MIT.edu material on Manufacturing Systems

https://ocw.mit.edu/courses/mechanical-engineering/2-854-introduction-to-manufacturing-
systems-fall-2016/lecture-notes/MIT2_854F16_Introduction.pdf

How a Management Operating System works [Plan, Do, Check, Action]

https://youtu.be/pO3q-jWBFsU

Outcomes Based Assessment:

Discuss what Lean Manufacturing is all about. What are its components? What
bene ts are obtained when this system is implemented?

Use the provided link to write your discussion in not more than 500 words.

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