Namaskar Friends, welcome to session 4 in
our course on operations management. As we have seen in session one, we have covered
the topics that we are going to cover in this course. We have also seen the distribution
of the course. We have seen that this course is a 30-hour course in which there will be
12 weeks of discussion, each week we will have half an hour sessions 5 sessions of half
an hour each. In session 2, we have covered the basic objectives.
Be prior to that we have seen the definitions of the word operations management, and then
we have seen what are the objectives of studying this course, or what are the objectives of
this process of operations management. In session 3 if you remember we have covered
what are the functions of the operations management personnel, or what are the overall defined
areas of working of operations management team. We have seen that for any organization,
there are 3 broad verticals. One is related to finance, another is related to operations,
another is related to the marketing. So, our focus primarily is on operations.
Then we have seen that what are the important areas or scope of operations of this subject.
We have seen that starting from demand of the product to the design of the product,
then to the production planning, production control, material handling system, materials
management, inventory control, work system design, capacity planning, aggregate production
planning. There is a wide scope of this subject that is operations management.
So, we have seen that the scope is very wide, but sometimes we have to classify the scope
so that we are able to understand the overall framework of the subject. Somebody may ask
a very simple question, a layman’s question; that what all do you study in operations management.
You need to have a very structured answer to this question, that we have covered these
important topics in this course. So, we need to have a structured answer. The structured
answer can be that starting from the conceptualization of the product to the launch of the product
in the market, how it is getting transformed into the final product, managing the product
development cycle is overall we can say the broad umbrella under which all other subsystems
can fall in. So, we are starting from the conceptualization
of the product then designing the product, then forecasting that how much volume of product
would be demanded in the market, or what is the demand of that product, then planning
our facilities, planning the production processes, and then planning the manpower who are going
to convert the raw material into the product, then managing our capacity, then doing the
production control finally, evaluating the quality, warehousing and finally, the product
is launched into the market. So, managing all production operations usually we can say
will fall under the overall umbrella, the umbrella we can call as the operations management.
So, we have seen that it can maybe overall management of the production system that it
is a subsystem of the broader manufacturing system. So, we are here managing the operations
part of any manufacturing industry. We are not directly dealing with the finance, we
are not directly dealing with the marketing, we are directly dealing with the operations
part of the organization. So, we have seen that within operations part also, there are
so many sub components, or sub elements, or sub parts, that we that we can discuss or
that fall under the scope of operations management, or that fall under the overall umbrella of
operations management. So, sub topics we have seen, and I think each
one of them we are going to address in this course, we are going to study product design
and development we are going to study sales forecasting, we are going to study plant layout,
and facility location planning, we are going to study aggregate production planning, we
are going to study capacity planning, we are going to study materials management. So, each
and everything that falls under the scope of operations management will be covered,
and in summary we can say conversion of raw material into the final product, managing
the overall transformation process, right from the raw material to the final product
will be the scope of our study in this course. But in order to remember what is the overall
broad framework, where we can focus our efforts or focus our activities, we can club them
into 5p’s. And those 5p’s I am very quickly going to highlight today. And then we will
focus our attention on these 5p’s in context of the production system; that how we can
classify the production system. There can be we can say different types of manufacturing
activity happening in an organization; and how we can classify them that we will try
to understand today. So, let us quickly first see the operations
management framework is divided into 5p’s. Now what are these 5p’s? What are the focus
areas we can say, we have to focus on the product, we have to focus on the plant, we
have to focus on the program in context of the time, we have to focus on the processes,
we have to focus on the people? So, these 5p’s we have to manage in the overall framework
of operations management in order to meet our objectives; what are the objectives to
produce a product which is of right quality in right quantity at right time within a reasonable
cost. So, or within an acceptable cost. So, that is what is our objective, these are the
5 things on which we can focus. So, as we have seen 4 words we can remember
regarding the overall objectives of operations management; that is, Q Q T C that is quality,
quantity time, and cost, similarly what we need to control in order to get all these
5 things, we need to focus on these 5p’s that is; product plant program processes and
people. So, let us quickly see each one of these. Product it is linked between production and
it is a link between production and marketing. So, marketing team will assess the needs and
requirement of the market. The needs and requirements of the customers, and then they will try to
link it with manufacturing. So, once we have to see that what we want to produce so that
we will cover in our week on product design and development. We will try to see some of
the tools and techniques which going to help us to make a successful product. Firstly,
designing the product and then finally, converting that product into a tangible product after
rapid prototyping or after prototyping. So, a product must have performance, quality
and reliability aesthetics and ergonomics, quantity and selling price, delivery schedule.
So, these are the important we can say criteria related to a good product, that good product
will be having good performance, quality, reliability, cost justification. It should
be able to satisfy the human needs and requirements at the defined time. So, delivery schedule
is important quantity is important selling price is important. So, first and foremost
is the product. So, we have to focus on product design, and then we have to see all aspects
related to the product in our overall management of the operations. Then the plant. The plant accounts for major investment if
you have studied the analysis or the financial analysis, you will see there will be some
fixed assets. There will be direct cost there will indirect cost, and accordingly we calculate
the break even for the organization. So, the plant accounts for the major investment,
the plant are concerned with design and layout of buildings and offices, reliability and
maintenance of equipment, safety of operations. So, we can see that whenever we are thinking
of the plant, we have to take into account all these things that the operations must
be safe. Operations must be maintenance free, or maybe may require the least or minimum
maintenance, then the layout should be such that we have optimal utilisation of the floor
space. So, all these points have to be taken into account. So, plant layout and facility
location design is also very, very important. So, plant layout must allow smooth movement
of men and materials. That is also one of the objectives of plant layout. Then type
of layout depend is dependent on production type, volume of demand etcetera.
So, we will see today the types of production system, there are intermittent type of production
system, there are continuous type of production system so that type of layout will depend
upon the type of production system. The volume of demand for example, we require very high
you can say production rate, or the demand is continuous we have to supply the product
at a very fast pace. That will dictate or have a bearing on the type of layout, that
we are planning for the operations. So, first thing we have seen that we have
to focus on product, then we have to focus on the plant that is going to convert that
raw material into the product form, or is going to facilitate the transformation process
of the raw material so that we get a good quality product. So, 2 things are product,
and then plant where the transformation will take place. So, here we have seen that what
are important criteria, when on which we can say whether the plant or the facility design
is good or bad. If it is making optimal utilisation of resources, it is ensuring smooth movement
of men and material, it is minimizing the wastage of time and effort, we can say that
yes, it is a good plant design. So, we can see where we have to focus our
energy. We have to focus our energy on product design and development. We have to focus our
energy on facilities location and layout design. Then we have to focus our energy on process
or the transformation process that is converting the raw material into the final product. So, the methods used to create a product or
transform the raw materials into the product form.
Now, selection of a particular process depends upon the following factors. We have to take
into account the available capacity. So, our capacity planning comes into picture. Manpower
skills available, so people comes into picture. Type of production system, layout of plant
it is related to the previous point that we have discussed; that is, plant layout and
facility location. Safety maintenance required manufacturing cost involved. So, we have to
focus on all these factors to come out with a solution that which is the most efficient
and effective process for our you can say requirement or for our target. Our target
is of quality and quantity of the final product. So, as per our requirement, which process
will give us the desired output. So, we have to take a decision based on all
these factors, that is capacity, manpower skills, type of production system, layout
of a plan, then safety of the operations maintenance of the operations manufacturing cost. We can
see this list can be endless. There can be other criteria and parameters also which will
affect the selection of the process for the transformation, or the transformation process
for finally creating our product. Creating a product means, making a product or fabricating
a product, manufacturing of product, producing a product. So, basically, we have to see that
which transformation process will be most effective and efficient.
So, we have seen 3 things, we have to focus on the product, we have to focus on the plant,
we have to focus on the process. Then we have to focus on the program. We have to see that
how in what time space, or in what time frame we have to create our product. So, program
refers to the time table of production. Very easy in your classes or wherever you are working
you have a time table. You have a time when you are going to enter
into the office; there may be a time when you have to leave your office. So, program
refers to the time table. So, it can it prepare the schedule for purchasing. So, we have to
get the raw material, transforming we have to see which processes are involved in the
creation of the product or manufacturing of the product. We have to see which machines
have to be meant have to go under regular maintenance at what intervals of time, we
have to see the manage of cash flow. We have to see the storage or management of cash flow
we have to manage; and then storage and transport. So, time domain is also very, very important.
And therefore, we have to manage the overall manufacturing programme in such a way that
our delivery schedules are met. Finally, the most important part that is the people. So, people are a part of organization progress
of organization depends on attitude and skills of the working people. So, we have to ensure
that we are providing an environment to our workers where they can feel comfortable and
motivated to work for the objectives of organization, or work for achieving the targets set by the
organization. So, we have to ensure the overall well being of our human resource. We not only
the physical well being, but also the mental well being of our work force or the human
resource. Because once our work force is motivated, they will work out wonders for the organization.
So, we have to focus on people also. So, the concepts of work system design, concepts of
the design of a system in such a way that the worker feels comfortable and motivated
to work for the organization. That is also coming under the overall framework of operations
management. So, job satisfaction of people depends upon good match between the people
and the jobs. And therefore, the concept of ergonomic design of work places is very, very
important, and we will cover the concept of ergonomics in our course on product design
and development. That when we are designing a product, we must consider the aspect of
ergonomics that the product is so designed that it is easy for an operator or a customer
or a user to use that product. Similar concepts can be applied in work system
design also, that the person when he is performing his task or job or activity in an organization.
He must be able to do it in the most effective manner with minimum fatigue, and minimum discomfort.
So, he must be able to comfortably do his job in the organization. So, we have to ensure
that the jobs match with the people, people also enjoy doing their work. So, it is possible
by providing them right motivation, right kind of training, then conditions of work,
and safety must be ensured and proper wages and salaries. So, if the employees motivated,
he feels like coming to the company because the environment is congenial for doing the
job. He is properly trained to do his task, and he is getting adequate salary matching
with his skills and the amount of work he is doing. I do not believe, that or I do not
feel that any worker will have any problem working for an organization.
So, if we focus on these 5p’s starting from the product, then the plant, then we can see
the process, the program, and lastly the people if we focus on all 5p’s in the overall framework
of an organization. If we manage these 5p's properly, we will be able to achieve the objective
of operations management. So, the overall scope of operations management must focus
on these 5p's in order to be successful; so in order to ensure the success of an organization.
So now, we will try to see that; what are the different types of production system.
Currently, we have focused I think all learners must be now acquainted well with why we are
studying this subject, where we have to focus our attention. What are the areas of concern,
what are the factors that we need to look forward to, when we are managing the different
aspects of operation? Now, we will see what are the types of systems
and what are the maybe important characteristics related to these systems, and how the things
very in context of these 5 p's for example, if we have to basically we will see there
are 2 types of production system. Intermittent type of production system, and a continuous
type of production system. So, we will see in context of people how the 2 systems vary.
In case of intermittent, the product design may keep on changing from time to time. Today
we are producing a specific design of a product, but there may be a change in order and the
complete redesign of the product may be required. Or there may be a new order in which we have
to manufacture a completely new design. What type of skills are required for the people?
I think you can answer it very quickly when the product design is changing, and a regular
basis or at a regular intervals of time, we require a person, or we require people who
can adapt to this type of changes. They have a versatile skill set. Whereas, on the other
side if there is a continuous type of production, there is a regular demand and we are producing
same product maybe for 3 or 5 years, what type of skills are required; specialised skill
of a person because he has to do the same task on a regular basis. So, we do not require
a versatile skills set for a person who is working on a specific operation in a continuous
type of production system. So, similarly that time that is the program,
the plant layout, the process is used the product that we are producing all these 5p's
the product, plant process program, and people all these 5 or related to the types of production
system. Or they are interrelated because we will see that when we see the type of production
system and the characteristics of each one of these production systems. We will see that
their directly related to these 5p's. And in that production system how these 5p's have
to manage. That is where the engineering skills will come into picture.
So, let us latest quickly go to the topic of production systems. Now production system just for definition
it is a manufacturing subsystem. So, we can say manufacturing is on a broader perspective.
Production is a subset we can say, or a subsystem of the overall manufacturing activity. So,
manufacturing subsystem that includes all functions required to design, produce, distribute
and service a manufactured product. So, you can see starting from product design
to the act of creating that product, or producing that product or fabricating that product,
or manufacturing that product. So, starting from the design of the product to the production
of the product to the distribution of the product, and finally, if there is some problem,
the service of the product comes under the overall production system. Elements are we
have seen this diagram 2 3 times, that there are inputs into the system, then their outputs
from the system, and there is a transformation happening to the input so that we get a usable
or a tangible product in the output. So, input transportation transformation sorry, and the
output are 3 elements of any production system. Now, what are the types of production system
that can be grouped in 2 categories broadly. So, there are intermittent type of production
system and there are continuous type of production systems. So, we can see type of production system broadly
classified into 2. Intermittent and type of production systems and continuous type of
production system, then sub classifications are there for intermittent type. What are
sub-classification? Project, jobbing and batch; and continuous side we have sub-classifications
mass and process type of production flows. So, in many good books and in many we can
say websites, you will find out 3 classifications based on the type of activities involved or
the characteristics involved. You will see job shop type of production system, batch
type of production system, and a mass or continuous type of production system. But here we are
trying to further classify them into 2 broad categories, that one is intermittent, where
the demand of the product is changing over a period of time. And continuous is when there
is a continuous production of the product. So, one simple example that I usually give;
for continuous type of production system is the production of power, either by hydropower
or by coal; coal based power project. So, you see continuous production is there once
the production of power stops. There is a shutdown of power maybe in certain number
of cities or towns. So, that is a continuous type of production system, we have input maybe
water is coming flowing in the river you make a dam you stop of water and then use that
water for producing the hydropower. That is continuous type of production system. And
intermittent can be a workshop that we have a maybe in a market; where a person has maybe
put up two machines, and these machines are being used for on a job shop basis. You go
there the time I need a threading on this parts.
So, what the person will do he will mount? That component on the machine make a thread
on that component hand it over to you. So, design changes are very frequent. Your requirement
goes to the person. And then he is managing, only that particular product for you, job
shop type; maybe, you are going for a specific job to that person. So, we can say we have
seen that two extreme cases, continuous manufacturing, and a product-based manufacturing or a specific
job-based production system. So, basically intermittent is where the demand is not continuous,
and continuous production system is where continuously you are produce. So, we will
very quickly try to understand the basic aspects. Now intermittent production systems, intermittent
means something that starts may be initiates and stops at regular or irregular intervals
of time. So, we can say that intermittent is time to
time production system. In the intermittent production system goods are produced based
on customers, ordered as I have told you go to a shop, and maybe tell that I need this
particular product. I need threading here, I need turning here. So, a person who has
the lathe machine will work on your specific order and try to satisfy your requirement.
Large variety of products are produced, production of goods of acceptable quality. Now you see
that the design can change, I may have a different requirement the other person have a different
requirement. So, the product design changes are very, very frequents of varieties of products
are produced in intermittent type of production systems. This system is very flexible, because
the demand is changing continuously. So, as per the demand the system will operate and
produce the product. Now what are the features, now you can try this can be an assignment
try to match the 5p's with these characteristics. So, what are the features of intermittent
production system very quickly we can see. Flow of production is not continuous. Variety
of products are produced. So, you can see variety of products. So, focus is on products
the first p of the overall framework of operations management. Volume of production is small.
So, it is related to the process. So, volume of production is small, general purpose machines
are used, because the designs are changing continuously. So, we cannot have a specific
dedicated machine. So, we need to have a very, very versatile
and general-purpose machines. Sequence of operation changes as per design, and production
depends upon the customer’s order. So, we can see that it is a flexible type of system,
that is the intermittent type of production system. Now continuous production system,
we can see that in; continuous means, something that operates constantly. So, it is a continuous as I have taken an
example of hydro power generation, it is the continuous process without any irregularities
or frequent halts. Goods are produced continuously as per the demand forecast. Goods are produced
on a large scale for stocking and selling. So, we can see that it is a continue system
goods are produced on a continuous basis. So, goods are not produced on customer order.
So, we can say may be we can take example of readymade garments also. Readymade garments
are continuously produced by the company based on the marketing and based on the tastes and
the fashion a prevailing in a particular time domain. So, it is not that; if I will order
then only the company will produce that shirts. So, it is not based on the customer order
continuous continues production is there. The inputs and outputs are standardized along
with the production process and sequence. Again, coming to the same example 42, size
40, size 44 shirt. So, the output is standardized they have to produce their product based on
the standardized; we can say sizes, in case of an automatic production of garment manufacturing.
So, the inputs and outputs are standardized along with the production process and sequence.
So, the process is also standardized, there we will be dedicated department for cutting
the you can say cloth and then there can be stitching and then there can be finishing.
So, we can say the inputs and outputs are standardized, along with the production process
as well as the sequence is also standardized. Now, what are the features of a continuous
production system? So, features of a continuous production system are flow production is continuous
and not intermittent. Products are standardized here. In previous case product design is changing
continuously. Here the products are standardized, may be one example of a continuous production
system can be manufacturing of automobiles. So, once the design is fixed. So, you will
continuously keep on producing that design or that particular week. What we say the variant
of a particular model of car. Products re produced as per quality standards.
Products are produced in anticipation of demand. So, we have a anticipation we have a forecast
of the demand so that accordingly we will schedule our production. Standardized routing
sheets and schedules are prepared. So, the process is more or less automatic. The schedules
are also produced automatically and we are able to meet our schedules because the there
are not many frequent design changes not many frequent process sequence changes. So, more
or less we are able to meet our targets of time. So, you can see that there is the difference
between the 2 types of production systems; that is, the intermittent type of production
system. So, job shop and batch type of production systems will fall under the intermittent type
of production system. And continuous or mass type of production systems will fall under
the continuous production system. So, broadly we can see the types of production
systems can be classified into 2 broad categories; that is, intermittent type and the continuous
type. And we will see that depending upon the type of production system being adopted
or being followed in a particular organization, our operations management tools and techniques
will vary. Or we have to adjust the operations management methodology specific to the specific
type of production system being followed. Yes, but the overall we can say objective
of operations management will remain same to ensure the quantity quality in specified
time at reasonable course, overall objectives will remain same in spite of or in we can
say irrelevant to the type of production system being followed.
So, we have a out we have a objectives of the operations management, that is clear to
us. Now depending upon the types of production systems being followed, we will follow the
principles of operations management and we will try to manage both types of production
systems whether it is intermittent type or it is continuous type. So, the learning or
we can say the understanding or the development of knowledge or the know how related to the
basic principles and rules and guidelines related to operations management, will help
us to manage both types of system the intermittent type of production systems also as well as
the continuous type of production systems also.
So, with this we close today’s session, we have tried to understand the overall framework
of operations management, where we need to focus our attention the 5p's in the overall
framework, and then we have tried to broadly classify the types of production systems into
intermittent type, and the continuous type. And we have tried to figure out what are the
specific characteristics of the intermittent type of production system as well as the continuous
type of production system. In our next session, we will focus on the
last session on these fundamental we fundamental discussion related to the operations management.
In our subsequent discussion we will focus on specific may be areas, or specific sessions,
or specific we can say tools or techniques which will help us to manage our operations
properly. And in week 2 our focus will be on product design and development.
Thank you.
