Operations Webinar
-
Upload
pr-cell-iim-rohtak -
Category
Education
-
view
905 -
download
2
Transcript of Operations Webinar
Operations Webinar
A Webinar by PR cell for preparation of WAT-PI Admissions process 2016.Presenter : Dixit Aggarwal (PGP06 Batch)
IIM R
ohta
k - O
pera
tions
W
ebin
ar 2
016
What is Operations ?• The business function responsible for
- Planning- Coordinating- Controlling
the resources needed to produce products and services for a company.
IIM R
ohta
k - O
pera
tions
W
ebin
ar 2
016
Need for operations ?Transform inputs to output.
Inventory Management
Production management
Incremental Value addition
Cost Control
Materials Planning
Distribution & Logistics
Staffing
IIM R
ohta
k - O
pera
tions
W
ebin
ar 2
016
Importance of operations
Marketing Finance
HR
Operations
Marketing - Sales
Finance - Operating capital
HR- Staffing
Operations – Day to day operations
IIM R
ohta
k - O
pera
tions
W
ebin
ar 2
016
Manufacturing vs Service Industry
MANUFACTURING- Tangible Products
- Quantification is easy- Capital Intensive
- Inventories
SERVICES- Intangible Products
- Quantification is easy- Labour Intensive- No Inventories
SIMILARITIES- Demand Driven
- Concepts of quality, productivity, capacity, scheduling, staffing
IIM R
ohta
k - O
pera
tions
W
ebin
ar 2
016
Example (Operations in service industry) – Telecom Industry
QOS
Peak Demand
Towers Require
d
Tower Location
Load Distribu-
tion
Cells
Hands-off
Outsour-cing
IIM R
ohta
k - O
pera
tions
W
ebin
ar 2
016
Some important terms• Inventory & its types• Outsourcing, when to outsource• Bottleneck and its implications• Available Capacity and used capacity• Lead time• Flow time• Fixed costs & Variable costs• ERP (Enterprise resource Planning)
IIM R
ohta
k - O
pera
tions
W
ebin
ar 2
016
InventoryInventory refers to the goods and materials that a business holds for the ultimate purpose of resale or repair.
• Chemicals• Talc• Silica
Raw Material
• Uncompleted Products
• Soap Liquid
WIP• Soap• Shampoo• Detergent
Finished Goods
Why Inventory?
BecauseUncertain demandValue Appreciation
Time LagsEconomies Of Scale
Types of Inventory
IIM R
ohta
k - O
pera
tions
W
ebin
ar 2
016
Assembly Line• An assembly line is a manufacturing process in which parts are
added as the semi-finished assembly moves from workstation to work station where the parts are added in sequence until the final assembly is produced.
• Introduced by Ford in 1913 for their model T.• His innovation reduced the time it took to build a car from
more than 12 hours to two hours and 30 minutes.
IIM R
ohta
k - O
pera
tions
W
ebin
ar 2
016
Time taken Between ordering & delivering.
= WIP / cycle time
Lead Time
Average time between successive deliveries
Bottleneck time
Cycle Time
Time spend by an item in WIP
Production lead time
Flow Time
Total units of a products that can be produced in a given time period
=Time available/ Cycle time
Capacity
Order Placement
Operation #1
Time = 2
Operation #2
Time = 3
Operation #3
Time = 1
Transportation
Time = 2Delivery
IIM R
ohta
k - O
pera
tions
W
ebin
ar 2
016
Six Sigma• Implicit goal is to improve all processes.• Formal Definition : Six Sigma seeks to improve the quality of the
output of a process by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes. Below 3.4 defects per million opportunities.
IIM R
ohta
k - O
pera
tions
W
ebin
ar 2
016
Supply Chain Management• Supply chain management is a cross-functional approach that includes managing
the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods, and the movement of finished goods out of the organization and toward the end consumer
• Activities of SCM-- Product Development- Sourcing- Production- Logistics- Synchronising supply & demand.- IT
IIM R
ohta
k - O
pera
tions
W
ebin
ar 2
016
Lean operations – Just in time• Just in time is a method of planning and control and an operations
philosophy that aims to meet demand instantaneously with perfect quality & no waste.
• Advantages- Reduced inventory costs.- Product customisation.- No need for scheduling.Example – Toyota – At the Toyota’s San Antonio plant, Toyota has relations with various with various suppliers with close proximity of the plant, which supplies components to the assembly line Just In Time.
IIM R
ohta
k - O
pera
tions
W
ebin
ar 2
016
Product Life Cycle
IIM R
ohta
k - O
pera
tions
W
ebin
ar 2
016
Determining profitable customers• 80% of a company’s profits come from its top 20% customers.• Matrices to identify profitable customers-
- Activity Based Costing system- Customer Management System- Retention- Advocacy- Expanding Purchasing
IIM R
ohta
k - O
pera
tions
W
ebin
ar 2
016
ERP (Enterprise Resource Planning)Enterprise resource planning (ERP) is an enterprise-wide information system designed to coordinate all the resources, information, and activities needed to complete business processes such as order fulfilment or billing.
IIM R
ohta
k - O
pera
tions
W
ebin
ar 2
016
Thank You • Questions ?