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SUBMITTED TO:- MR.NIMESH BHOJAK
SUBMITTED BY:- VIJAY JAIN(02)MITTAL PATEL(03)
JATIN AGRAWAL(04)
LOKENDRASINGH CHUNDAVAT(05)
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is the study and development of techniques for
the formulation and analysis of management and
related business problems. Operations research
models are often helpful in this process.
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is the application of techniques developed in
mathematics,statistics, engineering and the
physical sciences to the solution of problemsin
business, government,industry, economics andthe social sciences.
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employ mathematical models to reach a wide
variety of business decisions. They give modern managers a competitive edge
Managers do not need to have great mathematicalskills
Familiarity allows one to:
x Ask the right questions
x Recognize when additional analysis is necessary
x Evaluate potential solutions
x Make informed decisions
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like more traditional methods, however,
qualitative methods come in many
varieties. Different researchers focus on
different sources of data: One's own immediate experience
Others' experiences, which we might seek to
understand through:
x their speech or writing,
x their other behaviors,
x their products - technology, artwork, footprints, etc.
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` Production is the creation of goods and services
` Production and/orOperations Managementare
the activities that transform resourcesinto goods
and services
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` It is one of the 3 critical parts of anyorganization: Marketing generates demand
Operations creates the product
Finance/accounting tracks organizationalperformance, pays bills, collects money
` It shows us how goods and services areproduced
` It shows us what POM managers do` It is the most costly part of any organization
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Meat Furniture Restaurant Heavy
Packing Manufacturing Equipment
POM
Materials 79% 40% 38% 42%
Labor 8 15 20 12
Fringes 3 22 16 23
Total 90 77 74 77
S, G & A 9 15 22 20
Int., Taxes,
Profits, etc. 1 8 4 3
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26%
18%
16%
14%
6%
6% 5% 5%3%
1%
E
S G '
F
W
P U
C
F G m
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` Less than 20% of all jobs are in manufacturing
(and they are declining)
` Almost 80% of jobs are in the service sector (and
they are increasing)` Nearly half of all jobs are in POM
` Most POM jobs are professional and/or
managerial
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` Forecasting
` Service, product design..
` Quality management
` Process, capacity design...
`
Location ...` Layout design .
` Human resources, job design..
` Supply-chain management
` Inventory management .
` Scheduling ..` Maintenance ...
Ch. 4
Ch. 5
Ch. 6,6S
Ch. 7,7S
Ch. 8
Ch. 9
Ch. 10,10S
Ch. 11,11s
Ch. 12,14,16Ch. 3,13,15
Ch. 17
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` Quality management Who is responsible forquality?
How do we define quality?
` Service and product design What product orservice should we offer?
How should we design these products and services?
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` Process and capacity design What processes will these products require and in
what order?
What equipment and technology is necessary forthese processes?
` Location Where should we put the facility
On what criteria should we base this location
decision?
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` Layout design How should we arrange the facility?
How large a facility is required?
` Human resources and job design How do we provide a reasonable work environment?
How much can we expect our employees to
produce?
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` Supply chain management Should we make or buy thisitem?
Who are our good suppliers and how many should
we have?
` Inventory, material requirements planning, How much inventory of each item should we have?
When do we re-order?
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` Intermediate, short term, and project scheduling Issubcontracting production a good idea?
Are we better offkeeping people on the payrollduring slowdowns?
` Maintenance Who is responsible for maintenance?
When do we do maintenance?
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` Division of labor (Adam Smith,The Wealth of
Nations, 1776)
` Industrial Revolution
` Standardization of parts (Eli Whitney,1765 -1825) Cotton Gin (1792)
Contract with U.S. for muskets (1798)
x Some doubt about true interchangeabilityx Simeon North (Middletown)
x John Hall (HarpersFerry)
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` Scientific management (Frederick Taylor1865 -
1915) The Principles ofScientificManagement, 1911
x Match employees to jobs
x Provide the proper training
x Provide the proper methods and tools
x Establish legitimate incentives
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` Taylors 4 Principles of Scientific Management: Replace rule-of-thumb work methods with methods based on a
scientific study of the tasks
Scientifically select, train, and develop each worker rather thanpassively leaving them to train themselves
Cooperate with the workers to ensure that the scientificallydeveloped methods are being followed
Divide work nearly equally between managers and workers,sothat the managers apply scientific management principles toplanning the work and the workers actually perform the tasks
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` Coordinated assembly line (Henry Ford 1863 -1947)
` Gantt charts (Henry Gantt 1861-1919)` Motion studies (Frank and Lillian Gilbreth,1922)` Quality control (Shewhart, Juran,Feigenbaum,
Deming, Taguchi, etc.)` CAD` Flexible manufacturing systems (FMS)
` Computerintegrated manufacturing (CIM)
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` Local or national focus
` Batch shipments
` Low bid purchasing` Lengthy product
development cycles
` Standardized products
` Job specialization
Global focus
Just-in-time
Supply chain
partnering Rapid product
development
Strategic alliances
Mass customization
Empowered
employees
Teams
FromFrom ToTo
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Tangible product
Consistent product
definition
Production usually
separate from
consumption
Can be inventoried Low customer
interaction 1995 Corel Corp.
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Intangible product
Produced & consumed at
same time
Often unique High customerinteraction
Inconsistent product
definition
Often knowledge-based Frequently dispersed
1995 Corel Corp.
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` Can be resold
` Can be inventoried
` Some aspects ofquality measurable
` Selling is distinct
from production
Reselling unusual
Difficult to
inventory
Quality difficult to
measure
Selling is part ofservice
GoodsGoods ServiceService
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` Product istransportable
`
Site of facilityimportant for cost
` Often easy toautomate
` Revenue generatedprimarily fromtangible product
Provider, not productis transportable
Site of facilityimportant forcustomer contact
Often difficult toautomate
Revenue generatedprimarily fromintangible service
GoodsGoods ServiceServiceGoodsGoods ServiceService
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0 25 50 75 100255075100
AutomobileComputer
InstalledCarpetingFast-foodMeal
RestaurantMealAutoRepairHospitalCare
AdvertisingAgencyInvestmentManagement
ConsultingServiceCounseling
PercentofProductthatisaGood PercentofProductthatisaService
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Past Causes FutureLocal ornationalfocus
Low-cost, reliable worldwidecommunication andtransportation networks
lobal Focus
Batch (large)
shipments
Cost of capital puts pressure on
reducing investment ininventory
Just-in-time
shipments
Low-bidpurchasing
Quality emphasis requires thatsuppliers be engaged in productimprovement
Supply-chainpartners
Lengthy
productdevelopment
Shorter life cycles, rapid
international communication,computer-aided design, andinternational collaboration
Rapid product
development,alliances,collaborativedesigns
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Past Causes FutureStandardizedproducts
Affluence and worldwide markets;increasingly flexible productionprocesses
Masscustomization
Job
specialization
Changing sociocultural milieu.
Increasingly a knowledge andinformation society.
Empowered
employees,teams, and leanproduction
Low costfocus
Environmental issues, ISO 14000,increasing disposal costs
Environmentallysensitiveproduction,Green
manufacturing,recycledmaterials,remanufacturing
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Theeconomicsystemtransformsinputstooutputsataboutanannual2.5%increaseinproductivity(capital38%of2.5%),labor(10%of2.5%),management(52%of2.5%)
Land,Labor,Capital,Management
GoodsandServices
Feedbackloop
Inputs Process Out puts
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Measure of processimprovement
Represents output relative to input
Only through productivity increases can
ourstandard of living improve
ProductivityProductivityProductivityProductivity UnitsUnits producedproducedUnitsUnits producedproducedInputusedInputusedInputusedInputused====
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He asserted that ten workers could produce
48,000 pins per day if each of eighteen
specialized tasks was assigned to particular
workers. Average productivity: 4,800 pins perworker per day. But absent the division of labor, a
worker would be lucky to produce even one pin
per day.
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In 1907, Henry Ford announced his goal for theFord Motor Company: to create "a motor car for thegreat multitude." At that time, automobiles wereexpensive, custom-made machines.Ford realized he'd need a more efficient way to
produce the Model T in order to lower the price. Heand his team looked at otherindustries and foundfour principles that would further their goal: Interchangeable parts Continuous flow Division of labor
Reducing wasted effort
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improved a five-thousand-year-old job and had
enabled bricklayers to lay brick faster with less
effort and fatigue. On one particularly difficult type
of wall,
where the previou
srecord had been
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20bricks per hour, his methods allowed them to lay
350 bricks, an increase in productivity of over
190%.
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the original notions of Total Quality
Management and continuousimprovement
trace back to a former Bell Telephone employee
named Walter Shewhart. One of W. EdwardsDeming's teachers, he preached the importance
of adapting management processes to create
profitable situations for both businesses and
consumers, promoting the utilization of his owncreation: the SPC chart.
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Partsperman hour
95
100
105
110
115
Year A YearB YearC
Costperunitdecreased
$1.50
$1.75
$2.00
$2.25
Year A YearB YearC
Average worker'sannualcashcompensationincreased
24000
25000
26000
27000
Year A YearB YearC
Productivityimproved Costs werepared Wagesincreased
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` Labor- contributes about 10% of the annual
increase
` Capital- contributes about 32% of the annual
increase` Management- contributes about 52% of the
annual increase
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` Basic education appropriate for the labor force
` Diet of the labor force
` Social overhead that makes labor available
` Maintaining and enhancing skillsin the midst ofrapidly changing technology and knowledge
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` Typically laborintensive
` Frequently individually processed
` Often an intellectual task performed by
professionals` Often difficult to mechanize
` Often difficult to evaluate forquality
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` U.S. is becoming more of a knowledge intensive
service economy
` Globalization
` Total Quality Control` Need for flexibility and innovation
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