OM ASSIGNMENT

Unit 1
Efficiency means doing something at the lowest possible cost.
Effectiveness means doing the right things to create the most value for the
company.
Value can be metaphorically defined as quality divided by price.
Productivity is the ratio of output to input.
Operation management can be defined as the systemic design, direction and
control of processes that transform inputs into services and products for internal
as well as external products.
Process can be defined as activities or group of activities that takes one or more
inputs, transforms and add values to them and provides one or more outputs for
its customers.
Within the operations functions, management decisions can be divided into
three broad categories.
1. Strategic decisions.
2. Tactical decisions.
3. Operational Planning and Control decision.

Historical milestone in OM
1. Industrial revolution
2. Scientific management
3. Human relation and behaviourism
4. Operation research
5. Service revolution
6. Computers and advanced production technology

Current Issues in Operations Management.

Achieving the “Service Factory”
Enhancing value added services.
Making efficient use of Internet technology.
Achieving good service from service firms.
Developing flexible supply chains to enable mass customization of products and
services.
Managing global supplier, production and distribution networks.

Unit 2
Operation strategy means by which operations implements the firm’s corporate
strategy and helps to build a customer driven firm.
A core competency is a specific factor that a business sees as being central to
the way it, or its employees, works.
A core competency can take various forms, including technical/subject matter
know-how, a reliable process and/or close relationships with customers and
suppliers. It may also include product development or culture, such as employee
dedication.
These are:
Workforce
Facilities
Market and financial know how
System and technology

Core processes:- Key activity or cluster of activities which must be performed

in an exemplary manner to ensure a firm's continued competitiveness because it
adds primary value to an output.

Global strategies:
1. Strategic alliances
a) Collaborative effort
b) Joint venture
c) Technological licenses
2. Locating abroad
Competitive priorities:

In 1984 Hayes and Wheelwright suggested that companies compete in the

marketplace by virtue of one or more of the following competitive priorities:-

1. Quality
2. Lead-times
3. Cost
4. Flexibility

Unit 3
Plant layout

Plant layout refers to the arrangement of physical facilities such as machinery,

equipment, furniture etc. within the factory building in such a manner so as to
have quickest flow of material at the lowest cost and with the least amount of
handling in processing the product from the receipt of material to the shipment
of the finished product.

The following are the steps in studying the feasibility of revising a layout.

(i) Objectives of the investigation are to be formulated.

(ii) Collect the layout drawings of existing plant.
(iii) analyse the information available on present layout with the help of flow
diagram, process charts, analysis of service activities etc.
(iv) develop a new plan of layout by means of improved flow diagram, process
charts and final drawing of revised layout.

Factors relevant in the choice of the Layout

There some various factors relevant in the choice of the layout

1) Climatic conditions of factors relevant in the choice of the layout

2) Location of the Plant of factors relevant in the choice of the layout

3) Nature of Manufacturing System of factors relevant in the choice of the

layout
4) Size of Output of factors relevant in the choice of the layout

5) Nature of the product of factors relevant in the choice of the layout

Features of a good Layout

The layout of plant can be planned in a number of ways but a good layout
should possess some basic characteristics, namely:

(i) There should be sufficient space for the workers as well as for the equipment
to perform their functions. This will ensure smooth and continuous flow of
production process.
(ii) Must provide adequate safety and security to workers against accidents or
injury e.g. Provision of fire fighting equipment, first-aid boxes etc.
(iii) Sufficient gang-way space for materials, workers and semi-finished goods.
This leads to increase in efficiency.
(iv) Arrangement of machines and equipment should be such that minimum
material handling's necessary for low cost processing.
(v) Stores for in-process material should be provided at some convenient place
i.e. not far from the place of operations.
(vi) Supervision, co-ordination and control of the activity should be effectively
and easily executed.
(vii) There should be sufficient scope for making adjustments and modifications
whenever any need arises i.e. the layout should be flexible.

Unit 4
Plant location

Location decisions are the strategic decisions that require large financial
investments and they are irreversible in nature. A number of factors like market
related factors, tangible or cost factors and intangible or qualitative factors
affect and are affected by the location choice.

Models and techniques such as break-even analysis, factor rating technique, and
transportation method of linear programming help managers in making location
decisions. Since these models work on quantitative basis; therefore the
influence of qualitative factors should be considered by managers to decide the
location choice.
The physical disposition of the facilities of a plant is referred to as the plant
layout. The basic types of layouts are: process layout, product layout, fixed-
position layout, cellular manufacturing layout and hybrid layout. A process
layout is the layout in which similar machinery are grouped together.

In product layout the machines are arranged according to the progressive steps
by which a product is made. In a group technology layout, dissimilar machines
are grouped into cells, and each cell functions like a product layout within a
larger job shop or process layout. In a fixed layout, all the necessary men,
materials, and equipment are brought a fixed location where the product is
actually manufactured.

A hybrid or combination layout constitutes combination two or three types of

layouts. In case of designing service layouts, there exist two types based on the
degree of customer contact. One is designed around the customer service and
the other around the technology, processing of physical materials, and
production efficiency.

Methods of evaluation of location:

1. Factor rating method

2. Locational break even analysis
3. Decision tree
4. Centre of gravity method
5. Transportation model