Om TQM 3

OPERATION
MANAGEMENT (OM)
AND
TOTAL QUALITY
MANAGEMENT
(TQM)
LEARNING OBJECTIVES
• Understand the 8 Scope of Operations Management.

THE SCOPE OF OPERATIONS MANAGEMENT
4
2. PLANT LAYOUT AND MATERIAL HANDLING
Plant Layout: As the name signifies, plant layout is the grouping and arrangement
of the personnel, machines, equipment, storage space, and other facilities, which
are used in the production process, to economically produce the desired output,
both quality wise and quantity wise.
2. PLANT LAYOUT AND MATERIAL HANDLING 5
MAIN OBJECTIVE OF A PLANT LAYOUT
1. Arrange all the factors of production in such a way that it facilitates

-low production cost and
-Increased returns to scale.
2. To eliminate the hurdles and points of overloading by making use of appropriate line balancing techniques.
3. To provide adequate space and to establish proper locations for both production centers and service centers.
4. To minimize the waiting time of semi finished goods.
5. To provide safe and adequate working conditions there by minimizing accidents.
6. To ensure that the space available is utilized optimally.
7. To make provisions for adequate flexibility in the designed layouts so that the minute changes in product design
or changes in material specification can be accommodated easily.
MAIN OBJECTIVE OF A PLANT LAYOUT
8. To make the plant maintenance simple & easy.

9.To design and locate the workstations adequately to facilitate uninterrupted flow of material and movement
of men.
10. To maintain high turnover of work in progress.
11. To effectively design the layout for improving productivity and quality of product.
TYPES OF PLANT/ FACILITY

LAYOUT
1. Fixed position layout

2. Process layout
3. Product (line) layout
4. Cellular Layout
5. Office Layout
6. Retail Layout
7. Warehouse Layout
8
Material Handling:
Material Handling is all about holding and treatment of material within and outside
the organization. It is concerned with the movement of material from one go
down to another, from go down to machine and from one process to another,
along with the packing and storing of the product.
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IMPORTANCE OF OBJECTIVES OF MATERIAL HANDLING

MATERIAL HANDLING
1. Increase usage capacity.
2. To minimize aisle space
1. Movement
3. Reduces Handling Frequency
2. Time 4. Develops effective working conditions
3. Quantity 5. Automated movement
4. Space 6. Improve logistic services
7. Eliminating short distance warehouse
movement.
8. Minimizes cost
10
3. PRODUCT DESIGN
The definition of product design describes the process of imagining,

creating, and iterating products that solve users’ problems or address
specific needs in a given market.

The key to successful product design is understanding the end-user
customer, the person for whom the product is being created. Product
designers attempt to solve real problems for real people by using empathy
and knowledge of their prospective customers’ habits, behaviors,
frustrations, needs, and wants.
11
4. PROCESS DESIGN
It is the planning and decision making of the entire workflow for
transforming the raw material into finished goods, It involves decisions
regarding the choice of technology, process flow analysis, process selection,
and so forth.
4. PROCESS DESIGN
12
4. PROCESS DESIGN
13
CATEGORIZE INTO 2
make-to-order business, the customer’s order is not manufactured until the order is received.
This allows customization to the exact specifications that the customer requires. It may also be
referred to as build-to-order. This type of production is considered a pull type system.
make-to-stock process, goods are produced in anticipation of customer demand, usually from a

sales forecast. These products are generally made in larger amounts and put into storage to wait
for customer orders.
14
4. PROCESS DESIGN
PROCESS TYPES TIMES
1. Project 1. Throughput time

2. Job Shop 2. Lead time
3. Batch 3. Cycle time
4. Repetitive 4. Takt time
5. Continuous
6. Hybrids
5. PRODUCTION PLANNING AND CONTROL 15
Production planning and control can be defined as the process of planning

the production in advance, setting the exact route of each item, fixing the
starting and finishing dates for each item, to give production orders to shops
and to follow-up the progress of products according to orders.
Main functions
Planning
Routing
Scheduling
Dispatching
Follow - up
16
5. PRODUCTION PLANNING AND CONTROL
OBJECTIVE OF PRODUCTION CONTROL IS

PRODUCTION CONTROL DEPENDENT UPON
1. Regulate inventory 1. Nature of production (job

management. oriented, service oriented,
2. Organize the production etc.)
schedules. 2. Nature of operation
3. Optimum utilization of 3. Size of operation
resources and production
process.
17
6. QUALITY CONTROL
Quality control (QC) is a process through which a business seeks to

ensure that product quality is maintained or improved. Quality control
requires the company to create an environment where management
and employees strive for perfection.
6. QUALITY CONTROL
18
Main Objective of Quality Control

1. To improve the companies' income by making the production more acceptable to
the customers i.e. by providing longlife, greater usefulness, maintainability, etc.
2. To reduce companies cost through reduction of losses due to defects.
3. To achieve interchangeability of manufacture in large-scale production.
4. To produce optimal quality at reduced price.
5. To ensure satisfaction of customers with productions or services or high quality
level, to build customer good will, confidence and reputation of manufacturer.
6. To make inspection prompt to ensure quality control.
7. To check the variation during manufacturing.
19
7. MATERIAL MANAGEMENT
Materials Management is that aspect of management function, which is

primarily concerned with the acquisition, control, and use of materials
needed and flow of goods and services connected with the production
process having some predetermined objectives in view.
7. MATERIAL MANAGEMENT
20
Main Objective of Material Management

1. To minimize material cost.
2. To purchase, receive, transport and store materials efficiently and to reduce the
related cost.
3. To cut down costs through simplification, standardization, value analysis, import
substitution, etc.
4. To trace new sources of supply and to develop cordial relations with them in order
to ensure continuous supply at reasonable rates.
5. To reduce investment tied in the inventories for use in other productive purposes
and to develop high inventory turnover ratios
21
8. MAINTENANCE MANAGEMENT
Maintenance management is the process of maintaining a company's

assets and resources. The purpose is to ensure that production
proceeds efficiently and that resources are used effectively.
8. MAINTENANCE MANAGEMENT
22
Main Objective of Maintenance Management

1. To achieve minimum breakdown and to keep the plant in good working
condition at the lowest possible cost.
2. To keep the machines and other facilities in such a condition that permits
them to be used at their optimal capacity without interruption.
3. To ensure the availability of the machines, buildings and services
required by other sections of the factory for the performance of their
functions at optimal return on investment.
THANK YOU!

Om TQM 3

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OPERATION

• Understand the 8 Scope of Operations Management.

2. PLANT LAYOUT AND MATERIAL HANDLING

MAIN OBJECTIVE OF A PLANT LAYOUT

1. Arrange all the factors of production in such a way that it facilitates

MAIN OBJECTIVE OF A PLANT LAYOUT

8. To make the plant maintenance simple & easy.

TYPES OF PLANT/ FACILITY

1. Fixed position layout

2. PLANT LAYOUT AND MATERIAL HANDLING

IMPORTANCE OF OBJECTIVES OF MATERIAL HANDLING

The definition of product design describes the process of imagining,

make-to-stock process, goods are produced in anticipation of customer demand, usually from a

PROCESS TYPES TIMES

1. Project 1. Throughput time

Production planning and control can be defined as the process of planning

5. PRODUCTION PLANNING AND CONTROL

OBJECTIVE OF PRODUCTION CONTROL IS

1. Regulate inventory 1. Nature of production (job

Quality control (QC) is a process through which a business seeks to

Main Objective of Quality Control

Materials Management is that aspect of management function, which is

Main Objective of Material Management

Maintenance management is the process of maintaining a company's

Main Objective of Maintenance Management

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