A production line is typically associated with continuous or flow production system. Production lines are particularly appropriate for high volume operations. In a production line work is divided into individual tasks and assigned to consecutive workstations on the line. In mass production on progressive assembly line the workload between various machines or workstations should be balanced. The need for balancing the line becomes obvious when it is considered that the output to be received from the line is determined by the maximum time involved in the performance of work at one particular workstation. The imbalances existing in the line would lead to wastage of time at all other work stations when one work station holds up the total output rate. Therefore, it is necessary to level out or balance the cycle times at each workstation. Line balancing refers to the apportionment of sequential work activities into workstations in order to Continue reading
Operations Management
Make-or-Buy Decisions in Purchase Management
The make-or-buy decision is the act of making a strategic choice between producing an item internally (in-house) or buying it externally (from an outside supplier). The buy side of the decision also is referred to as outsourcing. Make-or-buy decisions usually arise when a firm that has developed a product or part–or significantly modified a product or part–is having trouble with current suppliers, or has diminishing capacity or changing demand. Make-or-buy analysis is conducted at the strategic and operational level. Obviously, the strategic level is the more long-range of the two. Variables considered at the strategic level include analysis of the future, as well as the current environment. Issues like government regulation, competing firms, and market trends all have a strategic impact on the make-or-buy decision. Of course, firms should make items that reinforce or are in-line with their core competencies. These are areas in which the firm is strongest and Continue reading
Just-in-Time (JIT) Production Technology
In today’s competitive global business environment, the goal of all manufacturing systems is long-term survival. A manufacturing company’s survival in an increasingly competitive market closely depends upon its ability to produce highest quality product at lowest possible cost and in a timely manner with shortest possible lead-time. In addition, these goals should be achieved by paying utmost respect to the humanity of the employees who make the system work. Sometime, the difficulty of achieving the goals lies in the complexity of manufacturing operations. It is not difficult to build the high quality product, but is extremely difficult to do so while maintaining excellent quality, and at some time respecting the humanity of people who do the actual work of building that product. A Just-in-Time (JIT) based approach, which is suggested here, is capable of achieving all above stated goals. Just-in-Time (JIT) Based Quality Management is both philosophy and guiding set Continue reading
Production planning- Definition, Objectives and Levels
Production planning is concerned with deciding in advance what is to be produced, when to be produced, where to be produced and how to be produced. It involves foreseeing every step in the process of production so as to avoid all difficulties and inefficiency in the operation of the plant. Production planning has been defined as the technique of forecasting or picturing ahead every step in a long series of separate operations, each step to be taken in the right place, of the right degree, and at the right time, and each operation to be done at maximum efficiency. In other words, production planning involves looking ahead, anticipating bottlenecks and identifying the steps necessary to ensure smooth and uninterrupted flow of production. It determines the requirements for materials, machinery and man-power; establishes the exact sequence of operations for each individual item and lays down the time schedule Continue reading
Differences Between Manufacturing and Service Operations
Generally speaking, process efficiency is the most important to manufacturing operations while production and marketing are inseparable to service operations. Manufacturing’s tangible output can be consumed overtime, less labor and more equipment are used in production, since automation has increased capital intensity while as a result reduced customer contact. Consumers rarely take part in the manufacturing process, many manufacturing operations have emphasized efficiency while compromising flexibility, the methods for monitoring and using resources are sophisticated while producing. On the other hand, service operations are different from those of manufacturing operations. Consumption and production of services takes place simultaneously or closely, and there are more labor and more customer participation, which means service businesses, usually are more customer-oriented. while elementary methods are frequently used for monitoring and using resources. To be specific, there are mainly six differences between manufacturing operations and service operations. 1. Basic organize style in operation Basically, manufacturing Continue reading
Improvements In Productive Flow And Product Quality
The main objective of any business is profit making which it derives by making its products and services available to people. The business models therefore, can be described as value propositions for various stakeholders for which the management evolves strategies and methodologies to create goods and services in some particular arena and delivers the same to the desired target group or customers. It explains how the business would function, identify the goods and services that would be produced for identified customers, ensure the viability of the objectives and goals of the business to deliver values based services. In the contemporary environment of highly competitive business, innovative managerial practices become critical for increasing profitability without major capital investment. The essay would therefore focus on how the improvements in productive flow and product quality would impact on firms’ sales and profit. Productive Flow and Quality Product Productive flow broadly defines the streamlined Continue reading