Project production is characterized by complex sets of activities that must be performed in a particular order within the given period and within the estimated expenditure. Where output of a project is a product, such products are generally characterized by immobility during transformation. Operations of such products are carried out in “fixed position assembly type of layout” which can be observed in production of ships, locomotive and aircraft, construction of roads, buildings, etc. Characteristics of Project Production Definite beginning and definite end: Each project has a definite beginning and a definite end. “Fixed position” layout: Where the output of a project is a product, such products are generally characterized by immobility during transformation. Operations on such products are carried out in “fixed position assembly type of layout” which can be observed in production of ships, locomotive, aircraft, construction of roads/ buildings, etc. High cost overruns: Often delays take place in Continue reading
Production Management Concepts
Objectives of Material Handling
Materials handling may be defined as the art and science of movement, handling and storage of materials during different stages of manufacturing considered as material flow into, through and away from the plant. It is in fact, the technique of getting the right goods safely, to the right place, at the right time and at the right cost. All tangible and intangible benefits can be reduced to four major objectives. The application of material handling methods and equipment to be of greatest benefits should be governed by the following: 1) Reduced Costs: Cost-Reduction programs have two broad goals; either to reduce the cost of Material Handling or to reduce total production cost; by improved handling procedures. The latter concept net reduction in total manufacturing costs. The Ways in which cost reductions are realized through improved material handling are; Reducing material handling labour. Reducing the Material handling work done by direct Continue reading
5 Why Analysis – A Root Cause Analysis Tool
5 Why Analysis is a simple approach for exploring root causes and instilling a “Fix the root cause, not the symptom,” culture at all levels of a company. The 5 Why Analysis was originally developed by Toyota founder Sakichi Toyoda and was later used within Toyota Motor Corp. during the development of the Toyota Product System (TPS). At Toyota, 5 Whys is still a critical component of problem-solving training, and the method is still widely applied within the company when problems occur. “Toyota Business Practices dictates using the ‘Five Whys’ to get to the root cause of a problem, not the ‘Five Whos’ to find a fire the guilty party.” – Jeff Liker, The Toyota Way It can be used whenever the real cause of a problem or situation is not clear. Using the 5 Whys is a simple way to try solving a stated problem without a large detailed Continue reading
Introduction to Crtical Path Analysis
Critical Path Analysis The OR techniques used for planning, scheduling and controlling the large and complex projects are often referred to as Critical Path Analysis or Network Analysis. A network is a graphical diagram consisting of a certain configuration of arrows and nodes for showing the logical sequence of various tasks( or activities) to be performed to achieve project objectives. Network analysis is the quite useful for designing, planning, coordinating, controlling and decision- making so that the project could be economically completed in the minimum possible time with the limited available resources two most popular form of this technique now used in many scheduling situations are the Critical Path Method (CPM) and Program Evaluation and Review Technique. (PERT) CPM: It differentiates between planning and scheduling. Planning refers to the determination of activities that must be accomplished and the order in which such activities should be performed to achieve the Continue reading
Features of an Ideal Plant Layout
Plant layout and design is an important component of a businesses overall operations, both in terms of maximizing the effectiveness of the production process and meeting the needs of employees. 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. It may be defined as a technique of locating machines, processes and plant services within the factory so as to achieve the right quantity and quality of output at the lowest possible cost of manufacturing. It involves a judicious arrangement of production facilities so that workflow is direct. The basic objective of layout is to ensure a smooth flow of work, material, Continue reading
Ultimate Guide to Cause & Effect Diagram
The cause & effect diagram is the brainchild of Kaoru Ishikawa, who pioneered quality management processes in the Kawasaki shipyards, and in the process became one of the founding fathers of modern management. The cause and effect diagram is used to explore all the potential or real causes (or inputs) that result in a single effect (or output). Causes are arranged according to their level of importance or detail, resulting in a depiction of relationships and hierarchy of events. This can help you search for root causes, identify areas where there may be problems, and compare the relative importance of different causes. Causes in a cause & effect diagram are frequently arranged into four major categories. While these categories can be anything, you will often see: manpower, methods, materials, and machinery (recommended for manufacturing) equipment, policies, procedures, and people (recommended for administration and service). These guidelines can be helpful but Continue reading