CHANGING PHILOSOPHY OF OPERATIONS MANAGEMENT Operations management has two important components; 1. Operations systems and procedures. 2.

Philosophy The performance of the organization is greatly influenced by the philosophy or mental framework of the people involved. Management philosophy influences the decision making and thought process in the organization. It provides a working environment and work culture, which makes all the difference to the organization. Operations management is concerned with all these aspects rather than just producing goods and services. Operations is not a not a new phenomenon and neither is getting the most out of your investment. But the difficult to attain is the how. How do we manage? How do we cut costs without retarding our agility? How do we balance what we are spending with the value we are showing? I believe that continuous improvement in management across platforms, systems and teams is needed. Continuous improvement is as much a mindset as anything else. It is the acceptance of the idea that improving the delivery of services is not something that is performed once and is then forgotten, but is instead an ongoing process. In todays operations management, the focus has shifted from the earlier concept of large scale production and cost reduction to new methodologies, new approaches, new tools, systems simplification, continuous improvements, total quality management and just-in-time manufacturing. Operations management is not limiting their options to the new technologies development, automation and computerization, but is looking beyond with new approaches and perspectives. In essence, they have moved toward a business-needsfocused service management orientation. Some of these business-supporting services are delivered using service level agreements (SLAs), while others are component services that support the business service itself. The benefits of organizing around services rather than technology include: Cost efficiency Quality assurance Compliance enablement

Given the pace of change in business, consistently achieving these benefits requires an approach that is clearly not a one-time effort, but rather something that is ongoingin other words, continuous improvement. To be successful, continuous improvement requires a philosophical change: a change in mindset that leads to changes in how day-to-day work is done. It requires an environment that encourages proactive improvement of a managed service portfolio and the customer experience, one that is framed in business value and business benefit, and which considers the requirements of market regularity and the business needs regarding compliance and governance. Success at continuous improvement requires consideration of not just the technology, but also the people and processes that make up services.

FACILITY LAYOUT A plant layout refers to the arrangement of machinery, equipment & other industrial facilities such as receiving & shopping departments, tool rooms, maintenance rooms for the purpose of achieving the quickest and smoothest production at the least cost. New layout Planning & arranging manufacturing machinery, equipment, & services for the first time in completely new plants. Improving existing layout The improvements in layouts already in use in order to introduce new methods & improvements in manufacturing procedures.

Simplify and reduce product and personnel movement Optimize product flow through the process Add output, capacity and utilization by relieving space constraints Reduce handling and damage Simplify organization of material and equipment Provide a basis for construction cost estimates Evaluate alternatives in advance Allow for future growth Design and layout a new facility for productivity Change, or grow, with a layout designed for new circumstances Consolidate or downsize operations Relocate operations to another facility Add new equipment or technology Layout a facility to match a lean process Plan a warehouse or DC, an office, a headquarters

ASPECTS OF MATERIAL PLANNING The Master Production Schedule is the driving force for material requirements planning (MPS). MRP shows the time phased requirements for releasing materials and receiving materials that enable the master production schedule to be implemented. MRP is a computer based system in which the given MPS is exploded into the required amounts of raw materials, parts & sub assemblies, needed to produce the end items in each item period of the planning horizon. The gross requirement of these materials is reduced to net requirements by taking into account that materials that are in inventory or on order.

Objectives of MRP To improve customer service by meeting delivery schedule promised & shortening delivery lead times. To reduce inventory cost by reducing inventory level. To improve plant operating efficiency by better use of productive resources. Ensure materials are available for production and products are available for delivery to customers. Maintain the lowest possible level of inventory. Plan manufacturing activities, delivery schedules and purchasing activities.

Three facets of MRP techniques are 1. The MRP techniques as a requirement calculator. 2. The MRP A manufacturing, planning & control system. 3. The MRP- A manufacturing resource planning system

MRP system inputs 1. Master production schedule (MPS) It specifies what end products are to be produced in what quantities and when. 2. Bills of Materials It provides the information regarding all the materials, parts & subassemblies that go into the end product.

3. Inventory status file It gives complete & up-to-date information on the on hand inventories, gross requirements, scheduled receipts & planned order releases for the item.

MRP System Output 1. Planned order schedule which is a plan of the quantity of each material to be ordered in each time period. 2. Changes in planned orders i.e. modification of previous planned orders. 3. Exception reports which list items requiring management attention to control. 4. Performance reports regarding how well the system is operating. 5. Planning reports such as inventory forecasts, purchase commitment reports, etc.