Production Management, Inventory Control & Supply Chain Management By Prof. J. Hayavadana University Head, Department of Technology Osmania University Hyderabad-7

Production Management Is it Operations Management ? How it is defined Production Vs Service function Production function- determinants Production Decisions : Strategic, Operating , Control Production & productivity How Production Management is related to Industrial Engineering Why Production Management is required ( timely production & Lead time fulfulment )

Areas of Productivity Improving volume of production Apply Control Charts – reduce rework, rejections , waste or scrap Maintain LT Control Idle time , WIP– update with norms – time study Use MIS & Quality systems Good House keeping ., Material Handling Check absenteeism. Theft., pilferage Ensure Safety – Safe-t-Score test

Efficient Training & Team Building ( Identify for Re-Training , Training costs) Work out correct Inventory – EOQ Use Cause & effect Diagram Use Deming Cycle Use Six Sigma concept Use Lean Management concept Use Acceptance Sampling Use Normal Distributions Choose the right method of sampling

Components of Production Management 1. Process Design 2. Product design 3.Product Life cycle 4.Plant Utilities or industrial Climatology i. Plant Lighting ii. Plant Ventilation iii. Plant Air-conditioning iv.Sanitation v. Noise control and Acoustics vi.Need for Automation and types of Automation vi. Type of Building vii. Type of Floor viii. Type of Roof

5. Plant location : Types , Selection , Tools, recent trends 6. Plant Layout : Types, Selection , Tools, Role of Computers 7.Material Handling : types , Selection, Safety , Maintainance 8.Maintainance Management : Types , selection , Audit , Link to quality production 9.Ergonomics : Need, Meaning , Approach 10.Job Design : Job rotation, Enlargement , Enrichment , Vestibule training , Job description , Specification

11. Work Study : Method Study & Time Study – Need , Role Significance , Fixation of Wage , Incentive Method Study :phases: S , R , E, D, Dev.,M I How this is useful in a production set up ? Time Study: Phases: S , R , D , Dev.., I Tools : Clock, elements, allowances, Normal time ,Observed time , Rating of a worker, Standard time , S M V or S A V – link to production

Time Study for set up 1. Motion & Time analysis 2. Ergonomics 3. Elements – Time measurement 4. Apply Allowances 5. Establish the Standard time 6. Identify the idle time 7. Determine the number of rounds of observation

Overview of Inventory Control What is Inventory & Inventory Control ? What is W I P ? How Inventory is Created ? What are P & Q systems ? Saw Tooth Curve Inventory Decisions ( Credit & Discount )

Supply Chain Management Introduction Need Production Equation Supply Chain for a Manfg. Unit Supply Chain for a Service Unit

Overview of SCM Inventory Control Materials Management Components of Material Management or LM 1. Purchasing & Procurement 2.Principles 3.Purchasing methods 4. Purchasing Cycle 5.Purchasing Interfaces 6. Value Analysis 7. Outsourcing ( 3 PL & 4 PL)

Vendor Dynamics Choosing a Supplier – determinants, Certification Vendor Rating Vendor Analysis Vendor Development Supplier types : i. Partnership ii. Adversary Evaluation of Logistics: Incoming & Outgoing shipment

Innovations in Logistics 1. Warehousing : types – i. Bonded ii. UnBonded 2.Warehousing design , Construction 3. Developments in Warehousing i. Barcoding ii. Electronic data interchange iii. Distribution requirement Planning iv. JIT or Kanban

Supply Chain Strategies Strategy 1 : Multiple Suppliers ( Short term) Strategy 2. Few Suppliers ( Long term) Strategy 3. Vertical Integration i. Backward Integration ii. Forward Integration Strategy 4. : Keiretsu Network Strategy 5.: Virtual Company – R M G

Managing Supply Chain 1. Postponement or Curtailment if a part can be available locally 2.Channel Assembly – Distributor as Manfg. Drop Shipping and Special packaging Blanket Order Invoice less Purchasing Electronic Ordering and Fund transfer Stockless Purchasing- Direct to purchaser without store Standardization : Reduce no. of materials and components to aid Cost reduction

Benchmarking in SCM Comparison of Supply Chain Performance For different factors like Number of suppliers per purchasing agent Purchasing cost & lead time % of late deliveries % of rejections Number of shortages per year

Tools for SCM 1. Make or Buy decision 2.Supplier scheduling 3. Value Analysis 4.Supplier evaluation 5. Linear Programming 7. Assignment techniques 8. Transportation Techniques 9. Network Techniques 10. Sequencing