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UNIT – 1
INTRODUCTION TO PRODUCTION AND OPERATIONS
MANAGEMENT
Introduction - Meaning & Definition – Classification - Objectives and Scope of Production
and operation Management -Automation: Introduction – Meaning and Definition – Need –
Types - Advantages and Disadvantages
Introduction
Production is the creation of goods and services. The production activity is nothing but the step by
step conversion of one form of material into another either chemically or mechanically. This is done
in factories which have manufacturing processes. The basic inputs of production process are men,
machines, plant, services and methods. The finished products of one manufacturing process may not
become finished product for consumption it may become the raw material for other manufacturing
process. Production involves the step by step conversion of one form of materials into another
through processing to create or enhance the utility of the products or services.
Meaning of Production
Production refers to the use of any process which is designed to transform a set of input elements
into set an output elements.
It involves the step by step conversion of one form of material into another to create or enhance the
utility of the products or services.
Definitionof Production
According to Elwood Butta, “Production is a process by which goods or services are created.”
Ways of Production
 Production by disintegration i.e., by separating the contents the desired product is produced.
Ex: Crude oil, fuel oils etc.,
 Production by Integration i.e., production by assembling various components of the
products to get desired product. Ex: 2 wheelers, 4wheelers etc.,
 Production by services i.e., production is based on chemical and mechanical properties of
materials without physical change. Ex: heat treatment of metals etc.,
Classification by Production
a. Job shop production – It refers to the manufacturing facility that produces several different
products in smaller batches. They are manufactured by one or few quantity of products
designed and produced as per the specification of the customers within prefixed time and
cost.
b. Batch production – It refers to the manufacturing process in which components or goods
are produced in groups and not in continuous stream. A limited number of products are
produced at regular intervals.
c. Mass production – Under this, the manufacturing or processing of uniform products in large
quantities takes place. It is either a wholly automated process or a series of short or repetitive
procedures.
d. Continuous production -it is a method used to manufacture, produce or process materials
without interruption.
Production management
Meaning
It refers to the job of coordinating and controlling the activities required for making a product,
which involves control of schedule, cost, and performance, quality and waste requirements.
It means planning, organizing, directing and controlling of production activities. It deals with
decision making regarding the quality, quantity, cost etc. It applies management principles for
production. It deals with converting raw materials into finished goods or products.
Definition
According to H.A.Harding, “Production management is concerned with those processes which
convert the inputs into outputs. The inputs are various resources like raw materials, men, machines,
methods etc., and outputs are goods and services”
According to A.W.Field, “Production management is the process of planning and regulating the
operations of that part of an enterprise which is responsible for actual transformation of materials
into finished products.”
Objectives of ProductionManagement
1. Produce goods at right quality, right quantity, right time and at minimum cost.
2. Optimum utilization of resources and available production capacity.
3. Produce required quantities at a required quality.
4. Ensure maximum capacity utilization.
5. Flexible working conditions.
6. Minimum raw material, labour cost and maintenance cost.
7. Minimum storage, material handling and inspection.
8. Improve productivity of all inputs.
Scope of Production Management
Production and operations management are concerned with the conversion of inputs into
outputs, using physical resources, so as to provide the desired utilities to the customer while meeting
the other organizational objectives of effectiveness, efficiency and adoptability. It distinguishes
itself from other functions such as personnel, marketing, finance, etc., by its primary concern for
‘conversion by using physical resources.’ Following are the
activities which are listed under production and operations management functions:
1. Location of facilities
2. Plant layouts and material handling
3. Product design
4. Process design
5. Production and planning control
6. Quality control
7. Materials management
1. Location of facilities
Location of facilities for operations is a long-term capacity decision which involves a long term
commitment about the geographically static factors that affect a business organization. It is an
important strategic level decision-making for an organization.
The selection of location is a key-decision as large investment is made in building plant and
machinery. An improper location of plant may lead to the waste of all the investments made in the
plant and machinery equipment. Hence, location of plant should be based on the company’s
expansion plan and policy, diversification plan for the products, changing sources of raw materials
and many other factors. The purpose of the location study is to find the optimal location that will
result in the greatest advantage to the organization.
2. Plant layout and material handling
Plant layout refers to the physical arrangement of facilities. It is the configuration of departments,
work centres and equipment in the conversion process. The overall objective of the plant layout is to
design a physical arrangement that meets the required output quality and quantity most
economically.
According to James Moore, “Plant layout is a plan of an optimum arrangement of facilities
including personnel, operating equipment, storage space, material handling equipments and all other
supporting services along with the design of best structure to contain all these facilities”.
‘Material Handling’ refers to the ‘moving of materials from the store room to the machine and
from one machine to the next during the process of manufacture’. It is also defined as the ‘art and
science of moving, packing and storing of products in any form’. It is a specialized activity for a
modern manufacturing concern, with 50 to 75% of the cost of production. This cost can be reduced
by proper section, operation and maintenance of material handling devices. Material handling
devices increases the output, improves quality, speeds up the deliveries and decreases the cost of
production. Hence, material handling is a prime consideration in the designing new plant and
several existing plants.
3. Product design
Product design deals with conversion of ideas into reality. Every business organization has to
design, develop and introduce new products as a survival and growth strategy. Developing the new
products and launching them in the market is the biggest challenge faced by the organizations. The
entire process of need identification to physical manufactures of product involves three functions:
marketing, product development, and manufacturing. Product development translates the needs of
customers given by marketing into technical specifications and designing the various features into
the product to these specifications. Manufacturing has the responsibility of selecting the processes
by which the product can be manufactured. Product design and development provides link between
marketing, customer needs and expectations and the activities required to manufacture the product.
4. Process design
Process design is a macroscopic decision-making of an overall process route for converting the
raw material into finished goods. These decisions encompass the selection of a process, choice of
technology, process flow analysis and layout of the facilities. Hence, the important decisions in
process design are to analyze the work flow for converting raw material into finished product and to
select the workstation for each included in the workflow.
5. Production planning and control
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.
The principle of production planning and control lies in the statement ‘First Plan Your Work
and then Work on Your Plan’. Main functions of production planning and control includes planning,
routing, scheduling, dispatching and follow-up.
Planning is deciding in advance what to do, how to do it, when to do it and who has to do it.
Planning bridges the gap from where we are, to where we want to go. It makes it possible for things
to occur which would not otherwise happen.
Routing may be defined as the selection of path which each part of the product will follow,
which being transformed from raw material to finished products. Routing determines the most
advantageous path to be followed from department to department and machine to machine till raw
material gets its final shape.
Scheduling determines the programme for the operations. Scheduling may be defined as ‘the
fixation of time and date for each operation’ as well as it determines the sequence of operations to
be followed.
Dispatching is concerned with the starting the processes. It gives necessary authority so as to
start a particular work, which has already been planned under ‘Routing’ and ‘Scheduling’.
Therefore, dispatching is ‘release of orders and instruction for the starting of production for any
item in acceptance with the route sheet and schedule charts’.
The function of follow-up is to report daily the progress of work in each shop in a prescribed
Performa and to investigate the causes of deviations from the planned performance.
6. Quality control
Quality Control (QC) may be defined as ‘a system that is used to maintain a desired level of
quality in a product or service’. It is a systematic control of various factors that affect the quality of
the product. Quality control aims at prevention of defects at the source, relies on effective feedback
system and corrective action procedure.
Quality control can also be defined as ‘that industrial management technique by means of which
product of uniform acceptable quality is manufactured’. It is the entire collection of activities which
ensures that the operation will produce the optimum quality products at minimum cost.
The main objectives of quality control are:
 To improve the company’s income by making the production more acceptable to the
customers i.e. by providing long life, greater usefulness, maintainability, etc.
 To reduce companies cost through reduction of losses due to defects.
 To achieve inter changeability of manufacture in large scale production.
 To produce optimal quality at reduced price.
 To ensure satisfaction of customers with productions or services or high quality level, to build
customer goodwill, confidence and reputation of manufacturer.
 To make inspection prompt to ensure quality control.
 To check the variation during manufacturing.
7. Materials 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.
The main objectives of materials management are:
 To minimise material cost.
 To purchase, receive, transport and store materials efficiently and to reduce the related
cost.
 To cut down costs through simplification, standardisation, value analysis, import
substitution, etc.
 To trace new sources of supply and to develop cordial relations with them in order to ensure
continuous supply at reasonable rates.
 To reduce investment tied in the inventories for use in other productive purposes and to
develop high inventory turnover ratios.
Importance of ProductionManagement
1. Accomplishment of firm's objectives: Production management helps the business firm to
achieve all its objectives. It produces products, which satisfy the customers' needs and wants.
So, the firm will increase its sales. This will help it to achieve its objectives.
2. Enhances reputation, goodwill and image: Production management helps the firm to
satisfy its customers. This increases the firms reputation, goodwill and image. A good image
helps the firm to expand and grow.
3. Helps to introduce new products: Production management helps to introduce new products
in the market. It conducts Research and Development (R&D). This helps the firm to develop
newer and better quality products. These products are successful in the market because they
and they give full satisfaction to the customers.
4. Supports other functional areas: Production management supports other functional areas
in an organization, such as marketing, finance, and personnel. The marketing department
will find it easier to sell good- quality products, and the finance department will get more
funds due to increase in sales. It will also get more loans and share capital for expansion and
modernization. The personnel department will be able to manage the human resources
effectively due to the better performance of the production department.
5. Helps to face competition: Production management helps the firm to face competition in
the market. This is because production management produces products of right quantity,
right quality, right price and at the right time. These products are delivered to the customers
as per their requirements
6. Optimum utilisation of resources: Production management facilitates optimum utilisation
of resources such as manpower, machines, etc. So, the firm can meet its capacity utilisation
objective. This will bring higher returns to the organisation.
7. Minimises cost of production: Production management helps to minimise the cost of
production. It tries to maximise the output and
minimise the inputs. This helps the firm to achieve its cost reduction and efficiency
objective.
8. Expansion of the firm: Production management helps the firm to expand and grow. This is
because it tries to improve quality and reduce costs. This helps the firm to earn higher
profits. These profits help the firm to expand and grow.
The importance of Production Management to customers and society:
1. Higher standard of living: Production management conducts continuous research and
development (R&D). Based on the research conducted an industrial concern will produce
new and better varieties of products. People use these products and enjoy a higher standard
of living.
2. Generates employment: Production activities create many different job opportunities in the
country, either directly or indirectly. Direct employment is generated in the production area,
and indirect employment is generated in the supporting areas such as marketing, finance,
customer support, etc
3. Spread effect: Because of production, other sectors also expand. Companies making spare
parts will expand. The service sector such as banking, transport, communication, insurance,
BPO, etc. also expand. This spread effect offers more job opportunities and boosts economy.
4. Creates utility: Production creates Form Utility. Consumers can get form utility in the
shape, size and designs of the product. Production also creates time utility, because goods
are available whenever consumers need it.
5. Boosts economy: Production management ensures optimum utilisation of resources and
effective production of goods and services. This leads to speedy economic growth and well-
being of the nation.
Five P’s of Production Management
The division of production management functions in to 5 p’s (product, plant, programme, processes
and people) will provide useful conceptual framework for the various activities performed by
production or operations manager.
The Five P’s:
1. The Product:
Product is the link between production and marketing. It is not enough that a customer requires
product but the organisation must be capable of producing the product.
As per the product policy of the organisation, an agreement is reached between the various
functions on the following aspects of the product
1. Performance
2. Quality and reliability
3. Aesthetics and ergonomics
4. Quantity and selling price
5. Delivery schedule.
To arrive at the above, the external and the internal factors which affect the various aspects such as
market needs, existing culture and legal constraints and the environmental demands should be given
due consideration. Thus the major policy decisions regarding variety of product mix is going to
affect the producing system.
2. The Plant:
The plant accounts for major investment (fixed assets). The plant should match the needs of the
product market, the worker and the organization.
The plant is concerned with:
1. Design and layout of building and offices.
2. Reliability, perfect, maintenance of equipment.
3. Safety of operations.
4. The financial constraint.
Plant layout deals with physical arrangement of plants and machineries within the selected site. The
layout should be such that it should allow for smooth movement of men and materials with
minimum back tracking. The type of the layout is dependent on production type, volume of demand,
etc.
3. The Process:
There is always number of alternative methods of creating a product. It is required to select the one
best method, which attains the objectives.
In deciding about the process, it is necessary to examine the following factors:
1. Available capacity
2. Manpower skills available
3. Type of production
4. Layout of plant
5. Safety
6. Maintenance required
7. Manufacturing costs
4. The Programme:
The programme here refers to the timetable of production. Thus, the programme prepares
schedules for:
1. Purchasing
2. Transforming
3. Maintenance
4. Cash
5. Storage and transport
5. The People:
Production depends upon people. The people vary in their attitudes, skill and expectations from the
work. Thus, to make the best use of available human resource, it is required to have a good match
between people and jobs which may lead to job satisfaction.
The production manager should be involved in issues like:
1. Wages/salary administration.
2. Conditions of work/safety.
3. Motivation.
4. Training of employees.
Meaning of Operation Management
It refers to the process of design, execution and control of operations that convert resources into
desired goods and services.
It is the activity where the resource flow within a defined system are transformed in a controller
manner with policies / desired by the management.
Objectives of Operation management
 Improve productivity by better utilization of resources like men, material, method etc.,
 Have less/ no defects.
 Utilize plants and machinery effectively and effectively .
 Improve material handling equipments.
 Have proper control on raw materials, semi-finished goods and finished goods.
 Achieve proper cash management.
 Enhance production staff with respect to their salary, wages etc.,.
Scope of Operations Management
1) Product selection and design: The product selection makes a system efficient or
inefficient. So it is very important to select right product keeping over all objectives in
mind.
2) Process selection and planning: Selection of process involves taking decisions about
technology, machines and equipment
3) Location facilities: It is the most important facility as it looks for long term decisions; a
wrong decision can makes it pay a lot. The operation management helps to select that
particular location where distribution, production cost and location cost is less.
4) Layout and material handling facilities: Layout means positioning of machinery. The
machine should be so arranged that the flow of production remains smooth. There should
be a proper choice of material handling equipments.
5) Capacity planning: Capacity refers to a level of output of the conversion process over a
period of time. Industry creates challenging problems in capacity planning, requiring in the
long run, expansion and contraction of major facilitates in the conversion process. Some
tools helps in capacity planning are marginal costing, linear programming etc.
Importance of Operation Management
1) Towards customers: Customers are the most affected by any business. The objectives of
the operation management always depend on the customer’s preferences and their
requirements.
2) Towards suppliers: Operations will have a major impact on suppliers, both on how they
prosper themselves, and on how effective they are at supplying the operation.
3) Towards share holders: Better the operation is at producing goods and services, the more
likely the whole business is to prosper and shareholders will be one of the major
beneficiaries of this.
4) Towards employees: Similarly employees will be generally better off if the company is
prosperous. It includes the general working conditions which are determined by the way the
operation is designed.
5) Towards society: Although often having no direct economic connection with the company
individuals and groups in society at large can be impacted by the way its operation managers
behave.
Production and Operation management
Meaning
It refers to the management of the conversion process which converts land, labour, capital and
management inputs into desired output goods and services.
The conversion is done by using physical resources to meet the organizational objectives. It is
the transformation of production and operation inputs and outputs to be distributed to meet the
customers' needs.
Need for Production and Operation management
i) Produce right quality of product: The quality of product is established based upon the
customers’ needs. The right quality is not necessarily best quality. It is determined by the cost
of the product and the technical features suited to the specific requirements.
ii) Right quantity: The manufacturing organization should produce the products in right
number. If they are produced in excess of demand the
capital will block up in the form of inventory and if the quantity produced in short of demand,
leads to shortage of products.
iii) Right time: Timely delivery is one of the important parameter to judge the effectiveness of
production department has to make the optimal utilization of input resources to achieve its
objective.
iv) Right manufacturing cost: Manufacturing costs are established before the product is actually
manufactured. Hence all attempts should be made to produce the products at pre-established
cost, so as to reduce the variation between actual and standard cost.
Objectives of Production and Operation management
 To attain maximum output with lowest cost.
 To control pollution and wastage.
 To ensure optimum capacity and resources utilization .
 To ensure quality of products.
 To suggest changes in machinery and equipment.
 To ensure timely delivery of output.
 To maintain inventory.
Elements of Production and Operation management
i) Planning: Activities that establish a course of action and guide future decision making is
planning. It includes clarifying the role and focus of operation in the organization, product
planning, facility designing, conversion process etc.,
ii) Organizing: Activities that establish a structure of tasks and authority. Operation managers
establish a structure of roles and flow of information within the operation subsystem.
iii) Controlling: The operation manager must exercise control by measuring actual outputs and
comparing them to planned operations management.
iv) Behavior: Operations managers are concerned with how their efforts to plan, organize, and
control affect human behavior.
v) Model: The Operation Manager can prepare break even models and linear programming to
solve the organizational related problems.
Scope of Production and Operation management
1) Location of facilities: Selection of appropriate location must ensure the availability of power
supply, water supply, road conditions, nearness of raw materials, skilled labors etc.
2) Plant layout and job design: Preparation of plant layout for the establishment of machines in
the required sequence. A job design must be prepared to organize machines, tasks into a unit
of work to achieve certain objectives.
3) Materials handling: It is the process of ensuring the movement of raw materials and semi
finished goods inside the factory.
4) Product design: Designing the product and conceiving the idea about its production. Product
design considers the product size, weight, color etc.
5) Process design: It is the complete description of specific steps in the production process. This
determines the production process which is most relevant.
6) Production and planning control: It means coordination of series of functions according to a
plan which will economically utilizes the plant facilities and regulates orderly movement of
goods.
7) Quality control: It is a staff function concerned with the prevention of defects in
manufacturing so that, items may be made right way and ensure the quality standard.
8) Inventory management: It is the process of maintaining proper records of raw materials semi
finished goods and finished goods.
9) Maintenance management: It is the process of formulating the corrective measures to stay in
track with planned quality, time schedule and predetermined cost schedules.
10) Automation: It is the technique of operating or controlling a productive process by electronic
device and reducing human intervention to the minimum.
Functions of Production and Operation Management
1) Creation of goods and services: The foundation of every production and operation
department is creation of goods or services. Traditionally,
production and operations department includes the physical assembling of goods and also
contains many customer care services to satisfy the needs of customers.
2) Profit: The main function of production and operations department is to produce a product or
service that creates profit and revenue to the company.
3) Evaluation: Every production and operation department must function as self-evaluating
entity that monitors the quality, quantity, and cost of goods produced.
4) Tasks: It includes forecasting, scheduling, purchasing, design, maintenance, people
management, flow analysis, reporting, assembly and testing.
5) Fulfillment: It ensures timely delivery of the output from production to customers.
6) Analysis: Standard analysis function in a production and operation department include critical
path analysis, stock control analysis, utilization analysis, capacity analysis and just-in-time
analysis of inputs, break- even analysis and metric analysis.
Reasons for Productionand Operation Management
 Helps in understanding the role played by the people in producing goods & services.
 Helps in getting a clear picture about the factory.
 Helps in selecting a career.
 It has strategic use to the executives.
 Helps to understand how important it is to Nation
Automation
Meaning
It is the use of computers and other automated machinery for the execution of business related
tasks. It includes right from simple sensing devices to robots and other sophisticated equipment.
It helps in reducing the production time, increase manufacturing, flexibility, reduce costs,
eliminate human error and labour shortage problems.
Definition
According to M.H.Arousan,” Automation is a substitution of mechanical, hydraulic, electrical
and electronic devices for human organs of decisions and efforts”
According to Ruddlerl Read, “Automation is nothing more than the extension of principles of
mechanisation to the integration of machines one with another in such a manner as to have the
group operate as an individual processing and controlling units.”
Need and importance of Automation
 Facilitates efficient and detailed information through the use of computers
 Ensures speedy recording, processing and presenting of information
 Increases the volume of work, scarcity of time and reduces the manual process.
 Facilitates better quality of work by reducing errors created by manual work.
 Achieves greater accuracy and speed through the use of automation.
 Increases the goodwill and reputation of the firm because automation adds to the prestige
and status of the firm.
Scope of Automation
i) Leads to increase in productivity: It increases speed of work and reduces the consumption
of time taken for production of products.
ii) Improved quality: The quality of goods produced is better when there is automation of
goods passes through definite process till it comes out as finished goods.
iii) Reduction of cost per unit: It results in reduced total cost per unit of output. When the
goods are produced in a bulk cost per unit will be low. Since labor is not involved, labor cost
can also be saved.
iv) Ensures high safety: Since labor does not intervene in production working on machines
which all otherwise dangerous can be avoided. Proper safety measures are incorporated by
introduction of automation.
v) Complex decision: Automation helps to take complex decisions with ease.
vi) Handling monotonous jobs: It helps in handling the boring and monotonous jobs
effectively and efficiently.
vii) Lesser accidents: In automation accidents are very less as the machine will perform its jobs
as per instructions.
viii) Less scrap: The scrap and wastage will be less as the machine will perform as intended.
ix) Less rework: When there are no defects, then there will be less or no rework.
Advantages and Disadvantages of Automation Advantages of
Automation
1) Increases output and productivity: It increases the speed of work and reduces the
consumption of time taken for production of products. Since there is no intervention of labor
involved the goods passes from one process to another, smoothly and quickly.
2) Improves and enhances quality: The quality of goods produced is better when there is
automation .the goods pass through definite process till it comes out as finished goods. Thus
there is an increase in the quality of goods produced.
3) Consistency and uniformity in quality: The products produced are identical in nature.
Since all the raw materials are fed into the machines the finished goods are uniform in nature
which is very important from the point of view of satisfying the customers.
4) Reduction in cost per unit of output: Automation results in reduced total cost per unit of
output. When the goods are produced in a bulk cost per unit, will be low.
5) Lesser industrial accidents: Automation eliminates the use of labor force. Hence the
number of accidents to workers is eliminated to a greater extent.
6) Better production control: The speed of production increases the productivity. Since no
labor is involved control on production is easier. The machines are arranged in such a
sequence that raw materials pass from one process to another without human intervention.
Thus production can be controlled.
7) Ensures high safety: Since labor does not intervene in production working on machines
which all otherwise dangerous can be avoided. Proper safety measures are incorporated by
introduction of automation.
8) Reduces labor problem: Goods are produced without the involvement of men hence labor
problems are eliminated.
Disadvantages of Automation
1. Heavy capital investments: Automation involves heavy capital investment. The cost of
capital, power consumption etc. increases tremendously.
2. Displacement of labor: Replacement of workers by machines affects the morale of workers.
3. Benefit of employee suggestion lost: Labor being displaced the benefits of suggestion from
employee is lost.
4. High cost of depreciation: Since automation eliminates labor, machines are used instead of
labor. Machines tend to depreciate every year. Therefore depreciation is high in automation.
5. Not suitable for small firm: Since heavy investments are required in the automated plants,
it is not suitable for small industries. Moreover the expenses involved like power,
consumption, depreciation etc. are very high
6. Lack of ready market: Automation results in increased production. If increased production
does not find a ready market, the pieces will fall and results will be disastrous.
7. Unemployment problem: automation poses certain peculiar problems for developing
countries. These countries are characterized by a high
rate of unemployment scarcity of foreign exchange shortage of highly skilled personnel,
PRODUCTION AND OPERATIONSMANAGEMENT II SEMESTER BBA |21
shortage of capital etc.
Types of Automation
a. Numerically Controlled (NC) Machines– It uses computers to store, calculate and execute
operations that are performed by hands. Eg: computerized numerical controlled mills.
b. Industrial Robots– It also helps in higher quality parts, reduced cycle times and increases
savings. They can work 24/7 to keep up the industrial demands. They can be suitable to work
in an environment which may be dangerous to humans. They perform tasks like welding,
material handling, assembling etc.,
c. Flexible manufacturing systems (FMS)– It is a combination of NCM, IR and other types of
automation into one automation system. It produces similar products and parts but maintains
flexibility to change parts or processes.
d. Computer aided manufacturing (CAM)– It uses computers in different functions of
production planning and control. It also includes computer aided process planning (CAPP),
group technology (GT), and production scheduling, manufacturing flow analysis.
e. Support automation– It refers to the software packages which focuses on the routine work of
help desk personnel. It includes CAM, knowledge base applications for self service etc.,
f. Run book automation– They define a set of items along with work flows through GUI. It
offers connectors and interfaces to existing items suitable for the user.
g. Policy based automation– This type of automation works on the basis of term policy for the
rules management. They provide a rich set of features for designing and managing policies.
h. IT-Workload automation– They allow the processing of job scheduling for improvement and
automate recurring tasks. They offer multi-platform compatibility, policy based execution etc.,
i. Data centre automation– This is the fastest growing area in the recent world. It helps in
bringing the high demand for automated tools to provision, change and manage vast number of
components.
Different types of Automation Tools
a. Artificial Neural Network (ANN)–It is also called as neural network. It is a mathematical
model or computational model inspired by structure / functional aspects of biological neural
network. It consists of inter connected group of artificial neurons and information for
computation.
b. Distributed Control system (DCS)– It is the control system for manufacturing and
processing any kind of system in which the controller elements are not central in location but
distributed throughout the system. But they are connected by networks for communication and
monitoring.
c. Human Machine Interface (HMI)– It is the interface in which the interaction between the
human and the machine occurs. It is to have effective operation and control machine,
feedback from the machine for making operational decisions.
d. Supervisory control and data acquisition (SCADA)– It refers to the industrial control
system, computer systems that monitor and control industrial, infrastructure and other facility
based processes.
e. Programmable logic controller (PLC)– It is a digital computer used for automation of
electro mechanical processes like control of machinery, light fixtures, amusement rides etc., it
PRODUCTION AND OPERATIONSMANAGEMENT II SEMESTER BBA |22
helps in extended temperature, immunity to electrical noise, resistance to vibration etc.,
f. Programmable automation controller (PAC)–It is a compact controller that combines the
features and capabilities of a PC based control system with typical programmable logic
controller. It is used for process control, data acquisition, remote equipment monitoring, and
machine vision and motion control.
g. Instrumentation– It is defined as the art and science of measurement and controlling of
process variables within a production or manufacturing area. It is a device that measures and
regulates physical quantity/process variables such as flow, temperature, pressure etc.,
h. Motion control– It is a sub-field of automation. It is the position or velocity of machines
which are controlled using some types of devices like linear actuator, electric motor etc., it is
an important part for robotics.
i. Robotics – It is a branch of technology that deals with design, construction, operation,
structural disposition, manufacture and application of robots and computer systems for
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INTRODUCTION TO PRODUCTION AND OPERATIONS MANAGEMENT - Unit 1 (BBA-Bangalore Central University Syllabus)

  • 1. UNIT – 1 INTRODUCTION TO PRODUCTION AND OPERATIONS MANAGEMENT Introduction - Meaning & Definition – Classification - Objectives and Scope of Production and operation Management -Automation: Introduction – Meaning and Definition – Need – Types - Advantages and Disadvantages Introduction Production is the creation of goods and services. The production activity is nothing but the step by step conversion of one form of material into another either chemically or mechanically. This is done in factories which have manufacturing processes. The basic inputs of production process are men, machines, plant, services and methods. The finished products of one manufacturing process may not become finished product for consumption it may become the raw material for other manufacturing process. Production involves the step by step conversion of one form of materials into another through processing to create or enhance the utility of the products or services. Meaning of Production Production refers to the use of any process which is designed to transform a set of input elements into set an output elements. It involves the step by step conversion of one form of material into another to create or enhance the utility of the products or services. Definitionof Production According to Elwood Butta, “Production is a process by which goods or services are created.” Ways of Production  Production by disintegration i.e., by separating the contents the desired product is produced. Ex: Crude oil, fuel oils etc.,  Production by Integration i.e., production by assembling various components of the products to get desired product. Ex: 2 wheelers, 4wheelers etc.,  Production by services i.e., production is based on chemical and mechanical properties of materials without physical change. Ex: heat treatment of metals etc., Classification by Production a. Job shop production – It refers to the manufacturing facility that produces several different
  • 2. products in smaller batches. They are manufactured by one or few quantity of products designed and produced as per the specification of the customers within prefixed time and cost. b. Batch production – It refers to the manufacturing process in which components or goods are produced in groups and not in continuous stream. A limited number of products are produced at regular intervals. c. Mass production – Under this, the manufacturing or processing of uniform products in large quantities takes place. It is either a wholly automated process or a series of short or repetitive procedures. d. Continuous production -it is a method used to manufacture, produce or process materials without interruption. Production management Meaning It refers to the job of coordinating and controlling the activities required for making a product, which involves control of schedule, cost, and performance, quality and waste requirements. It means planning, organizing, directing and controlling of production activities. It deals with decision making regarding the quality, quantity, cost etc. It applies management principles for production. It deals with converting raw materials into finished goods or products. Definition According to H.A.Harding, “Production management is concerned with those processes which convert the inputs into outputs. The inputs are various resources like raw materials, men, machines, methods etc., and outputs are goods and services” According to A.W.Field, “Production management is the process of planning and regulating the operations of that part of an enterprise which is responsible for actual transformation of materials into finished products.” Objectives of ProductionManagement 1. Produce goods at right quality, right quantity, right time and at minimum cost. 2. Optimum utilization of resources and available production capacity. 3. Produce required quantities at a required quality. 4. Ensure maximum capacity utilization. 5. Flexible working conditions. 6. Minimum raw material, labour cost and maintenance cost. 7. Minimum storage, material handling and inspection. 8. Improve productivity of all inputs. Scope of Production Management Production and operations management are concerned with the conversion of inputs into outputs, using physical resources, so as to provide the desired utilities to the customer while meeting
  • 3. the other organizational objectives of effectiveness, efficiency and adoptability. It distinguishes itself from other functions such as personnel, marketing, finance, etc., by its primary concern for ‘conversion by using physical resources.’ Following are the activities which are listed under production and operations management functions: 1. Location of facilities 2. Plant layouts and material handling 3. Product design 4. Process design 5. Production and planning control 6. Quality control 7. Materials management 1. Location of facilities Location of facilities for operations is a long-term capacity decision which involves a long term commitment about the geographically static factors that affect a business organization. It is an important strategic level decision-making for an organization. The selection of location is a key-decision as large investment is made in building plant and machinery. An improper location of plant may lead to the waste of all the investments made in the plant and machinery equipment. Hence, location of plant should be based on the company’s expansion plan and policy, diversification plan for the products, changing sources of raw materials and many other factors. The purpose of the location study is to find the optimal location that will result in the greatest advantage to the organization. 2. Plant layout and material handling Plant layout refers to the physical arrangement of facilities. It is the configuration of departments, work centres and equipment in the conversion process. The overall objective of the plant layout is to design a physical arrangement that meets the required output quality and quantity most economically. According to James Moore, “Plant layout is a plan of an optimum arrangement of facilities including personnel, operating equipment, storage space, material handling equipments and all other supporting services along with the design of best structure to contain all these facilities”. ‘Material Handling’ refers to the ‘moving of materials from the store room to the machine and from one machine to the next during the process of manufacture’. It is also defined as the ‘art and science of moving, packing and storing of products in any form’. It is a specialized activity for a modern manufacturing concern, with 50 to 75% of the cost of production. This cost can be reduced by proper section, operation and maintenance of material handling devices. Material handling devices increases the output, improves quality, speeds up the deliveries and decreases the cost of production. Hence, material handling is a prime consideration in the designing new plant and several existing plants. 3. Product design Product design deals with conversion of ideas into reality. Every business organization has to
  • 4. design, develop and introduce new products as a survival and growth strategy. Developing the new products and launching them in the market is the biggest challenge faced by the organizations. The entire process of need identification to physical manufactures of product involves three functions: marketing, product development, and manufacturing. Product development translates the needs of customers given by marketing into technical specifications and designing the various features into the product to these specifications. Manufacturing has the responsibility of selecting the processes by which the product can be manufactured. Product design and development provides link between marketing, customer needs and expectations and the activities required to manufacture the product. 4. Process design Process design is a macroscopic decision-making of an overall process route for converting the raw material into finished goods. These decisions encompass the selection of a process, choice of technology, process flow analysis and layout of the facilities. Hence, the important decisions in process design are to analyze the work flow for converting raw material into finished product and to select the workstation for each included in the workflow. 5. Production planning and control 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. The principle of production planning and control lies in the statement ‘First Plan Your Work and then Work on Your Plan’. Main functions of production planning and control includes planning, routing, scheduling, dispatching and follow-up. Planning is deciding in advance what to do, how to do it, when to do it and who has to do it. Planning bridges the gap from where we are, to where we want to go. It makes it possible for things to occur which would not otherwise happen. Routing may be defined as the selection of path which each part of the product will follow, which being transformed from raw material to finished products. Routing determines the most advantageous path to be followed from department to department and machine to machine till raw material gets its final shape. Scheduling determines the programme for the operations. Scheduling may be defined as ‘the fixation of time and date for each operation’ as well as it determines the sequence of operations to be followed. Dispatching is concerned with the starting the processes. It gives necessary authority so as to start a particular work, which has already been planned under ‘Routing’ and ‘Scheduling’. Therefore, dispatching is ‘release of orders and instruction for the starting of production for any item in acceptance with the route sheet and schedule charts’. The function of follow-up is to report daily the progress of work in each shop in a prescribed Performa and to investigate the causes of deviations from the planned performance. 6. Quality control Quality Control (QC) may be defined as ‘a system that is used to maintain a desired level of
  • 5. quality in a product or service’. It is a systematic control of various factors that affect the quality of the product. Quality control aims at prevention of defects at the source, relies on effective feedback system and corrective action procedure. Quality control can also be defined as ‘that industrial management technique by means of which product of uniform acceptable quality is manufactured’. It is the entire collection of activities which ensures that the operation will produce the optimum quality products at minimum cost. The main objectives of quality control are:  To improve the company’s income by making the production more acceptable to the customers i.e. by providing long life, greater usefulness, maintainability, etc.  To reduce companies cost through reduction of losses due to defects.  To achieve inter changeability of manufacture in large scale production.  To produce optimal quality at reduced price.  To ensure satisfaction of customers with productions or services or high quality level, to build customer goodwill, confidence and reputation of manufacturer.  To make inspection prompt to ensure quality control.  To check the variation during manufacturing. 7. Materials 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. The main objectives of materials management are:  To minimise material cost.  To purchase, receive, transport and store materials efficiently and to reduce the related cost.  To cut down costs through simplification, standardisation, value analysis, import substitution, etc.  To trace new sources of supply and to develop cordial relations with them in order to ensure continuous supply at reasonable rates.  To reduce investment tied in the inventories for use in other productive purposes and to develop high inventory turnover ratios. Importance of ProductionManagement 1. Accomplishment of firm's objectives: Production management helps the business firm to achieve all its objectives. It produces products, which satisfy the customers' needs and wants. So, the firm will increase its sales. This will help it to achieve its objectives. 2. Enhances reputation, goodwill and image: Production management helps the firm to satisfy its customers. This increases the firms reputation, goodwill and image. A good image helps the firm to expand and grow. 3. Helps to introduce new products: Production management helps to introduce new products
  • 6. in the market. It conducts Research and Development (R&D). This helps the firm to develop newer and better quality products. These products are successful in the market because they and they give full satisfaction to the customers. 4. Supports other functional areas: Production management supports other functional areas in an organization, such as marketing, finance, and personnel. The marketing department will find it easier to sell good- quality products, and the finance department will get more funds due to increase in sales. It will also get more loans and share capital for expansion and modernization. The personnel department will be able to manage the human resources effectively due to the better performance of the production department. 5. Helps to face competition: Production management helps the firm to face competition in the market. This is because production management produces products of right quantity, right quality, right price and at the right time. These products are delivered to the customers as per their requirements 6. Optimum utilisation of resources: Production management facilitates optimum utilisation of resources such as manpower, machines, etc. So, the firm can meet its capacity utilisation objective. This will bring higher returns to the organisation. 7. Minimises cost of production: Production management helps to minimise the cost of production. It tries to maximise the output and minimise the inputs. This helps the firm to achieve its cost reduction and efficiency objective. 8. Expansion of the firm: Production management helps the firm to expand and grow. This is because it tries to improve quality and reduce costs. This helps the firm to earn higher profits. These profits help the firm to expand and grow. The importance of Production Management to customers and society: 1. Higher standard of living: Production management conducts continuous research and development (R&D). Based on the research conducted an industrial concern will produce new and better varieties of products. People use these products and enjoy a higher standard of living. 2. Generates employment: Production activities create many different job opportunities in the country, either directly or indirectly. Direct employment is generated in the production area, and indirect employment is generated in the supporting areas such as marketing, finance, customer support, etc 3. Spread effect: Because of production, other sectors also expand. Companies making spare parts will expand. The service sector such as banking, transport, communication, insurance, BPO, etc. also expand. This spread effect offers more job opportunities and boosts economy. 4. Creates utility: Production creates Form Utility. Consumers can get form utility in the shape, size and designs of the product. Production also creates time utility, because goods are available whenever consumers need it. 5. Boosts economy: Production management ensures optimum utilisation of resources and effective production of goods and services. This leads to speedy economic growth and well- being of the nation.
  • 7. Five P’s of Production Management The division of production management functions in to 5 p’s (product, plant, programme, processes and people) will provide useful conceptual framework for the various activities performed by production or operations manager. The Five P’s: 1. The Product: Product is the link between production and marketing. It is not enough that a customer requires product but the organisation must be capable of producing the product. As per the product policy of the organisation, an agreement is reached between the various functions on the following aspects of the product 1. Performance 2. Quality and reliability 3. Aesthetics and ergonomics 4. Quantity and selling price 5. Delivery schedule. To arrive at the above, the external and the internal factors which affect the various aspects such as market needs, existing culture and legal constraints and the environmental demands should be given due consideration. Thus the major policy decisions regarding variety of product mix is going to affect the producing system. 2. The Plant: The plant accounts for major investment (fixed assets). The plant should match the needs of the product market, the worker and the organization. The plant is concerned with: 1. Design and layout of building and offices. 2. Reliability, perfect, maintenance of equipment. 3. Safety of operations. 4. The financial constraint. Plant layout deals with physical arrangement of plants and machineries within the selected site. The layout should be such that it should allow for smooth movement of men and materials with minimum back tracking. The type of the layout is dependent on production type, volume of demand, etc. 3. The Process: There is always number of alternative methods of creating a product. It is required to select the one best method, which attains the objectives. In deciding about the process, it is necessary to examine the following factors: 1. Available capacity 2. Manpower skills available 3. Type of production
  • 8. 4. Layout of plant 5. Safety 6. Maintenance required 7. Manufacturing costs 4. The Programme: The programme here refers to the timetable of production. Thus, the programme prepares schedules for: 1. Purchasing 2. Transforming 3. Maintenance 4. Cash 5. Storage and transport 5. The People: Production depends upon people. The people vary in their attitudes, skill and expectations from the work. Thus, to make the best use of available human resource, it is required to have a good match between people and jobs which may lead to job satisfaction. The production manager should be involved in issues like: 1. Wages/salary administration. 2. Conditions of work/safety. 3. Motivation. 4. Training of employees. Meaning of Operation Management It refers to the process of design, execution and control of operations that convert resources into desired goods and services. It is the activity where the resource flow within a defined system are transformed in a controller manner with policies / desired by the management. Objectives of Operation management  Improve productivity by better utilization of resources like men, material, method etc.,  Have less/ no defects.  Utilize plants and machinery effectively and effectively .  Improve material handling equipments.  Have proper control on raw materials, semi-finished goods and finished goods.  Achieve proper cash management.  Enhance production staff with respect to their salary, wages etc.,. Scope of Operations Management 1) Product selection and design: The product selection makes a system efficient or inefficient. So it is very important to select right product keeping over all objectives in
  • 9. mind. 2) Process selection and planning: Selection of process involves taking decisions about technology, machines and equipment 3) Location facilities: It is the most important facility as it looks for long term decisions; a wrong decision can makes it pay a lot. The operation management helps to select that particular location where distribution, production cost and location cost is less. 4) Layout and material handling facilities: Layout means positioning of machinery. The machine should be so arranged that the flow of production remains smooth. There should be a proper choice of material handling equipments. 5) Capacity planning: Capacity refers to a level of output of the conversion process over a period of time. Industry creates challenging problems in capacity planning, requiring in the long run, expansion and contraction of major facilitates in the conversion process. Some tools helps in capacity planning are marginal costing, linear programming etc. Importance of Operation Management 1) Towards customers: Customers are the most affected by any business. The objectives of the operation management always depend on the customer’s preferences and their requirements. 2) Towards suppliers: Operations will have a major impact on suppliers, both on how they prosper themselves, and on how effective they are at supplying the operation. 3) Towards share holders: Better the operation is at producing goods and services, the more likely the whole business is to prosper and shareholders will be one of the major beneficiaries of this. 4) Towards employees: Similarly employees will be generally better off if the company is prosperous. It includes the general working conditions which are determined by the way the operation is designed. 5) Towards society: Although often having no direct economic connection with the company individuals and groups in society at large can be impacted by the way its operation managers behave. Production and Operation management Meaning It refers to the management of the conversion process which converts land, labour, capital and management inputs into desired output goods and services. The conversion is done by using physical resources to meet the organizational objectives. It is the transformation of production and operation inputs and outputs to be distributed to meet the customers' needs. Need for Production and Operation management i) Produce right quality of product: The quality of product is established based upon the
  • 10. customers’ needs. The right quality is not necessarily best quality. It is determined by the cost of the product and the technical features suited to the specific requirements. ii) Right quantity: The manufacturing organization should produce the products in right number. If they are produced in excess of demand the capital will block up in the form of inventory and if the quantity produced in short of demand, leads to shortage of products. iii) Right time: Timely delivery is one of the important parameter to judge the effectiveness of production department has to make the optimal utilization of input resources to achieve its objective. iv) Right manufacturing cost: Manufacturing costs are established before the product is actually manufactured. Hence all attempts should be made to produce the products at pre-established cost, so as to reduce the variation between actual and standard cost. Objectives of Production and Operation management  To attain maximum output with lowest cost.  To control pollution and wastage.  To ensure optimum capacity and resources utilization .  To ensure quality of products.  To suggest changes in machinery and equipment.  To ensure timely delivery of output.  To maintain inventory. Elements of Production and Operation management i) Planning: Activities that establish a course of action and guide future decision making is planning. It includes clarifying the role and focus of operation in the organization, product planning, facility designing, conversion process etc., ii) Organizing: Activities that establish a structure of tasks and authority. Operation managers establish a structure of roles and flow of information within the operation subsystem. iii) Controlling: The operation manager must exercise control by measuring actual outputs and comparing them to planned operations management. iv) Behavior: Operations managers are concerned with how their efforts to plan, organize, and control affect human behavior. v) Model: The Operation Manager can prepare break even models and linear programming to solve the organizational related problems. Scope of Production and Operation management 1) Location of facilities: Selection of appropriate location must ensure the availability of power supply, water supply, road conditions, nearness of raw materials, skilled labors etc. 2) Plant layout and job design: Preparation of plant layout for the establishment of machines in the required sequence. A job design must be prepared to organize machines, tasks into a unit of work to achieve certain objectives. 3) Materials handling: It is the process of ensuring the movement of raw materials and semi finished goods inside the factory.
  • 11. 4) Product design: Designing the product and conceiving the idea about its production. Product design considers the product size, weight, color etc. 5) Process design: It is the complete description of specific steps in the production process. This determines the production process which is most relevant. 6) Production and planning control: It means coordination of series of functions according to a plan which will economically utilizes the plant facilities and regulates orderly movement of goods. 7) Quality control: It is a staff function concerned with the prevention of defects in manufacturing so that, items may be made right way and ensure the quality standard. 8) Inventory management: It is the process of maintaining proper records of raw materials semi finished goods and finished goods. 9) Maintenance management: It is the process of formulating the corrective measures to stay in track with planned quality, time schedule and predetermined cost schedules. 10) Automation: It is the technique of operating or controlling a productive process by electronic device and reducing human intervention to the minimum. Functions of Production and Operation Management 1) Creation of goods and services: The foundation of every production and operation department is creation of goods or services. Traditionally, production and operations department includes the physical assembling of goods and also contains many customer care services to satisfy the needs of customers. 2) Profit: The main function of production and operations department is to produce a product or service that creates profit and revenue to the company. 3) Evaluation: Every production and operation department must function as self-evaluating entity that monitors the quality, quantity, and cost of goods produced. 4) Tasks: It includes forecasting, scheduling, purchasing, design, maintenance, people management, flow analysis, reporting, assembly and testing. 5) Fulfillment: It ensures timely delivery of the output from production to customers. 6) Analysis: Standard analysis function in a production and operation department include critical path analysis, stock control analysis, utilization analysis, capacity analysis and just-in-time analysis of inputs, break- even analysis and metric analysis. Reasons for Productionand Operation Management  Helps in understanding the role played by the people in producing goods & services.  Helps in getting a clear picture about the factory.  Helps in selecting a career.  It has strategic use to the executives.  Helps to understand how important it is to Nation Automation
  • 12. Meaning It is the use of computers and other automated machinery for the execution of business related tasks. It includes right from simple sensing devices to robots and other sophisticated equipment. It helps in reducing the production time, increase manufacturing, flexibility, reduce costs, eliminate human error and labour shortage problems. Definition According to M.H.Arousan,” Automation is a substitution of mechanical, hydraulic, electrical and electronic devices for human organs of decisions and efforts” According to Ruddlerl Read, “Automation is nothing more than the extension of principles of mechanisation to the integration of machines one with another in such a manner as to have the group operate as an individual processing and controlling units.” Need and importance of Automation  Facilitates efficient and detailed information through the use of computers  Ensures speedy recording, processing and presenting of information  Increases the volume of work, scarcity of time and reduces the manual process.  Facilitates better quality of work by reducing errors created by manual work.  Achieves greater accuracy and speed through the use of automation.  Increases the goodwill and reputation of the firm because automation adds to the prestige and status of the firm. Scope of Automation i) Leads to increase in productivity: It increases speed of work and reduces the consumption of time taken for production of products. ii) Improved quality: The quality of goods produced is better when there is automation of goods passes through definite process till it comes out as finished goods. iii) Reduction of cost per unit: It results in reduced total cost per unit of output. When the goods are produced in a bulk cost per unit will be low. Since labor is not involved, labor cost can also be saved. iv) Ensures high safety: Since labor does not intervene in production working on machines which all otherwise dangerous can be avoided. Proper safety measures are incorporated by introduction of automation. v) Complex decision: Automation helps to take complex decisions with ease. vi) Handling monotonous jobs: It helps in handling the boring and monotonous jobs effectively and efficiently. vii) Lesser accidents: In automation accidents are very less as the machine will perform its jobs as per instructions. viii) Less scrap: The scrap and wastage will be less as the machine will perform as intended. ix) Less rework: When there are no defects, then there will be less or no rework.
  • 13. Advantages and Disadvantages of Automation Advantages of Automation 1) Increases output and productivity: It increases the speed of work and reduces the consumption of time taken for production of products. Since there is no intervention of labor involved the goods passes from one process to another, smoothly and quickly. 2) Improves and enhances quality: The quality of goods produced is better when there is automation .the goods pass through definite process till it comes out as finished goods. Thus there is an increase in the quality of goods produced. 3) Consistency and uniformity in quality: The products produced are identical in nature. Since all the raw materials are fed into the machines the finished goods are uniform in nature which is very important from the point of view of satisfying the customers. 4) Reduction in cost per unit of output: Automation results in reduced total cost per unit of output. When the goods are produced in a bulk cost per unit, will be low. 5) Lesser industrial accidents: Automation eliminates the use of labor force. Hence the number of accidents to workers is eliminated to a greater extent. 6) Better production control: The speed of production increases the productivity. Since no labor is involved control on production is easier. The machines are arranged in such a sequence that raw materials pass from one process to another without human intervention. Thus production can be controlled. 7) Ensures high safety: Since labor does not intervene in production working on machines which all otherwise dangerous can be avoided. Proper safety measures are incorporated by introduction of automation. 8) Reduces labor problem: Goods are produced without the involvement of men hence labor problems are eliminated. Disadvantages of Automation 1. Heavy capital investments: Automation involves heavy capital investment. The cost of capital, power consumption etc. increases tremendously. 2. Displacement of labor: Replacement of workers by machines affects the morale of workers. 3. Benefit of employee suggestion lost: Labor being displaced the benefits of suggestion from employee is lost. 4. High cost of depreciation: Since automation eliminates labor, machines are used instead of labor. Machines tend to depreciate every year. Therefore depreciation is high in automation. 5. Not suitable for small firm: Since heavy investments are required in the automated plants, it is not suitable for small industries. Moreover the expenses involved like power, consumption, depreciation etc. are very high 6. Lack of ready market: Automation results in increased production. If increased production does not find a ready market, the pieces will fall and results will be disastrous. 7. Unemployment problem: automation poses certain peculiar problems for developing countries. These countries are characterized by a high rate of unemployment scarcity of foreign exchange shortage of highly skilled personnel,
  • 14. PRODUCTION AND OPERATIONSMANAGEMENT II SEMESTER BBA |21 shortage of capital etc. Types of Automation a. Numerically Controlled (NC) Machines– It uses computers to store, calculate and execute operations that are performed by hands. Eg: computerized numerical controlled mills. b. Industrial Robots– It also helps in higher quality parts, reduced cycle times and increases savings. They can work 24/7 to keep up the industrial demands. They can be suitable to work in an environment which may be dangerous to humans. They perform tasks like welding, material handling, assembling etc., c. Flexible manufacturing systems (FMS)– It is a combination of NCM, IR and other types of automation into one automation system. It produces similar products and parts but maintains flexibility to change parts or processes. d. Computer aided manufacturing (CAM)– It uses computers in different functions of production planning and control. It also includes computer aided process planning (CAPP), group technology (GT), and production scheduling, manufacturing flow analysis. e. Support automation– It refers to the software packages which focuses on the routine work of help desk personnel. It includes CAM, knowledge base applications for self service etc., f. Run book automation– They define a set of items along with work flows through GUI. It offers connectors and interfaces to existing items suitable for the user. g. Policy based automation– This type of automation works on the basis of term policy for the rules management. They provide a rich set of features for designing and managing policies. h. IT-Workload automation– They allow the processing of job scheduling for improvement and automate recurring tasks. They offer multi-platform compatibility, policy based execution etc., i. Data centre automation– This is the fastest growing area in the recent world. It helps in bringing the high demand for automated tools to provision, change and manage vast number of components. Different types of Automation Tools a. Artificial Neural Network (ANN)–It is also called as neural network. It is a mathematical model or computational model inspired by structure / functional aspects of biological neural network. It consists of inter connected group of artificial neurons and information for computation. b. Distributed Control system (DCS)– It is the control system for manufacturing and processing any kind of system in which the controller elements are not central in location but distributed throughout the system. But they are connected by networks for communication and monitoring. c. Human Machine Interface (HMI)– It is the interface in which the interaction between the human and the machine occurs. It is to have effective operation and control machine, feedback from the machine for making operational decisions. d. Supervisory control and data acquisition (SCADA)– It refers to the industrial control system, computer systems that monitor and control industrial, infrastructure and other facility based processes. e. Programmable logic controller (PLC)– It is a digital computer used for automation of electro mechanical processes like control of machinery, light fixtures, amusement rides etc., it
  • 15. PRODUCTION AND OPERATIONSMANAGEMENT II SEMESTER BBA |22 helps in extended temperature, immunity to electrical noise, resistance to vibration etc., f. Programmable automation controller (PAC)–It is a compact controller that combines the features and capabilities of a PC based control system with typical programmable logic controller. It is used for process control, data acquisition, remote equipment monitoring, and machine vision and motion control. g. Instrumentation– It is defined as the art and science of measurement and controlling of process variables within a production or manufacturing area. It is a device that measures and regulates physical quantity/process variables such as flow, temperature, pressure etc., h. Motion control– It is a sub-field of automation. It is the position or velocity of machines which are controlled using some types of devices like linear actuator, electric motor etc., it is an important part for robotics. i. Robotics – It is a branch of technology that deals with design, construction, operation, structural disposition, manufacture and application of robots and computer systems for controlling, sensory feedback and information processing.