FACULTY OF SCIENCES AND TECHNOLOGY

EBXD2103 PRODUCTION AND OPERATIONS MANAGEMENT ASSIGNMENT 1

NAME MATRIK NO NRIC NO TELEPHONE NO. EMAIL

: : : : :

ABUL FAHDLY BIN MOHAMAD FAUZI 850629055537001 850629-05-5537 012-9170828 [email protected]

TUTOR : PHYNTHAMILKUMARAN LOCAL LEARNING CENTRE : S13, S HAH ALAM

SEMESTER SEPTEMBER 2011

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1.1 INTRODUCTION Production/operations management is the process, which combines and transforms various resources used in the production/operations subsystem of the organization into value added product/services in a controlled manner as per the policies of the organization. Therefore, it is that part of an organization, which is concerned with the transformation of a range of inputs into the required (products/services) having the requisite quality level.

The set of interrelated management activities, which are involved in manufacturing certain products, is called as production management. If the same concept is extended to services management, then the corresponding set of management activities is called as operations management.

2.0 DEVELOPMENT & APPLICATION PRODUCTION OF MANAGEMENT

In the 1960s and 1970s there were only a few methods to select from and the manufacturing methods life cycle was several years. The life cycle in the 1990s was much shorter. For example total quality management (TQM) was a hit hit in 1994, and billions of dollars were spent on its installation. In 1997 a new paradigm took its place; enterprise resource planning (ERP) became the new fashion. And again billions of dollars were spent on installing it. Towards 1998 enterprise resources management (ERM) replaced or enhanced ERP. In 1999 competition between customer relation management (CRM) and supply chain management occurred.

3.0 HISTORICAL EVOLUTION OF PRODUCTION AND OPERATIONS MANAGEMENT For over two centuries operations and production management has been recognised as an important factor in a countrys economic growth. The traditional view of manufacturing

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management began in eighteenth century when Adam Smith recognised the economic benefits of specialisation of labour. He recommended Breaking of jobs down into subtasks and recognises workers to specialised tasks in which they would become highly skilled and efficient. In the early twentieth century, F.W. Taylor implemented Smiths theories and developed scientific management. From then till 1930, many techniques were developed prevailing the traditional view. Brief information about the contributions to manufacturing management is shown in the Table 1.1.

TABLE 1.1 Historical summary of operations management Date 1776 Contribution Specialization of labour in manufacturing Interchangeable parts, cost accounting Division of labour by skill; assignment of jobs by skill; basics of time study 1900 Scientific management time study and work study developed; dividing planning and doing of work 1900 1901 Motion of study of jobs Scheduling techniques for employees, machines jobs in Manufacturing 1915 Economic lot sizes for inventory control Human relations; the Hawthorne studies F.W. Harris Frank B. Gilbreth Henry L. Gantt Frederick W. Taylor Contributor Adam Smith

1799

Eli Whitney and others

1832

Charles Babbage

1927

Elton Mayo

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1931

Statistical inference applied to product quality: quality control charts

W.A. Shewart

1935

Statistical sampling applied to quality control: inspection sampling plans

H.F. Dodge & H.G. Roming

1940

Operations research applications in World War II Digital computer Linear programming Mathematical programming, on-linear and stochastic Commercial digital computer: large-scale computations available. Organizational behaviour: continued study of people at work

P.M. Blacker and others.

1946 1947 1950

John Mauchlly and J.P. Eckert G.B. Dantzig, Williams & others A. Charnes, W.W. Cooper processes & others Sperry Univac

1951

1960

L. Cummings, L. Porter

1970

Integrating operations into overall strategy and policy, Computer applications to manufacturing, Scheduling G. Wright and control, Material requirement planning (MRP)

W. Skinner J. Orlicky

1980

Quality and productivity applications from Japan:

W.E. Deming and robotics, CAD-CAM J. Juran.

Production management becomes the acceptable term from 1930s to 1950s. As F.W. Taylors

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works become more widely known, managers developed techniques that focussed on economic efficiency in manufacturing. Workers were studied in great detail to eliminate wasteful efforts and achieve greater efficiency. At the same time, psychologists, socialists and other social scientists began to study people and human behaviour in the working environment. In addition, economists, mathematicians, and computer socialists contributed newer, more sophisticated analytical approaches. With the 1970s emerges two distinct changes in our views. The most obvious of these, reflected in the new name operations management was a shift in the service and manufacturing sectors of the economy. As service sector became more prominent, the change from production to operations emphasized the broadening of our field to service organizations. The second, more suitable change was the beginning of an emphasis on synthesis, rather than just analysis, in management practices.

4.0 Production of Management Tools and Techniques

4.1 Work Flow Management A workflow management system is a computer system that manages and defines a series of tasks within an organization to produce a final outcome or outcomes. Workflow Management Systems allow you to define different workflows for different types of jobs or processes. So, for example, in a manufacturing setting, a design document might be automatically routed from designer to a technical director to the production engineer. At each stage in the workflow, one individual or group is responsible for a specific task. Once the task is complete, the workflow software ensures that the individuals responsible for the next task are notified and receive the data they need to execute their stage of the process. Workflow management systems also automate redundant tasks and ensure uncompleted tasks are followed up. Workflow management systems may control automated processes in addition to replacing paper workorder transfers. If for example the above design documents are now available as Autocad but the workflow requires them as Catia an automated process would

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implement the conversion prior to notifying the individual responsible for the next task. This is the concept of dependencies. A workflow management system reflects the dependencies required for the completion of each task.

4.2 Performance measurement System Performance measurement systems succeed when the organizations strategy and performance measures are in alignment and when senior managers convey the organizations mission, vision, values and strategic direction to employees and external stakeholders. The performance measures give life to the mission, vision, and strategy by providing a focus that lets each employee know how they contribute to the success of the company and its stakeholders measurable expectations.

4.3 World-Class Manufacturer The term "world-class manufacturer" is popularly used to denote a standard of excellence: the best of the best manufacturers at the international level. It came into prominence following the 1986 publication of World Class Manufacturing: The Lessons of Simplicity Applied by Richard J. Schonberger, which was his follow-up to Japanese Management Techniques: Nine Hidden Lessons in Simplicity. World marketplace events during the 1970s and 1980s caused competition to grow to such an intense level that many firms were forced to re-examine their concept of manufacturing strategy, especially in terms of the tradeoffs among the four competitive priorities: cost, quality, delivery/service, and flexibility. Managers began to realize that they no longer had to make these tradeoffs but could instead compete on several competencies. Some of those excited by the concept describe it as capturing the breadth and the essence of the fundamental changes taking place in larger industrial enterprises, with their overriding goal and underlying mindset of continual and rapid improvement. Others describe it as the culmination of the relentless pursuit of competitive excellence. Richard Schonberger states that the emphasis on world-class manufacturing may someday be chronicled as the

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third major event in the history of manufacturing management, following the use of standard methods and times espoused by Frederick Taylor and Frank Gilbreth, and the findings of the Hawthorne experiments at Western Electric, which held that motivation, to a significant degree, comes from recognition. For simplicity's sake, we will describe a world-class manufacturer as a company that is able to compete effectively in a global market.Clearly, there are some demands placed on individuals and organizations that desire worldclass status. Peter Stonebreaker and Keong Leong presented a hierarchy of steps, appearing as five levels, that lead to world-class operations (see Figure 1). This series of steps will be used to describe the characteristics of world-class manufacturers.

4.4 Total Quality Management (TQM) Total Quality (TQ) consists of continuous improvement activities involving everyone in the organizationmanagers and workersin a totally integrated effort toward improving performance at every level. This improved performance is directed toward satisfying such cross-functional goals as quality, cost, schedule, missing, need, and suitability. TQ integrates fundamental management techniques, existing improvement efforts, and technical tools under a disciplined approach focused on continued process improvement. The activities are ultimately focused on increasing customer/user satisfaction.

4.5 Software Production Management (SPM) Many embedded developers are finding that SPM must be addressed to maintain competitiveness. Without investment in tools and process improvement, software production for embedded development projects can be extremely costly and time-consuming. Increased demands on the accuracy and speed of the software production process coupled with legislated requirements to keep audit trails of software production require this new class of software for managing the back end of the software production process. SPM can be achieved several ways: doit-yourself, open source, and commercial solutions. Theres no getting away

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from SPM; teams either build their own system out of a hodgepodge of scripts and free tools or they look for commercial solutions.

4.6 Technology Management Since technology is such a vital force, the field of technology management has emerged to address the particular ways in which companies should approach the use of technology in business strategies and operations. Technology is inherently difficult to manage because it is constantly changing, often in ways that cannot be predicted. Technology management is the set of policies and practices that leverage technologies to build, maintain, and enhance the competitive advantage of the firm on the basis of proprietary knowledge and know-how.

REFERENCE:

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Gideon Halevi, (2001) Handbook of production management methods. Reed Education and Professional Publishing Ltd 2001 Will Artley & Suzanne Stroh, (2001) Performance-Based Management Special Interest Group (PBM SIG) Elias G. Carayannis and Jeffrey Alexander, Technology Management http://www.enotes.com/management-encyclopedia/technology-management Work Flow Management System, http://en.wikipedia.org/wiki/Workflow#Workflow_Management_System Total Quality Management, http://www.enotes.com/management-encyclopedia/quality-totalquality-management R. Anthony Inman, world-class manufacturer, http://www.enotes.com/managementencyclopedia/world-class-manufacturer

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