PRODUCTION AND OPERATION MANAGEMENT

PRODUCTION AND OPERATION MANAGEMENT
AREA OF STUDY: CORE
BAC229

Year: 4
Semester: 7

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* Continuous
** Duration: 3 hours

The basic objective of this course is to provide knowledge about quality management and several managerial tools to facilitate manufacturing and service organization.
Course Contents
1. Total Quality Management T.H.11
a. Quality:
Quality as a management philosophy, Customer driven definitions of quality; Quality as a competitive weapons.
b. Employee Involvement:
Cultural Change, Individual Development, Awards and incentives.
c. Continuous Improvement:
Getting started with continuous improvement, Problem solving process, improving quality through TQM (Benchmarking, Product and service design), Process Design: Quality Function Development; Purchase considerations; tools for improving quality and Performance; The cost of poor quality (Prevention and appraisal cost), Malcolm Baldrige National Quality Award, International Quality Standards, (The ISO 9000 Standards, ISO 14000-An Environmental management system, Benefits of ISO Certification).

2. Inventory Management T.H.15
d. Inventory system for Independent Demand:
Definition and purpose of inventory; Inventory costs; Independent versus dependent demand, Inventory Systems:- (1) Fixed order quantity model with usage during production time establishing safety stock levels, fixed order quantity model with specific service level. (2) Fixed time period models; Fix time period model with specified service level, (3) Special purpose models: Miscellaneous system and Issues; three simple inventory systems; ABC Inventory Planning: Inventory accuracy and cycle counting; Inventory control in services.
e. Inventory system for dependent demand Material Requirement Planning type systems:
Application of MRP; Master production schedule; MRP system; demand for products, bills of material file, inventory records file; embedding JIT to MRP; Lot sizing in MRP structure; Lot for lot; EOQ; Least unit cost; Lot size choice; Choosing the best lot size.
3. Forecasting T.H.10
Demand characteristics (Patterns of demand, factors affecting demand); Designing the forecasting system; deciding what to forecast, choosing the type of forecasting technique; methods; judgmental forecasting (sales force estimates, executive opinion, market research, Delphi method), guidelines for using judgment forecast; casual Method; linear regression; Time Series method; Naïve forecast, estimating the average, including a trend seasonal patterns, choosing a time series method (forecast error, criteria for selecting time series Method).
4. Location decisions T.H.6
The globalization and geographic dispersion of operations; Reasons for globalizations; Disadvantages of globalization; Hot spots of global economic activity; managing global operations, Factors affecting location decisions; dominants factors in manufacturing and service organizations; Locating a single facility.
5. Layout Decisions T.H.6
Meaning and strategic issues; Layout types Performance criteria; Creating hybrid layouts (one worker multiple machines, group, technology); Designing process layout; gather information, developing block chain; design a detailed layout; Aids for process layout Decisions; Office Layout; Designing Product layouts; line of balancing.
Suggested Readings;
1. L. J. Krajjewski and L. P. Ritzmen, Operations Management Strategy and Analysis, 5th Edition, Addison Wesley, An imprint of Pearson Education, New Delhi.
2. R. B Chase, N. J Aquilano, F. R Jacobs, Production and Operation Management, 8th Edition, Tata McGraw-Hill Publishing Company, New Delhi.