Issues facing the functions of Operations Management

Issues facing the functions of trading trading trading surgical operations precautionOperations wariness is the employment function Responsible for Planning, arrange and mark offling the options needed to produce a teleph unitaryrs goods and services. It involves managing human capital, gondolaries , technologies , cultivation and galore(postnominal) oppositewise resources. Operations steering is the central core function of every(prenominal) company . steady though the company is big or sm wholly, provides personal goods or services ,every company has an operating function , the role of operations management function is to transform companys raw inputs in to the finished outputs much(prenominal) as crossways or services. Inputs include human capitals, technology, Materials and Processes such as structure and equipments. Outputs atomic number 18 goods and services which the company produces. Operations management is responsible for hire and coordinating in all the available resources required to produce a proposed product or services. This include designing, the product, deciding the whole required resources , scheduling, inventory management , woodland control and job design,The Transformation Process Diagram storey of Operations precautionOperations management did not emerge as a formal field of study until the late of 1950s and proto(prenominal) 1960s, It was Scholar , who recognize that all productions carcass face a bunch of bothers and to stress the system approach to viewing operations process. In 1700s , the industrial revolution had a signifi providet impact on the way gods be produced today. Prior to this movement products were made by hand by accomplished people at their shops or their homes. Each product was unique . just industrial revolutions changed all that invention of machines helped to re ass human power to machine power . in 1900s scientific management were introduced .it is an approach to management tha t rivet in improving out puts restructuring jobs and selecting accep shelve directs of computeer out put. scientific management brought the concepts of analysis and measurement of the technical aspects of encounter design.In mid-eighties operations management saw a huge developments Just in eon concept were designed by Japanese to achieve steep volume production using minimum level of inventory . this is achieved d cardinal coordination of f low of materials so that the right parts arrives at the right place at right fourth dimension in the right quantity. As the customers take on in higher quality products and service , companies were forced to focus on quality in order to remain competent. Total Quality homoagement is a philosophy developed by quality gurus such as W Edwards Deming , that aggressively seeks to improve product quality by eliminating defects and qualification quality an all- encompassing organizational philosophy . with TQM every one in the company is re sponsible for the quality . Supply Chain anxiety system has been introduced in the same period to manage the flow of material and training from suppliers and buyers of raw materials al the way to the final customer. The objective is to hack cost and improve quality and service delivery by every one in the chain .Supply chain management became famous with the development of information technology and E commerce . electronic Commerce depose top amid logical argument know as Business to Business(B2B) , between business and customer ( B2C) and Customer to Customer(C2C) which makes up highest percentageage of transaction in between business and customers .Today operational management environment is very dissimilar from what it was just few geezerhood ago. Customers demands better quality, greater speed and low cost. In order to succeed , companies have to be master s of the elementarys of operations management. Advanced information technology tools and softw be be being ut ilize to identify the resources needed to coordinate all activities involved in producing and delivering products to customer s. to gain advantage over their competitor companies be continuesly looking for ways to better respond to customers . it needs companies a kabbalistic knowledge about their customers and to meet their demands . The development of Customer Relationship Management has made it possible for the companies to understand the customers needs . Another characteristics of todays Operation management Environment is the increased use of Cross Functional Decision qualification that requires coordinated interaction and closing fashioning between the different business functions of the organizations. Employees from each function moldiness interact and coordinate their decisions. this requires employees to understand the roles of other business functions and the goals of the business as a whole , in entree to their own expertiseService Vs Manufacturing OperationsOpera tions give the axenister be divided in to two main categories, service operations and manufacturing operations. Manufacturing operations producing physical and tangible goods which shadow be stored in to the w atomic number 18 class before they atomic number 18 required, but in service operations products are intangible products that tummynot be produced ahead of cartridge clip. In manufacturing operations firm customers doesnt have direct contact with the operations . customers contact entrust be redirected by dealers , distributors and customer care centers . for example a customer is buying a computer in a super market never comes in to contact with the manufacturing company. But in service organization the customer will be typically present during the creation of the service. Car service centers, Hospitals , riotous food centers are both(prenominal) examples of service operations.T present are round manufacturing organizations provides service as part of their offe ring , and some service operations organizations produces physical goods that they deliver to the customer during service delivery. A barber shop may sell their own hair care products to their customersOperations management DecisionsOperations management decision can be divided in to three levels . that is Strategic , Tactical and OperationalStrategic Decision qualification this decision are long term decision which set directions for the ideal company . they faces questions such as what will be the vision of the organizations what market the company should concentrate ,how the company should compete win the field and so on these levels of decision are made by companys topple level executives exactlyTactical Decision Making short term decisions focus on particular departments are being taken in tactical decision making level. this is the level which makes decision of how ,and why questions , such as how umteen products should be manufactured and which technology has to be used , and how will be the quality of the product etc.Operational Decision Making This level of decisions mainly used for day to day issues. Such as cream scheduling, replacement, maintenance etc.Decision making Levels HierarchyOPERATIONAL social function of an operations managerOperations managers are responsible for managing activities which will be a part of the production of goods and services. Their responsibilities can be divide in to two categories , Direct and Indirect Responsibilities, Direct Contains managing both the operations process, include design, prep, control, performance improvement, and operations strategy. Their indirect responsibilities are interacting with those managers in other usable areas within the company they have direct or indirect responsibilities on operations. Such areas include marketing, finance, accounting, personnel and engineering.Operations managers responsibilities are adult male resource management the people overworking in an organization to create a good or service or provide support to those who do. Man Power and Human Resource Management are a tombstone resource of all organizations.Asset management A Companys buildings, Machinery, material and chronicle are presently connecting with the operations functions.Cost management most of the cost including hangouted and variable cost of producing goods or services are directly related to the costs of acquiring resources, moving them or delivering them to the end drug user . For many organizations in the private sector, cost cut through cost-effective operations management gives them a critical competitive edge. Even organizations in the non-profit sector, the ability to manage costs is no less important.Decision making is an important responsibility of all operations managers. Decisions should be made inDesigning the operations functionAnalyzing the operations functionImproving the operations functionControlling an OperatingThe five main kinds of decision in ea ch of these relate toThe processes, which is used to produce products or servicesThe quality of Products or servicesThe quantity of Products or servicesThe inventory , which is used to produce or supporting the production of goods or servicesHuman resource management, including recruiting, scheduling, transaction Appraisal etc.A Case cultivation Maharaja Electricals PVT LtdMaharaja Electricals Pvt Ltd is an ISO 9001 company meand on Chennai, Tamil Nadu, India . Since its nerve with a single lay down at Chennai before 15 years they remained the major suppliers of Mixers in southeastern India. They collect spotless spares from local manufacturers with set quality checking and assemble them in their ingathering units. They have experienced engineers and technicians in both electrical and mechanical disciplines. The company now has 20% of the South Indian mixer market. The major attraction to Maharaja Mixers is the low prices since all components are indigenously developed but still with quality assurance. or so of the middle class families always prefer Maharaja just because of their con steadrably affordable costs.Now to cop up with the increased customer fatalitys from populate states, especially from Kerala, the company is planning to install a new plant in Palaghat, the border area between Tamil Nadu and Kerala. They are planning for an assembly lne with a conveyor sing to minimize the fall quantify required for assembling. They prefer a U-shaped assembly line which may reduce the hit installation space. Also workers at different work puts can be close so that one can help others or even handle others work when one is absent from the seat. The conveyor stops for a specific interval of clock so that each work spot can complete its work within that sequence slice. This is the time for which the basic structure of the product is available to a workstation called Cycle snip. The main problem hither is to identify the various ill-treats invol ved in issue forth assembly of a mixer. Then the round time for the conveyor is to be calculated. Determining the minimum number of workstations and calculating the efficiency of the line is to a fault a concern.The company procures the following spares from local suppliers with strict quality control in bulk.Electrical get assemblyPlastic base to fix the assemblyRubber bushes to be fixed at the bottom of the baseElectrical lead to the power supplyPlastic protract for the motor assemblyOn/off switch on plastic coverSpeed regulatorPlastic circular rotatorJar attachmentsCardboard packing material boxScrews of various sizesWith their ample experience in assembling the company has identified time requirements for each fixations and a linear order for assembling process. That is tabulated as follows.Process MapTheoretical Approach of the Problem, Pareto chart, Pareto TheoryA Pareto chart is a bar graph. The lengths of the bars represent frequency or cost (time or money), and are arr anged with durable bars on the left and the shortest to the right. In this way the chart visually depicts which situations are more than significant.In the following Pareto diagram compares the available time, performance time and raging time comparison of six work stations. The diagram clearly shows at work station 1 on that point is no idle time for the conveyor belt. So employees with high skills and speed must be stick on here. floratation 1 is the critical point in this assembly unit since all other assembly works pre requires this assembly.Currently the assembling units are installed in an assembling unit where assembled parts are shifted from one place to some other manually. It is observed with clock stop analysis that 15 proceeding are required solely for shifting components to beside shifting unit. Clearly here we can apply so called Pareto Principle in the situation. This principle is notable with the name of Italian economist Vilfredo Pareto who created a mathem atical formula to hear the unequal distribution of wealth in his country, observing that twenty percent of the people owned eighty percent of the wealth. The principle is in any outcome known as 20-80 master , the Law of Vital Few and principle of cypher sparsity. Later the Management thinker Joseph M Juran adopted the idea to Management Principles. Jurans assumption is that most of the results in any situation are unyielding by a small number of causes. For example 20% of the customers regularise 80% of the sales in a trade fair. Here in our problem 30% of the total time is required for just transferring components from one table to another. Reducing this time substantially can save total assembling time and thus can improve efficiency of the total system. So installation of a conveyor belt in the milling machinery is a better alternative.SolutionThe precedence requirements clearly mention which jobs are to be completed before starting a new one. In the above table before covering the motor assembly with an satellite cover ( childbed D ) the motor assembly must be fixed on a plastic base ( depute A) and electrical leads must be connected to the assembly( confinement C). Similarly certain other capers are also having precedence requirements.A work station is a place or a table where the conveyor stops for a cycle time with the basic structure on it. After that conveyor moves so that the basic structure goes to the next work station where it can perform excess fittings.The low thing is to identify the job with highest cycle time. It is normally called feeding bottleful neck job. The conveyor at least has to stop this much of time for a workstation. The cycle time cannot be les than the duration of this working class. In Mahararajas case connecting electrical lead to the power supply to the motor assembly is the bottle neck operation. The cycle time is therefore 6 minutes as per the table. If the cycle time is kept less than this proletariat C cannot be completed.Then determining the minimum number of workstations is the next problem to be solved. Theoretically the minimum number of workstations can be calculated by dividing the total time requirement with cycle time. So here as per the table the total designate time is 30 minutes and the cycle time is 6 minutes. SoMinimum number of workstations = 30/6 = 5 work stations.Then the next problem is to determine which tasks are to be charge to which work stations. Here we have to use some heuristics. In this case the heuristics selected is called the Longest Operation clip (LOT) rule. According to this rule the top priority is assigned to task with perennial operation time.In this case parturiency C is the longest task with an operations time of 6 minutes. This task has the highest priority assignment over first workstation. The table also shows that it has no precedence requirements ie no other task need to be completed to begin travail C. so task C can be assigned to t he first workstation. An entry can be made to the following table. heuristics stepWorkstationPrioritized labour charge proletariat labor Timestay Timestay eligible lying-in11CC600The further prioritized task for workstation 1 is task C and that is assigned to first workstation. The cycle time is 6 minutes and that is equal to the time requirement of task C. so no remaining time is left for other tasks to perform in this work station. So no more tasks can be assigned to first workstation.At the next step the tasks assigned to the second workstation are to identified. From the table the next task with longest operation time requirement is task A which also requires no occasion operations. The task is to fix the motor assembly with the electrical lead(fixed at workstation 1 by task C) on a plastic base.Heuristics StepsWorkstationPrioritized laborAssigned TaskTask Time rest TimeRemaining Eligible Task11CC60022AA510Since task A requires sole(prenominal) 5 minutes, 1 minute is exc ess at the second workstation. But since we have no tasks which require 1 minutes only when no other tasks can be assigned here.At the next step we have longest tasks D, F or H with en execution time of 3 minutes. But F and H have pre requirements. For task F task D must be completed. For task H, tasks B,E,F and G are to be completed. At this point of time both pre requirements are not satisfied. The pre requirements of task D are completion of task A and C which is already accomplished. So the preference goes to task D.Heuristics StepsWorkstationPrioritized TaskAssigned TaskTask TimeRemaining TimeRemaining Eligible Task11CC60022AA51033DD33BHere after assigning Task D 3 minutes are remaining. From the table all tasks with 3 minutes operation time requirement also have pre requirements of completion of other tasks. So the next preferable job is task B whose time requirement is only 2 minutes.Heuristics StepsWorkstationPrioritized TaskAssigned TaskTask TimeRemaining TimeRemaining Eli gible Task11CC60022AA51033DD33B43BB210The next step is to assign task in work station 4 , here we can consider task F and Task h with longest path of 3 minutes ,.But task h have pre requirements so task F can be assigned in work station 4Heuristics StepsWorkstationPrioritized TaskAssigned TaskTask TimeRemaining TimeRemaining Eligible Task11CC60022AA51033DD33B43BB21054FF33E,GIn work station 4 task F have used only 3 minute. to utilize the remaining time in work station 4 , task E, or t ask G can be assign in work station 4 , Task E is assigned in work station 4Heuristics StepsWorkstationPrioritized TaskAssigned TaskTask TimeRemaining TimeRemaining Eligible Task11CC60022AA51033DD33B43BB21054FF33E,G64E,GE21GThe next step is to assign suitable task in next work Station . next suitable task which can be assigned in workstation 5 is task G .Heuristic StepsWorkstationPrioritized TaskAssigned TaskTask TimeRemaining TimeRemaining Eligible Task11CC60022AA51033DD33B43BB21054FF33E,G64E,GE21G75G G24H,I,JTask G will take only 2 minutes to complete the task . work station 5 can be assigned for some other tasks , next available tasks are Task H, I ,J , the longest path among these three tasks are with task H of 3 minute . So we can assign task H in work station 5.Heuristics StepsWorkstationPrioritized TaskAssigned TaskTask TimeRemaining TimeRemaining Eligible Task11CC60022AA51033DD33B43BB21054FF33E,G64E,GE21G75GG24H,I,J85HH31I,JHere after there are two tasks left . Task I, Task J, But to do the Task J , Task I must be completed . so Task I can be assigned in to work station 6Heuristics StepsWorkstationPrioritized TaskAssigned TaskTask TimeRemaining TimeRemaining Eligible Task11CC60022AA51033DD33B43BB21054FF33E,G64E,GE21G75GG24H,I,J85HH31I,J 96I,JI24JTask L have used only 2 minutes to complete the task, that is it remains 4 minutes in work station 6 , so we can assign Task J in work station 6Heuristics StepsWorkstationPrioritized TaskAssigned TaskTask TimeRemaining TimeRemainin g Eligible Task11CC60022AA51033DD33B43BB21054FF33E,G64E,GE21G75GG24H,I,J85HH31I J96I,JI24J106JJ220Assignments of Works to the work stationWork Station123456TotalAvailable Time66666636Performance Time65555430Idle Time0111126The last table shows that at least 6 workstations are required which is different from the calculated theoretical minimum. faculty of the assembly line is performance time/ available time X 100Here 30/36 X 100 = 83.33 %. archetype efficiency is 100 %.RecommendationsIt is recommended to use U shaped Conveyor belt and 3 work stations should be in one side and the remaining 3 workstations should be in other side so that the idle work station can help the busy work station. The conveyor belt can be drawn as infra