Operation

Management
Nimra Mehboob
 Capacity Planning
Capacity planning is the process of determining capacity of production that is needed by an
organization to meet its current and future changing product demands.
Types of capacity planning
there are three types of capacity planning for the resources of both long and short-term.
• Product capacity planning
• Workforce capacity planning
• Tool capacity planning
Strategies of capacity planning
There are three strategies of capacity planning
• Lag strategy
• Match strategy
• Lead strategy
 Just in time Manufacturing
Just-in-time manufacturing, or just-in-time production as it is also known, is a system
that involves only placing orders for raw materials when the orders are placed by
customers. this strategy is that rather than storing stock in bulk based on predictions of
customer demand, the company will produce when the customer places the order.
 Plant location and plant layout
Plant location Plant layout
Plant location refers to the choice of region and the selection Plant layout is the overall arrangement of the production
of a particular site for setting up a business or factory. But the process, store-room, stock-room, tool-room, material
choice is made only after considering cost and benefits of handling equipment, aisles, racks and sub-stores,
different alternative sites. It is a strategic decision that cannot employee services and all other accessories required for
be changed once taken. facilitation of the production in the factory.
Factors affecting plant location: Types of Plant Layout:
Primary factors are raw material availability, Nearness to the 1. Product layout or line processing layout or flow-line
market, Availability of labor, transport facility, Fuel and layout
electricity supply, Water availability. 2. Process layout or functional layout or job shop layout
Secondary factors are Climate suitability, Government 3. Fixed position layout or static layout
policies, Availability of finance, waste removal and disposal. 4. Cellular manufacturing (CM) layout or Group
Technology layout
5.Combination layout or Hybrid layout or Mixed layout
6. Service Facility Layout
 Job design and Work Management
Job design Work Management
The process of defining employees' roles and the intersection of business and team processes to
duties, as well as the systems and procedures they structure workflow so that teams work more
should use or follow, is known as job design. Job efficiently. It’s a way to manage your team and the
design, or redesign, is primarily concerned with way they work so that you can increase efficiencies.
coordinating and optimizing work processes in there are some practices that is used for effective
order to add value and improve performance. management that are as follows.
Example: • Transparency
If a person regularly assembles parts, for example, • Communication
the job may be expanded to include new • Feedback
responsibilities such as work planning, quality • Collaboration
control, or maintenance. • Trust
• Avoid burnout
 Value engineering and business process
reengineering
Value Engineering Business Process Reengineering
Value engineering is a way of systematically Business process reengineering is an
improving the "value" of things, products, and approach used to improve organizational
services by examining their functions. The performance by increasing the efficiency and
ratio of function to cost is defined as value. As effectiveness of processes that exist across the
a result, value can be changed by either organization.
improving the function or lowering the price. BPR involves the analysis and transformation
Value is defined as containing two of several major components of a business.
components, function and cost: These include:
Value = Function / Cost • Strategy
• Organization
• Process
• Technology
• Culture
 Project scheduling with CPM and PERT
Project management employs scientific methods for planning, executing, monitoring, and
managing projects. It takes into account a project's numerous factors. Money, materials,
manpower, time, and other resources are among them. Scope, Time, and Cost are all
included. For this, we have network planning methods. PERT and CPM are two of them.
Two well-known management techniques are PERT project management and CPM. The
Program Evaluation and Review Technique is abbreviated as PERT. The Critical Path
Method is abbreviated as CPM.
PERT CPM
PERT is a project management technique that is used to manage CPM is that technique of project management which is used to
unpredictable (i.e., time is not known) project activities. It is an manage only certain activities of any project. CPM is a project
event-oriented method, which means that the network is built management technique that is utilized when the project's
around events. PERT is an excellent technique for projects in completion time is already known. It is mostly used to estimate the
which the time necessary or needed to accomplish several length of time it will take to accomplish a job. The critical path is
operations is unknown. PERT is primarily used to organize, the most important path in project management since it ensures
schedule, and integrate various tasks within a project. It serves as that the project is completed in the shortest possible period.
a project blueprint and is an effective method of project evaluation
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