ME822PE: PRODUCTION AND OPERATIONS MANAGEMENT (PE – VI)

UNIT - I
Operation Management – Definition – Objectives – Types of production systems – historical
development of operations management – Current issues in operation management. Product
design – Requirements of good product design – product development – approaches – concepts
in product development – standardization – simplification – Speed to market – Introduction to
concurrent engineering.

Operation Management – Definition

Production and operations management concerns itself with the conversion of inputs into
outputs, using physical resources, so as to provide the desired utility/utilities—of form, place,
possession or state or a combination thereof—to the customer while meeting the other
organisational objectives of effectiveness, efficiency and adaptability.
Production and Operations Management—Some Cases
S.NO Case Input Physical Output Type of Type of
Resource/s Input/ Utility
Output Provided to
Used
the
Customers
1 Inorganic Ores Chemical Inorganic Physical Form
chemicals plant chemical input
production and and physical
equipment, output

PRODUCTION AND OPERATION MANAGEMENT UNIT-1 LECTURE-1 OPERATION MANAGEMENT GNIT-HYD

 other
chemicals,
use of labour,
etc
2 Outpatient Unhealthy Doctors, Healthier Physical State
ward of a patients nurses, patients input
general other staff, and physical
hospital equipment, output
other
facilities
3 Educational ‘Raw’ Teachers, ‘Enlightened’ Physical (?) State
institution books, input and
minds minds
teaching aids, physical (?)
etc output

Objectives of Operation management:

Three objectives or criteria of performance of the production and operations management
system are
(a) Customer satisfaction.
(b) Effectiveness
(c) Efficiency
 The case for ‘efficiency’ or ‘productive’ utilisation of resources is clear. Whether, the
organisation is in the private sector or in the public sector, is a ‘manufacturing’ or a
‘service’ organisation, or a ‘profit-making’ or a ‘non-profit’ organisation, the
productive or optimal utilisation of resource inputs is always a desired objective.
 However, effectiveness has more dimensions to it. It involves an optimality in the
fulfilment of multiple objectives, with a possible prioritisation within the objectives.
This is not difficult to imagine because modern production and operations management
has to serve the so-called target customers, the people working within, as also the
region, country or society at large.
 In order to survive, the production/operations management system, has not only to be
‘profitable’ and/or ‘efficient’, but, must necessarily satisfy many more ‘customers’.
 This effectiveness has to be again viewed in terms of the short- and long-time horizons
(depending upon the operations system’s need to remain active for short or long time
horizons)—because, what may seem now like an ‘effective’ solution may not be ‘all
that effective in the future’. In fact, the effectiveness of the operations system may
depend not only upon a multi-objectives satisfaction but also on its flexibility or
adaptability to changed situations in the future so that it continues to fulfil the desirable
objectives set while maintaining optimal efficiency.

PRODUCTION AND OPERATION MANAGEMENT UNIT-1 LECTURE-1 OPERATION MANAGEMENT GNIT-HYD

Types of production systems:
The types of production system are grouped into two categories, namely:
1. Intermittent production system
2. Continuous production system

1. Intermittent production system:

Intermittent means something that starts and stops at irregular intervals (time intervals). In the
intermittent production system, goods are produced according to customer orders. These
products are produced on a small scale. The production flow is intermittent (irregular). In other
words, the production flows are not continuous.

PRODUCTION AND OPERATION MANAGEMENT UNIT-1 LECTURE-1 OPERATION MANAGEMENT GNIT-HYD

In these types of production system, large varieties of products are produced. These products
are of different sizes. The design of these products keeps changing. It keeps changing based on
product design and size. Therefore, this system is very flexible.

The following are examples of the intermittent production system:

(i) The work of a goldsmith is based exclusively on the frequency of customer orders. The
goldsmith manufactures goods (ornaments) on a small scale according to the requirements of
his client. Here, ornaments are not made continuously.

(ii) Similarly, a tailor’s work is also based on the number of orders he receives from his clients.
The tailor sews the garments for each client independently according to measurement and size.
Products (sewn clothing) are manufactured on a limited scale and is proportional to the number
of orders received from customers. Here, sewing is not done continuously.

Characteristics of an intermittent production system are listed below:

(i) The production flow is not continuous. It is intermittent.

(ii) Wide varieties of products are produced.
(iii) The production volume is small.
(iv) General-purpose machines are used. Different types of products can be produced by the
use of these machines.
(v) The sequence of operations continues to change according to the product design.
(vi) The quantity, size, shape, design, etc. Product depends on customer orders.

The types of intermittent production system include:

i. Project production flows,

ii. Jobbing production flows, and
iii. Batch production flows.

i. Project production flows:

Here, in the project’s production flows, the company accepts a single complex order or
contract. The order must be completed within a certain period of time and at an estimated cost.
Consider making a boat. Such products are never manufactured in large quantities. Labor,
facilities and other resources focus on these products. Therefore, each product can be treated

PRODUCTION AND OPERATION MANAGEMENT UNIT-1 LECTURE-1 OPERATION MANAGEMENT GNIT-HYD

as a project, which requires the sequencing of certain activities, either in series or
simultaneously. PERT/CPM or network analysis is a useful technique to plan and control such
projects.
Examples of project production flows mainly include the construction of airports, roads,
buildings, shipbuilding, dams, etc.

Characteristics of project production flows:

1. A resource requirement varies with the production phases.
2. Many agencies are involved and their jobs are interrelated.
3. Generally. Delays take place at the end of the project.
4. As routing and programming changes, inspection is required.

ii. Jobbing production flows:

In the job production flows, the company accepts a contract to produce one or a few units of a
product strictly according to the specifications given by the customer. The product is produced
within a certain period and at a fixed cost. This cost is fixed at the time of signing the contract.

Examples of such job production flows include services provided by clothing workshops,
repair shops, manufacturers of special machine tools, etc.

Characteristics of jobbing production flows:

1. The production of items takes place in small batches.
2. Items are manufactured according to customer specifications.
3. Highly skilled labour is needed for specialized jobs
4. There is a disproportionate manufacturing cycle time.

iii. Batch production flows:

In batch production flows, the production schedule is decided according to specific orders or
is based on demand forecasts. Here, the production of items takes place in lots or lots. A product
is divided into different jobs. All jobs in a production batch must be completed before starting
the next production batch.

Examples of batch production flows include, manufacture of drugs and pharmaceuticals,

medium and heavy machinery, etc.

PRODUCTION AND OPERATION MANAGEMENT UNIT-1 LECTURE-1 OPERATION MANAGEMENT GNIT-HYD

Characteristics of batch production flows batch instruction:
1. Products are manufactured and stored until demand arises.
2. General-purpose machines and equipment are installed.
3. There is a possibility of major work in progress.
4. You need detailed production planning and control.

2. Continuous production system:

Continuous means something that operates constantly without irregularities or frequent stops.
In the continuous production system, goods are constantly produced according to the demand
forecast. The goods are produced on a large scale for storage and sale. They are not produced
at the customer’s request. Here, the inputs and outputs are standardized together with the
production process and the sequence.

The following are examples of the continuous production system.

(i) The production system of the food industry is based solely on the demand forecast. Here a
large-scale food production takes place. It is also a continuous production.

(ii) Similarly, the production and processing system of a fuel industry is also based solely on
the demand forecast. Crude oil and other raw sources are continuously processed on a large
scale to obtain a usable form of fuel and offset global energy demand.

The characteristics of a continuous production system are listed below:

(i) The production flow is continuous. It is not intermittent
(ii) The products are standardized.
(ii) Products are produced with predetermined quality standards.
(iv) Products are produced in anticipation of demand.
(v) Standardized roadmaps and schedules are prepared.

The types of continuous production systems include:

1. Mass production flows
2. Process production flows.

1. Mass production flows:

PRODUCTION AND OPERATION MANAGEMENT UNIT-1 LECTURE-1 OPERATION MANAGEMENT GNIT-HYD

Here, the company produces different types of large-scale products and stores them in
warehouses until they are demanded in the market. Products are produced with the help of a
single operation or use a series of operations.

E.g. Mass production is the production of toothpaste, soaps, pens, etc.

Characteristics of mass production flows:

1. Continuous production flow, depends on market demand.
2. Here, there is limited work in progress.
3. Supervision is easy: few instructions are necessary.
4. The material is mainly handled by machines.
5. The flow of materials is continuous with little or no glue.

2. Production processes:

Here, a single product is produced and stored in warehouses until it is demanded in the market.
The flexibility of these plants is almost nil because only one product can be produced.
Examples of production process flows include steel, cement, paper, sugar, etc.

Characteristics of process production flows:

1. Highly mechanized system for material handling.
2. Low skilled labor and skilled technicians are required.
3. Very little work in progress, since the flow of material is continuous.
4. Production planning and programming can be decided in advance.
5. The complete production system is designed to produce a single item

Historical development of operations management:

The Industrial Revolution had a significant impact on the way goods are
produced today. Before this time, products were made by hand by skilled
craftspeople in their shops or homes. Each product was unique, painstakingly
made by one person. The Industrial Revolution changed all that. It started in the
1770s with the development of a number of inventions that relied on machine
power instead of human power. The most important of these was the steam
engine, which was invented by James Watt in 1764. The steam engine provided

PRODUCTION AND OPERATION MANAGEMENT UNIT-1 LECTURE-1 OPERATION MANAGEMENT GNIT-HYD

a new source of power that was used to replace human labour in textile mills,
machine-making plants, and other facilities. The concept of the factory was
emerging. In addition, the steam engine led to advances in transportation, such as
railroads, that allowed for a wider distribution of goods.

About the same time, the concept of division of labor was introduced. First
described by Adam Smith in 1776 in The Wealth of Nations, this concept would
become one of the important ideas behind the development of the assembly line.
Division of labour means that the production of a good is broken down into a
series of small, elemental tasks, each of which is performed by a different worker.
The repetition of the task allows the worker to become highly specialized in that
task.

A few years later, in 1790, Eli Whitney introduced the concept of

interchangeable parts. Prior to that time, every part used in a production process
was unique. Interchangeable parts are standardized so that every item in a batch
of items fits equally. This concept meant that we could move from one-at-a-time
production to volume production, for example, in the manufacture of watches,
clocks, and similar items.

Scientific management was an approach to management promoted by Frederick

W. Taylor at the turn of the twentieth century. Management is responsible for
designing productive systems and determining acceptable worker output.
Workers have no input into this process—they are permitted only to work. Many
people did not like the scientific management approach, especially workers, who
thought that management used these methods to unfairly increase output without
paying them accordingly.

In the 1970s the use of computers in business became widespread. With

computers, many of the quantitative models developed by management science
could be employed on a larger scale. Data processing became easier, with
important effects in areas such as forecasting, scheduling, and inventory
management. A particularly important computerized system, material
requirements planning (MRP), was developed for inventory control and
scheduling. Material requirements planning was able to process huge amounts of
data in order to compute inventory requirements and develop schedules for the
production of thousands of items, processing that was impossible before the age
of computers.

Today’s Operations Management Environment

Today’s OM environment is very different from what it was just a few years ago.

PRODUCTION AND OPERATION MANAGEMENT UNIT-1 LECTURE-1 OPERATION MANAGEMENT GNIT-HYD

Customers demand better quality, greater speed, and lower costs. In order to
succeed, companies have to be masters of the basics of operations management.
To achieve this ability, many companies are implementing a concept called lean
systems. Lean systems take a total system approach to creating an efficient
operation and pull together best practice concepts, including just-in-time (JIT),
total quality management (TQM), continuous improvement, resource planning,
and supply chain management (SCM).

Current Challenges for Operations Management

There are multiple challenges that operations managers face frequently:

1. Globalization - Globalization is defined as the process by which businesses

interact with people, companies, and governments on an international scale. This
is being driven by the reduction of trade barriers, advancements in
information/transportation technology, and more. The benefit of globalization is
that there is more interactions between different populations around the globe
and allows companies to reach a wider market. However, operations managers
have found themselves facing competition not only from their country of origin,
but from countries all around the globe. To maintain their competitive advantage,
operations managers must keep up with the trends and software technology
available to help increase their production.

2. Sustainability -Sustainability is a frequent issue discussed among various news

outlets - with manufacturing being one of the largest factors contributing to
conversation. There is much debate over whether or not we will have the
appropriate amount of resources needed in order to have a sustainable future.
When discussing the concept of sustainability, the three pillars of sustainable
usually come into play, which include social, environmental, and economic.
Operations managers need to be aware of the outcomes of each of these pillars,
including how their production facility or work will affect these factors.
Effective operations management will implement practices that will address
these concerns pertaining to sustainability

3. Effective Communication - Consistency and effectiveness of communication is

extremely difficult within organizations. The challenge for operations managers

PRODUCTION AND OPERATION MANAGEMENT UNIT-1 LECTURE-1 OPERATION MANAGEMENT GNIT-HYD

 is to be able to communicate effectively with all internal and external
stakeholders. This will ultimately allow for more thorough transparency within
your production facility, which will aid your factory floor immensely. Having
everyone on the same page can boost efficiency within your manufacturing
operation with ease and operations management needs to look into softwares that
can make this much simpler for them. Effective communication is a must for
manufacturing facilities that are seeking to boost operational efficiency in areas
such as demand planning, demand forecasting, using the plan/forecast, and
ultimately implementing this into a proper production plan.

4. Ethical Conduct - Ethics is defined as a subset of business ethics that is meant

to ensure that production functions or activities are not damaging to people or
society. Understanding the ethics of business will ensure that you will not fall
out of line in terms of keeping the people and environment of your business safe.
Unethical behavior has contributed to the demise of various companies around
the globe - which is why understanding them is so important. Being ethical
across all functions of your business will ensure that your operation runs
smoothly and that you will not turn into one of the companies that have failed
due to this.

PRODUCT DESIGN

Product design deals with conversion of ideas into reality. Every business organization have 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, 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.

PRODUCTION AND OPERATION MANAGEMENT UNIT-1 LECTURE-1 OPERATION MANAGEMENT GNIT-HYD

Requirements of good product design:

Essential requirements of a good product design

The essential requirements of a good product design are listed as follows:

Product must optimally perform its main function (task).

 It must be easy to repair at a low repair cost.

 It must be very reliable to use.
 It must follow principles of aesthetics.
 It must be a durable one.
 It can be easily produced in large numbers at minimum production cost.
 It must be simple to produce and use (handle).
 It must also be compact.

Now let's discuss each essential requirement of a good product design.

1.

PRODUCTION AND OPERATION MANAGEMENT UNIT-1 LECTURE-1 OPERATION MANAGEMENT GNIT-HYD

1.Function:

The product must be designed in such a way that it optimally performs the main task or function
for which it is purchased by a buyer. In other words, the product must satisfy the needs and
wants of the consumer.

For e.g. The main function of an Air Conditioner (AC) is to provide quick cooling of a room.
So, AC must be designed in such a way that it can cool a room as fast as technologically
possible. If it doesn't meet basic expectations, the consumers won't buy it.

2. Repairability:

The product must be designed in such a way that it can be easily repaired whenever necessary
during a malfunction. The product repairs must be done quickly that too at a low repair cost.
Consumers usually don't buy those costly products, which are either very expensive to repair /
maintain or those who take a longer time and more money for repairing.

3. Reliability:

Reliability means dependability on a product. Consumers prefer to purchase and use often those
products which perform their main function or task optimally for a longer period without any
annoying malfunctions, breakdowns or failures. In short, a product must perform quite well
and give trouble-free service for a decent amount of time. It must not need constant repairs
and/or frequent maintenances. It is so, since repairs often turn costly and are very time
consuming. Reliability is crucial for consumer durables and office equipment’s. A reliable
product gains consumers' trust, loyalty and this creates its goodwill in the competitive market.
Therefore, reliability is an important factor to be kept in mind while designing a product.

4. Aesthetics:

Aesthetics must be kept in mind while designing a product. It refers to, how the product looks,
feels, sounds, tastes or smells. That is, the product must look, feel, sound, taste or smell very
good. It must be attractive, compact and convenient to use. Its packaging must also be made
graphically appealing and colorful. If this aspect is not considered, product will fail in the
market. This factor is very important, especially in case a product is designed for and targeted
to the young generation that is emerging with a modern mindset and current trends.

5. Durability:

PRODUCTION AND OPERATION MANAGEMENT UNIT-1 LECTURE-1 OPERATION MANAGEMENT GNIT-HYD

Durability refers to the life of a product. A durable product performs flawlessly for a longer
period. It is a sign of a good-quality product. Consumers want their products to have a longer
life. They do not want to replace their products repeatedly. This factor is very crucial for
durable and costly products like televisions, refrigerators, cars, so on. Therefore, durability is
another important requirement that must be kept in mind while designing a product.

6. Producibility:

The product must be designed in such a way that it can be produced in large quantities with
ease at a minimum production cost. The production department must be able to produce the
product easily, quickly, in ample quantities and at a low production cost. The production
process must not be very complex, and it must not require costly machines to produce the
product.

7. Simplicity:

The design of the product must be very simple. The simpler a design, the easier, it is to produce
and use (handle). Simple products are also economical and reliable. The product must have the
least number of operations without affecting its functionality.

8. Compact:

The product must be small; it must occupy less space, and must have lower weight. In other
words, it must be very compact. The company must try to make its products as small as
possible. Today, everything is turning smaller. Big sized cell phones are now out of fashion. In
the 1950s, computers were as huge as spacious rooms. However, today we have laptops and
palmtop computers. Most products can be made compact. Still, this cannot be done for all
products. In case of televisions, it is just the opposite. Today people want bigger televisions.
Similarly, there is a limit on small size. We cannot have a phone which is so tiny that it requires
a microscope to see its keypad.

PRODUCTION AND OPERATION MANAGEMENT UNIT-1 LECTURE-1 OPERATION MANAGEMENT GNIT-HYD

Product development:

Product development, also known as new product development or management, is a

sequential order of steps which involves the idea generation, screening, designing, developing
and marketing of newly produced or newly rebranded products or services. The motive behind
product development is to grow, sustain and enhance market share of a company by meeting
demands of consumers. Defining the target market for a product or service must occur earlier
in the process of product development because every product is not meant for every client or
customer segment. The necessity of conducting a quantitative market research at each and
every step of the product development process is undeniable.
Three basic product development methods will be briefly discussed here. The methods
include:
 Fuzzy Front End (FFE) Method

 Design Thinking Method

 Development Method for Manufactured Goods

1. Fuzzy Front End (FFE) Method:

Fuzzy Front End (FFE) product development method, states the steps to be followed but the
sequence of the steps will be decided by the management or marketing team depending on the
type of the product or service which will be developed. The five steps of FFE method are:
Identifying the Design Criteria:

PRODUCTION AND OPERATION MANAGEMENT UNIT-1 LECTURE-1 OPERATION MANAGEMENT GNIT-HYD

In this step brainstorming of different ideas is conducted regarding the probable new products
or services and a prospective product idea is identified from them. Only then an appropriate
product development strategy can be applied.

Analysing the Idea:

This step requires an intense analysis of the product idea or concept. The feasibility or relevance
of the business context to the business firm or to the consumer is determined by concept studies
and market research.

Concept Generation:

In this step, an identified or selected product idea or opportunity is transformed into a concrete
or real concept.

Prototyping:

Prototypes refer to the first and preliminary versions of any product or device which will be
tested further and then marketed. At this step, rapid prototypes for the product concept are
created instead of the final model of the product.

Product Development:

The product development step ensures that the identified concept of the product has been
assembled well with business value to make business sense.

2. Design Thinking Method:

Design thinking method has repetitive steps designed to be followed in a certain order for the
purpose of promoting collaboration and creativity. The five steps of design thinking method
are:
Empathizing: The problem should be emphasized by learning about it from different points of
views.
Defining: Defining the area and actual characteristic of the problem.
Generating Idea: Brainstorming to find the best solutions to solve the problem.
Prototyping: Eliminating useless or illogical solutions.
Testing: Asking for feedback.
3. Development Method for Manufactured Goods:
Development method for manufactured goods has eight important steps:

PRODUCTION AND OPERATION MANAGEMENT UNIT-1 LECTURE-1 OPERATION MANAGEMENT GNIT-HYD

Step 1: Generating idea
Generating idea is the continued methodical research for new product opportunities as well as
updating the current product.
Step 2: Screening idea
Screening idea eliminates the infeasible and illogical product ideas through open-minded
thinking.
Step 3: Developing and testing concept

Developing and testing concept is important. The idea or concept of the product must be
examined or tested through customer feedback at this step. The product concept can be further
developed on the basis of this feedback.

Step 4: Business analysis/ marketing strategy

Business analysis/ marketing strategy is basically founded on four P's, which are: product,
price, placement, and promotion.

Product: The product or service designed to meet the demand of a target segment.
Price: Decisions regarding pricing have an impact on demand, supply, marketing strategy and
profit margins.
Placement: Product placement is a technique of advertising applied by business companies to
beautifully promote their products or services by appearing in a TV program, film or on other
media.
Promotion: The objectives of promotion are to communicate information about the product to
the target segment, describe the product’s value and enhancing the demand for the product.
Promotion consists of different kinds of advertisements, marketing campaigns and, public
relations.
Step 5: Feasibility study/analysis
Feasibility study/analysis provides information that analyzes the critical factors affecting the
success of the product. It involves arranging different segments of people that will test a
prototype of the product and then evaluate the feedback. This feedback states the target
segment’s interest, experience, and expected product features and also the profitability and
viability of the product in development.

PRODUCTION AND OPERATION MANAGEMENT UNIT-1 LECTURE-1 OPERATION MANAGEMENT GNIT-HYD

Step 6: Product development /Product technical design

Product development /Product technical design combines the outcomes of the feasibility
analyses. At this stage, the prototype of the product is turned into a suitable final product based
on the feedback of the feasibility study by eliminating the shortcomings of the product and
organizing and modifying the departments engaged in the product launch e.g. finance,
production or operations, research and development, marketing etc.

Step 7: Market testing or, Test marketing

Market testing or, Test marketing, is the next stage. The motive of this stage is to demonstrate
the whole concept- marketing, packaging, advertising, and distribution.

Step 8: Commercialization/ market entry

Commercialization/ market entry is the phase where the final product is introduced to the target
market segment. The entire information collected through the aforementioned seven stages of
this method are utilized to produce, market and distribute the final product.

Product development is an ever-changing process depending on the nature of the product or

the manager who is managing the process. Some organizations have a dedicated team that
conducts researches and tests on new products, while smaller organizations may outsource the
new product development to a marketing agency.

Standardization:

Product standardization refers to the process of maintaining uniformity and consistency among
the different iterations of a particular good or service that are available in different markets. It
is a process of marketing a good or service without making any changes to it. If a product is
changed at all, it is only changed superficially. Otherwise, the characteristics of the good or
service remain uniform. It is made using the same materials and processes, has the same
packaging and is marketed under the same name.

The strategy of product standardization requires a particular industry or organization to follow

certain guidelines in order to maintain the consistency of a product’s nature, appearance, and
quality. These guidelines are ones that are accepted on a general basis and are adhered to when
producing a good or carrying out a service. The guidelines may apply to one organization or
one industry and may be applicable on a national level or an international level.

PRODUCTION AND OPERATION MANAGEMENT UNIT-1 LECTURE-1 OPERATION MANAGEMENT GNIT-HYD

 Product standardization is useful for a number of reasons.

Cost reduction: Product standardization reduces the cost of production. When a set of
guidelines are being adhered to in order to produce identical goods or services, the cost of
raw materials goes down. The raw materials being used for that particular product are the
same. Instead of spending money on different raw materials, different packaging and
different marketing techniques, standardization ensures that both production and
maintenance costs are kept low. Since there is no need to introduce different benefits with
each iteration of the product, the expense of production is reduced.

Production efficiency: The production process becomes more efficient when the end goal
is to maintain uniformity of products. Less effort is expended on production. It is easier to
automate at least part of the production process. The same process is utilized in different
organizations or industries to produce the same good or service. The lack of pressure to
innovate the particular product with each iteration increases efficiency. The consumer does
not expect the product to deteriorate, but they do not expect it to become radically different
either. There is an established process, which streamlines production and makes it faster.

Establishment and strengthening of the brand: When a particular product is available

across different markets, including the international sphere, in a consistent form with
uniform features, it becomes a brand that the consumer base recognizes and trusts.
Regardless of geographical location, the exact same good or service is delivered to the
consumer, with no change in quality. This reinforces the branding of the product. The
organization or industry of origin profits from the particular recognizable product being
chosen by consumers who have used it in the past and wish to use it again based on its
quality. If the consistency of quality is maintained, then the product will become an
international brand.

Convenience for consumers: Product standardization is convenient for consumers when

it comes to products like technology or construction materials or automobiles. There are
certain product specifications according to which particular products are made. Adhering
to the specifications ensures that consumers will be able to find a particular product to
satisfy a particular need wherever they might be located. Standardizing technology
maintains compatibility of technological devices across the globe. It improves efficiency.

PRODUCTION AND OPERATION MANAGEMENT UNIT-1 LECTURE-1 OPERATION MANAGEMENT GNIT-HYD

 Certain materials used in construction such as tools are the same across international
markets. It ensures that there is little chaos regarding these products.

Standard of quality: Standardizing of products ensures that all products are held to a
certain standard of quality. The particular product must be uniform in every way. Therefore,
it is easy to detect any failure in the process of production or marketing. Any inconsistency
in the product will stand out. Consumers and inspectors can see any obvious failure of a
particular iteration of a product to meet the previously established standard of quality. The
existence of this standard ensures that the producer will seek to maintain it. Thus the
producer is kept accountable and the quality of the product does not suffer.

Simplification:

Product simplification is the discipline of merging the greatest performance functionality

into the fewest number of parts using the most suitable and cost-effective materials and
manufacturing processes.

Speed to market:

After manufacturing the finished product that product should reach market as early as possible
with out damaging the product.

INTRODUCTION TO CONCURRENT ENGINEERING:

Definition of Concurrent Engineering

Concurrent engineering is a systematic method of designing and developing products
where the different activities run simultaneously. This is also known as simultaneous
engineering. By performing different tasks simultaneously, concurrent engineering
decreases the production time leading to reduced costs. The philosophy of concurrent
engineering is derived from Japan.

What are the benefits of concurrent engineering? | Advantages of Concurrent

Engineering
The main benefits that the application of concurrent engineering principle provide are:

PRODUCTION AND OPERATION MANAGEMENT UNIT-1 LECTURE-1 OPERATION MANAGEMENT GNIT-HYD

Reduced Production time: As all the required activities are performed simultaneously, the
idling time for each activity reduces. So the actual time required for any product reduces and
the product can easily enter the market in less time and at a reduced cost. Concurrent
Engineering works on the principle of parallel project life cycles that speed up product
development.

Highly Innovative Solutions: As many of the development facets and employee skills
overlap, great innovative solutions are achieved by valuable inputs from all departments.
Brainstorming the problems among all disciplines avoids big mistakes during the design phase
itself which in turn saves time and money.

Enhanced Productivity and Competitive Advantage: As the potential problems are

corrected by various departments easily and the production time is reduced, all these provide
enhanced productivity and a highly competitive edge over the competitors.

Elements of Concurrent Engineering

There are four basic elements in the concurrent engineering principle. They are

1. Cross-functional teams: Cross-functions teams are formed by people from

different work areas related to that particular process or product development.

2. Concurrent product realization: Performing several tasks simultaneously is the

basis of concurrent engineering.

3. Incremental information sharing: Information must be shared immediately it is

available to succeed in concurrent engineering. Even the information can be shared
in the form of advance information if the actual information approval process takes
time.

4. Integrated project management: It ensures the responsibility of the project to the

key professionals.

Principles of Concurrent Engineering

The concurrent engineering principle utilizes the right human resource at the right time to
accelerate the product development while keeping the rework to a minimum. The working
principle of concurrent engineering is based on the following factors:

PRODUCTION AND OPERATION MANAGEMENT UNIT-1 LECTURE-1 OPERATION MANAGEMENT GNIT-HYD

Teamwork: This is the basic requirement for concurrent engineering philosophy.
Collaboration, cooperation, and interpersonal relationship are integral parts of concurrent
engineering.

Multidisciplinary team: Multidisciplinary team for the product/service/process development

including experts from each discipline is important for the success of concurrent engineering
principles.

Effective Communication: To get the most benefit from the concurrent engineering strategy,
effective communication is a prerequisite. Fast Information exchange between members,
suppliers, customers, and manufacturers is important. It must be ensured that all members are
aware of what other members are doing.

Management Support: Proper management supports helps in the implementation of the

concurrent engineering principles.

Involvement of Customers and Suppliers: The success of product development in concurrent

engineering depends on the proper integration between the customer, suppliers, and
manufacturer. This reduces the design error and reworks significantly.

The image in Fig. 2 below is self-explanatory to understand how concurrent engineering design
process can effectively save time with respect to the conventional sequential engineering
approach:

Product development process using Concurrent Engineering

To create a timely product with the highest quality and lowest cost, concurrent engineering
methodologies provide a very important concept. The basic concurrent engineering
product/service development process consists of the following four main phases:

 Market Investigation

 Product Design Specification

 Conceptual Design

 Concept Generation

 Concept Evaluation

PRODUCTION AND OPERATION MANAGEMENT UNIT-1 LECTURE-1 OPERATION MANAGEMENT GNIT-HYD

  Concept Development

 Detail Design

Challenges of Concurrent Engineering

The main challenges that arise in the concurrent engineering philosophy are:

 dependency on efficient communication between team members.

 implementation of early design reviews.

 software compatibility.

 efficient exchange of computer models/design information.

 organizing and managing project teams effectively.

 training people how to perform concurrent design effectively.

Examples of Concurrent Engineering

Even though originated in Japan, various companies around the world have adopted the
philosophies of Concurrent Engineering. Few of such organizations that glorifies the examples
of concurrent engineering are:

 NASA

 ASI

 Schlumberger

 STV Incorporated

 Boeing

 Harley Davidson

 CNES

 ASML, etc

PRODUCTION AND OPERATION MANAGEMENT UNIT-1 LECTURE-1 OPERATION MANAGEMENT GNIT-HYD