Summary OPERATIONS MANAGEMENT CONCEPTS Latest Verified Review 2023 Practice Questions and Answers for Exam Preparation, 100% Correct with Explanations, Highly Recommended, Download to Score A+

OPERATIONS MANAGEMENT CONCEPTS Latest Verified Review 2023 Practice Questions and Answers for Exam Preparation, 100% Correct with Explanations, Highly Recommended, Download to Score A+ OPERATIONS MANAGEMENT CONCEPTS 1–26 1.1 Introduction 1 1.2 Historical Development 1 1.3 Concept of Production 3 1.4 Production System 3 1.5 Classification of Production System 4 1.5.1 Job-Shop Production 4 1.5.2 Batch Production 5 1.5.3 Mass Production 5 1.5.4 Continuous Production 6 1.6 Production Management 7 1.6.1 Objectives of Production Management 7 1.7 Operations System 7 1.7.1 A Framework of Managing Operations 8 1.8 Operations Management 9 1.9 Operations Management Objectives 11 1.10 The Strategic Role of Operations 13 1.11 Strategic Planning 15 1.11.1 Strategic Planning for Production and Operations 15 1.11.2 Strategic Planning Approaches for Production/Operations 15 1.11.3 Strategic Planning—Forced Choice Model 15 1.11.4 A Strategic Planning Operations Model 16 1.12 The Trend: Information and Non Manufacturing Systems 17 1.13 Productivity 18 1.13.1 Modern Dynamic Concept of Productivity 18 1.13.2 Factor Productivity and Total Productivity 18 1.13.3 Productivity Analysis 19 viii Contents 1.14 Factors Affecting Productivity 19 1.15 International Dimensions of Productivity 20 1.16 The Environment of Operations 20 1.17 Scope of Operations Management 21 Exercise 25 References 26 2. OPERATIONS DECISION-MAKING 27–51 2.1 Introduction 27 2.2 Management as a Science 27 2.3 Characteristics of Decisions 28 2.4 Framework for Decision-Making 28 2.5 Decision Methodology 30 2.5.1 Complete Certainty Methods 30 2.5.2 Risk and Uncertainty Methods 30 2.5.3 Extreme Uncertainty Methods 31 2.5.4 Decision-Making Under Uncertainty 31 2.5.5 Decision-Making Under Risk 33 2.6 Decision Support System 35 2.7 Economic Models 35 2.7.1 Break-even Analysis 35 2.8 Statistical Models 43 2.8.1 Equations for Discrete and Continuous Data 45 2.9 Decision Tree 46 Exercise 49 References 51 3. SYSTEMS DESIGN AND CAPACITY 53–60 3.1 Introduction 53 3.2 Manufacturing and Service Systems 53 3.3 Design and Systems Capacity 54 3.4 Capacity Planning 55 3.5 Process of Capacity Planning 55 3.6 Importance of Capacity Decisions 57 Exercise 60 References 60 4. FACILITY LOCATION AND LAYOUT 61–103 4.1 Introduction and Meaning 61 4.2 Need for Selecting a Suitable Location 61 4.3 Factors Influencing Plant Location/Facility Location 66 Contents ix 4.3.1 General Locational Factors 66 4.3.2 Specific Locational Factors for Manufacturing Organisation 70 4.3.3 Specific Locational Factors for Service Organisation 71 4.4 Location Theories 72 4.5 Location Models 73 4.5.1 Factor Rating Method 73 4.5.2 Weighted Factor Rating Method 74 4.5.3 Load-distance Method 75 4.5.4 Centre of Gravity 77 4.5.5 Break-even Analysis 78 4.6 Locational Economics 80 4.7 Plant Layout 81 4.7.1 Objectives of Plant Layout 81 4.7.2 Principles of Plant Layout 82 4.8 Classification of Layout 82 4.8.1 Process Layout 82 4.8.2 Product Layout 83 4.8.3 Combination Layout 84 4.8.4 Fixed Position Layout 85 4.8.5 Group Layout (or Cellular Layout) 85 4.9 Design of Product Layout 87 4.10 Design of Process Layout 91 4.11 Service Layout 94 4.12 Organisation of Physical Facilities 95 Exercise 102 5. FORECASTING DEMAND 105–128 5.1 Introduction 105 5.2 Forecasting Objectives and Uses 105 5.3 Forecasting Decision Variables 105 5.4 Forecasting Methods 106 5.4.1 Opinion and Judgmental Methods 106 5.4.2 Time Series Methods 106 5.5 Exponential Smoothing 112 5.5.1 Adjusted Exponential Smoothing 113 5.6 Regression and Correlation Methods 114 5.6.1 Regression 114 5.6.2 Correlation 117 5.7 Applications and Control of Forecast 119 5.7.1 Forecast Controls 119 Exercise 125 References 128 x Contents 6. PRODUCT DEVELOPMENT AND DESIGN 129–160 6.1 Introduction 129 6.2 Purpose of a Product Design 129 6.3 Product Analysis 130 6.3.1 Marketing Aspect 131 6.3.2 The Product Characteristics 133 6.3.3 Economic Analysis 136 6.3.4 Production Aspect 150 6.4 A Framework for Process Design 150 6.4.1 Product Planning 150 6.4.2 Process Design : MACRO 152 6.4.3 Process Design : MICRO 153 6.5 Design for Manufacture (DFM) 153 6.6 Design for Excellence 156 6.6.1 Concurrent Development Activities 158 Exercise 160 References 160 7. MATERIALS MANAGEMENT 161–190 7.1 Introduction and Meaning 161 7.2 Scope or Functions of Materials Management 161 7.3 Material Planning and Control 163 7.3.1 Techniques of Material Planning 163 7.4 Purchasing 164 7.4.1 Objectives of Purchasing 164 7.4.2 Parameters of Purchasing 165 7.4.3 Purchasing Procedure 167 7.4.4 Selection of Suppliers 169 7.4.5 Special Purchasing Systems 173 7.5 Stores Management 174 7.5.1 Codification 175 7.6 Inventory Control or Management 176 7.6.1 Meaning of Inventory 176 7.6.2 Reasons for Keeping Inventories 176 7.6.3 Meaning of Inventory Control 176 7.6.4 Objectives of Inventory Control 177 7.6.5 Benefits of Inventory Control 177 7.6.6 Techniques of Inventory Control 177 7.6.7 Inventory Model 179 7.7 Standardization 183 7.7.1 Advantages of Standardization 183 7.7.2 Disadvantages of Standardization 185 Contents xi 7.8 Simplification 185 7.8.1 Advantages of Simplification 185 7.9 Value Analysis 185 7.9.1 Value Analysis Framework 186 7.9.2 Steps in Value Analysis 186 7.10 Ergonomics (Human Engineering) 187 7.10.1 Objectives of Human Engineering 187 7.11 Just-in-Time (JIT) Manufacturing 188 7.11.1 Seven Wastes 188 7.11.2 Benefits of JIT 189 Exercise 190 8. AGGREGATE PLANNING AND MASTER SCHEDULING 191–216 8.1 Introduction 191 8.2 Variables Used in Aggregate Planning 192 8.3 Aggregate Planning Strategies 195 8.4 Mixed Strategies 198 8.5 Mathematical Planning Models 200 8.6 Master Scheduling 202 8.6.1 Master Scheduling Planning Horizon 203 8.6.2 Master Scheduling Format 204 8.6.3 Available-to-Promise Quantities 205 Exercise 213 References 216 9. MATERIAL AND CAPACITY REQUIREMENTS PLANNING 217–235 (MRP AND CRP) 9.1 MRP and CRP Objectives 217 9.2 MRP Inputs and Outputs 219 9.2.1 Bill of Materials 219 9.2.2 Low-level Coding 219 9.3 MRP Logic 224 9.4 System Refinements 227 9.5 Safety Stock, Lot Sizing and System Updating 227 9.6 CRP Inputs and Outputs 231 9.7 Loading 231 9.7.1 Steps in the Loading 232 9.7.2 Loading Concepts 233 Exercise 234 References 235 xii Contents 10. SCHEDULING AND CONTROLLING PRODUCTION ACTIVITIES 237–257 10.1 Introduction 237 10.2 Concept of Single Machine Scheduling 237 10.3 Measures of Performance 238 10.4 Shortest Processing Time (SPT) Rule 239 10.5 WSPT Rule 240 10.6 Earliest Due Date (EDD) Rule 241 10.7 Minimizing the Number of Tardy Jobs 241 10.8 Flow Shop Scheduling 244 10.9 Johnson’s Problem 246 10.9.1 Johnson’s Algorithm 246 10.9.2 Extension of Johnson’s Rule 247 10.10 CDS Heuristic 249 10.11 Job-Shop Problem 251 10.12 Types of Schedules 252 10.13 Heuristic Procedures 253 10.14 Priority Dispatching Rules 253 10.15 Two Jobs and M Machines Scheduling 254 Exercise 256 References 257 Glossary 259–277