Modern Approach

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Copyright © 2005 New Age International (P) Ltd., Publishers Published by New Age International (P) Ltd., Publishers All rights reserved. No part of this ebook may be reproduced in any form, by photostat, microfilm, xerography, or any other means, or incorporated into any information retrieval system, electronic or mechanical, without the written permission of the publisher. All inquiries should be emailed to rights@newagepublishers.com

ISBN (10) : 81-224-2326-1 ISBN (13) : 978-81-224-2336-5

PUBLISHING FOR ONE WORLD

NEW AGE INTERNATIONAL (P) LIMITED, PUBLISHERS 4835/24, Ansari Road, Daryaganj, New Delhi - 110002 Visit us at www.newagepublishers.com

Preface
While teaching the course on ‘Production Operations Management (POM)’ to my students in India and abroad, I have felt a huge shortage of books and relevant materials on this subject. The books available are mostly written with Western world perspective. The examples included in those books are not very relevant to the students of developing countries. This has motivated me to write this book which is based on my own teaching experiences and the feed back of my students. The book includes the background, the core concepts, and the models of POM. It is readable, comprehensive, and contemporary in its approach. The concepts of Operations Management have been delivered to the readers in a simple, straightforward manner, and without mincing the words to avoid dilution of the materials itself. The layout of the book has been organized to give the readers a sense of flow: (i) Beginning with fundamentals of Production systems, Productivity, Location of plant, layout issues; (ii) Core issues of POM like Forecasting, Operations planning, Purchasing systems and steps involved in it, Inventory models, and MRP, Quality control, TQM, Project Management; and finally (iii) the attention is focused to modern concepts on the subject like JIT, OPT, Automation, etc. This makes the book more comprehensive in nature. Adequate number of solved problems have been included to give the readers a chance to enhance the learning process. Examples from local industries, agriculture sector, services (banking, airlines, hotels, transport, etc.) have been included to make the chapters interesting and palatable to the students’ taste. I thank my students and colleagues for their constructive comments in making the book more useful. Lastly, I always believe in ‘kaizen’—the continuous improvement process in everything I do and this goes with this book as well. I invite the readers, therefore, to send their comments and suggestions to improve this book in its next edition. RAM NARESH ROY, PhD ram_roy1959@yahoo.com

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Contents
Preface (v)

1

PRODUCTION SYSTEMS AND OPERATIONS MANAGEMENT
1.0 1.1

1

1.2

1.3

1.4

Introduction.................................................................................................................. 1 Related Issues of Operations Management ............................................................... 1 1.1.1 Production Function ...................................................................................... 1 1.1.2 Productivity .................................................................................................... 2 1.1.3 Difference between Production and Productivity ........................................ 2 1.1.4 Effectiveness .................................................................................................. 3 1.1.5 Efficiency ........................................................................................................ 3 Operations Function in Organizations ....................................................................... 4 1.2.1 Manufacturing Operations Vs Service Operations ..................................... 5 1.2.2 Types of Production System .......................................................................... 7 Role of...
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