Operations Management Concepts

Objectives and Principles of a Good Plant Layout

Plant layout is a plan for effective utilization of facilities for the manufacture of products; involving a most efficient and economical arrangement of machines, materials, personnel, storage space and all supporting services, within available floor space. A good rather an ideal layout is one which provides maximum satisfaction to all concerned i.e. shareholders, management employees and consumers.

Objectives of a Good Plant Layout

Only through an efficient layout, the organization can attain the following objectives:

  • Economy in handling of materials, work-in-process and finished goods.
  • Minimization of product delays.
  • Lesser work-in-progress and minimum manufacturing cycle time.
  • Efficient utilization of available space.
  • Easy supervision and better production control.
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Locational Decisions and Factors Governing Plant Locations

Plant location may be understood as the function of determining where the plant should be located for maximum operating economy and effectiveness. The selection of location for a plant is one of the problems, perhaps the most important, which is faced by an entrepreneur while launching a new enterprise. A selection on pure economic considerations will ensure an easy and regular supply of raw materials, labour force, efficient plant layout, proper utilization of production capacity and reduced cost of production. An ideal location may not, by itself, guarantee success; but it certainly contributes to the smooth and efficient working of an organization.… Read the rest

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Batch Production and It’s Key Characteristics

Batch production is one of manufacturing methods where limited quantity of each type of product is authorized for manufacture at a time. It is characterized by the manufacture of a limited number of products produced at periodic intervals and stocked in warehouses as finished goods awaiting sales. Typical examples of such batch production are process industries such as pharmaceuticals, paints, chemicals, medium and heavy engineering industry engaged in the manufacture of electric motors, switch gear, heave motor vehicles, internal combustion engines; manufacturer of readymade garments etc.

Characteristics of Batch Production
  • Short Runs: Short production runs and frequent changes of setup also characterize batch production.
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Operations Management – Definition, Elements and Objectives

An operation may be defined as the process of changing inputs into outputs thereby adding value to some entity. Right quality, right quantity, right time and right price are the four basic requirements of the customers and as such they determine the extent of customer satisfaction.   And if these can be provided at a minimum cost, then the value of goods produced or services rendered increases.

Operations management is concerned with managing the resources that directly produce the organisation service and products. The resources are generally consist of people, material, technology and information but may go wider than this. These resources are brought together by a series of processes so that they are utilized to deliver the primary service or product of the organization.… Read the rest

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Warehouse Management System

Warehouse management systems (WMS) is described as the advanced technology and operating processes which optimize all warehousing functionalities. These functions begin from receipts from suppliers and ending with shipments to the customers, also including all inventory movements as well as information flows in between. Warehouse management systems are mainly associated with large and complex distribution operations. However even smaller and middle size companies are identifying the importance of WMS in today’s scenario of integrated logistics, just-in-time delivery and e- commerce fulfillment.

In practical situation, Warehouse Management System is used mainly in integrating computer hardware, software and peripheral equipment along with good operating practices so as to manage inventory, space, labour, and capital equipment in ware houses and distribution centres.

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