Operations Management Techniques

Objectives of Material Handling

Materials handling may be defined as the art and science of movement, handling and storage of materials during different stages of manufacturing considered as material flow into, through and away from the plant. It is in fact, the technique of getting the right goods safely, to the right place, at the right time and at the right cost.

All tangible and intangible benefits can be reduced to four major objectives. The application of material handling methods and equipment to be of greatest benefits should be governed by the following:

1) Reduced Costs:

Cost-Reduction programs have two broad goals; either to reduce the cost of Material Handling or to reduce total production cost; by improved handling procedures.… Read the rest

Abey Francis

Just-In-Time (JIT) Method – Eliminate Waste and Improve Productivity

Just-in-time or JIT means producing goods and services exactly when they are needed, like for example a new company opens that is producing steering shaft for automobiles. The company, under the JIT system, will set up the machines to produce the jobs in a row from those who collect the metals at one end, all of the way to those who ship the product at the other end of the factory.   The people at each station, as they receive the product, take the job order, perform their duties on the product, and then transfer the product out to the next station after their work is completed.  … Read the rest

Abey Francis

Purchasing Policy – Principles and Implementation

Purchasing Policy Principles

The major principles on which purchasing policies should be based are a sound orientation, reflect a cross —functional approach and be directed at improving the company’s bottom line.

i. Business Orientation

Developing a purchasing and supply strategy requires a thorough understanding of the company’s business policies. The following questions are important to determine how purchasing and supply strategies will need to support the company in meeting its goals and objectives:-

  • What end-user market is the company targeting and what are the major developments going on in those markets?
  • What competition is the company suffering from and what leeway does the company has in setting its own pricing policies?
… Read the rest
Abey Francis

Role and Importance of Operations Management in an Organization

Operations Management is very important for managing large firms and running them successfully. Operation management is mainly related to production of goods and services in an organisation. The main purpose of the operations management is to run the business operations successfully, smoothly and effectively by using the minimum resources and meeting customer expectations. Thus we can say that operations management is the process of converting minimum input like raw materials, labour to produce maximum output like products, goods and services. Operations Management is very crucial factor in order to increase company’s profit. Operations management is not only responsible for producing goods but also take control of distribution of services.… Read the rest

Abey Francis

Factors Influencing Plant Layouts

The basic objective of any plant layout is to ensure a smooth flow of work, material, and information through a system. The basic meaning of plant is the space in which a business’s activities take place. The layout and design of that space impact greatly how the work is done-the flow of work, materials, and information through the system. The key to good plant layout and design is the integration of the needs of people (personnel and customers), materials (raw, finishes, and in process), and machinery in such a way that they create a single, well-functioning system.

Recommended reading: Plant layouts – Definition and Objectives

The following are some important factors, which influence the planning of effective layout to a significant degree.… Read the rest

Abey Francis

Techniques or Tools Used for the Design of Good Plant Layouts

An ideal plant layout should provide the optimum relationship among output, floor area and manufacturing process. It facilitates the production process, minimizes material handling, time and cost, and allows flexibility of operations, easy production flow, makes economic use of the building, promotes effective utilization of manpower, and provides for employee’s convenience, safety, comfort at work, maximum exposure to natural light and ventilation. It is also important because it affects the flow of material and processes, labor efficiency, supervision and control, use of space and expansion possibilities etc.

Recommended Reading: Plant layouts – Definition and Objectives

In designing or improving the plan of plant layout, certain techniques or tools are developed and are in common use today.… Read the rest

Abey Francis