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International Journal of Engineering Research & Technology (IJERT) ISSN: 2278-0181 Vol. 2 Issue 2, February- 2013 A Review Paper on Modern Developments in Production and Operations Management Er. Inderjit Singh Er. Raman Kumar Er. Amandeep Er. Amandeep Sodhi Assistant Professor, Singh Bhui Singh Gabbi Assistant Professor, Amritsar College of Assistant Professor, Assistant Professor, Amritsar College of Engineering and Amritsar College of Amritsar College of Engineering and Technology, Engineering and Engineering and Technology, Amritsar, Punjab. Technology, Technology, Amritsar, Punjab. Amritsar, Punjab. Amritsar, Punjab. Abstract The paper discusses what generally is happening in the area of Production and Operations Management by highlighting the importance and role of Global focus, CAD/CAM, Just-In-Time, Product life cycle, Customized Production and Green Production. Analysis is done on how all these trends play an indispensable role in making processes more efficient, with the sole aim of reducing waste, increasing production rate, product quality, standard of living, cost-cutting and making the process faster by maximum utilization of man, material, and machine. These rapid developments have lead to increase in wages of employees, creating a global market for selling the products, improved designing and quality of the products, opportunities for introducing new innovations in product design, customization and last making our environment clean and green with the introduction of green production. Introduction activities is called as Operations Life would be much easier if the management. world would stand still, but of course it Operations Management is no doesn‟t. As the world evolves, so must the exception, Robert Hayes discerns some disciplines whose mission includes helping changes in the business world deriving managers deal with it. Production and mainly from opportunities presented by the operations management is the process, digital technologies, and explains what these which combines and transforms various mean to the management profession and resources used in the production and hence how operation management must operations subsystem of the organization change so as to support managers in a into value added product and services in a changing world. controlled manner as per the policies of the organization. Therefore, it is that part of an Historical Evolution of Production and organization, which is concerned with the Operations Management transformation of a range of inputs into the required (products/services) having the For over two century‟s operations requisite quality level. The set of interrelated and production management has been management activities, which are involved recognized as an important factor in a in manufacturing certain products, is called country‟s economic growth. The traditional as Production management. If the same view of manufacturing management began concept is extended to services management, in eighteenth century when Adam Smith then the corresponding set of management recognized the economic benefits of specialization of labour. He recommended www.ijert.org 1 International Journal of Engineering Research & Technology (IJERT) ISSN: 2278-0181 Vol. 2 Issue 2, February- 2013 breaking of jobs down into subtasks and recognizes workers to specialized tasks in which they would become highly skilled and efficient. In the early twentieth century, F.W. Taylor implemented Smith‟s theories and developed scientific management. From then till 1930, many techniques were developed prevailing the traditional view. Production management becomes the acceptable term from 1930s to 1950s. As F.W. Taylor‟s works become more widely known, managers developed techniques that focused on economic efficiency in manufacturing. Workers were studied in great detail to eliminate wasteful efforts and achieve greater efficiency. At the same time, psychologists, socialists and other social Activities under Production and Operations Management scientists began to study people and human behavior in the working environment. In addition, economists, Facility Location - Selecting mathematicians, and computer socialists appropriate location for the contributed newer, more sophisticated production. analytical approaches. With the 1970s Plant layouts and material emerge two distinct changes in our views. handling - Deciding upon the The most obvious of these, reflected in the machines, equipment and necessary new name Operations management was a devices which could lead to effectual shift in the service and manufacturing and desired production in the most sectors of the economy. As service sector economic way. Preparation of plan became more prominent, the change from layout for the establishment of „production‟ to „operations‟ emphasized the machines in the required sequence. broadening of our field to service Storage of material and handling it in organizations. The second, more suitable most effective way to avoid the change was the beginning of an emphasis on wastage and delivery at the work synthesis, rather than just analysis, in centers as and when required. management practices. Product design - Designing the Scope of production and operation product and conceive the idea about management [31] its production. Due to the dynamic change in the Process design - Determination of business environment, the scope of the production process which is most production and operation management has relevant and efficient in the given increased. Following are the activities which state of affairs. are included under production and Production and planning control - operations management functions. Planning the production and its various aspects how, when and www.ijert.org 2 International Journal of Engineering Research & Technology (IJERT) ISSN: 2278-0181 Vol. 2 Issue 2, February- 2013 where producing a particular product requires redesigning of operations making or its assembly will be done. the process faster. The trend has now been Quality control - Controlling the changing towards customized production of production and ensuring the quality goods, whenever and wherever needed. This by setting the check points and has led to change in the way operations were taking the periodic measurements of designed earlier leading to better and more the current performance. efficient processes Materials management - Managing The operations management is the the inventories of raw material, semi- process of managing activities that produces finished and finished goods in a way goods and services in order to create value that neither excessive money may to the customer. With recent development block in this non-productive the operations management has changed operation nor the required material. drastically and major changes in operations Maintenance management - management are summarized below: Analysis the deviations and formulating the corrective measures Global Focus to stay in track with planned quality, Computer-aided Design and time-schedule and predetermined Manufacturing (CAD/CAM) cost schedule. Just In Time Production Supply Chain Partnerships Shrinking product life cycle Modern developments in production and Customized Production operation management Employee Empowerment Green Production The modern history of production and operations management was initiated in the 1950s by the extensive development of operations research tools such as waiting GLOBAL FOCUS [1][2][3] line theories, decision theories, The geographical limitation of the mathematical programming, scheduling market has expanded from focusing on local techniques and other theories. From the markets to focus on global markets. This Industrial Revolution in 1769 up to the has occurred due to the rapid development recent Internet Revolution, Operations in communication, globalization and Management has seen trends, which increased mobility of resources among designed and redesigned the processes in countries. As a result countries focus on order to make them more efficient, and producing goods and services at a global businesses more profitable. Now with the scale rather than limiting themselves to fast expansion of technology, product life geographical boundaries. The People's cycles have become short and almost every Republic of China (PRC) is the world's product gets replaced by a new product in second largest economy by nominal GDP shorter time spans. and by purchasing power parity after the Due to this reason, companies are United States. China is also the largest forced to introduce rapid development of exporter and second largest importer of new products with encouraging innovation. goods in the world. On a per capita income This has provided a new challenge and basis, China ranked 90th by nominal GDP and 91st by GDP (PPP) in 2011, according www.ijert.org 3 International Journal of Engineering Research & Technology (IJERT) ISSN: 2278-0181 Vol. 2 Issue 2, February- 2013 to the International Monetary Fund (IMF). CAD and CAM work together in that the As the Chinese economy is digital model generated in CAD is inputted internationalized, so does the standardized to the CAM software package. The CAM economic forecast officially launched in software needs to know the physical shape China by Purchasing Managers Index in of the product (CAD model) before it can 2005. compose a proper set of fabrication China has become increasingly instructions to a production machine. integrated into the world economy. It has In 1996, GM initiated a program to become a major player in many commodity substantially reduce its Vehicle markets and global product chains as it Development Process (VDP) time from 42 seeks raw materials to sustain its rapid months to 24 months. In the same year, GM economic growth; to supply its growing entered into an agreement with Unigraphics export industries; and ultimately to achieve Solutions to use its CAD/CAM software its goal for establishing a peaceful, Unigraphics. In 1999, GM signed a three- comfortable and healthy society. While year with the company as a follow up to the China's involvement in international product 1996 agreement. The agreement included chains logically implies some degree of the endorsement of Unigraphics' Internet- responsibility for ensuring environmental centric PDM application, iMAN. The new integrity across the product chains within US $ 139 million software and services which it operates, it similarly implies a contract was believed to be the world's shared responsibility with other actors along largest collaborative engineering network. the respective product chains (including GM claimed to have saved hundreds of foreign suppliers of Chinese raw materials millions of dollars with the and foreign consumers of Chinese finished CAD/CAM/CAE systems. products). The new systems allowed the company to launch innovative new cars and Computer-aided Design and [24] Manufacturing (CAD/CAM) trucks in the market faster. The company Computer-aided operations meant successfully reduced its VDP time to 24 that all the designing and manufacturing of months. GM aimed at reducing the VDP the product would be done with the help of time to 18 months. The company reported a computers making the operations way more 13 % improvement in engineering efficient (Groover, 1997). These systems productivity in 1997 and expected an immensely helped in new product additional 30% improvement by 2000. development and redesigning the processes. According to Jay Wetzel, the Computer Aided Design (CAD) involves the CAD/CAM/CAE tools enabled the company use of computer hardware and graphics to save costs by reducing the number of software to generate design drawings. physical validation builds. Cost savings Modern CAD equipment enables the were estimated at 30% during development designer to quickly produce very accurate and 10% during validation. and realistic images of products to be manufactured. Computer Aided Manufacturing (CAM) is a system of automatically producing finished products by using computer controlled production machines. www.ijert.org 4
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