Operation Management - Production and Service design

Production System design involves planning for inputs, transformation activities and utputs of a production operation. Capacity can be expressed in the units of outputs. When they manufacture multiple products the capacity can be express as man hours and machine hours. 
The relationship between capacity and output shown in bellow.

Design Capacity

Design capacity of a facility is planned or engineered rate of outputs under normal or full capacity of working condition. This should reflect management strategy for meeting demand.

System capacity is less than or may be equal because of the limitations of limitation of product mix,quality specification and breakdowns.

The system efficiency is expressed as ratio of actual output to the system capacity.

Efficiency - Is the ratio of actual capacity to effective capacity of the facility.

             Efficiency = Actual Capacity / Effective Capacity

Utilization - Is the ratio of actual capacity to Design Capacity of the facility.

            Utilization = Actual capacity / Design capacity

Capacity is the production capability of a faciity. This always measured by units of outputs per period.This is important for managers becuase of,

1, Sufficient capacity requires for meet future demand.

2, Capacity effect the cost fuction.

3, Capacity effects the sheduling system.

                    Process of capacity planning

Capacity planning is concerned with meeting he longterm and short term capacity needs of an organization and determining these needs how to satisfied.

1, Long term capacity strategies.

This is most diffcult to determine because future needs and technlogies are always changing. This depend on marketing plans,product development and life cycle of the product. Following parameters will affect the long term capacity decisions.

  - Multiple products

  - Phasing in capacity

  - Phasing out capacity

2, Short term capacity strategies.

This is consider about 12 months prodction requirements. Short term strategies are,

-Inventories

-Process design

-Bcklog

-employment level

Operation Management Introduction

What is concept of production ?

Production function is‘the part of an organisation, which is concerned with the transformation of a range of inputs into the required outputs (products) having the requisite quality Production is defined as ‘the step-by-step conversion of one form of material into another form through chemical or mechanical process to create or enhance the utility of the product to the user’ 

The production system is ‘that part of an organisation, which produces products of an It is that activity whereby resources, flowing within a defined system, are combined and in a controlled manner to add value in accordance with the policies communicated by A simplified production system is shown below.  

  The production system has the following

 1. Production is an organised activity, so every production system has an objective

 2. The system transforms the various inputs to useful outputs,
 3. It does not operate in isolation from the other organisation system.
 4. There exists a feedback about the activities, which is essential to control and improve porformance.

 We can classified the production system into 4 catagories,

1- Batch production
2- Job production
3- Mass prodution
4- Continuous prodution