Presentation on Operations mgmt in mfg company

Description
Presentation on Operations mgmt in mfg company

OPERATIONS MANAGEMENT

LEAPS & BOUNDS PVT. LTD.

AGENDA
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Company Background.

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Why this particular firm ??
Objectives. Manufacturing process. Detailed phases of production. Problem areas/Bottlenecks identified. Areas to work on.

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COMPANY BACKGROUND
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Shoe Manufacturing Firm Based Out of Ghaziabad

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Start Up – Expanding
Initial Investment – Rs. 2 Million Two Products
P.T Shoe ? Jungle Shoe
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WHY LEAPS & BOUNDS ??
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Operations Management : an effective strategic tool. Monopolistically Competitive Market. Challenges : Unorganized nature of processes & demands

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Quality & Pricing : Driving factor for the competitiveness.

OBJECTIVES
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To study the manufacturing processes. To find out the bottlenecks/ problem areas in the process.

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To narrow down the areas to work on for the overall improvement of the process. To suggest the improvement plan in the processes: which might help the firm to gain competitive advantage in the market.

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MANUFACTURING PROCESS
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Purchase of Raw Material Hiring Contract Labor
Stitching ? Sole Fabrication
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Production Process
Preparation of the shoe upper ? Preparing the die frame for sole fabrication ? Sole fabrication ? Quality testing, packaging and delivery
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DETAIL PHASES OF PRODUCTION (1/3)
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Cutting and stitching the shoe Cloth as per different size & specification. Punching tack holes in the shoe upper.

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Grinding PUC, the material used for sole creation.
Fixing the shoe upper on the die frame. Transferring grinded PUC to the machine.

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DETAIL PHASES OF PRODUCTION (2/3)
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Affixing the die frame to the machine. Poring molten PUC in the die. Removing the die frame from the machine. Removing shoe from the die.

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Checking the quality of the shoe.

DETAIL PHASES OF PRODUCTION (3/3)

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Addition of accessories to the shoe (like laces). Final finishing & quality checks. Packaging the shoe. Transporting to distributors/ inventory.

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PROBLEM AREAS IDENTIFIED (1/2)
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Availability of skilled Labors : Semi Automatic process. Quality of PUC : Large variation as it is a scrap material of industry. Price flexibility of PUC : important cost driver as market is monopolistically competitive.

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PROBLEM AREAS IDENTIFIED (2/2)

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Wear & tear of die frame : it affects the quality of shoe produced.
Availability of Electricity supply : quality of sole get affected when both machines run on the same generator.

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Misalignment of die : affecting quality of shoes

AREAS TO WORK ON
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Quality of shoes produced. Improving overall efficiency of process.

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To study production chart of company.
Provide calculation about exactly how much beneficial the new process could prove to be.

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QUALITY ISSUES
Cause No. Of defects Percentage

Raw material
Generator Defective Die Misalignment Transportation

84
59 15 10 8 176

48
34 9 6 5 100

PARATO CHART
50 45 40 35

30
25 20 15 10 5 0 Raw material Generator Defective Die Misalignment Transportation

Series1

QUALITY ISSUES TO TACKLE
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Quality of Raw Material :
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Chemical test

Improvement : 80 -90 %
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Generator usage
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Modify production chart to reduce the generator usage

Improvement : Lunch hours changed to save 8 hours of production under the generator usage

QUALITY ISSUES TO TACKLE
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Misalignment of Die
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Fixed frame is advised to purchase

Improvement : It will solve the problem of defective pieces due to misalignment of die.
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Wear & Tear of die
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Inspection of die every month after the first three months of die.

Improvement : It will solve the problem of defective pieces due to the wear & tear of die completely.

EFFECT OF QUALITY MANAGEMENT
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Number of defective Pieces:
Cause No. Of defects Percentage Forecasted defects Percentage

Raw material Generator Defective Die Misalignment Transportation

84 59 15 10 8 176

48 34 9 6 5 100

12 47 0 0 8 67

7 27 0 0 5 39

o No. Of Defective pieces reduces from 176 to 67

EFFECT OF QUALITY MANAGEMENT
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Productivity & Yield
Current Input Output Productivity Yield 1176 1000 86 1011 Forecasted 1067 1000 94 1105

o Productivity increased from 86% to 94%
o Yield increased from 1011 to 1105

EFFECT OF QUALITY MANAGEMENT
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Product Cost
P.T. Shoes Current Kd I Yield 41 1176 1011 Forecasted 41 1067 1105 Jungle shoes Current 52 1176 1011 Forecasted 52 1128 1105

Product Cost

48

40

61

54

o Product Cost For P.T. shoes reduced from 48 to 40. o Product Cost For Jungle shoes reduced from 61 to 54.

EFFECT OF QUALITY MANAGEMENT
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Quality Productivity Ratio
Kd I O/P QPR

41

1176 1067 1176 1067

1000 1000 1000 1000

2.08 2.29 1.64 1.81

P.T. Shoes
41 52 Jungle Shoes 52

o For P.T. shoes QPR increased from 2.08 to 2.29. o For Jungle shoes QPR increased from 1.64 to 1.81.

THANK YOU



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