Description
Presentation on Operations mgmt in mfg company
OPERATIONS MANAGEMENT
LEAPS & BOUNDS PVT. LTD.
AGENDA
?
Company Background.
?
Why this particular firm ??
Objectives. Manufacturing process. Detailed phases of production. Problem areas/Bottlenecks identified. Areas to work on.
?
?
?
?
?
COMPANY BACKGROUND
?
Shoe Manufacturing Firm Based Out of Ghaziabad
?
?
Start Up – Expanding
Initial Investment – Rs. 2 Million Two Products
P.T Shoe ? Jungle Shoe
?
?
?
WHY LEAPS & BOUNDS ??
?
Operations Management : an effective strategic tool. Monopolistically Competitive Market. Challenges : Unorganized nature of processes & demands
?
?
?
Quality & Pricing : Driving factor for the competitiveness.
OBJECTIVES
?
To study the manufacturing processes. To find out the bottlenecks/ problem areas in the process.
?
?
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.
?
MANUFACTURING PROCESS
?
Purchase of Raw Material Hiring Contract Labor
Stitching ? Sole Fabrication
?
?
?
Production Process
Preparation of the shoe upper ? Preparing the die frame for sole fabrication ? Sole fabrication ? Quality testing, packaging and delivery
?
DETAIL PHASES OF PRODUCTION (1/3)
?
Cutting and stitching the shoe Cloth as per different size & specification. Punching tack holes in the shoe upper.
?
?
Grinding PUC, the material used for sole creation.
Fixing the shoe upper on the die frame. Transferring grinded PUC to the machine.
?
?
DETAIL PHASES OF PRODUCTION (2/3)
?
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.
?
?
?
?
Checking the quality of the shoe.
DETAIL PHASES OF PRODUCTION (3/3)
?
Addition of accessories to the shoe (like laces). Final finishing & quality checks. Packaging the shoe. Transporting to distributors/ inventory.
?
?
?
PROBLEM AREAS IDENTIFIED (1/2)
?
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.
?
?
PROBLEM AREAS IDENTIFIED (2/2)
?
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.
?
?
Misalignment of die : affecting quality of shoes
AREAS TO WORK ON
?
Quality of shoes produced. Improving overall efficiency of process.
?
?
To study production chart of company.
Provide calculation about exactly how much beneficial the new process could prove to be.
?
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
?
Quality of Raw Material :
?
Chemical test
Improvement : 80 -90 %
?
Generator usage
?
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
?
Misalignment of Die
?
Fixed frame is advised to purchase
Improvement : It will solve the problem of defective pieces due to misalignment of die.
?
Wear & Tear of die
?
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
?
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
?
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
?
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
?
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
doc_912739779.pptx
Presentation on Operations mgmt in mfg company
OPERATIONS MANAGEMENT
LEAPS & BOUNDS PVT. LTD.
AGENDA
?
Company Background.
?
Why this particular firm ??
Objectives. Manufacturing process. Detailed phases of production. Problem areas/Bottlenecks identified. Areas to work on.
?
?
?
?
?
COMPANY BACKGROUND
?
Shoe Manufacturing Firm Based Out of Ghaziabad
?
?
Start Up – Expanding
Initial Investment – Rs. 2 Million Two Products
P.T Shoe ? Jungle Shoe
?
?
?
WHY LEAPS & BOUNDS ??
?
Operations Management : an effective strategic tool. Monopolistically Competitive Market. Challenges : Unorganized nature of processes & demands
?
?
?
Quality & Pricing : Driving factor for the competitiveness.
OBJECTIVES
?
To study the manufacturing processes. To find out the bottlenecks/ problem areas in the process.
?
?
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.
?
MANUFACTURING PROCESS
?
Purchase of Raw Material Hiring Contract Labor
Stitching ? Sole Fabrication
?
?
?
Production Process
Preparation of the shoe upper ? Preparing the die frame for sole fabrication ? Sole fabrication ? Quality testing, packaging and delivery
?
DETAIL PHASES OF PRODUCTION (1/3)
?
Cutting and stitching the shoe Cloth as per different size & specification. Punching tack holes in the shoe upper.
?
?
Grinding PUC, the material used for sole creation.
Fixing the shoe upper on the die frame. Transferring grinded PUC to the machine.
?
?
DETAIL PHASES OF PRODUCTION (2/3)
?
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.
?
?
?
?
Checking the quality of the shoe.
DETAIL PHASES OF PRODUCTION (3/3)
?
Addition of accessories to the shoe (like laces). Final finishing & quality checks. Packaging the shoe. Transporting to distributors/ inventory.
?
?
?
PROBLEM AREAS IDENTIFIED (1/2)
?
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.
?
?
PROBLEM AREAS IDENTIFIED (2/2)
?
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.
?
?
Misalignment of die : affecting quality of shoes
AREAS TO WORK ON
?
Quality of shoes produced. Improving overall efficiency of process.
?
?
To study production chart of company.
Provide calculation about exactly how much beneficial the new process could prove to be.
?
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
?
Quality of Raw Material :
?
Chemical test
Improvement : 80 -90 %
?
Generator usage
?
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
?
Misalignment of Die
?
Fixed frame is advised to purchase
Improvement : It will solve the problem of defective pieces due to misalignment of die.
?
Wear & Tear of die
?
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
?
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
?
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
?
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
?
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
doc_912739779.pptx