Operations Management

Definition: Plant Layout involves the optimum physical arrangement of the economic activity centres so that they are easily manageable. It aims at finding the quickest route for efficient material flow at minimum cost. We can also understand it as a floor plan of the men, machines and resources used in production. It focuses on identifying the best placement for vital … [Read more...] about Plant Layout

Definition: Operations strategy is an essential part of the overall corporate strategy that specifies plans and policies to reconcile market requirements and operational resources. It is vital for long-term strategic success and to remain competitive in the market. This is because, without a good strategy, companies may lose their market share to competitors. It creates … [Read more...] about Operations Strategy

Definition: Value Analysis is a combination of creative and analytical techniques, especially for cost minimization and prevention in an innovative way. Moreover, it aims to find the best method to improve the product's value, service or process without sacrificing its worth and functions. It is a problem-solving method which identifies and eliminates unnecessary costs. These … [Read more...] about Value Analysis

Definition: A Production System implies the set-up consisting of assets such as facilities, machines and equipment that transform resources into valuable output using processes and technology. In other words, we can understand it as a system that converts factor inputs into outputs which is capable of satisfying the market demand. Majorly, it focuses on the system aspect … [Read more...] about Production System in Operations Management

Definition: Make or Buy Decision is a tactical decision-making technique wherein the business concerns choose between – Inhouse Manufacturing and Subcontracting. It is popularly known as the 'Outsourcing Decision'. In the key phrase, 'Make' signifies carrying out production within the firm. Whereas 'Buy' refers to outsourcing the complete product or its … [Read more...] about Make or Buy Decision

Definition: Capacity Planning is a systematic approach to determine the production capacity required to satisfy current and future business requirements. In operations management, it deals with the planning and control of capacity in production units. The production process is made up of several components that possess some kind of capacity. Thus, organizations strategically … [Read more...] about Capacity Planning

Definition: Poka-Yoke is a mechanism applied to any process to prevent human mistakes in manufacturing units. It is a part of lean manufacturing systems that helps in preventing mistakes as and when they occur. This concept is given by an industrial engineer named 'Shigeo Shingo' at Toyota Production Systems in Japan. It was first named 'Baka-Yoke', which means … [Read more...] about Poka Yoke

Definition: Production Planning and Control or PPC is a managerial function that integrates and coordinates the production processes to accomplish predetermined objectives. It establishes schedules to plan the entire production and assure efficiency in processes and resources. Basically, it determines: The requirement of the production facilities. Accommodation of … [Read more...] about Production Planning and Control

Definition: The Material Requirements Planning or MRP is a subset of the Inventory Control System. It determines the exact quantity of dependent demand items required for production as specified in the Master Production Schedule (MPS). Where Dependent Demand Items include components of the final product and its sub-assemblies. The information about these items is obtained … [Read more...] about Material Requirements Planning

Definition: The Master Production Schedule (MPS) is the master level product-wise schedule made for the individual end-products or sub-parts of the products in order to get detailed information about the overall manufacturing. Moreover, we can also understand it as the Disaggregation of the Aggregate plan. As it creates separate schedules for every single item of the … [Read more...] about Master Production Schedule