pom presentation (1).pptx
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The production planning is to ensure that
manufacturing run effectively and efficiently andproduces products as required by customers.
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Capacity Planning
1. Capicity Size
2. Equipment Used.
Aggregate Planning
1. Facility Utilization2. Personnel needs
3. Subcontracting
Master Production Scheduling
1. MRP2. Disaggregation of master plan
Short-term Scheduling
1. Work center loading
2. Job sequencing
Long-term(years)
Intermediate-term(6 to 18 months)
Short-term(weeks)
Very Short-term(hoursdays)
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Production plan mainly aims to produe
right product
In right quantity.
In right quality.
In right time.
By the best and least cost method.
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HOW???
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Determines the type of quality and material used.
Determine the LOT size to be produced.
Determination of scrap & rejection at each stage of
production. Estimate total cost of production.
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Capacity Options --change capacity: changing inventory levels varying work force size by hiring or layoffs varying production capacity through overtime or
idle time subcontracting using part-time workers
Demand Options --change demand:
Influencing demand backordering during high demand periods counterseasonal product mixing
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Number of working days:
Jan 22
Feb 19
Mar 21
Apr 21
May 22
Jun 20
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Raw Materials
Works-in-Process
Finished Goods
Distribution Inventory
Supplies: Maintenance, Repair and Operating (MRO)
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COST ANALYSIS DEPARTMENT
OBJECTIVE
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WATER RESISTANT UPTO 300 METRES.STAINLESS STEEL.SCRATCH FREE GLASS.STOPWATCH AVAILABLE.LEATHER BELT.BATTERIES OF HIGH QUALITY.STYLISHGIVING COMPETITION TO WATCHES IN INDIAN
MARKET.
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ON RESEARCH AND DEVELOPMENT- 15,00,000EMPLOYEES AND SALESPEOPLE- 3,00,000IDENTIFYING CUSTOMER NEED- 2,00,000ANALYSIS OF COMPETITIORS PRODUCTS- 300000MISCELLANEOUS EXPENSE- 2,00,000TOTAL- 25,00,000
IDEA SCREENING & CONCEPT DEVELOPMENT AND
TESTING
IDEA GENERATION
IDEA SCREENING- 4,00,000DEMAND FORCASTING TEAM-3,00,000TESTING THE CONCEPT-4,00,000
MISCELLANEOUS EXPENSE-1,00,000TOTAL-12,00,000
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BUSINESS ANALYSIS
TEAM COMING UP WITH THE ESTIMATE NUMBER OF UNITS- 10,00,000TEAM ESTIMATING PROFITABILITY- 5,00,000TEAM FINDING BREAK EVEN POINT- 5,00,000TEAM FINDING THE SELLING PRICE- 10,00,000MISCELLANEOUS EXPENSES- 10,00,000TOTAL-40,00,000
BETA TESTING & MARKETINGPRODUCING MOCK-UP- 20,00,000PACKAGING- 3,00,000CONDUCTING FOCUS GROUP INTERVIEWS- 2,00,000MAKING ADJUSTMENTS WHERE NECESSARY- 5,00,000OTHER EXPENSES- 15,00,000TOTAL- 45,00,000
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TECHINICALIMPLEMENTATION
TECHNICAL EXPERT TEAM- 10,00,000PRODUCTION- 30,00,000LOGISTICS- 5,00,000ON QUALITY MANAGEMENT- 5,00,000OTHER EXPENSES- 10,00,000
TOTAL-60,00,000
COMMERCIALISATION
LAUNCHING THE WATCH- 25,00,000
ADVERTISEMENTS- 50,00,000OTHER PROMOTIONAL STRATEGY- 25,00,000DISTRIBUTION OF THE WATCH-30,00,000OTHER EXPENSES-20,00,000TOTAL-1,50,00,000
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NEW PRODUCTPRICING
TEAM WORKING ON DEVELOPMENT OF NEW PRODUCT- 10,00,000FORECASTING UNIT VOLUMES, REVENUE AND PROFIT- 5,00,000ANALYSING COMPETITION- 5,00,000OTHER EXPENSES- 10,00,000
TOTAL- 30,00,000
FURTHER EXPENDITURE OF RS.1,48,00,000 WILL BE INCURRED ON THEFIXED EXPENSES FOR THE STARTING OF THE ORGANISATION
ALL THE ABOVE EXPENSES WILL MAKE THE TOTAL BUDGET OFRS.5,10,00,000.
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Productionis the creation of goods andservices
Production and/orOperationsManagementare the activities thattransform resources into goods and
services
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Business Modeloverview
Material req
planing
TQMProcess
HRM
Product
Layout
Invent
ory
Location
POM
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Strategies
Process focussed
Product focussed
Efficient use Location selection
Job analysis
Standard levels
Work methods
Motivation/incentive system
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Process Should be Efficient in all measures.
Job Order.
Cost effective.
Defect free. Degree of automation.
Maintenance.
Desired output quantity.
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Nearby input market.
Nearby selling market.
Availability of workforce. Transportation cost.
Sufficient area.
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Product design
What product or service should we offer?
How should we design these products and services?
Target customer needs & wants.
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Total Quality Management :
The quality of the product should be the prime motive
Defect Free by continuous improvement.
Using right tools and methods to increase processefficiency.
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Inventory & Just In Time
There should be sufficient space for raw material andfinished product .
Near to machine area. Efficient supplier.
Effective communication.
TECHNICAL IMPLEMENTATION
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Job should be scheduled FIFO.
Also done on basis of Customer Type.
Also scheduling dates consideration.
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Analyses the process flow.
Find out loopholes.
Fixing to increase desired o/p.
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Coordination and synchronization b/w department.
Desired work force skilled and unskilled.
Target achievement
No idle time.
Right person to right job.
Maintenance
Regular maintenance
Cost efficient
Process efficient
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International production and operationsmanagement deals with production of goodsand services in international locations andmarkets. It involves management process
which has to take into consideration localproduction market (labor and capital) and
international customer requirements .
The very 1st difference is international business
environment where not just economics but alsointernational quality standards have to be maintained.
The 2nd aspect is the international stint makes thecompany more aware of its surroundings thus making itmore competitive.
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As IPOM is dynamic in nature, organization has to designit strategic objectives which cover following points :
Meeting international quality standards
Forecasting demand and production design
Profitability
Minimum production cost
Adaptation to modern available technology
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Culture
Business Environment
Quality Standards
Pricing Technology
Economies of Scale
Market Segmentation
Usage of resources
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Project Management
The application of knowledge, skills, tools, andtechniques to project objectives to meet
stakeholder needs and expectations. Includes : Planning, Organizing, Securing ,
Managing , Leading, Controlling resources
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