Production/Operations Plan

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Production/Operations Plan

• Ace Institute Of Management

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Outline of Presentation

• I. Why Production/Operations Plan?
• II. The content of Production/Operations plan
• III. Few Tips

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The Only Place Where Success Comes before Work
is the Dictionary - Vidal Sassoon
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Why Production/ Operations Plan?

• To find the answer to following
• Where do we locate our facility?
• How big should our facility be?
• Chronologically, what are the steps needed to
  establish our facility?
• Which technology will I use? Why?
• Where will I get the technology from?
• What equipment(s) will be needed?
• What raw materials will be needed?
• Will I manufacture all parts by myself or
  outsource some of it?

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Contd. Why Production/Operation Plan?

• How will I buy the inputs/raw materials? From
  where?
• What will be the layout of the production
  process/service?
• How will I maintain my inventory level?
• How do I define and maintain quality of my
  product/service?

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Linking corporate objective with Production/
Operational Planning
POM Strategy Flexibility (design, Volume) Low
cost Faster Delivery Quality Broader Product
line After sales service
How are we going to achieve these?
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10 Production/Operations decisions

• 1. Product design, Product Specifications
• 2. Quality management
• 3. Process, capacity design
• 4. Location
• 5. Layout design
• 6. HR, job design
• 7. Supply-chain management
• 8. Inventory management
• 9. Production/Operations Scheduling
• 10. Maintenance (after sales service)

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Putting Production/Operational plan in the BP
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What are the Product attributes/ Specifications

• Physical Attributes of product/service
• Compositions (constituents of product/service)
• Packaging sizes/options available

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How is your product made/delivered? Give a brief
process flow chart
Ghee out
Raw Milk in
Milk out (in 500 ml pouches)
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What kind of a process are you following?
(process design)

• Introduction of technology
• E.g.
• Manual
• Batch
• semi automatic
• Automatic
• Continuous production etc.
• What are the reasons for selecting the
  technology?
• Which are the key equipments in the production
  process?
• Who is/are the suppliers of technology

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Technology in Services
Next
Service Industry Example
Financial services Debit cards, electronic funds transfer, ATMs, Internet stock trading
Education Electronic bulletin boards, on-line journals
Utilities and government Automated one-man garbage trucks, optical mail sorters, scanners, flood warning systems
Restaurants and foods Wireless orders from waiters to kitchen, robot butchering, transponders on cars to track drive-thrus
Communication Electronic publishing, interactive TV
Hotels Electronic check-in/check-out, electronic key/lock systems
Wholesale/retail trade Point-of-sale terminals, e-commerce, electronic communication between store and supplier, bar coded data
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Technology in Services - Continued
Service Industry Example
Transportation Automatic toll booths, satellite-directed navigation systems, route planning, progress monitoring
Health care On-line patient monitoring, on-line medical information systems, robotic surgery, expert system diagnosis assistance
Airlines Ticketless travel, scheduling, Internet ticket sales, improved navigation and route planning
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How big is your plant/facility (capacity)

• What is the key measure of capacity?
• What is the installed/designed capacity?
• What is the capacity utilization schedule?
• How to meet the excess demand (e.g.
  seasonality)- inventory policy, sub-contracting
  etc.

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Where do you locate your production facility?

• Where is your plant/facility located?
• Why did you choose it there, What are the
  advantages, constraints of this location?
• Is the land your own or rented? If rented, for
  how many years is it rented?
• Where do you get your key input materials (raw
  materials)

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What is your quality policy/plan?

• Dimensions of quality for your product (product
  itself, user, process, value etc.)
• The firms views on quality
• How is the quality measured?
• How will you maintain and communicate your
  quality? E.g. TQM, ISO 9000, SQC, after sale
  service, warrantee, guarantee etc.

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Dimensions of Quality for Goods

• Functionality
• Reliability durability
• Conformance
• Serviceability
• Appearance

Quality
Next
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Dimensions of Service Quality

• Reliability Perform promised service dependably
  and accurately. Example receive mail at same
  time each day.
• Responsiveness Willingness to help customers
  promptly. Example avoid keeping customers
  waiting for no apparent reason.

Next
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Dimensions of Service Quality

• Assurance Ability to convey trust and
  confidence. Example being polite and showing
  respect for customer.
• Empathy Ability to be approachable. Example
  being a good listener.
• Tangibles Physical facilities and facilitating
  goods. Example cleanliness.

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• Few Tips

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Do not exaggerate your production capabilities
Do not try to over sell your technology/
production plan. Acknowledge if there are any
limitations in your production/ operational plan.
This can only help you later.
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Be fact based

• Do not write too much flowery and poetic
  statements. Provide exact data/facts as far as
  possible

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Exercise economy in your writing

• Avoid highly technical jargons. Remember your
  plan will be read by mostly non-technical
  persons.
• Do not write too many pages in this section.
  Nobody wants to read BP with long technical
  details
• Use appendix section for more detailed and
  complicated aspects such as drawings, blue prints
  

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Follow the 4 Cs rule

• Clear as to what u intend to achieve out of
  this plan and business
• Complete wrt all aspects of the business
• Consistent Strategy selected should be
  consistent across all functions and depts
• Concrete wrt facts and figures (no
  wishy-washy stuff!