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Factors influencing OPC system in an

organization

1. Type of production system

What do we want to produce?

Out put characteristics of the product

The product-process matrix

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2. Management policies

Plan for meeting seasonal or occasional

increase in demand

Distribution of work

Degree of centralization Maintenance policies

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Type of production system

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Types of Processes and Operations Systems

FLOW L

OR CONTI

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Product-process matrix

TURNKEY

JOB-ORDER

BATCH

MASS

FLOW

PROCESS

PRODUCE TO ORDER PRODUCE TO STOCK

QUANTITY OF PRODUCTION

TYPES

OF

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What do we want to produce?

Product selection

Out put characteristics of the product Volume Variety

Production rate Demand rate

How do we produce?

Produce to order Produce to stock

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Turnkey projects

Project form of production

1. Single variety

2. Single volume

3. Made to specific order

4. The characteristics are similar to jobbingproduction where very small quantity is

produced to specific orders

5. Static layout6. Ship building

7. Bridges

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R/M

Operation I

Operation I

STATIC LAYOUT

Operation II

Operation II

Ope

rati

onIII

Ope

rationIII

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Jobbing production

Production of large variety in small volumes

Fabrication shops

Characteristics

1.Small production runs

Very small volumes, 2 to 3 or 4

Customer specific

2.Flow of materials Imbalance in operation wise work content

Flow is not continuous

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3. Manufacturing cycle time, lead-time Inadequate standard times

Lead time is large

Design changes & errors

Unbalanced work content

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4. Layout of plant and equipment Flexibility to accommodate variety

GPMs

Minimum setup times Material handling equipment with flexibility

Process layout

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FUNCTION LAYOUT IN JOB SHOP

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6. Labour skills

Highly skilled and qualified

Interpret and follow engineering drawings Set and run the machines

7. Supervision

Highly skilled and qualified Span of control is small as the job is

technical and variety is high

8. WIP Quantity is large Jobs remain as inventory at different

stages due to unbalanced operations

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Functions of OPC in Jobbing production

Materials control

Procurement of materials is againstspecific customer order

No advance procurement

Tools control

Standard tools kept in stock

Special tools are made against order

Process planning

Handled by operations function

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Customers order (specifications, drawings)

handed over to operations

Scheduling

Decentralized

All major parts are scheduled (starting &

completion dates) and schedule is passed on

to operations

Progressing

Periodic production meetings

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Batch production

When products are required by customers

in large variety and in limited volumes Auto industry out-sources parts for different

models

Steering wheels, different for differentmodels

Production system works with batches of

inventory moving from one function to another

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Characteristics

1. Short production runs

large variety in small volumes producedseveral times in batches

Batches are stocked as inventory in F/G

store or in WIP stores awaiting withdrawal produced to order (Customer specific),

some times produced to stock

2. Flow of materials In batches, hence intermittent,is notcontinuous

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3. Labour skill Worker sets and runs the machines

Skills required are high4. Supervision

Skills are specific to the function beinghandled

As workers are qualified and skilledamount of supervision required is less

5. Layout & equipment

Function layout GPMs

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Q

P

R

1 2 3 4

P

Q

R

FUNCTION/PROCESS LAYOUT

WIP

STORE 1

WIP

STORE 2

WIP

STORE 3

WIP

STORE 4

F/G

STORE

P

F/G

STORE

Q

F/G

STORE

R

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6. Material handling

Trolleys and bins

Forklifts

7. Manufacturing cycle time

Large lead times due to batches

8. WIP

Large WIP

9. Flexibility

As the job can be easily shifted to anothermachine of same function flexibility is high

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Functions of OPC inBatch production

OPC in batch production is complex due to

variety production

Detailed route sheets and schedules are

required

Every machine is to be individually

scheduled

Progressing & monitoring to be done

meticulously

Expediting function is important as the

activities are complex

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Materials control & Tools control

Scientific stock control using models

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Mass and Flow productionWhen products of same variety are

required by customers in large quantity

Standard products

Discrete products made to stock

Bolts and nuts

Assembly line for automobiles

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Characteristics

1. Long production runs

Single variety in large volumes Produced to stock

2. Flow of materials

Flow is continuous from work station to workstation

3. Machines and plant layout

SPMs and product layout

4. Material handling

Mechanized, conveyers, elevators etc

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2 41

P

3

LINE /PRODUCT LAYOUT

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5. Labour skill

Low skill as activities are repetitive

6. Manufacturing cycle time Lead-time is short as work-stations are

balanced

7. Quality of supervision

Routine

8. WIP is low as there is no inventory instages

9. Flexibility

low, production line is sensitive tomachine breakdown and absenteeism

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Functions of OPC inmass and flow

production

Materials control is very crucial

All other functions are simple

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Continuous and process production

When same product is required bycustomers in large quantity

Continuous products, made to stock

Cement

Sugar

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Management policies

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1. Plan for meeting seasonal or

occasional increase in demand

Option I

Plan the plant capacity for seasonal peak

and during off season use the capacity for

producing other products to balance the

capacity

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Option II

Plan the plant capacity for off seasonal least

demand and during season manage the

peak demand by intensive working and out

sourcing

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2. Distribution of work

Normal functions and optional functions

In some companies only normal functions

are assigned

In some companies some optional

functions are also assigned

In large companies the functions are

assigned to OPC cells

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3. Degree of centralization

CentralizedOPC is handled by staff specialists

Advantages and disadvantages

DecentralizedOPC is handled by line staff

Advantages and disadvantages

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Semi centralizedA new trend in companies

Area of OPC for staff specialistsMaterials planning

Outsourcing

Process planningProgressing and follow up

Capacity planning

Man power availabilityMaintenance planning

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Area of OPC for line staff

Shop-floor planning

Man power allocation

OPC within stipulated schedules given by

staff specialists

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MAINTENANCE

SYSTEMS

BREAK DOWN

MAINTENANCE

PREVENTIVE

MAINTENANCESCHE

SCHEDULED

MAINTENANCE

PREDICTIVE

MAINTENANCE

INSPECTION

LUBRICATION

4. Maintenance policies