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International Journal of Engineering Research & Technology (IJERT)
ISSN: 2278-0181
Vol. 2 Issue 2, February- 2013
A Review Paper on Modern Developments in Production and Operations
Management
Er. Inderjit Singh Er. Raman Kumar Er. Amandeep Er. Amandeep
Sodhi Assistant Professor, Singh Bhui Singh Gabbi
Assistant Professor, Amritsar College of Assistant Professor, Assistant Professor,
Amritsar College of Engineering and Amritsar College of Amritsar College of
Engineering and Technology, Engineering and Engineering and
Technology, Amritsar, Punjab. Technology, Technology,
Amritsar, Punjab. Amritsar, Punjab. Amritsar, Punjab.
Abstract
The paper discusses what generally is happening in the area of Production and Operations
Management by highlighting the importance and role of Global focus, CAD/CAM, Just-In-Time, Product
life cycle, Customized Production and Green Production. Analysis is done on how all these trends play an
indispensable role in making processes more efficient, with the sole aim of reducing waste, increasing
production rate, product quality, standard of living, cost-cutting and making the process faster by
maximum utilization of man, material, and machine. These rapid developments have lead to increase in
wages of employees, creating a global market for selling the products, improved designing and quality of
the products, opportunities for introducing new innovations in product design, customization and last
making our environment clean and green with the introduction of green production.
Introduction activities is called as Operations
Life would be much easier if the management.
world would stand still, but of course it Operations Management is no
doesn‟t. As the world evolves, so must the exception, Robert Hayes discerns some
disciplines whose mission includes helping changes in the business world deriving
managers deal with it. Production and mainly from opportunities presented by the
operations management is the process, digital technologies, and explains what these
which combines and transforms various mean to the management profession and
resources used in the production and hence how operation management must
operations subsystem of the organization change so as to support managers in a
into value added product and services in a changing world.
controlled manner as per the policies of the
organization. Therefore, it is that part of an Historical Evolution of Production and
organization, which is concerned with the Operations Management
transformation of a range of inputs into the
required (products/services) having the For over two century‟s operations
requisite quality level. The set of interrelated and production management has been
management activities, which are involved recognized as an important factor in a
in manufacturing certain products, is called country‟s economic growth. The traditional
as Production management. If the same view of manufacturing management began
concept is extended to services management, in eighteenth century when Adam Smith
then the corresponding set of management recognized the economic benefits of
specialization of labour. He recommended
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International Journal of Engineering Research & Technology (IJERT)
ISSN: 2278-0181
Vol. 2 Issue 2, February- 2013
breaking of jobs down into subtasks and
recognizes workers to specialized tasks in
which they would become highly skilled and
efficient. In the early twentieth century,
F.W. Taylor implemented Smith‟s theories
and developed scientific management. From
then till 1930, many techniques were
developed prevailing the traditional view.
Production management becomes the
acceptable term from 1930s to 1950s. As
F.W. Taylor‟s works become more widely
known, managers developed techniques that
focused on economic efficiency in
manufacturing. Workers were studied in
great detail to eliminate wasteful efforts and
achieve greater efficiency. At the same time,
psychologists, socialists and other social Activities under Production and Operations Management
scientists began to study people and human
behavior in the working environment.
In addition, economists, Facility Location - Selecting
mathematicians, and computer socialists appropriate location for the
contributed newer, more sophisticated production.
analytical approaches. With the 1970s Plant layouts and material
emerge two distinct changes in our views. handling - Deciding upon the
The most obvious of these, reflected in the machines, equipment and necessary
new name Operations management was a devices which could lead to effectual
shift in the service and manufacturing and desired production in the most
sectors of the economy. As service sector economic way. Preparation of plan
became more prominent, the change from layout for the establishment of
„production‟ to „operations‟ emphasized the machines in the required sequence.
broadening of our field to service Storage of material and handling it in
organizations. The second, more suitable most effective way to avoid the
change was the beginning of an emphasis on wastage and delivery at the work
synthesis, rather than just analysis, in centers as and when required.
management practices.
Product design - Designing the
Scope of production and operation product and conceive the idea about
management [31] its production.
Due to the dynamic change in the Process design - Determination of
business environment, the scope of the production process which is most
production and operation management has relevant and efficient in the given
increased. Following are the activities which state of affairs.
are included under production and Production and planning control -
operations management functions. Planning the production and its
various aspects how, when and
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International Journal of Engineering Research & Technology (IJERT)
ISSN: 2278-0181
Vol. 2 Issue 2, February- 2013
where producing a particular product requires redesigning of operations making
or its assembly will be done. the process faster. The trend has now been
Quality control - Controlling the changing towards customized production of
production and ensuring the quality goods, whenever and wherever needed. This
by setting the check points and has led to change in the way operations were
taking the periodic measurements of designed earlier leading to better and more
the current performance. efficient processes
Materials management - Managing The operations management is the
the inventories of raw material, semi- process of managing activities that produces
finished and finished goods in a way goods and services in order to create value
that neither excessive money may to the customer. With recent development
block in this non-productive the operations management has changed
operation nor the required material. drastically and major changes in operations
Maintenance management - management are summarized below:
Analysis the deviations and
formulating the corrective measures Global Focus
to stay in track with planned quality, Computer-aided Design and
time-schedule and predetermined Manufacturing (CAD/CAM)
cost schedule. Just In Time Production
Supply Chain Partnerships
Shrinking product life cycle
Modern developments in production and Customized Production
operation management Employee Empowerment
Green Production
The modern history of production
and operations management was initiated in
the 1950s by the extensive development of
operations research tools such as waiting GLOBAL FOCUS [1][2][3]
line theories, decision theories, The geographical limitation of the
mathematical programming, scheduling market has expanded from focusing on local
techniques and other theories. From the markets to focus on global markets. This
Industrial Revolution in 1769 up to the has occurred due to the rapid development
recent Internet Revolution, Operations in communication, globalization and
Management has seen trends, which increased mobility of resources among
designed and redesigned the processes in countries. As a result countries focus on
order to make them more efficient, and producing goods and services at a global
businesses more profitable. Now with the scale rather than limiting themselves to
fast expansion of technology, product life geographical boundaries. The People's
cycles have become short and almost every Republic of China (PRC) is the world's
product gets replaced by a new product in second largest economy by nominal GDP
shorter time spans. and by purchasing power parity after the
Due to this reason, companies are United States. China is also the largest
forced to introduce rapid development of exporter and second largest importer of
new products with encouraging innovation. goods in the world. On a per capita income
This has provided a new challenge and basis, China ranked 90th by nominal GDP
and 91st by GDP (PPP) in 2011, according
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International Journal of Engineering Research & Technology (IJERT)
ISSN: 2278-0181
Vol. 2 Issue 2, February- 2013
to the International Monetary Fund (IMF). CAD and CAM work together in that the
As the Chinese economy is digital model generated in CAD is inputted
internationalized, so does the standardized to the CAM software package. The CAM
economic forecast officially launched in software needs to know the physical shape
China by Purchasing Managers Index in of the product (CAD model) before it can
2005. compose a proper set of fabrication
China has become increasingly instructions to a production machine.
integrated into the world economy. It has In 1996, GM initiated a program to
become a major player in many commodity substantially reduce its Vehicle
markets and global product chains as it Development Process (VDP) time from 42
seeks raw materials to sustain its rapid months to 24 months. In the same year, GM
economic growth; to supply its growing entered into an agreement with Unigraphics
export industries; and ultimately to achieve Solutions to use its CAD/CAM software
its goal for establishing a peaceful, Unigraphics. In 1999, GM signed a three-
comfortable and healthy society. While year with the company as a follow up to the
China's involvement in international product 1996 agreement. The agreement included
chains logically implies some degree of the endorsement of Unigraphics' Internet-
responsibility for ensuring environmental centric PDM application, iMAN. The new
integrity across the product chains within US $ 139 million software and services
which it operates, it similarly implies a contract was believed to be the world's
shared responsibility with other actors along largest collaborative engineering network.
the respective product chains (including GM claimed to have saved hundreds of
foreign suppliers of Chinese raw materials millions of dollars with the
and foreign consumers of Chinese finished CAD/CAM/CAE systems.
products). The new systems allowed the
company to launch innovative new cars and
Computer-aided Design and
[24]
Manufacturing (CAD/CAM) trucks in the market faster. The company
Computer-aided operations meant successfully reduced its VDP time to 24
that all the designing and manufacturing of months. GM aimed at reducing the VDP
the product would be done with the help of time to 18 months. The company reported a
computers making the operations way more 13 % improvement in engineering
efficient (Groover, 1997). These systems productivity in 1997 and expected an
immensely helped in new product additional 30% improvement by 2000.
development and redesigning the processes. According to Jay Wetzel, the
Computer Aided Design (CAD) involves the CAD/CAM/CAE tools enabled the company
use of computer hardware and graphics to save costs by reducing the number of
software to generate design drawings. physical validation builds. Cost savings
Modern CAD equipment enables the were estimated at 30% during development
designer to quickly produce very accurate and 10% during validation.
and realistic images of products to be
manufactured.
Computer Aided Manufacturing
(CAM) is a system of automatically
producing finished products by using
computer controlled production machines.
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