Production/Operations Plan Ace Institute Of Management BDP - Operations Plan 1
Outline of Presentation I. Why Production/Operations Plan? II. The content of Production/Operations plan III. Few Tips BDP - Operations Plan 2
“The Only Place Where Success Comes before Work is the Dictionary” - Vidal Sassoon BDP - Operations Plan 3
Why Production/ Operations Plan? To find the answer to following: n n n n 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? BDP - Operations Plan 4
Contd. Why Production/Operation Plan? n n 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? BDP - Operations Plan 5
Linking corporate objective with Production/ Operational Planning How are we going to achieve these? Marketing Decisions Company Mission Business Strategy Functional Area Strategies Operations Decisions BDP - Operations Plan POM Strategy Flexibility (design, Volume) Low cost Faster Delivery Quality Broader Product line After sales service Fin. /Acct. Decisions 6
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) BDP - Operations Plan 7
Putting Production/Operational plan in the BP BDP - Operations Plan 8
What are the Product attributes/ Specifications Physical Attributes of product/service Compositions (constituents of product/service) Packaging sizes/options available BDP - Operations Plan 9
How is your product made/delivered? Give a brief process flow chart: Ghee out Raw Milk in Storage Pasteurization Cream separation Milk out (in 500 ml pouches) BDP - Operations Plan Storage Past. Milk Packaging 10
What kind of a process are you following? (process design) Introduction of technology E. g. n Manual n Batch n semi automatic n Automatic n 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 BDP - Operations Plan 11
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, subcontracting etc. BDP - Operations Plan 14
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) BDP - Operations Plan 15
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. BDP - Operations Plan 16
Few Tips BDP - Operations Plan 20
Do not exaggerate your production capabilities Do not try to over sell your technology/ production plan. Acknowledge if there any limitations in your production/ operational plan. This can only help you later. BDP - Operations Plan 21
Be “fact” based Do not write too much flowery and poetic statements. Provide exact data/facts as far as possible BDP - Operations Plan 22
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 BDP - Operations Plan 23
Follow the 4 C’s 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! BDP - Operations Plan 24
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