ASSIGNMENT ON OPERATION RESEARCH

SUBMITED TO Mukesh kumar

SUBMITED By Himansu Sekhar barik Section-ff1 Roll no-31

Operations research (OR) Operations research (OR) are an analytical method of problem-solving and decision-making that is useful in the management of organizations. In operations research, problems are broken down into basic components and then solved in defined steps by mathematical analysis. Analytical methods used in OR include mathematical logic, simulation, network analysis, queuing theory, and game theory. The process can be broadly broken down into three steps. 1. A set of potential solutions to a problem is developed. (This set may be large.) 2. The alternatives derived in the first step are analyzed and reduced to a small set of solutions most likely to prove workable. 3. The alternatives derived in the second step are subjected to simulated implementation and, if possible, tested out in real-world situations. In this final step, psychology and management science often play important roles.

Operations Research is the professional discipline that deals with the application of information technology for informed decision-making. Operations research professionals aim to provide rational bases for decision making by seeking to understand and structure complex situations and to use this understanding to predict system behavior and improve system performance. Much of this work is done using analytical and numerical techniques to develop and manipulate mathematical and computer models of organizational systems composed of people, machines, and procedures.

Scope of operations research activities Operations research plays an increasingly important role in both the public and private sectors. Operations research addresses a wide variety of issues in transportation, inventory planning, production planning, crew planning, communication network design and operation, computer operations, financial assets and risk management, revenue management, market clearing and many other topics that aim to improve business productivity. In the public domain it deals with such topics as energy policy, defense, health care, water resource planning, forestry management, design and operation of urban emergency systems and criminal just Operations research draws upon ideas from engineering, management and mathematics and is closely related to several other fields in the decision sciences applied mathematics, computer science, economics, industrial engineering, and systems engineering. Various professional societies such as INFORMS and IFORS guide the advancement of the operations research field and serve as a reference for further background information.

Limitations

Dependence on an Electronic Computer: O.R. techniques try to find out an optimal solution taking into account all the factors. In the modern society, these factors are enormous and expressing them in quantity and establishing relationships among these require voluminous calculations that can only be handled by computers. Non-Quantifiable Factors: O.R. techniques provide a solution only when all the elements related to a problem can be quantified. All relevant variables do not lend themselves to quantification. Factors that cannot be quantified find no place in O.R. models. Distance between Manager and Operations Researcher: O.R. being specialist's job requires a mathematician or a statistician, who might not be aware of the business problems. Similarly, a manager fails to understand the complex working of O.R. Thus, there is a gap between the two. Money and Time Costs: When the basic data are subjected to frequent changes, incorporating them into the O.R. models is a costly affair. Moreover, a fairly good solution at present may be more desirable than a perfect O.R. solution available after sometime.

Implementation: Implementation of decisions is a delicate task. It must take into account the complexities of human relations and behavior.

TECHNIQUES USED IN OPERATION RESEARCH

Decision Analysis: Decision analysis refers to a set of quantitative methods for

analyzing decisions that use expected utility as the criterion for identifying the preferred alternative. Decision analysis provides tools for quantitatively analyzing decisions with uncertainty and/or multiple conflicting objectives, and these tools can be especially useful when there is limited directly relevant data so that expert judgment plays a significant role in the decision making process. It provides a systematic quantitative approach to making better decisions, rather than a description of how unaided decisions are made. A general decision making process can be divided into the following steps: 1. Define the problem 2. Determine the requirements 3. Establish Goals 4. Identify alternatives 5. Operations Research-Contemporary Role in Managerial Decision Making 6. Select a decision making tool 7. Evaluate alternatives against criteria 8. Validate solutions against problem statement LINEAR PROGRAMMING: Arose as a mathematical model developed during Second World War to plan expenditures and returns in order to reduce costs to the army and increase losses to the enemy. In Operation Research optimization means to find out the maximum profit and minimum loss in any deal which we can done in Quantitative Techniques, in this we can narrowing our choices to the very best when there are virtually immeasurable feasible options. This is a constrained optimization technique, which optimize some criterion within some constraints. In Linear programming the objective function (profit, loss or return on investment)

and constraints are linear. Standard form of describing a linear programming problem consists of three part. SIMULATION: In this technique of Operations Research we can make the model of a real situation and then perform the various experiments on this rough sculpt. Generally it is used in uncertain conditions where we want to conduct a real experiment through this model to know more about different situations which we use in this artificial model. The actual exercise of building a simulation model reveals previously unapparent relationships and provides a systematic way to analyzing the situation. Marine fisheries are highly complex and stochastic. A simulation model, therefore, is required. Simulation-based optimization utilizes the simulation model in obtaining the objective function values of a particular fishing schedule. The decision support system for fishery management will assist the government agencies and the fishing industry to use sound data and management science techniques in making policy decisions for fishing activities. Transferable rights to fish have proved a reliable and effective means of creating incentives to conserve marine resources. By strengthening individual fishing rights under flexible quota management systems make a significant contribution to conserving fish stocks, to reducing excess capacity and to raising the profitability of the fisheries industry. QUEUING THEORY: Some real time examples for this case can be customers waiting in the queue in banks or to buy groceries in departmental stores. The contribution of the computer here is to maintain the queue according to the arrival time of the event, in this case the customers, and process each event one after the other according to their arrival time. Simulation represents the full extent of the models covering all perceivable systems which incorporate characteristics of a queue. We identify the unit demanding service, whether it is human or otherwise, as customer. The unit providing service is known as the server. This terminology of customers and servers is used in a generic sense regardless of the nature of the physical context. Some examples are given below. In communication systems, voice or data traffic queue up for lines for transmission. A simple example is the telephone exchange. In a manufacturing system with several work stations, units completing work in one station wait for access to the next. Vehicles requiring service wait for their turn in a garage. Patients arrive and wait at a doctors clinic for treatment. Queuing System is used in situations where the queue is formed (for

example customers waiting for service, aircrafts waiting for landing, jobs waiting for processing in the computer system, etc). The objective here is minimizing the cost of waiting without increasing the cost of servicing. The term classical queuing theory refer to descriptive models of queuing systems, usually based on Monrovian assumptions, in which the goal is to derive an explicit expression for the queue-length or waiting-time distribution (or its transform), usually in steady state. TRANSPORTATION TECHNIQUE: The origin of transportation was first presented by F.L. Hitchcock in 1941 also presented a study entitled The Distribution of a Product from Several sources to numerous Localities. This presentation is considered to be the first important contribution to the solution of transportation problems. In 1947 T.C. Koopmans presented an independent study, not related to Hitchcocks, and called Optimum Utilization of the Transportation System. These two contributions helped in the development of transportation methods which involve a number of shipping sources and a number of destinations. The transportation problem, received this name because many of its applications involve determining how to optimally transport goods.

Types of Production Systems

Three types of production system can be identified certain features of which influence the actions of production managers.

small batch and unit production Large batch and mass production Continuous process production

JOB SHOP PRODUCTION

Job shop production are characterized by manufacturing of one or few quantity of products designed and produced as per the specification of customers within prefixed time and cost. The distinguishing feature of this is low volume and high variety of products. A job shop comprises of general purpose machines arranged into different departments. Each job demands unique technological requirements; demands processing on machines in ascertain sequence.

Characteristics
The Job-shop production system is followed when there is: 1. High variety of products and low volume. 2. Use of general purpose machines and facilities. 3. Highly skilled operators who can take up each job as a challenge because of uniqueness. 4. Large inventory of materials, tools, parts. 5. Detailed planning is essential for sequencing the requirements of each product, capacities

BATCH PRODUCTION
Batch production is defined by American Production and Inventory Control Society (APICS) as a form of manufacturing in which the job passes through the functional departments in lots or batches and each lot may have a different routing. It is characterized by the manufacture of limited number of products produced at regular intervals and stocked awaiting sales.

Characteristics
Batch production system is used under the following circumstances: 1. When there is shorter production runs. 2. When plant and machinery are flexible. 3. When plant and machinery set up is used for the production of item in a and change of set up is required for processing the next batch. batch

MASS PRODUCTION
Manufacture of discrete parts or assemblies using a continuous process are called mass production. This production system is justified by very large volume of

production. The machines are arranged in a line or product layout. Product and process standardization exists and all outputs follow the same path.

Characteristics
Mass production is used under the following circumstances: 1. Standardization of product and process sequence. 2. Dedicated special purpose machines having higher production capacities and output rates. 3. Large volume of products. 4. Shorter cycle time of production. 5. Lower in process inventory. 6. Perfectly balanced production lines. 7. Flow of materials, components and parts is continuous and without any back tracking. 8. Production planning and control is easy. 9. Material handling can be completely automatic.

CONTINUOUS PRODUCTION
Production facilities are arranged as per the sequence of production operations from the first operations to the finished product. The items are made to flow through the sequence of operations through material handling devices such as conveyors, transfer devices, etc.

Characteristics
Continuous production is used under the following circumstances: 1. Dedicated plant and equipment with zero flexibility. 2. Material handling is fully automated. 3. Process follows a predetermined sequence of operations.

4. Component materials cannot be readily identified with final product. 5. Planning and scheduling is a routine action.

TYPES OF PRODUCTION LAY OUT

Fixed position layout Unusually, in a fixed position layout the resources travel to the product or customer rather than the other way round. Several examples are mentioned in the text. An additional one is the production of movies. Most movies are shot in a studio and on location. In both cases resources centre around a fixed position (the studio set or the location). This is because moving the actors, technicians, cameras etc. to the set or location is considerably easier than the other way round. Process layout Process layouts are sometimes called functional layouts because the transforming resources with the same, or similar, function are grouped together. Products with different requirements move between the clusters of transforming resources in different ways. This makes this kind of layout particularly flexible. It can usually cope with a wide variety of different processing requirements. However, it is complex to manage with flows crossing each other and moving on irregular and intermittent paths. Cell layout Primarily this type of layout is an attempt to reduce the complexity of process layouts. It divides transforming resource up into small clusters which can be used to act upon different products or product groups. Within each cell layout can be almost identical to product layout (treated next). Product layout Here the transforming resources are arranged for the convenience of product flow. It is the processing requirements of a particular product or service which dictates exactly where and in what order facilities are located. The classic image of the assembly line is typical of how we think of product layouts. In fact this type of

layout is also common in many service industries, especially the back office of services such as banks and insurance companies.

PRODUCTION MANAGEMENT
Production management is a process of planning, organizing, directing and controlling the activities of the production function. It combines and transforms various resources used in the production subsystem of the organization into value added product in a controlled manner as per the policies of the organization.

Objectives of Production Management

The objective of the production management is to produce goods services of right quality and quantity at the right time and right manufacturing cost. 1. RIGHT QUALITY The quality of product is established based upon the customers needs. The right quality is not necessarily best quality. It is determined by the cost of the product and the technical characteristics as suited to the specific requirements. 2. RIGHT QUANTITY The manufacturing organization should produce the products in right number. If they are produced in excess of demand the capital will block up in the form of inventory and if the quantity is produced in short of demand, leads to shortage of products. 3. RIGHT TIME Timeliness of delivery is one of the important parameter to judge the effectiveness of production department. So, the production department has to make the optimal utilization of input resources to achieve its objective. 4. RIGHT MANUFACTURING COST Manufacturing costs are established before the product is actually manufactured. Hence, all attempts should be made to produce the products at pre-

established cost, so as to reduce the variation between actual and the standard (preestablished) cost.

OPERATIONS MANAGEMENT
Operation managers are concerned with planning, organizing, and controlling the activities which affect human behavior through models. PLANNING Activities that establishes a course of action and guide future decision-making is planning. The operations manager defines the objectives for the operations subsystem of the organization, and the policies, and procedures for achieving the objectives. This stage includes clarifying the role and focus of operations in the organizations overall strategy. It also involves product planning, facility designing and using the conversion process. ORGANIZING Activities that establishes a structure of tasks and authority. Operation managers establish a structure of roles and the flow of information within the operations subsystem. They determine the activities required to achieve the goals and assign authority and responsibility for carrying them out. CONTROLLING Activities that assure the actual performance in accordance with planned performance. To ensure that the plans for the operations subsystems are accomplished, the operations manager must exercise control by measuring actual outputs and comparing them to planned operations management. Controlling costs, quality, and schedules are the important functions here. BEHAVIOUR Operation managers are concerned with how their efforts to plan, organize, and control affect human behavior. They also want to know how the behaviour of subordinates can affect managements planning, organizing, and controlling actions. Their interest lies in decision-making behavior.

MODELS As operation managers plan, organize, and control the conversion process, they encounter many problems and must make many decisions. They can simplify their difficulties using models like aggregate planning models for examining how best to use existing capacity in short-term, break even analysis to identify break even volumes, linear programming and computer simulation for capacity utilization, decision tree analysis for long-term capacity problem of facility expansion, simple median model for determining best locations of facilities etc.

FMS (Flexible manufacturing system)

A flexible manufacturing system (FMS) is a manufacturing system in which there is some amount of flexibility that allows the system to react in the case of changes, whether predicted or unpredicted. This flexibility is generally considered to fall into two categories, which both contain numerous subcategories. The first category, machine flexibility, covers the system's ability to be changed to produce new product types, and ability to change the order of operations executed on a part. The second category is called routing flexibility, which consists of the ability to use multiple machines to perform the same operation on a part, as well as the system's ability to absorb large-scale changes, such as in volume, capacity, or capability. Most FMS systems consist of three main systems. The work machines which are often automated CNC machines are connected by a material handling system to optimize parts flow and the central control computer which controls material movements and machine flow. The main advantages of an FMS are its high flexibility in managing manufacturing resources like time and effort in order to manufacture a new product. The best application of an FMS is found in the production of small sets of products like those from a mass production.

Advantages

Faster, lower- cost changes from one part to another which will improve capital utilization Lower direct labor cost, due to the reduction in number of workers Reduced inventory, due to the planning and programming precision

Consistent and better quality, due to the automated control Lower cost/unit of output, due to the greater productivity using the same number of workers Savings from the indirect labor, from reduced errors, rework, repairs and rejects

Disadvantages

Limited ability to adapt to changes in product or product mix (ex. machines are of limited capacity and the tooling necessary for products, even of the same family, is not always feasible in a given FMS) Substantial pre-planning activity Expensive, costing millions of dollars Technological problems of exact component positioning and precise timing necessary to process a component Sophisticated manufacturing systems

Just-in-time
A strategy for inventory management in which raw material send components are delivered from the vendor or supplier immediately before they are needed in the manufacturing process. Just-in-time (JIT), as an operational philosophy, has been of great interest to manufacturers and researchers alike over the past decade. Toyota Motor Company is credited with developing and operating the approach. While a review of the major academic research journals revealed a focus on JIT in manufacturing firms, a review of applied journals shows that many of the components of JIT are migrating to non-manufacturing environments. Research journals, however, have been slow to recognize this trend. Current books discussing JIT provide, at most, a chapter on the application of the techniques to the service sector (see Chase and Aquilano, 1992, and Schniederjans, 1993, for examples.) However, little has been done to identify the major impediments to implementing JIT in service sector operations. By failing to research these trend academicians and others conducting research in operations management has not recognized a unique developmental stage for service operation and industries. This provides evidence that JIT techniques are, in fact, migrating to service sector

operations. Further, these articles suggest that service industries could benefit significantly from the introduction of JIT techniques. Five recommendations were proposed for increasing the speed of moving JIT techniques to service sector operations and increasing our understanding of JIT in this environment. These recommendations can be summarized as: 1. Modifying JIT terminology to encompass service process more naturally. 2. Emphasizing the applicability to service operations of JIT techniques to Students studying operations management. 3. Developing a research framework for the study of JIT in services; 4. Applying manufacturing-oriented studies to service processes; and 5. Developing appropriate models for analyzing costs and benefits to

Group Technology

Group Technology or GT is a manufacturing philosophy in which the parts having similarities (Geometry, manufacturing process and/or function) are grouped together to achieve higher level of integration between the design and manufacturing functions of a firm. The aim is to reduce work-in-progress and improve delivery performance by reducing lead times. GT is based on a general principle that many problems are similar and by grouping similar problems, a single solution can be found to a set of problems, thus saving time and effort. The group of similar parts is known as part family and the group of machineries used to process an individual part family is known as machine cell. It is not necessary for each part of a part family to be processed by every machine of corresponding machine cell. This type of manufacturing in which a part family is produced by a machine cell is known as cellular manufacturing. The manufacturing efficiencies are generally increased by employing GT because the required operations may be confined to only a small cell and thus avoiding the need for transportation of inprocess parts. A typical mechanical designer produces about two discrete new parts per week. Thus, even a small department designs hundreds of parts each year. Without formal methods, designers cannot track the drawings. They duplicate or near duplicate many existing parts. Like the Hydra of Greek Mythology, the problem feeds on itself. As more new designs enter the system they become harder

to track and encourage even more duplication. GT using Coding and Classification (C&C) addresses this.