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Lesson1 Introduction of Production and Operation Management

Production and operations management involves transforming inputs into valuable outputs through manufacturing and service processes. It includes planning production, organizing facilities and employees, and controlling quality, costs and schedules. The objective is to provide customers the right products and services at the right time, quality and price while efficiently using resources. Key activities include location selection, facility layout, product and process design, production planning and control, quality management, materials management, and maintenance.

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62 views

Lesson1 Introduction of Production and Operation Management

Production and operations management involves transforming inputs into valuable outputs through manufacturing and service processes. It includes planning production, organizing facilities and employees, and controlling quality, costs and schedules. The objective is to provide customers the right products and services at the right time, quality and price while efficiently using resources. Key activities include location selection, facility layout, product and process design, production planning and control, quality management, materials management, and maintenance.

Uploaded by

RJ 1
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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INTRODUCTIO

N OF
PRODUCTION
AND
OPERATION
MANAGEMENT
Production/operations management is
the process, which combines and
transforms various resources used in
the production/operations subsystem
of the organization into value added
product/services in a controlled
manner as per the policies of the
organization.
O P E R AT I O N
MA N A G E M E N T
TO P I C S
The differences between production and
Operation
EVOLUTION OF PRODUCTION AND
OPERATIONS MANAGEMENT

For over two century’s He recommended breaking


operations and production of jobs down into subtasks
management has been and recognizes workers to
recognized as an important specialized tasks in which
factor in a they would become highly
country’s economic growth. The skilled and efficient. In the
traditional view of early twentieth century,
manufacturing F.W. Taylor implemented
management began in eighteenth
Smith’s theories and
century when Adam Smith
developed scientific
recognized the economic
management.
Table 1.2 Historical summary of operational managemenT
PRODUCTION
CONCEPT Some examples of
production are:
Production is defined as
manufacturing custom-
“the step-by-step Edwood Buffa defines made products like,boilers
conversion of one form production as „a with a specific capacity,
ofmaterial into another constructing flats, some
process by which
form through chemical or structural fabricationworks
mechanical process to goods and servicesare for selected customers, etc.,
createor enhance the utility created‟. and manufacturing
of the product to the user.” standardized productslike,
car, bus, motor cycle, radio,
television, etc
PRODUCTION
The production system of an organization is that part, which produces products of an
organization. SYSTEM
It is that activity where by resources, flowing within a defined system, are combined
and transformed in a controlled manner to add value in accordance with the policies
• Production is an • It does not operate in
communicated by management.
organized activity, so
isolation from the other
every production
organization system
system has an
objective.
• The system
• There exists feedback about the
transforms the
activities, which is essential to
various inputs to
control and improve system
useful outputs.
performance.
PRODUCTION
MANAGEMENT
E.S. Buffa defines production management as,
“Productionmanagement deals with decision making
related to production processes sothat the resulting goods
or services are produced according to specifications,in
the amount and by the schedule demanded and out of
minimum cost.”
OBJECTIVES OF
PRODUCTION
MANAGEMENT
The objective of the • Right Quality
production management is to • Right Quantity
produce goods services of • Right Time
right quality and quantity at • Right Manufacturing
the right time and right Cost
manufacturing cost‟
OPERATING SYSTEM
Operating system converts inputs in order to provide outputs which are required by a
customer. It converts physical resources into outputs, the function of which is to
satisfy customer wants i.e., to provide some utility for the customer.

CONCEPT OF
OPERATION
An operation is defined in terms of the mission it serves for the organization,
technology it employs and the human and managerial processes it involves.
Operations in an organization can be categorized into manufacturing operations and
service operations.
DISTRIBUTION BETWEEN MANUFACTURING
OPERATIONS
AND SERVICE OPERATIONS

1. Tangible/Intangible nature of output


2. Consumption of output
3. Nature of work (job)
4. Degree of customer contact
5. Customer participation in conversion
6. Measurement of performance.
ELEMENTS OF PRODUCTION MANAGEMENT
AND
OPERATION MANAGEMENT
PLANNING - An activity that establishes a course of action and guide future decision-
making is planning.

ORGANIZING - Activities that establish a structure of tasks and authority.

CONTROLLING - Activities that assure the actual performance in accordance with


planned performance.

BEHAVIOUR - Operation manager are concerned with how their efforts to plan,
organize, and control affect human behavior, they also want to know how the behavior of
subordinates can affect management planning, organizing, and controlling actions
OBJECTIVE OF OPERATION
MANAGEMENT
Objectives of operations management
can be categorized into customer service
and resource utilization.

CUSTOMER SERVICE
The first objective of operating systems is the customer service to the satisfaction
of customer wants. Therefore, customer service is a key objective of operations
management. The operating system must provide something to a specification
which can satisfy the customer in terms of cost and timing.
SCOPE OF PRODUCTION AND OPERATIONS
MANAGEMENT
Production and operations management concern with the conversion of
inputs into outputs, using physical resources, so as to provide the
desired utilities to the customer while meeting the other organizational
objectives of effectiveness, efficiency and adoptability.

1. Location of facilities 5. Production and planning


2. Plant layouts and material control
handling 6. Quality control
3. Product design 7. Materials management
4. Process design 8. Maintenance management
LOCATION OF FACILITIES

Location of facilities for operations is a long-term capacity decision which


involves a long-term commitment about the geographically static factors
that affect a business organization. It is an important strategic level
decision- making for an organization.

PLANT LAYOUT AND MATERIAL


HANDLING
Plant layout refers to the physical arrangement of facilities. It is the configuration
of departments, work centers and equipment in the conversion process. The overall
objective of the plant layout is to design a physical arrangement that meets the
required output quality and quantity most economically
PRODUCT DESIGN

Product design deals with conversion of ideas into reality. Every business
organization has to design, develop and introduce new products as a
survival and growth strategy. Developing the new products and launching
them in the market is the biggest challenge faced by the organizations

PROCESS DESIGN
Process design is a macroscopic decision-making of an overall process route for
converting the raw material into finished goods. These decisions encompass the
selection of a process, choice of technology, process flow analysis and layout of the
facilities
PRODUCTION PLANNING AND CONTROL
Production planning and control can be defined as the process of
planning the production in advance, setting the exact route of each item,
fixing the starting and finishing dates for each item, to give production
orders to shops and to follow up the progress of products according to
orders.

1. Planning
2. Routing
3. Scheduling
4. Dispatching
Quality Control Material Management Maintenance
Quality Control (QC) may be Materials management is Management
In modern industry,
defined as a system that is that aspect of management equipment and machinery
used to maintain a desired
function which is primarily are a very important part
level of quality in a product
concerned with the of the total productive
or service‟. It is a systematic
acquisition, control and effort. Therefore, their
control of various factors that
affect the quality of the use of materials needed idleness or downtime
product. Quality control aims and flow of goods and becomes are very
at prevention of defects at the services connected with expensive. Hence, it is
source, relies on effective the production process very important that the
feedback system and having some plant machinery should
corrective action procedure. predetermined objectives be properly maintained.
SCOPE OF PRODUCTION AND OPERATION
MGT.
Commencing w/ the selection of location production mgt. covers such
activities as acquisition of land, construction building, procuring, and
installing machinery, purchasing and sorting raw materials and
converting them into saleable products
SIX HISTORICAL DEVELOPMENTS:

• The industrial Revolution • Operation Research


• Scientific management • Computers and advanced production
• Human Relation Movement technology
• Service Revolution
STRATEGIES OF OPERATION
MANAGEMENT
1. Design of goods and services
2. Quality
3. Design Process and capacity
4. Site selection
5. Design layout
6. Human resource (HR) and design work
7. Supply chain mgt
8. Inventory
9. Scheduling
10. Maintenance.
FACTORS OF
PRODUCTION
THANK YOU!

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