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Productions and Operations Productions and Operations Management Management

Productions and Operations Productions and Operations Management Management

Presented By

Jitendra Rathore

PGDM- “B”

Presented By

Jitendra Rathore

PGDM- “B”

The Learning Objectives:The Learning Objectives:

Production Management Operation Management Concept History Jobs and Decisions

Production Management

Production = The production activity is the step-by-step conversion of one from of material into another, either chemically or mechanically,

Production is a transformation system where inputs are converted into outputs, the transformation could be physical(manufacturing), locational(transeport), exchange base(retail), storage based(warehousing), informational(telecom).

Manufacturing vs. Service !

Characteristic Manufacturing Service

Output Tangible IntangibleCustomer contact Low HighUniformity of output High LowLabor content Low HighUniformity of input High LowMeasurement of productivity Easy Difficult

Opportunity to correct quality problems

Easy Difficult

Objectives of Production Management

Primary Objective = 1. Pre-established cost

2. According to specific quality

3. Within the time schedule

Intermediate Objectives = 1. Materials

2. Manpower

3. Machinery and Equipment

4. Manufacturing Services

Material Management

Material management is the grouping of management functions related to the complete cycle of material flow, from the purchase and internal control of production materials to the planning and control of work-in-progress, to the warehousing, shipping and distribution of the finished product,

Material management functions includes purchasing, production and inventory control, material handling, packaging and distribution.

Operations ManagementOperations Management

Operations management (OM) is defined as the design, operation, and improvement of the systems that create (transform inputs into outputs) and deliver the firm’s primary products and services,

Operation management involves the responsibility of ensuring that business operations are efficient in terms of using as little resources as needed, and effective in terms of meeting customer requirements

Origins of Operation Management

The origins of operations management can be traced back through cultural changes of the 18th, 19th, and 20th including the “industrial revolution”, “scientific management”, “the development of assembly line practice” and “mass production”, industrial engineering, systems engineering, manufacturing engineering, operations research, and Six Sigma, Combined, these ideas allow for the standardization of best practices balanced with room for further innovation through continuous improvement of production processes

Operations Interfaces

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Operation Management Decision

Process = It refers to the physical process used to produce the product or service and decisions about

1. Equipment

2. Technology

3. Process Flow

4. Workforce Polices

Quality = Operations is responsible for the quality of goods and services, quality must be built into the product right from the design stage, and should be sustained at all other stages

Conti . . . . . . . . . . . . . . . . . .

Capacity = there should be the right capacity, at the right place, at the right time.

Inventory = There are tow major decisions- 1. what quantity to order and when to order , Inventory control system manage the raw material supplies, work in process and finish goods, inventory managers stores the inventory in warehouses.

Functions of POM

Planning = Capacity, Location, Layout, Projects, Products and services ,Make or buy, Scheduling

Organizing = Degree of centralization ,Subcontracting

Staffing = Hiring/laying off , Use of overtime Directing = Incentive plans , Issuance of work orders ,

Job assignments Controlling = Inventory control , Quality control ,Work-in

process control ,Process control

Thank youThank you