SYSTEM

Random fluctuation

CONVERSION
INPUT PROCESS OUTPUT

(Feedback information)

(Materials, labour, equipment, capital) (Goods and services)

ENVIROMENT

TYPES OF PRODUCTION SYSTEM-

RANDOM FLUCTUATION

INPUT OUTPUT
CONVERSION
PROCESS

FEED BACK INFORMATION

1 2 3

1. Planning 2. Organising 3. Controlling

1.PLANNING
 Planning of conversion system.
 Operation strategies.
 Forecasting. (Predicting on basis of data)
 Product and process choice.
 Operation capacity.
 Facility location planning.
 Layout planning.
 Scheduling conversion system.
 Scheduling system and aggregate planning.

Scheduling= sequencing + time

 Operation scheduling.
2. ORGANISING
 Job design, production/operation, standards, work measurement.
 Project management.
3. CONTROLLING
 Inventory control.
 Material requirement planning.
 Managing world class competition.
 Japanese manufacturing.
 Managing for quality.
 Quality analysis and control.

SYSTEM VIEW OPERATION/ BUSINESS OPERATION/ BUSINESS FORM-

All systems-
1. Finance
2. Accounting
3. Personnel
4. Product
5. Operation
6. Purchasing
7. Engineering
8. Distribution-Supply chain management
 9. Marketing-selling the product
SYSTEM-
 Collection of object related by regular interaction and interdependence.
 Input-conversion-output
CHARACTERISTICS ODF TYPICAL PRODUCTION SYSTEM-
PRODUCTION INPUT CONVERSION OUTPUT
SYSTEM
Airline Aeroplane, pilot, Air
attendant, transportation To desired
customers destination
Hospital Doctor, patient, Treatment Curing of patient
medicine,
instruments
Auto factory Raw materials Fabrication and Automobile,
assembly of auto vehicle
Oil refinery Crude oil Distillation, Gasoline, oil etc.
chemical
processes
Social security Eligible individual Paper a measure
economic
security
Fast food outlet Grocery items, Cooking, boiling. Food ready to
chicken. eat.

 Features of production system and service system.

DIFFERENCE BETWEEN PRODUCT AND SERVICE-
PRODUCT
1. Tangible (countable)
2. Can be produced to inventory
3. Minimum contact with the
consumer.
4. Complex processing.
5. Demand mostly on monthly,
weekly and yearly.
6. Product is
international/national.
SERVICES
1. Intangible/perishable.
2. Keeping door open for 24 hrs.
3. Maximum contact with the
consumer.
4. Simple processing.
5. Demand mostly on hourly and
daily.
6. Service is mostly local.
OPERATION OBJECTIVE-
 Product/ service characteristics.
 Process characteristics.
 Product/ service quality.
 Efficiency
 Customer service (schedule)
 Adoptability for future survival.
OPERATION STRATEGY FRAMEWORK-
Environment and industry Corporate strategy Corporate
Resources

Corporate strategy- Efficiency, dependability, quality flexibility.

Under corporate strategy (Facility mission)

Process Capacity Facility Vertical Infrastructure

- Size Integration
- Location - Supplier
- Customer
OPERATION STRATEGY FOR COMPETETIVE ADVANTAGE-
 F.S. Garrison (CEO and president)
(Arkansan flight ways)
 He said that take care of the customers.
 Take of people in the organisation.
 Honour our commitment.
 Work hard, work smart, work together.
3 KEYPOINTS FOR COMPETETIVE ADVANTAGE-
1. Productivity and quality.
2. Technology and mechanization.
3. International operation management.
 Output
Total productivity= Labour +Capital +Materials + energy
- Productivity is the ratio of outputs to input.
Output
- Partial factor productivity = labour or capital or labour + capital
Output
- Labour productivity= Labour input
 Father of POM – F.W Taylor
 1776 - Adam smith – Labour in manufacturing
 1799 - Eli Whitney – Cost according to interchangeable
 1832 - Charles Babbage – Division and lab.
 1900 – F.W.Taylor – Scientific management.
 1901 – H.L Gnat – Scheduling
 1915 – F.W. Harris – Lot sizing inventory
 1931 – Elton mayo – Started organisation behaviour.
 1931 – W.A. Schewart – Schewart control chart.
 1935 – H.F. Dodge and H.F. Raming – Concept of sampling
 1940 – P.M.S. Blancket – Concept of operation research
 1946 – John mauchly and J.P. Eckert – Digital computer
 1947 – G.B. Dantzig.
 1950 – Charnes cooper – Mathematical programming (Stochastic
process)
 1951 – Spery Univac – Commercial digital computer.
 1960 – L.Cummings and L.porta – Organisational behaviour.