Production and Operations Management

INTRODUCTION TO PRODUCTION MANAGEMENT

The Word Production Management has two parts:Production +Management = Production Management Production: It is an intentional act of producing something in a specific manner. Management: It is an art & science concerned with planning, controlling the human beings towards common aim with agreed policies.

 The basics of production are transformation of inputs into goods and services. Production Management is the foundation of every organization that is built. Production is an intentional act of producing something in an organized manner. Production Management deals with the physical objects by the use of man, money, material, and equipment.

 We can say that it is process of effective planning and regulating the operations of an enterprise which is responsible for the actual transformation of material into finished goods. Production Management is a systematic direction and control of the process that transforms inputs into finished goods.

INTRODUCTION TO OPERATIONS MANAGEMENT

Operations Management may be defined as the design, operation, and improvement of the production system that creates the firms products or services. Concerned with the operations performed during the production process system. It is called as the core activity of the management. It is often used with production management in literature It is defined as the process where by resources or inputs are converted into more useful products.

 Operations Management is more frequently used where various inputs are transformed into tangible services. Operations Management covers the services like Banks, Airlines, Pollution Control, Consultancies Firms, and Hospitals. Operations Management includes the activities such as managing purchase, inventory control, storage, logistics, measurement and analysis of internal process. It delivers operations and it creates operating and controlling transformation system.

Five Ps Of Operations Management:

People ( Are the direct and indirect workforce) Plants ( Includes factories where production is carried out) Parts ( Includes materials which go into the system) Process( Include equipment & steps by which production is accomplished) Planning And Control Systems( Procedures & information to operate system)

OPERATIONS MANAGEMENT AS BROAD FIELD

Market and Strategy Implementation Scheduling Research design and development Information and control system Facility Location Quality Assurance Material Planning and Stock Control Equipment Maintenance and Services Technology Process Design, Engineering and Work Study Health and Safety Environment

SCOPE OF PRODUCTION AND OPERATIONS MANAGEMENT

(A) Product selection and design

Choosing the right product by keeping the objective of the organization. Design of the product must be attractive, aesthetic and functional. Product design must be made in such a way to face competitor Unnecessary cost must be eliminated.

(B) Process selection and Planning

Selection of the process involves taking decision as technology, machines and equipment. First thing is that we have to optimize the output from the given process. Planning includes the stages of the process and automation and mechanization. Alternatives, evaluation and judging factors must be there.

(C) Facilities Location

Includes where we can locate our operations. In this wrong decision may prove disastrous Location should be in way that the cost of transportation is minimized.

(D) Facilities layout and Material handling

Arrangements of machines and plant facilities. Over-lapping and no interruption should not be there Sequencing of machines How to handle the material and in which manner so that the cost of material handling is minimized. Factor of flexibility should be there to adapt changes.

(F) Capacity Planning

Estimating the capacity of manpower, man, machines. Capacity refers to a level of output of the conversion process over a period of time The Transformation Process

Inputs, Outputs, and Transformation Processes in the Manufacture of Oak Furniture

Operations: A Transformation Process

Feedback

Inputs
Workers Managers Performance

Outputs

Goods

Equipment
Facility Materials Land

Operations and processes

Services

Energy
Information

Lead time The time between ordering a good or service and receiving it.

Example: Food Processor

Inputs
Raw Vegetables Metal Sheets Water Energy Labor Building Equipment

Processing
Cleaning Making cans Cutting Cooking Packing Labeling

Outputs
Canned vegetables

Consumer Feedback

Example: Hospital
Inputs
Doctors, nurses

Processing
Examination

Outputs
Healthy

Hospital
Medical Supplies Equipment Laboratories

Surgery
Monitoring Medication Therapy

patients

Improvement of patients health condition

Example: RAKSHPALIAN MBA,S

Inputs
Knowledge Text Book Lecture Notes Handouts Course CD Teaching Evaluation

Processing
Lecturing Tutoring Assignment Exam

Outputs
Future operations/ marketing managers

Manufacturing vs. Service

Characteristic
Output Uniformity of output Uniformity of input

Manufacturing
Tangible High High Low Easy Low High Easy Usually

Service
Intangible Low Low High Difficult High Low Difficult Not Usually

Labor content Measurement of productivity Customer contact

Opportunity to correct quality problems before delivery Evaluation Patentable