PRODUCTION AND OPERATIONS MANAGEMENT

Recommended MODULE-1 MODULE-2 MODULE-3 MODULE-4

Books Introduction to Product, Process Facility, Capacity
Production and and Service Capacity, management
1) Production & Operations design Location and •Job Design
Operations Management •Product design Layout •Ergonomics
Management-Prof. K •Nature of POM •Manufacturing
and development •Method study and
Ashwathappa, K
•Systems approach to •Process planning facility planning work measurement
Sridhar Bhat-HPH
POM and process •Long range •Employee
2) POM-Kanishka •Factors affecting POM design capacity planning productivity
Bedi-Oxford today •Production •Facility Location •Learning curve
•Types of production & processes, and facility layout
•Short term capacity
3) POM – Martin K Production systems •Service •Problems
planning
starr- Biztantra 2004 •Productivity and Operations
Indian reprint •Aggregate planning
competitiveness •Production
and capacity
•Production/Operation Technology requirement
4) Operations •Problems
strategy planning
Management for
Competitive •Problems
Advantage- Chase,
Jacobs, Aquilano- MODULE-5 MODULE-6 MODULE-7 MODULE-8
TMH, 10/e.20
Materials Management Production Quality Technology
5) Operations •Scope, functions, IS Scheduling Management Management
Management- •Purchasing function •MPS •SQC techniques •Automation and
William J stevenson- •Inventory Mgt. •Priority •TQM Robotics
McGraw Hill, 7/e, sequencing •Quality circles •Technological
•MRP, JIT,ERP
2005 •LOB •Problems change
•Problems
•Maintenance Mgt.
 PRODUCTION AND OPERATIONS MANAGEMENT
MODULE-1 (4)
• NATURE OF POM
Introduction to POM
Production is the basic activity of all industrial units, all other activities revolve around
• Nature of POM this activity
Example: 1) Automobile industry, Food processing, IT & ITEs
• Systems
approach to The Production activity is the step by step conversion of one form of material into
POM another form either chemically or mechanically in other words production is the act
of transformation ie inputs are processed and transformed into some output
• Factors affecting
POM today Production = Output/Input

• Types of Input – Men, Material, Machine, Money

production & Output – Goods/Services that satisfy the wants of Individuals/Organizations
Production
systems
PRODUCTION MANAGEMENT
• Productivity and
competitiveness Production Management deals with decision making related to production process
so that the resulting goods are produced according to specifications, in the the
amounts and by the scheduled demanded and at minimum cost.
• Production/Oper
ation strategy
 PRODUCTION AND OPERATIONS MANAGEMENT
MODULE-1 • Operations Management
PM is more used for a system where tangible goods are produced. whereas OM is more
frequently used where various inputs are transformed into intangible services. Like
Introduction to banks, airlines, utilities, pollution control agencies , super bazars, police departments,
POM consultancy services etc.

•Nature of POM Production Management Operations Management

(Products) (Services)
•Systems
approach to 1) Tangible 1) Intangible and perishable; consumed
POM in the process of their production
2) Can be produced to inventory for off 2) Availability achieved by keeping the
•Factors the shelf availability productive system open for services
affecting POM 3) Minimal contact with ultimate 3) High contact with clients or
today consumer customers
5) Complex and interrelated processing
•Types of
5) Simple processing
production &
Production 7) Demand on system variable on
systems weekly, monthly and seasonal basis 7) Demand commonly variable on
hourly, daily and weekly basis
•Productivity and 6) Markets served by production system
competitiveness are regional, national and 9) Markets served by production system
international are usually local
•Production/Ope
10) Large units that can take advantage
ration strategy
of economies of scale 11) Relatively small units to serve local
markets
Example: Cement, sugar mills etc.
Example: KEB, BWSSB etc
 PRODUCTION AND OPERATIONS MANAGEMENT
• Production system
MODULE-1
Conversion
Introduction to Inputs Sub-system Outputs
POM

•Nature of POM
Environment Physical
•Systems Legal/political, social, (Manufacturing, Mining)
approach to Technological & Economic Locational services
POM (Transportation)
Exchange Services Goods
•Factors affecting Market (Retailing/wholesale) or
POM today Competition, Storage Services Services
product information, (warehousing)
•Types of customer desires Other Private Services
production & (insurance, finance, utilities,
Production real estate, Health,
systems Business service
& Personal service)
•Productivity and Primary Resources Government services
competitiveness Men, Material, (Local, state, central)
Machine, Money
•Production/Oper
ation strategy

Control
Sub-System
Decision Maker
 PRODUCTION AND OPERATIONS MANAGEMENT

MODULE-1
• Factors affecting POM today
Introduction to
POM
5. Effect of Automation (Robotics, CAM, CAD,CIM,FMS)
•Nature of POM 6. The service Revolution
7. Information Technology (MRP,DSS)
•Systems
8. Liberalization
approach to POM
9. Globalization
•Factors 10. Emergency of MNC’s
affecting POM 11. Government Policy
today

•Types of
production &
Production
systems

•Productivity and
competitiveness

•Production/Oper
ation strategy
 PRODUCTION AND OPERATIONS MANAGEMENT

MODULE-1
Classification of Manufacturing systems
Introduction to
POM

•Nature of POM Intermittent Continuous

system system
•Systems
approach to POM

•Factors affecting
POM today
Batch Mass Process
Job
•Types of Production Production Production
Production
production &
Production
systems

•Production/Oper
ation strategy

•Productivity and
competitiveness
 PRODUCTION AND OPERATIONS MANAGEMENT
• Comparison table
MODULE-1
Intermittent Continuous
Introduction to
POM
1) Production on non -contineous basis 1) Same product produced continuously
•Nature of POM 2) Production for Order 2) Items produced for stock
3) Flexible production process 3) Process not flexible
•Systems 4) Equipment used for limited time 4) Regular use of equipment
approach to POM 5) Wide range of products can be 5) Only particular type of product is
manufactured produced
•Factors affecting
POM today 6) Smaller scale production 6) Large scale production
7) Planning and control operation 7) Planning and control operations
•Types of complex and tedious simple and easy
production & 8) More detailed and complex 8) Single set of instructions is sufficient
Production instructions required for operations
systems 9) Low capital investment 9) High capital investement
10) Per unit cost of production is high 10) Per unit cost of production is low
•Production/Oper 11) Less security of jobs 11) More security of jobs
ation strategy 12) Functional type of organizations 12) Regional type of organizations
13) Requires staff of high skill and ability 13) Requires more managerial capability
•Productivity and 14) Control not ‘in line of production’ and better coordination
competitiveness 14) Control ‘in line of production’
15) Storage required at each operation
16) Change in location easy 15) Storage required at only at limited
17) Product and process not 16) Change in location difficult
standardized 17) Product and process standardized.
18) Accuracy low 18) Accuracy high
 PRODUCTION AND OPERATIONS MANAGEMENT
• POM Decisions are of two types
MODULE-1
3. Strategic decision
Introduction to
POM 4. Operational decision

•Nature of POM
STRATEGIC DECISION
•Systems
• Design
approach to POM
• Process planning
•Factors affecting • Location
POM today • Facilities
• Layout & material handling systems
•Types of
• Capacity planning (future expansions)
production &
Production • Safety, Productivity, cost reduction efforts
systems
OPERATIONAL DECISION
•Production/Ope • Production planning, scheduling and control
ration strategy
• Inventory planning and control
•Productivity and • Quality Assurance
competitiveness • Work and Job Design
• Maintenance
• Cost control
 PRODUCTION AND OPERATIONS MANAGEMENT
• Productivity
MODULE-1
Productivity is a balance between all factors of production that will give the
Introduction to maximum output with the smallest effort.
POM

•Nature of POM Productivity = Output / Input = Value of Outputs / Cost of inputs

•Systems Productivity Measures

approach to POM

•Factors affecting 9. Partial productivity measures

POM today 10. Total productivity measures
11. Total factor productivity measures
•Types of 12. Productivity index
production &
Production
systems 14) Partial productivity measures

•Production/Oper Material productivity = Total output / Cost of materials

ation strategy
Labour Productivity = Total Output/ Amount of Labour
•Productivity
and
competitiveness Capital productivity = Total output / Capital input
 PRODUCTION AND OPERATIONS MANAGEMENT

MODULE-1 2) Total productivity measures

Introduction to
POM Total productivity = Aggregate output / Aggregate input

•Nature of POM Aggregate Output = Value of (finished goods + partial units + dividends from
securities + interests + other income)
•Systems
approach to POM
Aggregate input = Value of (human + material + capital + energy + other inputs)
•Factors affecting
POM today
3) Total Factor Poductivity measures
•Types of
production &
= Net output / (Labour + capital)inputs
Production
systems
= (Total value of output – materials and services purchased) / (Labour + capital) i/p
•Production/Oper
ation strategy
4) Productivity Index
•Productivity
and
competitiveness = (O/I) current period / (O/I) in the base period

= (25/60)-in current year/ (20/50) -in base year

 PRODUCTION AND OPERATIONS MANAGEMENT

MODULE-1 FACTORS AFFECTING PRODUCTIVITY

Introduction to
• Controllable or internal factors
POM

•Nature of POM • Product

•Systems • Plant and equipment

approach to POM • Technology
•Factors affecting • Materials
POM today • Work methods and processes
• Energy resources and power supply
•Types of • Human factors
production &
• Management style
Production
systems
15. Uncontrollable or External factors
•Production/Oper
ation strategy • Changes in economic situation.
• Social changes and attitudes
•Productivity
and • Natural resources
competitiveness • Government policy
• Infrastructure
 PRODUCTION AND OPERATIONS MANAGEMENT

MODULE-1 TECHNIQUES TO IMPROVE PRODUCTIVITY

Introduction to
POM 4) Technology (CAD,CAM, CIM, Robotics, FMS etc)
5) Human resource (Incentives, Promotions, job enrichment, job design, job
•Nature of POM rotation, participation, empower)
6) Material Management (MRP, Recycle, storage & retrieval, sourcing, logistics)
•Systems 7) Process (Methods, job design)
approach to POM
8) Product (Value analysis, value engineering, diversification, standardization,
simplification)
•Factors affecting
POM today 9) Management (Style, culture, motivation)
10) Quality (TQM, QC,SPC)
•Types of 11) Business process re-engineering (BPRE)
production &
Production
systems

•Production/Oper
ation strategy

•Productivity
and
competitiveness