Introduction to

PRODUCTION & OPERATION

MANAGEMENT
 Production
&
Operation Management

?
Production/Operation Management
Production/operations management is the
process, which combines and transforms various
resources used in the production/operations
system of the organization into value added
product/services in a controlled manner as per
the policies of the organization.

Therefore, it is that part of an organization,

which is concerned with the transformation of a
range of inputs into the required
products/services.
 Product management
v/s
Operation management

?
 Product Management
The set of interrelated management
activities, which are involved in manufacturing
certain products, is called as Production
management.
 Operation Management
The same concept is extended to services
management, then the corresponding set of
management activities is called as Operations
management
Historical Background
 PRODUCTION
Production function is that part of an
organization, which is concerned with the
transformation of a range of inputs into the
required outputs (products) having the
requisite quality level.
 In another terms the step-by-step
conversion of one form of material into
another form through chemical or mechanical
process to create or enhance the utility of the
product to the user.

Thus production is a value addition process.

At each stage of processing, there will be
value addition.
Production System
 Production Management
Production management deals with
decision making related to production
processes so that the resulting goods or
services are produced according to
specifications, in the amount and by the
schedule demanded and out of minimum
cost.
 Production Management Objectives
Right Quality
Right Quantity
Right Time
Right Cost
 Concept of Operations
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.
 Operation Management
PLANNING:
Activities that establishes a course of action and guide
future decision-making is planning.

ORGANIZING:
Activities that establishes a structure of tasks and
authority.

CONTROLLING:
Activities that assure the actual performance in
accordance with planned performance.
 Operation Management
Operations management is the management
of processes that transform inputs into goods
and services that add value for the customer.
Objectives of Operation Management
Customer Service
Resource Utilization
 Role of Operations Management
Operations is one of the three strategic
functions of any organization. This means that
it is a vital part of accomplishing the
organization's strategy and ensuring its long-
term survival.
The other two areas of strategic importance to
the organization are marketing and finance.
The operations strategy should support the
overall organization strategy.
 SCOPE OF PRODUCTION AND
OPERATIONS MANAGEMENT
Following are the activities which are listed under
production and operations management functions:
Location of facilities
Plant layouts and material handling
Product design
Process design
Production and planning control
Quality control
Materials management
Maintenance management.
 Production Management v/s
Operations Management
A high level comparison which distinct production and operations
management can be done on following characteristics:

Output: Production management deals with manufacturing of products

like (computer, car, etc) while operations management cover both
products and services.
Usage of Output: Products like computer/car are utilized over a period of
time whereas services need to be consumed immediately
Classification of work: To produce products like computer/car more of
capital equipment and less labor are required while services require more
labor and lesser capital equipment.
Customer Contact: There is no participation of customer during
production whereas for services a constant contact with customer is
required.
TRANSFORMATION SYSTEMS
 Transformation Systems
Production and Operations Management
("POM") is about the transformation of production
and operational inputs into "outputs" that, when
distributed, meet the needs of customers.
 The process in the above diagram is often
referred to as the "Conversion Process". There are
several different methods of handling the conversion
or production process -Job, Batch, Flow and Group
 POM incorporates many tasks that are
interdependent, but which can be grouped
under five main headings:
PRODUCT
PLANT
PROCESSES
PROGRAMMES
PEOPLE
Typical Transformation Process
 Operations management transforms inputs (labor,
capital, equipment, land, buildings, materials and
information) into outputs (goods and services) that
provide added value to customers.

The arrow labeled "Transformation System" is the

critical element in the model that will determine how
well the organization produces goods and services that
meet customer needs.

It does not matter whether the organization is a

for-profit company, a non-profit organization or a
government agency; all organizations must strive to
maximize the quality of their transformation processes
to meet customer needs.
 Transformation Systems
Job Production
Batch / Flow Production
 Job Production System
Job or Job production, sometimes
called jobbing, involves producing custom
work, such as product for a specific customer
or a small bunch of work in quantities usually
less than those of mass-market products.
 JOB SHOP
Job shops are typically small manufacturing systems that
handle job production, that is, custom or semi-custom
manufacturing processes such as small to medium-size
customer orders or batch jobs. Job shops typically move on to
different jobs when each job is completed.
 JOB PRODUCTION
Advantage:
- Can provide emergency parts or emergency
service very quickly.
- Suitable for products which needs customization
often.
- Work is generally of high quality.

Drawbacks:
- Higher cost of production
- Production rate is slow comparitively
 BATCH PRODUCTION
Batch production is a technique used in
manufacturing, in which the object in question
is created stage by stage over a series of
workstations, and different batches of
products are made.
 BATCH PRODUCTION
Generally, Batch production deals with
manufacturing the products in bulk or offering
service covering wide area range.

NOTE: Mass Production

Example: Pharmaceuticals, Paints.

Customer Service Centers.
 BATCH PRODUCTION
Advantage:
- Mass Production => Lower Cost
- Same category of products.

Drawback:
- Product Low/Irregular Demand.
- Idle Downtime.
PRODUCT
v/s
SERVICE
 There is a major difference between goods and
services based on both tangible as well as
intangible factors.
Goods are basically objects or products which
have to be manufactured, stored, transported,
marketed and sold. Services on the other hand
are output of individuals and they can be a
collective or individualistic action or performance
by an individual.
NOTE: Airlines on the other hand have airplanes
which is a product but travelling by airplanes is a
service.
 PRODUCT v/s SERVICE
The following points explaining how goods and services
differ.

Ownership is not transferred When buying a service, the

service ownership is not transferred to the end customer. If
you buy a car then the car is yours. But if you buy a ticket for
an airline, then the airline is definitely not yours.

Intangibility How do you measure service? In a restaurant,

the dish can be measured, but the efforts gone in making the
same dish by two different chefs cannot be measured from
the customer end. The time and effort gone for giving service
to the customer is intangible.
 Involvement of customer In services involvement of
customers is much more than in products. For example
ATMs are services wherein customer has to use the machine.

Quality In case of products, mass manufacturing is common

and mass manufacturing means uniformity. However, services
involve a lot of manual labor due to which the quality may
vary each time.

Evaluation of services is tougher As quality varies from time

to time and the involvement of customer is maximum,
evaluation of different services becomes tougher.
 Inventories are absent Production and consumption of services
happens at the same time. This does not mean that the raw
material is not present to provide the service. For example in a
restaurant, a dish is made only after you order it. The raw material
and the chef might be present. But the production does not begin
unless and until there is a customer to consume the service.

Time is very important in services Because inventories are absent

in services, and because production and consumption is at the
same time, time is a very important difference between goods and
services. The keyword here is delay. There should be no delay in
providing the service. Thus the cab should arrive on time, the food
should be prepared by time and the trains should run on time.
Because time is important.
 Important Applications
of
Production & Operations Management
 ROBOTICS
Robotics is the branch of engineering that
deals with the design, construction, operation,
and application of robots, as well as computer
systems for their control, sensory feedback,
and information processing.
 Robotics in
Production & Operation Technology
Robots are human like machines that perform production
tasks. Technically speaking, a robot is a programmable machine,
where a sequence of moves can be preset to be repeated time after
time, and then reset again to perform another set of moves.

The brain is a micro computer which guides the machine

through its predetermined operations. Robots replace human
beings for some very heavy, dirty, dangerous, unpleasant or
monotonous tasks.

Robots are advantages as they not only relieve human beings

from the burden of attending to dirty and dangerous tasks; they can
also a times produce products of better quality than humans.
COMPUTER AIDED TECHNOLOGIES

CAD | CAM
 CAD
Computer-aided design (CAD) is the use of
computer systems to aid in the creation,
modification, analysis, or optimization of a design

Computer-aided design is used in many fields.

In mechanical design it is known as Mechanical

Design Automation (MDA), which includes the
process of creating a technical drawing with the
use of computer software.

NOTE: Simulation
 CAM
Computer-aided manufacturing (CAM) is the use of
software to control machine tools and related
machinery in the manufacturing of work pieces.

CAM may also refer to the use of a computer to

assist in all operations of a manufacturing plant,
including planning, management, transportation and
storage.
Its primary purpose is to create a faster production
process and components and tooling with more precise
dimensions.
FMS
?
 Flexible Manufacturing System
A flexible manufacturing system (FMS) is a
manufacturing system in which there is some
amount of flexibility that allows the system to
react in case of changes, whether predicted or
unpredicted.
 FMS
This flexibility is generally considered to fall
into two categories.

Machine flexibility: which covers the system's

ability to be changed to produce new product
types, and ability to change the order of
operations executed on a part.

Routing flexibility: which consists of the ability to

use multiple machines to perform the same
operation on a part.
 NC (Numerical Control) Machine
Numerical control can be defined as a
form of programmable automation in which
process is controlled by numbers, letters and
symbols.

In NC, the numbers form a programme of

instructions designed for a particular work-
part or job. When job changes the program of
instruction changes.
Basic components of NC system
An operational numerical control system consists
of the following three basic components:
1. Program of instructions.
2. Controller unit, also called machine tool unit.
3. Machine tool or other controlled process.
 NC System
Program of Instructions:
The program of instructions is the detailed step by step set of instructions which tell the machine
what to do. It is coded in numerical or symbolic form on some type of input medium that can be
interpreted by the controller unit. The most common one is the 1-inch-wide punched tape. Over the
years, other forms of input media has been used, including punched cards, magnetic tape, and even
35mm motion picture film.
Controller Unit:
The second basic component of NC system is the controller unit. This consists of electronics and
hardware that read and interpret the program of instructions and convert it to mechanical actions of
the machine tool. The typical elements of the controller unit include the tape reader, a data buffer,
signal output channels to the machine tool and the sequence controls to coordinate the overall
operation of the foregoing elements.
Machine Tool:
The third basic component of an NC system is the machine tool or other controlled process. It is part
of the NC system which performs useful work. In the most common example of an NC system, one
designed to perform machining operations, The machine tool consists of the worktable and spindle
as well as the motors and controls necessary to drive them. It also includes the cutting tools, work
fixtures and other auxiliary equipment needed in machining operation.