INTRODUCTION

OF
PRODUCTION
AND
OPERATION
MANAGEMENT
Production/operations
management is the process,
which combines and transforms
various resources used in the
production/operations subsystem
of the organization into value
added product/se ices in a
controlled manner as per the
policies of the organization.
 OPERATION
M A N AG E M E N T
TOPICS
e di erences between production and
Operation
EVOLUTION OF PRODUCTION AND OPERATIONS
MANAGEMENT
For over two centu ’s He recommended
operations and production breaking of jobs down
management has been into subtasks and
recognized as an impo ant recognizes workers to
factor in a specialized tasks in
count ’s economic growth. which they would
e traditional view of become highly skilled
manufacturing and e cient. In the
management began in early twentieth centu ,
eighteenth centu when F.W. Taylor implemented
Adam Smith recognized the Smith’s theories and
Table 1.2 Historical summa of operational managemenT
 PRODUCTION
CONCEPT
Production is de ned as
Some examples of
production are:
manufacturing custom-
“the step-by-step Edwood Bu a made products like,
conversion of one form
ofmaterial into another
de nes production boilers with a speci c
form through chemical as „a process by capacity, constructing
ats, some structural
or mechanical process to which goods and fabricationworks for
createor enhance the se icesare created‟. selected customers, etc.,
and manufacturing
utility of the product to standardized productslike,
the user.” car, bus, motor cycle,
radio, television, etc
 PRODUCTION
products of an organization.SYSTEM
e production system of an organization is that pa , which produces
It is that activity where by resources, owing within a de ned system, are
combined and transformed
•Production in
is policies a controlled
an communicated by • manner to add value in
accordance with the
organized activity, so management.
It does not operate in
eve production isolation from the
system has an other organization
objective. system
• e system • ere exists feedback
transforms the about the activities, which is
various inputs to essential to control and
useful outputs. improve system
pe ormance.
 PRODUCTION
E.S. Bu aMANAGEMENT
de nes production management as,
Productionmanagement deals with decision
“
making related to production processes sothat
the resulting goods or se ices are produced
according to speci cations,in the amount and by
the schedule demanded and out of minimum cost.”
 OBJECTIVES OF
PRODUCTION
MANAGEMENT
e objective of the •Right Quality
production management is •Right Quantity
to produce goods se ices •Right Time
of right quality and •Right Manufacturing
quantity at the right time Cost
and right manufacturing
cost‟
 OPERATING SYSTEM
Operating system conve s inputs in order to provide outputs which are
required by a customer. It conve s physical resources into outputs, the
function of which is to satisfy customer wants i.e., to provide some utility for
the customer.
CONCEPT OF
An operation is de ned inOPERATION
terms of the mission it se es 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 se ice operations.
DISTRIBUTION BETWEEN MANUFACTURING
OPERATIONS
AND SERVICE OPERATIONS
1. Tangible/Intangible nature of output
2. Consumption of output
3. Nature of work (job)
4. Degree of customer contact
5. Customer pa icipation in conversion
6. Measurement of pe ormance.
 ELEMENTS OF PRODUCTION MANAGEMENT
AND
OPERATION MANAGEMENT
PLANNING - An activity that establishes a course of action and guide future
decision-making is planning.
ORGANIZING - Activities that establish a structure of tasks and authority.
CONTROLLING - Activities that assure the actual pe ormance in accordance
with planned pe ormance.
BEHAVIOUR - Operation manager are concerned with how their e o s to plan,
organize, and control a ect human behavior, they also want to know how the
behavior of subordinates can a ect management planning, organizing, and
controlling actions
 OBJECTIVE OF OPERATION
MANAGEMENT
Objectives of operations
management can be categorized
into customer se ice and resource
utilization.
CUSTOMER SERVICE
e rst objective of operating systems is the customer se ice to the
satisfaction of customer wants. erefore, customer se ice is a key
objective of operations management. e operating system must provide
something to a speci cation which can satisfy the customer in terms of
 SCOPE OF PRODUCTION AND OPERATIONS
MANAGEMENT
Production and operations management concern with the
conversion of inputs into outputs, using physical resources, so
as to provide the desired utilities to the customer while meeting
the other organizational objectives of ef fectiveness, ef ficiency
and adoptability.
1. Location of facilities
2. Plant layouts and 5. Production and planning
material handling control
3. Product design 6. Quality control
4. Process design 7. Materials management
8. Maintenance
management
 LOCATION OF FACILITIES
Location of facilities for operations is a long-term capacity
decision which involves a long-term commitment about the
geographically static factors that a ect a business organization. It
is an impo ant strategic level decision- making for an
organization.
PLANT LAYOUT AND MATERIAL
HANDLING
Plant layout refers to the physical arrangement of facilities. It is the
con guration of depa ments, work centers and equipment in the
conversion process. e overall objective of the plant layout is to design a
physical arrangement that meets the required output quality and quantity
 PRODUCT DESIGN
Product design deals with conversion of ideas into reality. Eve
business organization has to design, develop and introduce new
products as a su ival and growth strategy. Developing the new
products and launching them in the market is the biggest
challenge faced by the organizations
PROCESS DESIGN
Process design is a macroscopic decision-making of an overall process
route for conve ing the raw material into nished goods. ese decisions
encompass the selection of a process, choice of technology, process ow
analysis and layout of the facilities
 PRODUCTION PLANNING AND CONTROL
Production planning and control can be def ined as the process
of planning the production in advance, setting the exact route
of each item, f ixing the star ting and f inishing dates for each
item, to give production orders to shops and to follow up the
progress of products according to orders.
1. Planning
2. Routing
3. Scheduling
4. Dispatching
 Quality Material Maintenance
Control
Quality
be de ned as a system
Materials management Management
Control (QC) may Management
is that aspect of
In modern indust ,
that is used to maintain a equipment and
desired level of quality in a management function machine are a ve
product or se ice‟. It is a which is primarily impo ant pa of the
systematic control of concerned with the total productive e o .
various factors that a ect acquisition, control and erefore, their
the quality of the product. use of materials needed idleness or downtime
Quality control aims at and ow of goods and becomes are ve
prevention of defects at se ices connected with expensive. Hence, it is
the source, relies on the production process ve impo ant that the
e ective feedback system having some plant machine should
and corrective action
 SCOPE OF PRODUCTION AND OPERATION MGT.
Commencing w/ the selection of location production mgt.
covers such activities as acquisition of land, construction
building, procuring, and installing machiner y, purchasing and
sor ting raw materials and conver ting them into saleable
SIX products
HISTORICAL DEVELOPMENTS:
• e industrial Revolution •Operation Research
•Scienti c management •Computers and advanced
•Human Relation Movement production technology
•Se ice Revolution
 STRATEGIES OF OPERATION
1. Design of goodsMANAGEMENT
and se ices
2. Quality
3. Design Process and capacity
4. Site selection
5. Design layout
6. Human resource (HR) and design work
7. Supply chain mgt
8. Invento
9. Scheduling
10. Maintenance.
FACTORS OF
PRODUCTION
THANK YOU!