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    Introduction To Production and Operations Management

    Uploaded by

    sau1994
    Operations management involves planning, organizing, and controlling the processes that produce and deliver a company's goods and services. It includes activities like forecasting demand, scheduling work, managing inventories, ensuring quality, and making decisions around capacity, locations, projects, and systems design. The goal is to efficiently convert inputs like materials, labor, equipment, and energy into outputs like products and services while adding value for customers. Effective operations management is key to a company's competitiveness and a nation's ability to compete globally.

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    Introduction To Production and Operations Management

    Uploaded by

    sau1994
    46 views62 pages
    Operations management involves planning, organizing, and controlling the processes that produce and deliver a company's goods and services. It includes activities like forecasting demand, scheduling work, managing inventories, ensuring quality, and making decisions around capacity, locations, projects, and systems design. The goal is to efficiently convert inputs like materials, labor, equipment, and energy into outputs like products and services while adding value for customers. Effective operations management is key to a company's competitiveness and a nation's ability to compete globally.

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    production opration managment

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    Pom 1

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    Operations management involves planning, organizing, and controlling the processes that produce and deliver a company's goods and services. It includes activities like forecasting demand, scheduling work, managing inventories, ensuring quality, and making decisions around capacity, locations, projects, and systems design. The goal is to efficiently convert inputs like materials, labor, equipment, and energy into outputs like products and services while adding value for customers. Effective operations management is key to a company's competitiveness and a nation's ability to compete globally.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    46 views62 pages

    Introduction To Production and Operations Management

    Uploaded by

    sau1994
    Operations management involves planning, organizing, and controlling the processes that produce and deliver a company's goods and services. It includes activities like forecasting demand, scheduling work, managing inventories, ensuring quality, and making decisions around capacity, locations, projects, and systems design. The goal is to efficiently convert inputs like materials, labor, equipment, and energy into outputs like products and services while adding value for customers. Effective operations management is key to a company's competitiveness and a nation's ability to compete globally.

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    You are on page 1of 62

    Introduction to production and Operations Management

    1-1

    Production management
    It refers to application of management principles to the production(manufacturing) function in a factory. It(PM) involves application of planning, organising , directing and controlling to the production process. Production management deals with converting raw materials into finished goods or products. It brings together the 6M's i.e. men, money, machines, materials, methods and markets to satisfy the wants of the people(customer)
    1-2

    Operations management
    Operations are purposeful actions or activities which are done methodically as part of a plan of work by a process that is designed to achieve the pre-decided objective. It consists of tactics such as scheduling work, assigning resources including people, equipment, managing inventories, assessing quality standards, process type decision. Operations management is understood as the process whereby resources or inputs are converted into more useful products.
    1-3

    Operations Management
    Operations Management is: The management of systems or processes that create goods and/or provide services

    Operations Management affects:


    Companies ability to compete Nations ability to compete internationally

    1-4

    The Organization
    The Three Basic Functions
    Organization

    Finance

    Operations

    Marketing

    1-5

    Value-Added Process
    The operations function involves the conversion of inputs into outputs
    Value added
    Inputs Land Labor Capital Transformation/ Conversion process
    Feedback

    Outputs Goods Services

    Control
    Feedback Feedback

    1-6

    Value-Added & Product Packages


    Value-added is the difference between the cost of inputs and the value or price of outputs. Product packages are a combination of goods and services. Product packages can make a company more competitive.

    1-7

    Food Process
    Inputs
    Raw Vegetables Metal Sheets Water Energy Labor Building Equipment

    Processing
    Cleaning Making cans Cutting Cooking Packing Labeling

    Outputs
    Canned vegetables

    1-8

    Hospital Process
    Inputs
    Doctors, nurses Hospital Medical Supplies Equipment Laboratories

    Processing
    Examination Surgery Monitoring Medication Therapy

    Outputs
    Healthy patients

    1-9

    Production of Goods vs. Delivery of Services


    Production of goods tangible output Delivery of services an act

    1-10

    Production of Goods vs. Delivery of Services

    Key Differences
    1. Customer contact 2. Uniformity of input 3. Labor content of jobs 4. Uniformity of output 5. Measurement of productivity

    1-11

    Key Differences
    6. Production and delivery 7. Quality assurance 8. Amount of inventory

    1-12

    Goods vs Service
    Characteristic Customer contact Uniformity of input Labor content Uniformity of output Output Measurement of productivity Opportunity to correct problems Inventory Evaluation Goods Low High Low High Tangible Easy High Much Easier Service High Low High Low Intangible Difficult Low Little Difficult
    1-13

    Scope of Operations Management


    Operations Management includes:
    Forecasting Capacity planning Scheduling Managing inventories Assuring quality Motivating employees Deciding where to locate facilities Supply chain management And more . . .
    1-14

    Types of Operations
    Operations
    Goods Producing

    Examples

    Farming, mining, construction, manufacturing, power generation Storage/Transportation Warehousing, trucking, mail taxis, buses, airlines Exchange Retailing, wholesaling, renting, leasing, library Films, radio and television, concerts Newspapers, radio and television telephone, satellites
    1-15

    Entertainment
    Communication

    Challenges of Managing Services


    Service jobs are often less structured than manufacturing jobs Customer contact is higher Worker skill levels are lower Employee turnover is higher Input variability is higher Service performance can be affected by workers personal factors

    1-16

    Key Decisions of Operations Managers


    What
    What resources are required / in what amounts

    When
    It is Needed/scheduled/ordered/demand

    Where
    Work to be done

    How
    Design of product /services

    Who
    To do the work/ assignment of task
    1-17

    Decision Making
    System Design
    capacity location arrangement of departments product and service planning acquisition and placement of equipment

    1-18

    Decision Making
    System operation
    personnel inventory scheduling Project management quality assurance

    1-19

    Decision Making
    Models Quantitative approaches Analysis of trade-offs Systems approach Establishing Priorities

    1-20

    Models
    A model is an abstraction of reality.
    Physical Schematic Mathematical

    1-21

    Models Are Beneficial


    Easy to use, less expensive Increase understanding of the problem Enable what if questions Consistent tool for evaluation and standardized format

    1-22

    Limitations of Models
    Quantitative information may be emphasized over qualitative Models may be incorrectly applied and results misinterpreted Nonqualified users may not comprehend the rules on how to use the model Use of models does not guarantee good decisions

    1-23

    Quantitative Approaches
    Linear programming Queuing Techniques Inventory models Project models Statistical models

    1-24

    Analysis of Trade-Offs
    Increased cost of holding inventory

    (compromise)

    Decision on the amount of inventory to stock Vs.


    Level of customer service

    1-25

    Systems Approach
    The whole is greater than the sum of the parts.

    Suboptimization

    1-26

    Pareto Phenomenon
    A few factors account for a high percentage of the occurrence of some event(s). 80/20 Rule - 80% of problems are caused by 20% of the activities.

    1-27

    Ethical Issues
    Financial statements Worker safety Product safety Quality Environment Hiring/firing workers Closing facilities Workers rights

    1-28

    Business Operations Overlap

    Operations

    Marketing

    Finance

    1-29

    Operations Interfaces
    Industrial Engineering Maintenance

    Distribution

    Purchasing

    Operations

    Public Relations

    Legal

    Personnel
    Accounting MIS
    1-30

    Trends in Business
    Major trends
    The Internet, e-commerce, e-business Management technology Globalization Management of supply chains Outsourcing Agility(quick and easy) Ethical behavior

    1-31

    Management Technology
    Technology: The application of scientific discoveries to the development and improvement of goods and services Product and service technology Process technology Information technology

    1-32

    Simple Product Supply Chain

    Suppliers Suppliers

    Direct Suppliers

    Producer

    Distributor

    Final Consumer

    Supply Chain: A sequence of activities and organizations involved in producing and delivering a good or service

    1-33

    1-34

    A Supply Chain for Bread


    Stage of Production
    Farmer produces and harvests wheat
    Wheat transported to mill Mill produces flour Flour transported to baker

    Value Added
    $0.15
    $0.08 $0.15 $0.08

    Value of Product
    $0.15
    $0.23 $0.38 $0.46

    Baker produces bread


    Bread transported to grocery store Grocery store displays and sells bread Total Value-Added

    $0.54
    $0.08 $0.21 $1.14

    $1.00
    $1.08 $1.29

    1-35

    Other Important Trends


    Operations strategy Working with fewer resources Revenue management Process analysis and improvement Lean production

    1-36

    Transformation Process
    a series of activities along a value chain extending from supplier to customer activities that do not add value are superfluous and should be eliminated

    1-37

    Transformation Process
    Physical: as in manufacturing operations (raw material to finished good) Locational : as in transportation or warehouse operations Exchange: as in retail operations Physiological: as in health care

    1-38

    Operations as a Transformation Process


    INPUT Material Machines Labor Management Capital TRANSFORMATION PROCESS OUTPUT Goods Services

    Feedback & Requirements

    1-39

    1-40

    1-41

    Productivity
    Productivity
    ratio of output to input

    Output
    sales made, products produced, customers served, meals delivered, or calls answered

    Input
    labor, investment in equipment, material usage etc

    1-42

    Measures of Productivity

    1-43

    Duties and Responsibilities of operations manager

    1-44

    1-45

    1-46

    1-47

    1-48

    1-49

    1-50

    1-51

    1-52

    1-53

    1-54

    1-55

    1-56

    1-57

    1-58

    1-59

    1-60

    1-61

    1-62

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