Production involves transforming inputs into outputs to satisfy human wants. Operations management refers to planning, coordinating, and controlling activities related to input-output conversion across manufacturing and service industries. Production management focuses specifically on manufacturing and involves planning, organizing, directing, and controlling production functions and decisions. Key aspects of production include its systemic nature with conversion, control, and feedback subsystems; its role as an organizational function; and the three levels of strategic, operating, and control decision making.
Production involves transforming inputs into outputs to satisfy human wants. Operations management refers to planning, coordinating, and controlling activities related to input-output conversion across manufacturing and service industries. Production management focuses specifically on manufacturing and involves planning, organizing, directing, and controlling production functions and decisions. Key aspects of production include its systemic nature with conversion, control, and feedback subsystems; its role as an organizational function; and the three levels of strategic, operating, and control decision making.
Production involves transforming inputs into outputs to satisfy human wants. Operations management refers to planning, coordinating, and controlling activities related to input-output conversion across manufacturing and service industries. Production management focuses specifically on manufacturing and involves planning, organizing, directing, and controlling production functions and decisions. Key aspects of production include its systemic nature with conversion, control, and feedback subsystems; its role as an organizational function; and the three levels of strategic, operating, and control decision making.
Production involves transforming inputs into outputs to satisfy human wants. Operations management refers to planning, coordinating, and controlling activities related to input-output conversion across manufacturing and service industries. Production management focuses specifically on manufacturing and involves planning, organizing, directing, and controlling production functions and decisions. Key aspects of production include its systemic nature with conversion, control, and feedback subsystems; its role as an organizational function; and the three levels of strategic, operating, and control decision making.
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Meaning of Production
Production is the process of transforming inputs into a
specified set of outputs. Producing something useful with the object os satisfying human wants. Operations management refers to the planning, coordination and control of all the activities concerned with the conversion of input into output. It also covers services like banks, hospitals, hotels etc Production management implies planning organizing directing & controlling the activities of the production function. Decisions related to the production function. It covers only manufacturing. Nature of production • In three ways: 1.Production as a system 2.Production as an organizational function 3.Decision making in production 1.Production as a system • 1.production system • 2. Conversion subsystem – a subsystem of larger production system where inputs converted into outputs • 3.Control subsystem – a subsystem of larger production system where a portion of output is monitored for feedback to provide corrective action 2.Production as an organizational function • It is at the heart of production function 3. Decision Making in POM 1. Strategic Decisions 2. Operating Decisions 3.Control Decisions SD*****These decisions are of strategic importance and have long-term significance for the organization. Examples include deciding: the design for a new product’s production process where to locate a new factory OD*****These decisions are necessary if the ongoing production of goods and services is to satisfy market demands and provide profits. Examples include deciding: the amount of overtime to use next week the details for purchasing raw material next month CD*****These decisions concern the day-to-day activities of workers, quality of products and services, production and overhead costs, and machine maintenance. Examples include deciding: labor cost standards for a new product ? new quality control acceptance criteria Components of production system Input • Inputs include facilities, labor, capital, equipment, raw materials, and supplies. Transform/conversion The part of the system that adds value to the inputs. Four major ways – Alter – physical change – Transport - relocate – Store - protect – Inspect – better understanding Output Two types of outputs commonly result from a production system – Services – Products
Storage – Transportation & information
Nature of Operations Management 1. Transformational process 2. Results into value addition 3. A System itself (complete step wise process) 4. Interrelationship among the system 5. Carried out in part of organization 6. Exists for certain objective 7. Specialization of function 8. Strategy Formulation 9. Increase in Productivity Importance of Operations Management (To improve Satisfaction, efficiency, effectiveness) • 1. Benefits to organization • More effective utilization of human & material resources • Better responsive to customer needs • Lower levels of work in process inventory, reduce cost & increase revenue
• 2. Consumers will be benefited
• 3. Investors • 4. Employee • 5. Suppliers • 6. Community • 7. Nation Chapter 1: The Nature of Operations 9 Recent trends in Production/operations management Importance of International Business 1. Global market place 2. Production/operations strategy 3. TQM 4. Flexibility 5. Time reduction 6. Technology 7. Work involvement 8. Re engineering 9. Environmental issues 10. Corporate downsizing 11. SCM 12. Lean production
