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Introduction To Production and Operations Management: S. Ajit

1. Production and operations management involves the design, operation, and improvement of processes that convert inputs into outputs of products and services. 2. Key aspects of operations management include forecasting, production planning and control, quality control, and maintenance management. 3. Recent trends in operations management focus on using advanced technologies like computer-aided design/manufacturing and supply chain management to improve efficiency, quality, and customer service while reducing costs.

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Ajit Sam
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3K views

Introduction To Production and Operations Management: S. Ajit

1. Production and operations management involves the design, operation, and improvement of processes that convert inputs into outputs of products and services. 2. Key aspects of operations management include forecasting, production planning and control, quality control, and maintenance management. 3. Recent trends in operations management focus on using advanced technologies like computer-aided design/manufacturing and supply chain management to improve efficiency, quality, and customer service while reducing costs.

Uploaded by

Ajit Sam
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Introduction to Production and Operations

Management

S. Ajit
Definition

The design, operation and improvement of


the transformation process, which
converts the various inputs into the
desired outputs of products and services.

S. Ajit
Transformation Process

Quality of inputs Random Quality of outputs


monitored disturbances monitored

Input Transformation Process Output

Feedback mechanism

S. Ajit
Transformation Process

• For pure services – An MBA institution


• For pure manufacturing – Automobile
• For hybrid – A restaurant
Functional Subsystems

Marketing

Operations

HR Finance
Operations Function
Forecast Location & Layout

Product design & Analysis, work Study


Output
Input
Aggregate Production Control
Material
Planning Scheduling Product/
Labour
MRP Service
Equipment
Master Line Balancing
Capital
Production Capacity Planning
Schedule

Maintenance Management

Inventory Control Quality Control


Types of Production System

1. Basis – Type of Output

1. Products [features, reliability, durability]


* TV, Radio, Lathe

2. Services [ accessibility, timeliness, consistency]


* Transport, Health, Entertainment
Types of Production System

2. Basis – Type of Flow


1. Projects [one of a kind product/service]
* Construction of bridge etc
2. Job shop [ units of different types of products follow
different sequence thro’ different shops]
* Hospital, Auto repair
3. Flow Shop [ successive units undergo same sequence]
* TV factory, Automobile
4. Continuous process [ no way to identify successive
components]
* Postal service, Oil refinery
Types of Production System

3. Basis – Type of Specification

1. Customized
* Medical care, Legal service

2. Standardized
* Insurance, Supermarket
Recent Trends in Operations Management

• Long term success


– Investment in technology
• Improves efficiency and productivity
• Competitive Advantage
• Cost Advantage

• Manufacturing-focussed to Customer-focussed
Recent Trends in Operations Management
• Computer Aided Design
• Computer Aided Manufacturing
• Flexible Manufacturing System
• Computer Integrated Manufacturing
• Artificial Intelligence
• Electronic Data Interchange
• Business process Reengineering
• Supply Chain Management
• ISO standards
Computer Aided Design
Computer systems assist in the creation, modification, analysis
and optimization of a design

Computer Aided Manufacturing


Computers are used either directly to control the processing
equipment, or indirectly to support manufacturing operations
Flexible Manufacturing System

* Form of flexible automation in which several machine tools


are linked to the materials handling system

* Operate depending on the instructions received from the


computer with respect to the sequence and operational
specifications of the process
Computer Integrated Manufacturing

* A computer application that connects various computerized


systems into a single multi-functional system

* A Central computer controls all aspects of the system


Artificial Intelligence
* Enables computers to exhibit some of the characteristics of
human intelligence, like the capacity for understanding,
problem solving etc

Electronic Data Interchange


* Structured transmission of data between organizations by
electronic means
* Used to transfer electronic documents from one computer
system to another
Supply Chain Management
* Design, planning, execution, control, and monitoring of the
movement and storage of raw materials, work-in-process
inventory, and finished goods from point of origin to point of
consumption

Business Process Reengineering

ISO standards
Factors affecting Operations Management Today

1. Reality of global competition


2. Quality, customer service, & cost challenges
3. Rapid expansion of advanced technologies
4. Continued growth of the service sector
5. Scarcity of operations resources
6. Social-responsibility issues
Factors affecting Operations Management Today

1. Reality of global competition


– Changing nature of world business
• Spending power
• Communication
• Trade policies (Free Trade Agreements)
– International companies
– Fluctuation of international financial conditions
Factors affecting Operations Management Today

2. Quality, customer service, & cost challenges

– Perfect product & service quality (US vs Japan cars)


– Outsource
• Cheap labour, raw materials
Factors affecting Operations Management Today

3. Rapid expansion of advanced technologies

– Initial cost
– Product/service quality
– Scrap & materials cost
– Faster response to customers
– Faster introduction of new products
Factors affecting Operations Management Today

4. Continued growth of the service sector


– Service company exist coz manufacturing sector
buys their services

5. Scarcity of operations resources


– Scarcity of funds, employees, raw materials, like
titanium, coal, petroleum products, water
Factors affecting Operations Management Today

6. Social-responsibility issues
– Consumer attitude
– Government regulation
– Self-interest [Infosys]
Factors affecting Operations Management Today

6. Social-responsibility issues
6a. Environmental Impact
a. Ozone layer depletion, rain forest depletion
b. Global warming & acid rain
c. Radioactive waste disposal
d. Pollution
e. Energy conservation
f. Recycling
Factors affecting Operations Management Today

6. Social-responsibility issues
6b. Safety Impact
a. Product safety [Nokia mobile battery, Lenovo,
bridgestone]
6c. Employee Impact
a. Fair treatment of employees
b. Employee safety & health programs
c. No discrimination [age, sex, color, race etc.]
d. Benefit programs
Developing Operations Strategy
Corporate Mission

Assessment of global Distinctive


Business Strategy
business conditions competencies

Product/ service
plans

Competitive
Priorities

Operations Strategy
Competitive Priorities
• That customers want form product/service
• Tool to capture market share
• All of these cannot be used for a single product

Competitive Definition Ways of Creating


Priority
Low Unit cost of Redesign of Product/service
Production product/service
Cost including labour, New Technology
material
Increase in Production volume

Reduction of scrap

Reduction of inventory
Competitive Priorities

Competitive Definition Ways of Creating


Priority
Delivery Fast delivery Larger finished goods inventory
Performance
Faster Production rates

Quicker shipping method

On-time More realistic promises


delivery
Better information systems

Control of production orders


Competitive Priorities

Competitive Definition Ways of Creating


Priority
High quality Customer Improve Appearance
products / perception of
services degree of Malfunction or defect rate
excellence
After sales service

Customer Ability to quickly Use of advanced technology


service & change, customer
flexibility responsiveness Increase in capacity

Lean manufacturing

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