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Introduction To Production and Operations Management

Production and operations management (POM) involves transforming operational inputs into outputs that meet customer needs through a conversion process. POM incorporates tasks related to five main areas: product, plant, processes, programmes, and people. It ensures a business makes the required products according to plan by considering factors such as performance, quality, production costs, delivery dates, future demand, equipment and facility design, available capacity, production costs, purchasing and transportation patterns, wages, safety, training, and work conditions.

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Piyush Sharma
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410 views

Introduction To Production and Operations Management

Production and operations management (POM) involves transforming operational inputs into outputs that meet customer needs through a conversion process. POM incorporates tasks related to five main areas: product, plant, processes, programmes, and people. It ensures a business makes the required products according to plan by considering factors such as performance, quality, production costs, delivery dates, future demand, equipment and facility design, available capacity, production costs, purchasing and transportation patterns, wages, safety, training, and work conditions.

Uploaded by

Piyush Sharma
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Introduction to production and operations

management

Definition
Production and Operations Management ("POM") is about the
transIormation oI production and operational inputs into "outputs" that,
when distributed, meet the needs oI customers.

The process in the above diagram is oIten reIerred to as the
"Conversion Process". There are several diIIerent methods oI handling
the conversion or production process - 1ob, Batch, Flow and Group
POM incorporates many tasks that are interdependent, but which can be
grouped under Iive main headings:
PRODUCT
Marketers in a business must ensure that a business sells products that
meet customer needs and wants. The role oI Production and Operations
is to ensure that the business actually makes the required products in
accordance with the plan. The role oI PRODUCT in POM thereIore
concerns areas such as:

- PerIormance
- Aesthetics
- Quality
- Reliability
- Quantity
- Production costs
- Delivery dates
PLANT
To make PRODUCT, PLANT oI some kind is needed. This will
comprise the bulk oI the Iixed assets oI the business. In determining
which PLANT to use, management must consider areas such as:
- Future demand (volume, timing)
- Design and layout oI Iactory, equipment, oIIices
- Productivity and reliability oI equipment
- Need Ior (and costs oI) maintenance
- Heath and saIety (particularly the operation oI equipment)
- Environmental issues (e.g. creation oI waste products)
PROCESSES
There are many diIIerent ways oI producing a product. Management
must choose the best process, or series oI processes. They will consider:
- Available capacity
- Available skills
- Type oI production
- Layout oI plant and equipment
- SaIety
- Production costs
- Maintenance requirements
PROGRAMMES
The production PROGRAMME concerns the dates and times oI the
products that are to be produced and supplied to customers. The
decisions made about programme will be inIluenced by Iactors such as:
- Purchasing patterns (e.g. lead time)
- Cash Ilow
- Need Ior / availability oI storage
- Transportation
PEOPLE
Production depends on PEOPLE, whose skills, experience and
motivation vary. Key people-related decisions will consider the
Iollowing areas:
- Wages and salaries
- SaIety and training
- Work conditions
- Leadership and motivation
- Unionisation
- Communication

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