Scribd
Upload
83 views

Topic 1 - Introduction of Production and Operation Management

Production and operations management is concerned with transforming inputs into outputs of value through production processes in a controlled manner according to organizational policies. It has evolved over time from manufacturing management to modern operations management approaches. Key contributors and developments include division of labor by Adam Smith, interchangeable parts by Eli Whitney, scientific management by Frederick Taylor, human relations studies by Elton Mayo, quality control methods, operations research applications, and computerized systems. The objectives of production and operations management are to produce quality products in the required quantities on schedule and at lowest cost through efficient use of resources, processes, people, and integration with other functional areas.

Uploaded by

Tanisha Saraf
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
83 views

Topic 1 - Introduction of Production and Operation Management

Production and operations management is concerned with transforming inputs into outputs of value through production processes in a controlled manner according to organizational policies. It has evolved over time from manufacturing management to modern operations management approaches. Key contributors and developments include division of labor by Adam Smith, interchangeable parts by Eli Whitney, scientific management by Frederick Taylor, human relations studies by Elton Mayo, quality control methods, operations research applications, and computerized systems. The objectives of production and operations management are to produce quality products in the required quantities on schedule and at lowest cost through efficient use of resources, processes, people, and integration with other functional areas.

Uploaded by

Tanisha Saraf
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 16

PRODUCTION AND OPERATION

MANAGEMENT
Introduction

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/services in a controlled manner as per the
policies of the organization. Therefore, it is that part of an
organization, which is concerned with the transformation of a
range of inputs into the required (products/services) having the
requisite quality level.
Evolution
1. Manufacturing Management (1776-1930)
• Division of Labour – Adam Smith – 1776
• Specialization of job assignment- Charges Babbage – 1832
• Time and Motion Study – F. W. Taylor - 1900
2. Production management (1930- 1950)
• Inventory Control – F. W. Harris
• Human Relation – Elton Mayor
• SQC- Statistical Quality Control - Walter
3. Production / Operation Management (1950- 1970)
• Operation Research
• Application Mathematical
• Digital Computer
4. Operation Management (1970- onwards)
• Scheduling, Control
• MRP- Material Requirement Planning
• Material Management waste control
• JIT- Just in Time
Historical Evolution of Production and Operations
Management
Date Contribution Contributor
1776 Specialization of labour in manufacturing Adam Smith
1799 Interchangeable parts, cost accounting Eli Whitney and others
1832 Division of labour by skill; assignment of Charles Babbage
jobs by skill; basics of time study
1900 Scientific management time study and Frederick W. Taylor
work study developed; dividing planning
and doing of work
1900 Motion of study of jobs Frank B. Gilbreth
1901 Scheduling techniques for Henry L. Gantt
employees, machines jobs in
manufacturing
1915 Economic lot sizes for inventory control F. W. Harris
Date Contribution Contributor
1927 Human relations; the Hawthorne studies Elton Mayo
1931 Statistical inference applied to W. A. Shewart
product quality: quality control
charts
1935 Statistical sampling applied to quality H. F. Dodge and
control: inspection sampling plans H. G. Roming
1940 Operations research applications in P. M. Blacker and
World War II Others.
1946 Digital Computer John Mauchlly and
J. P. Eckert
1947 Linear Programming G. B. Dantzig, William
& others.
1950 Mathematical programming, on-linear A. Charnes, W. W.
and stochastic processes Cooper & others
1951 Commercial digital computer: large-scale Sperry Univac
computations available.
Date Contribution Contributor
1960 Organizational behaviour: continued study L. Cummings, L. Porter
of people at work
1970 Integrating operations into overall W. Skinner J. Orlicky
strategy and policy, Computer and G. Wright
applications to manufacturing,
Scheduling and control, Material
requirement planning (MRP)
1980 Quality and productivity applications from W. E. Deming and
Japan: robotics, CAD-CAM J. Juran
Production System

The production system is that activity whereby resources, flowing within


a defined system, are combined and transformed in a controlled manner to add
value in accordance with the policies communicated by management.
Types of Production systems
Production Management
E.S. Buffa defines production management as, “Production management
deals with decision making related to production processes so that the resulting
goods or services are produced according to specifications, in the amount and
by the schedule demanded and out of minimum cost.” Production and
operation management

Objectives of Production Management

The objective of the production management is ‘to produce goods services


of right quality and quantity at the right time and right manufacturing cost’.
1. Right Quality
2. Right Quantity
3. Right Time
4. Right Manufacturing Cost
5 P’s of Production Management
5 P’s of Production Management are:
1. Product
2. Plant
3. Programme,
4. Processes
5. People
Operations Management
A Framework for Managing Operations
1. Planning
2. Organising
3. Controlling
4. Behaviour

Objectives of Operation Management


1. Customer Service
2. Resource Utilisation
Scope of Production and Operations
Management
Objectives of Production and Operations
Management

•To attain maximum output with lowest cost.


•To control pollution and wastage.
•To ensure optimum capacity and resources utilization .
•To ensure quality of products.
•To suggest changes in machinery and equipment.
•To ensure timely delivery of output.
•To maintain inventory.
Inputs: Transformation Process: Outputs:

• Men • Product
• Materials • Product Design • Services
• Machines • Product Planning
• Information • Production Control
• Capital • Maintenance

Continuous:
• Inventory
• Quality
• Cost

Environment Feedback Information


Relationship with other functional areas

Operation Manager:
• Planning
• Direction
• Coordination
• Resources

Production Manager:
• Accountants
• Financial Manager
• Marketing Manager
• Human Resource Manager
THANK YOU

You might also like