INTRODUCTIO

N OF
PRODUCTION
AND
OPERATION
MANAGEMENT
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
 O P E R AT I O N
MAN A G E M E N T
TOPICS
The differences between production
and Operation
 EVOLUTION OF PRODUCTION AND
OPERATIONS MANAGEMENT

For over two century’s He recommended

operations and production breaking of jobs down
management has been into subtasks and
recognized as an recognizes workers to
important factor in a specialized tasks in
country’s economic which they would
growth. The traditional become highly skilled
view of manufacturing and efficient. In the
management began in
early twentieth
eighteenth century when
century, F.W. Taylor
Adam Smith recognized
implemented Smith’s
Table 1.2 Historical summary of operational managemenT
 PRODUCTION
CONCEPT Some examples of
production are:
Production is defined
manufacturing
as “the step-by-step Edwood Buffa custom-made
conversion of one defines products like,boilers
form ofmaterial into with a specific
production as „a
another form through capacity, constructing
chemical or process by which flats, some structural
mechanical process to goods and fabricationworks for
createor enhance the selected customers,
servicesare etc., and
utility of the product
created‟. manufacturing
to the user.”
standardized
productslike, car, bus,
 PRODUCTION
The production system of an organization is that part, which
produces products of an SYSTEM
organization.
It is that activity where by resources, flowing within a defined
system, are combined and transformed in a controlled manner to
• Production is an • It does not operate
add value in accordance with the policies communicated by
organized activity,
management. in isolation from the
so every
other organization
production system
system
has an objective.
• The system
• There exists feedback
transforms the
about the activities,
various inputs to
which is essential to
useful outputs.
control and improve
system performance.
 PRODUCTION
MANAGEMENT
E.S. Buffa defines production management
as, “Productionmanagement deals with
decision making related to production
processes sothat the resulting goods or
services are produced according to
specifications,in the amount and by the
 OBJECTIVES OF
PRODUCTION
MANAGEMENT
The objective of the • Right Quality
production management • Right Quantity
is to produce goods • Right Time
services of right quality • Right Manufacturing
and quantity at the right Cost
time and right
manufacturing cost‟
 OPERATING
Operating system convertsSYSTEM
inputs in order to provide outputs which
are required by a customer. It converts physical resources into
outputs, the function of which is to satisfy customer wants i.e., to
provide some utility for the customer.

CONCEPT OF
OPERATION
An operation is defined in terms of the mission it serves for the
organization, technology it employs and the human and managerial
processes it involves. Operations in an organization can be
categorized into manufacturing operations and service operations.
DISTRIBUTION BETWEEN MANUFACTURING
OPERATIONS
AND SERVICE OPERATIONS

1. Tangible/Intangible nature of output

2. Consumption of output
3. Nature of work (job)
4. Degree of customer contact
5. Customer participation in
conversion
6. Measurement of performance.
 ELEMENTS OF PRODUCTION MANAGEMENT
AND
OPERATION MANAGEMENT
PLANNING - An activity that establishes a course of action and guide
future decision-making is planning.

ORGANIZING - Activities that establish a structure of tasks and

authority.

CONTROLLING - Activities that assure the actual performance in

accordance with planned performance.

BEHAVIOUR - Operation manager are concerned with how their efforts

to plan, organize, and control affect human behavior, they also want to
know how the behavior of subordinates can affect management
 OBJECTIVE OF OPERATION
MANAGEMENT
Objectives of operations
management can be categorized
into customer service and
resource utilization.

CUSTOMER SERVICE
The first objective of operating systems is the customer service to
the satisfaction of customer wants. Therefore, customer service is
a key objective of operations management. The operating system
must provide something to a specification which can satisfy the
 SCOPE OF PRODUCTION AND OPERATIONS
MANAGEMENT
Production and operations management concern with the
conversion of inputs into outputs, using physical
resources, so as to provide the desired utilities to the
customer while meeting the other organizational
objectives of effectiveness, efficiency and adoptability.
1. Location of facilities 5. Production and
2. Plant layouts and planning control
material handling 6. Quality control
3. Product design 7. Materials
4. Process design management
8. Maintenance
 LOCATION OF FACILITIES

Location of facilities for operations is a long-term capacity

decision which involves a long-term commitment about the
geographically static factors that affect a business
organization. It is an important strategic level decision-
making for an organization.

PLANT LAYOUT AND MATERIAL

HANDLING
Plant layout refers to the physical arrangement of facilities. It is
the configuration of departments, work centers and equipment in
the conversion process. The overall objective of the plant layout is
to design a physical arrangement that meets the required output
 PRODUCT DESIGN

Product design deals with conversion of ideas into reality.

Every business organization has to design, develop and
introduce new products as a survival and growth strategy.
Developing the new products and launching them in the
market is the biggest challenge faced by the organizations

PROCESS DESIGN
Process design is a macroscopic decision-making of an overall
process route for converting the raw material into finished goods.
These decisions encompass the selection of a process, choice of
technology, process flow analysis and layout of the facilities
 PRODUCTION PLANNING AND CONTROL
Production planning and control can be defined as the
process of planning the production in advance, setting
the exact route of each item, fixing the starting and
finishing dates for each item, to give production orders to
shops and to follow up the progress of products according
to orders.
1. Planning
2. Routing
3. Scheduling
4. Dispatching
 Quality Material Maintenance
Control
Quality Control (QC) Management
Materials Management
In modern industry,
may be defined as a management is that equipment and
system that is used to
aspect of machinery are a
maintain a desired level
management very important part
of quality in a product
function which is of the total
or service‟. It is a
systematic control of primarily concerned productive effort.
various factors that with the acquisition, Therefore, their
affect the quality of the control and use of idleness or
product. Quality control materials needed and downtime becomes
aims at prevention of flow of goods and are very expensive.
defects at the source, services connected Hence, it is very
relies on effective
 SCOPE OF PRODUCTION AND OPERATION
MGT.
Commencing w/ the selection of location production mgt.
covers such activities as acquisition of land, construction
building, procuring, and installing machinery, purchasing
and sorting raw materials and converting them into
SIX saleable products
HISTORICAL DEVELOPMENTS:

• The industrial • Operation Research

Revolution • Computers and advanced
• Scientific management production technology
• Human Relation • Service Revolution
Movement
 STRATEGIES OF OPERATION
MANAGEMENT
1. Design of goods and services
2. Quality
3. Design Process and capacity
4. Site selection
5. Design layout
6. Human resource (HR) and design work
7. Supply chain mgt
8. Inventory
9. Scheduling
10. Maintenance.
FACTORS OF
PRODUCTION
THANK YOU!