pom 1 introduation to pom

7/31/2019 POM 1 Introduation to POM

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Production: Basic activity for all industrial unitProduction:- process by which raw material & otherinputs are converted into finished productsProduction = ManufacturingProduction refers process of producing onlytangible goodsMfg. refers process of producing both tangible &intangible G&S ( Goods & services)

Operations mgmt.:-A system where inputs aretransferred into intangible services. It is of Recentorigin.


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Production and operations management(POM) is the management of an organizationsproduction system.

A production system takes inputs and converts

them into outputs. The conversion process is the predominant

activity of a production system.

The primary concern of an operations manageris the activities of the conversion process.


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Production management is the process ofplanning, organizing, directing andcontrolling the activities of the production

function. Production function is theconversion of raw- materials into finishedproducts.


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Production management is concerned with thoseprocesses which convert the inputs into outputs.The inputs are various resources like raw-

materials, men, machines, methods etc. and theoutputs are goods and services.

H.A. HARDING


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Production as a System

Production as an OrganizationFunction

Decision Making in POM


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Inputs Outputs

Conversion

Subsystem

Production System

Control

Subsystem


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External

Legal, Economic, Social, Technological

Market

Competition, Customer Desires, ProductInfo.

Primary Resources

Materials, Personnel, Capital, Utilities


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Physical (Manufacturing/ mining) Locational Services (Transportation)

Exchange Services (Retailing)

Storage Services (Warehousing) Other Private Services (Insurance,

Finance, Utilities, Real Estate, Health

etc.) Government Services (State, Local)


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Direct

Products

Services

IndirectWaste

Pollution

Technological Advances


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Companies cannot compete using marketing,finance, accounting, and engineering alone.

We focus on POM as we think of global

competitiveness, because that is where the vastmajority of a firms workers, capital assets, andexpenses reside.

To succeed, a firm must have a strong

operations function teaming with the otherorganization functions.


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POM

Marketing

MISEngineering

HRM

QA

Accounting

SalesFinance


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Facilities

Production &

Inventory ontrol

Quality Assurance

& Control

Procurement

Engineering Design

Industrial Engineering

Process Engineering

Operations

Disbursements

& Credits

Funds Management

Capital Requirements

Finance/Accounting

Sales Promotion

Advertising

Sales

Market Research

Marketing

Manufacturing Organization


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The Industrial Revolution

Post-Civil War Period

Scientific Management

Human Relations and Behaviorism Operations Research

The Service Revolution


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The industrial revolution developed in England

in the 1700s. The steam engine, invented by James Watt in

1764, largely replaced human and water power

for factories.Adam Smiths The Wealth of Nations in 1776

touted the economic benefits of thespecialization of labor.

Thus the late-1700s factories had not onlymachine power but also ways of planning andcontrolling the tasks of workers.


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The industrial revolution spread from England

to other European countries and to the UnitedSates.

In the 1800s the development of the gasolineengine and electricity further advanced the

revolution. By the mid-1800s, the old cottage system of

production had been replaced by the factorysystem.


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During the post-Civil War period great

expansion of production capacity occurred.

By post-Civil War the following developmentsset the stage for the great production explosion

of the 20th century: increased capital and production capacity

the expanded urban workforce

an effective transportation system


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Frederick Taylor is known as the father of scientificmanagement. His shop system employed these steps:

Each workers skill, strength, and learning abilitywere determined.

Stopwatch studies were conducted to precisely setstandard output per worker on each task.

Material specifications, work methods, and routingsequences were used to organize the shop.

Supervisors were carefully selected and trained.

Incentive pay systems were initiated.


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Human relations refers to the ways in whichmanagers interact with their employees

In the 1927-1932 period, researchers in theHawthorne Studies realized that human factorswere affecting production.

Researchers and managers alike were

recognizing that psychological and sociologicalfactors affected production.


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Quantitative decision making technique

Computers are used extensively

During World War, enormous quantities of

resources (personnel, supplies, equipment, ) hadto be deployed.

Military operations research (OR) teams wereformed to deal with the complexity of thedeployment.


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After the war, operations researchers found theirway back to universities, industry, government,and consulting firms.

OR helps operations managers make decisionswhen problems are complex and wrong decisionsare costly.


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The creation of services organizations acceleratedin 20th century.

About 49.9% GDP is from services in 2005

Investment per office worker now exceeds the

investment per factory worker. Thus there is a growing need for service operations

management.


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Global Competition

Quality, Customer Service, and Cost Challenges

Computers and Advanced Production Technology

Growth of Service Sector Scarcity of Production Resources

Corporate Social Responsibility

pom 1 introduation to pom

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