pom session 1

7/31/2019 POM Session 1

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Production and Operations

Management (POM)

Session 1: An overview


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AGENDA

Operations Management

Goods versus Services

Role of an operations manager

Operations: Evolution & New trends

Production Management


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PRODUCTION MANAGEMENT


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Definitions Managementwhich by scientific planning and regulation sets into motion the

part of an enterprise to which it has been entrusted the task of actual

transformation of inputs into output

Production Management is the process of effectively planning and regulating

the operations of that part of an enterprise which is responsible for the actual

transformation of materials into finishedproducts.

Production management actually deals with decision making related to

production processes, so that the resulting goods and services are produced in

accordance with the quantitative specifications and demand schedule withminimum cost.


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All the processes which go into the making of production.

Managing factors of production

Work of planning and control

Capacity, location and layout planning

Productivity Management: greatest output from the least inputs

Effective utilization of resources


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GOODS VERSUS SERVICES


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Goods vs Services

Production of goods results in a tangible output

Food grains , laptop, projectors etc.

Delivery of services implies an act.

Health care services, teaching etc.


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Goods Service

Surgery, teaching

Song writing, software development

Computer repair, restaurant meal

Retail sales

Automobile repair, fast food

Automobile assembly, steelmaking


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OPERATIONS MANAGEMENT


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Operations Management

Definition:

Operations management is management of systems orprocesses that creates goods and/or provide services.

InputsRaw material

Labour

Transformation

process

OutputsGoods

Services

Control

Value- added

Feedback Feedback

Feedback


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Scope of operations management

Example: Airline Industry

Forecasting

Weather and landing condition, seat demand

Capacity planning

How many plane required?? Correct number at correctplace

Scheduling

Maintenance, scheduling of pilots, flight attendants

Managing inventories

Food items and beverages, in-flight magazines etc.

Assuring quality

Safety, dealing with customers

Motivating and training employees


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Why study Operations Management

Organization

Finance Operations Marketing


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Operations

FinanceMarketing


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Relation with Finance

Budgeting

Economic analysis of investment proposals

Provision of funds

Relation with marketing

Demand forecasting over short term

Information sharing about change in customer needs

and preferences



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Operations

Legal

Public

relations

MISAccounting

Human

resource

management


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ROLE OF AN OPERATIONS

MANAGER???


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OPERATIONS: EVOLUTION & NEW TRENDS


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Evolution

Craft production (Before Industrial revolution) Highly skilled workers use simple, flexible tools to

produce small quantities of customized goods

Mass Production:

Low skilled workers use specialized machinery to

produce high volume of standardized products

Interchangeable parts:

Parts of a product made to such precision that they do

not have to be custom fitted

Division of labor: The breaking of production process into small tasks, so

that each worker performs a small portion of the overall

job.


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Assembly lines

Introduced by Henry Ford

An assembly line is a manufacturing process in which parts are

added to a product in a sequential manner using optimally

planned logistics to create a finished product much faster than

handcrafting type methods

Importance

Employment to large number of unskilled workers

Increased productivityLower prices

Better standard of living


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New trends

Internet, e-commerce, e-business

Management of technology: the application of scientific

discoveries to the development and improvement of goods

and services

Outsourcing: Obtaining a product or service from outside

the organization Agility: The ability of an organization to respond quickly to

demands or opportunities

Lean production: producing high quality goods with some

variations using minimal resources.

Supply chain: a sequence of activities and organizationsinvolved in producing and delivering a good or service.

Six Sigma: A process for reducing costs, improving quality

and increasing customer satisfaction.


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pom session 1

Documents