Production and

operations Mgt.
 INTRODUCTION:- Production
 Production :-
Prod’n is the foundation on which every
organization is built. Prod’n and mkt’g of goods
and services are the fundamental objectives of
an organization.
It is the fabrication of a physical object through the
use of men, material and equipment
“Production is some act of transformation, i.e.
inputs are processed and transformed into some
o/p. The main inputs are information, mgt ,
Material, land, Labour, technology and capital.
 Prod’n Process System
 INPUT Process Output
Information
Organization Transformation
Transformation

Goods &
Services
Management
Technology etc.
Objectives of Prod’n Process are:-
 Optimum use of resources at optimum
cost.
 Manufacture of the desired quality and
quantity of goods and services.
 Operation Mgt.
 Operation is a process of changing inputs
into output with the creation or adding
value to some entity.
 Operations mgt. is design, operation and
improvement of the prod’n system that
creates the firms primary product/services.
 Project Mgt.
 Project is only a one time set of activities that has
definite beginning and ending points in time. It is
some unique entity that occurs just once having a
significant and specific period of time to perform
and is directed towards some major output.

 A project starts with statement of work to be carried

out. This underlines the objectives to be achieved,
work to be done and proposed schedule specifying
the start and finish dates. The project is further sub-
divided into a number of tasks and sub tasks to be
performed/carried out.
 Activities of Prod’n mgt.
1. Specification and procurement of input
resources namely mgt., material and land,
Labour, equipment and capital.
2. Product design and development to determine
the production process for transforming the
input factors into output of goods and services.
3. Supervision and control of transformation
process for efficient prod’n of goods and
services.
 Series of Prod’n Mgt.
 1776-1930 == Manufacturing Mgt.
Emphasis was on scientific mgt. dealing with
benefits of specialization involving division of
labour.
 1930-1950 == Production management
Emphasis on technique of economic efficiency in
mfg eliminating wasteful effort .
 1950-1970 == Production/operation
management.
 1790 onwards== Operations
management
Systems model approach.
 Product Design and Development
“Designing is essential before the actual
transformation of raw materials into finished
goods”
 Design is the conversion of the knowledge
and requirement into a form, convenient
and suitable for use or manufacture.
 Product design deals with its FORM and
FUNCTIONS
FORM implies the shape and appearance of
the product
FUNCTION implies the working of the
product.
 Design
 Design means determination of shape,
standard and pattern of the product. Due
consideration should be given to the
functional aspect of the product otherwise
it will not be acceptable to the user.
 Responsibility of designing a
product
 Generally there is technical department in an
org. to design the product. The deptt. includes
representatives from sales, purchase, engg. And
prod’n and finance deptt. of the enterprise.
These experts discuss about the market of the
new product, size and shape, process to
manufacture, its functions and its performance in
comparison to other design namely :-
 Functional, esthetic, prod’n and packing
 If the product is found to be feasible, then the
pictures drawings and mockups of the product
are made.
 Design and prod’n costs
 A top quality product but with high price may not be
acceptable to the consumer. The price is an important
consideration for designing some product. Some
compromise should be attained b/w the cost of prod’n
and the quality of the product. Once the preliminary
design of the product is ready, the design engineer shd.
Constantly Endeavour for improvements such that cost
of prod’n is minimized.
 The cost of production can be reduced by means of
simplification, standardizations, specialization and
diversification. Standardized components can be
economically purchased from specialized firms. This will
lead to reduction in cost.
Factors determining the design of a
product
 Customer’s requirements and psychological effects

 Facility to operators:- The designer must see that an

operator is provided with all possible comforts and
facilities in handling the operations involved in product
design. A complicated design may involve certain
operations which the operator may not be able to
perform efficiently or the nature of operations may be
such that the operator is tired off soon and is able to
produce less. Thus machines and tools to perform the
operations prescribed in the design must be convenient
and comfortable to handle.
 Functionality:- The design should be such that the
product is functionally sound. It should be able to
perform the functions, for which it is made, to the
complete satisfaction of the consumer. There should be
proper co-ordination I its appearance and service to the
consumer.
 Material requirements:-The designer should have up to
date information about new materials available to make
the desired product
 Work methods and equipment:-The designer must be
aware of innovations for improving the work methods
and nature of the equipment. the product design should
be such that there is sufficient adoptability and scope for
improvement in work methods and type of equipment
required for the operations involved in production
process.
Characteristics of a good design
1. Repairability
2. Modular design:- the product shd. Be
composed of detachable components or
sub-assemblies so that whenever any
part or component fails that part is
replaced by a new one.
3. Redesigning Capability
4. Miniaturization:-
“If your product is of room size make it desk size, if it is of
desk size, make it portable. When you cannot shrink
anymore, pack twice as much power into it”. Means
make it smaller and lighter in weight.
5. Wiring and Tubing
6. Design by computers
7. Drawings and specifications:- The drawings of the design
should be explicit in exact size and shape of the
product, its parts and subcomponents.
8. Warranties:-
9. Reliability:-It is the probability of no major failure of the
product during use.
10. Maintainability:- The after sale service feedback is quite
valuable in improving upon the reparability and the
maintainability of a product.
 Product Development
 Development is the work contributing
towards improvement in the existing
knowledge by way of improved ideas,
systems, techniques etc.
 Development is necessary to fulfill old and
new wants as well as to adjust with
changes in the consumer’s demand or
with an object to achieve greater prod’n
efficiency and more profits.
Categories of product development
 Introduction of new products:-There shd. Be
sufficient market research activities and
development work before introducing any
product in the mkt. It is essential because the
chances of any new product may fail in the
mkt. are very high .
 Improvement of existing products:- Change is
the nature of law like refrigerator or cars etc..
Stages of product development
 Fundamental relationship b/w cause and effect involved
in the mfg process of the designed product as well as the
basic technology reqd. in the systems shd. Be
established by conducting fundamental research.
 Suitable ways and means are then devised to translate
the technology and relationship b/w cause and effects
into practice
 Experimental work is carried on to develop desirable
prod’n system.
 The formulated design, quality, performance and the
marketability of the planned products is thoroughly
tested and tries to locate shortcomings if any and then to
suggest appropriate improvements if any
 Product Engg. Techniques are used to find
improvements possibilities in the existing product
 Necessity of product development
There are 2 main objectives for this:-
 Immediate
me objective;- it is immediate
satisfaction of consumers want, utilization of
available resources and to explore for further
improvements in the product design and its
utility.
 Ultimate objective:- These are of permanent
nature and implies generation of consumers
confidence in the product on long term basis
so as to capture the market.
 Tools for product development
 Standardization:-This means fixing of some
appropriate size, shape, quality, mfr’g process, weight
and other characteristics as standards to mfr a product
of desired variety and utility eg. Mfr of television sets of
stds size of the screen using std components and
technology.
 Simplification:- Simplification in an enterprise connotes
the elimination of excessive and undesirable or
marginal lines of product to hammer out waste and to
attain economy couple with the main object of
improving quality and reducing costs and prices
leading to increased sales.
In prod’n, simplification can be done at two places for
product and for work .
3. Specialization:- It implies reduction in the variety of
products mfr’d by the org. It implies expertise in some
particular area or field. It is experienced that as the
companies expand the range of their products, mfr’g
system, involves more and operations of transforming
inputs into output. This often result an increase in costs
and decline in profits. The problem can be solved by
identifying the products contributing to losses and then
eliminating their prod’n. This will lead to confine the
prod’n of profitable items only and consequently a
reduction in number of operations required in the
process. The minimization of operations can lead to use
of expert knowledge, skill and techniques in prod’n
system.
4. Diversification:- It implies policy of producing different
types of products by an enterprise. Thus it is reverse of
simplification. The establishments facing tough
competition are forced to diversify their activities to
capture the mkt. It can be adopted for the purpose of
(a) Utilization of idle/surplus resources (b) Stabilization of
sales © To cope with the demand fluctuations and for
survival of the org.