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Production and Operations Management

Unit-1

Production Management: Definition, Nature and Scope, functions of production management, production systems, responsibilities of production managers.

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Production and Production Management


Production can simply be defined as the activity of transforming raw materials or components into finished products. Therefore production management is the process of the effective planning and control of the operations of that section of an enterprise devoted to transforming materials into finished products.
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Production Management
Definitions :
Production Management is the process of effective planning and regulating the operations of that section of an enterprise which is responsible for the actual transformation of materials into finished products. ~ E.L. Brech
Production of management may be defined as the planning, implementation and control of production activities conducted by an organizational entity with define performance objectives subject to modifications according to ambient conditions ~ Ogawa
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Nature and Scope


1. Activities Relating to Production system designing: requires technical expertise 2. Activities relating to analysis and control of activities : I. Production planning (short term production schedules,
plan for maintaining raw-materials, finished and semi-finished goods etc. )

II.
III.

Production control( control of inventories, flow of


materials and work in progress )

Quality control (through inspection and statistical quality


control)
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Relevance of Production management to other functions:


Marketing : If production fails to provide customer
satisfactory products, marketing will fail.

Finance : Production will fail in absence of working


capital necessary to turn raw material into finished goods.

Human Resource : similarly skilled manpower is


necessary to run the other functions.
Hence a coordination amongst the various subsystems is necessary for effective functioning of any organization.
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A vital function is necessary for generating money to pay employees, lenders, and stockholders. Effective production and operations management can:

lower a firms costs of production.


boost the quality of its goods and services. allow it to respond dependably to customer demands. enable it to renew itself by providing new products.

Functions of Production Management


Design and development of production process. Production and planning control Implementation of the plan and related activities to produced the desired output. Administration and co-ordination of the activities of various components and departments responsible.

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Production Systems

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Types of Production system


1. On basis of type of output:
products ( e.g consumer goods like furniture, TV, radio etc) services ( Transportation , health, banking etc )

2. On basis of type of flow:


Projects ( construction of bridge, dam, road etc ) Job shop (hospital, auto-repair, machine shop etc ) Flow shop ( High volume TV factory, auto factory etc ) continuous Process ( postal services, telephone company )

3. On the basis of type of specification under service type:


Customized (medical care, legal services ) Standardized( insurance, whole sale stores )
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Flow shop and Job shop


Flow shop :
this is a conversion process in which successive units of output undergo the same sequence of operations, using specialized equipments usually positioned along a production line.

Job shop : this is a conversion process in


which units of different types of products follow different sequences through different shops . This type of system is has more flexibility but requires more setup time, complex scheduling, varying quality etc.
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Responsibilities of Production/Operations Managers


Operations mangers must be able answer the questions at 3 different levels: 1. Strategic level (long term) : Product developmentwhat shall we make? Process and layout decisionshow shall we
make it?

Site locationwhere will we make it? Capacityhow much do we need?


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Responsibilities of Production/Operations Managers


2. Tactical Level (intermediate term):
(deals with issues relevant to efficiently scheduling material and labor within the constraints of the firms strategy and making aggregate planning decisions.)

employee levels (How many workers do we need and when


do we need them?)

inventory levels (When should we have materials delivered ) capacity (How many shifts do we need and do we need to work
overtime or subcontract some work?).

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Responsibilities of Production/Operations Managers


3. Operational level:
(At the operational level, operations management is concerned with lower-level (daily/weekly/monthly) planning and control.)

scheduling (What should we process and when should we process it?)

sequencing (In what sequence should we process the orders?)


loading (What order do we put an item on what machine?) work assignments (To whom do we assign individual machines or
processes?)

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