Production & Operations Management

Module 1
Sathish Rajamani Sathish.rajamani@gmail.com 09940667419

What are the 3 Primary functions in any Organization ?

1. Finance 2. Marketing ( Distribution )

3. Production / Operations

Production : Refers to Manufacturing Processes Operations :Used to describe Service Processes In Standard Usage it refers to Both

What is Operations Management? Defined

Operations management (OM) is defined as the design, operation, and improvement of the systems that create and deliver the firms primary products and services

What is Production & Operations Management (POM) ?

POM is about Transformation of Production and Operational INPUTS into OUTPUTS that , when distributed, meet the needs of the customer thereby achieving the required level of Profits / Service

Transformation or Conversion System

Inputs

Transformation Process

Outputs

Transformation or Conversion System

Inputs

Transformation Process

Outputs

Labour Materials Money .

Machines Technology Procedures.

Goods Services

Transformation or Conversion System

Inputs

Transformation Process

Outputs

Feedback

Labour Materials Money .

Machines Technology Procedures... Goods Services

Types of Transformation Processes

1. Physical
2. Locational 3. Physiological 4. Psychological 5. Informational

6. Exchange

Types of Transformation Processes

Examples..

1. Physical Manufacturing, Process industries

2. Locational Transportation , Storage 3. Physiological Health care 4. Psychological- Entertainment, Advertising? 5. Informational Communication, Software

6. Exchange Retailing, Financing ?

Lets look at some examples of different Transformation Systems

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

An Automobile Manufacturing Unit An Hospital An Educational Institution A Bank/Financial institution Software development company Mobile Service provider Social Service Organization A Super Market Garment Manufacturing Unit Film Production Unit Government Treasury Department Internet Service Provider

Lets look at some examples of different Transformation Systems

Operations is a Basic Function..

OPERATIONS

MARKETING

FINANCE

Organization Chart- An example

Manufacturing Organization
Operations Finance/Accounting Marketing
HR, IS & other support fns.

Facilities Disbursements & Production & Credits Inventory Control Funds Management Quality Assurance Capital Requirements & Control Procurement Engineering Design Industrial Engineering Process Engineering

Sales Promotion Advertising Sales Market Research

Why Study Operations Management?

Systematic Approach to Org. Processes

Business Education

Operations Management

Career Opportunities

Cross-Functional Applications

So, a thorough understanding of the Production and Operations Process is required for the Success of any Management Professional irrespective of their function in an organization

Introduction to POM

22

Evolution of POM
Lillian Gilbreth brings psychology into the mix by studying the motivations of workers and how attitudes affected the outcome of a process. Sakichi Toyoda receives a patent for a wooden loom Frank Gilbreth develops Motion Study and invented Process Charting. Frederick W. Taylor develops the principles of Time Study and standardized work. Central figures who originated the idea of "Eliminating Waste", Taichi Ohno moves to the Toyota Motor Company Ltd. Ohno begins to perfect the Just-inTime concepts introduced by Kiichiro

philosophy of KAIZEN is born out of the need to compete.

1890

Late 1890s

1908

1937

1943

1980

1990 1990

Henry Ford invents the moving assembly line

Before: cars were built in one spot and the workers moved from car to car. This was called the gypsy production system.

Toyota brings the Toyota Production System to the United States in collaboration with GM Toyoda Motor Company Ltd. is created. Kiichiro Toyoda builds a plant at Koromo and through the imbalance caused by piece work, hangs a sign in his new production shop that reads JUST IN TIME.

Womack and Jones publish The

After: Ford used a big rope and winch to pull the cars along the assembly line and kept the workers stationary

Machine that Changed the World

Relevance of POM in todays Global Business ..

There is a great need to Compete on Differentiation Compete on Cost Compete on Response Compete regardless of the Basis

Relevance of POM in todays Global Business ..

Compete on Differentiation Uniqueness can go beyond both the physical characteristics and service attributes to encompass everything that impact customers perception of value Compete on Cost Provide maximum VALUE as perceived by CUSTOMER Compete on Response Flexibility, Reliability & Timeliness Compete regardless of the Basis Institutionalization of Ability to CHANGE & to ADAPT