This document discusses productivity and operation management. It defines productivity as the output of any production process per unit of input. The goal of production and operation management is to produce the right quality, quantity, and time at a pre-established cost. Productivity can be measured at the partial level looking at individual inputs like labor, capital, and materials, or at the total factor and total levels considering all inputs. Factors that affect productivity include product development, specialization, research, value analysis, process planning, and training. Improving productivity increases efficiency and leads to lower costs, higher sales, and greater profits.

1. PRODUCTIVITY
AND
OPERATION MANAGEMENT

2. INTRODUCTION
PRODUCTION
MANAGEMENT

3. DEFINITION
• According to E.F.L. BRECH, “ Production management
then becomes the process of effectively planning and
regulating the operation of that part of an enterprise
which is responsible for actual transformation of
materials into finished products”.
PRODUCTION AND
OPERATION MANAGEMENT

4. OPERATION MANAGEMENT

5. NATURE OF PRODUCTION AND
OPERATION MANAGEMENT
1.Transformational Process
2.Results into Value Addition
3.System Itself
4.Exists for Certain Objective
5.Carried-Out in Part of Organization
6.Interrelationship among the System
7.Stratum Formation
8.Specialization of Function
9.Increase in Entropy
10.Increase in Productivity

6. SCOPE OF PRODUCTION AND
OPERATION MANAGEMENT

7. OBJECTIVE OF PRODUCTION AND
OPERATION MANAGEMENT
• ULTIMATE OBJECTIVE
1.Right Quality
2.Right Quantity
3.Right Time
4.Pre-established Cost
Objective
Of
POM
Ultimate
Objective
Intermediate
Objective

8. • INTERMEDIATE OBJECTIVE
1. Machinery and Equipment
2. Materials
3. Manpower
4. Manufacturing Services

9. PRODUCTIVITY
INTRODUCTION
• Productivity is the output of any production process, per
unit of input.
• To increase productivity means to produce more with
less.
• In factories and corporates, productivity is a measure of
the ability to create goods and services from the given
amount of human resource, capital, land, knowledge,
time or any combination of these above.

10. DEFINITION
According to International Labor Organization(ILO), “ The
ratio between the volumes of output is measure by
production indices and the corresponding volumes of
labor input is measured by the employment indices. The
productivity is a measure of how much input is required to
achieve a given output.
To increase productivity, the ratio of outputs to inputs is
made as large as practical.

11. Example
• In case A, 10 products are produced spending 1000
rupees and in case B, 15 products are produced by
spending 2000 rupees.
• Productivity in case A=10/1000
• Productivity in case B=15/2000
In case B, it’s a clear indication that the productivity
has reduced.

12. TYPES OF PRODUCTIVITY
TYPESOFPRODUCTIVITY
PARTIAL
PRODUCTIVITY
TOTAL FACTOR
PRODUCTIVITY
TOTAL
PRODUCTIVITY

13. PARTIAL PRODUCTIVITY
• The resources of productivity when measured separately
are called as Partial Productivity.
• A measure of partial productivity plays a very important
role in improving the productivity.
LABOUR
PRODUCTIVITY
OUTPUT
LABOUR
INPUT
CAPITAL
PRODUCTIVITY
MATERIAL
PRODUCTIVITY
OUTPUT
OUTPUT
CAPITAL
INPUT
MATERIAL
INPUT

14. TOTAL FACTOR PRODUCTIVITY
• In any production process, many of the resources inputs
are available within the organization, while a few others
are purchased from outside.
TOTAL FACTOR
PRODUCTIVITY
NET
OUTPUT
(LABOUR+CAPITAL)
INPUTS

15. TOTAL PRODUCTIVITY
• The method of calculating productivity considering all
the resources is called Total Productivity.
• It is systematic and qualitative to approach to complete
the products considering the quality, price and time.
• Total productivity provides a systematic framework and
structure to an organization and increase profitability.
TOTAL
PRODUCTIVITY
TOTAL
TANGIBLE
OUTPUT
TOTAL
TANGIBLE
INPUT

16. FACTORS AFFECTING
PRODUCTIVITY

17. WAYS TO IMPROVE PRODUCTIVITY
1.PRODUCT DEVELOPMENT
2.SPECIALISATION AND STANDARDISATION
3.MARKET, CONSUMER AND PRODUCT RESEARCH
4.VALUE ANALYSIS
5.PROCESS PLANNING AND RESEARCH
6.METHOD STUDY
7.SAFETY
8.OPERATOR TRAINING
9.PRODUCTION PLANNING AND CONTROL
10.MATERIAL CONTROL

18. IMPORTANCE OF PRODUCTIVITY
• Productiveness increases the overall efficiency of an
organization.
• Increased production due to efficient utilization of
organizational resources leads to a lower cost
production resulting in better sales and profits.
• Concept of productivity can be viewed from the
following points:
1.To Beat the Competition
2.Guide the Management
3.Indicator of Progress
4.Maximum Utilization of Scarce Resources
5.Key to National Prosperity

19. IMPORTANCE AND PROBLEMS OF
OPERATION AND MANAGEMENT
IMPORTANCE
• Consumers
• Investors
• Employee
• Suppliers
• Community
• Nation
PROBLEMS
• Location of the Plant
• Plant Layout
• Product Designing
• Inventory and Production
Control
• Quality and Labor Control

20. THANK YOU
BY
SHREYAS.M