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LECTURE 1
Introduction to Production &
Operation Management
Definition
 Acc to E.S.Buffa,
“Production Mgt deals with Decision
Making related to Production
Processes so that the resulting
goods or services is produced
according to specifications in the
amounts & by the schedules
demanded & at minimum cost”.
Objective of Production Management
1. ULTIMATE OBJECTIVE
To produce product at:
 Pre-established cost
 According to specified quality
 Within situated time schedules
Sub Qualified as:-
 Manufacturing Cost
 Production Quality
 Manufacturing time Schedule
2.INTERMEDIATE OBJECTIVE
 Machinery & equipment
 Material
 Manpower
 Manufacturing services
SCOPE
1. Product selection &
design
2. Product selection &
planning
3. Facilities Location
4. Facilities Layout &
Material Handling
5. Capacity Planning
6. Operational or Short
Term Decision
 Production planning
 Production control
 Inventory control
 quality control
 Method Study
 Maintance &
Replacement
 Cost reduction &
control
TYPES
OF
PRODUCTION
SYSTEM
MASS
PRODUCTION
OR
FLOW LINE
PRODUCTION
BATCH
PRODUCTION
SYSTEM
PROJECTS
JOB
SHOP

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1_intro.ppt