The document provides an overview of production and operations management, defining key concepts such as production, production management, and operation management. It outlines the objectives of production management including quality, quantity, timeliness, and cost, and describes various production systems and their classifications. Additionally, the document discusses the historical evolution of production and operations management, highlighting significant contributors and developments in the field.

1. PRODUCTION AND
OPERATIONS MANAGEMENT
Prepared by
Prof. Jitendra Patel
Assistant Professor
Prestige Institute of Management and Research
Indore

2. 1 Overview of Production and Operation Management
1.1 Definition
1.2 Characteristics of Production
1.3 Classification of Production System
1.4 Objective of Production Management
1.5 Production System Model
1.6 Operation Management Definition
1.7 Scope of Production & Operation Management
1.8History of Evolution
1.9 Question and Answer
Module 1
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Jitendra Patel Assistant Professor PIMR
Indore

3. Production Definition
Production is the process by which raw materials and
other inputs are converted into finished products.
• Production Management Definition: The set of
interrelated management activities, which are
involved in manufacturing certain products, is
called as production management.
Production Management refers to the application
of management principles to the production
function in a factory.
Production management involves application of
planning , organizing , directing and controlling
to the production process.
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Jitendra Patel Assistant Professor PIMR
Indore

4. Characteristics of Production
• Production is an organized activity, so every
production system has an objective.
• The system transforms the various inputs to useful
outputs.
• It does not operate in isolation from the other
organization system.
• There exists a feedback about the activities, which
is essential to control and improve system
performance.
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Jitendra Patel Assistant Professor PIMR
Indore

5. Classification of Production System
Continuous
Production
Mass Production
Batch
Production
Job-shop
Production
Production
/Operation
Volume
Output Product Variety
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Indore

6. Objective of Production Management
1. RIGHT QUALITY
The quality of product is established based upon the
customers needs. The right quality is not necessarily
best quality. It is determined by the cost of the product
and the technical characteristics as suited to the specific
requirements.
2. RIGHT QUANTITY
The manufacturing organization should produce the
products in right number. If they are produced in excess
of demand the capital will block up in the form of
inventory and if the quantity is produced in short of
demand, leads to shortage of products.
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Jitendra Patel Assistant Professor PIMR
Indore

7. Objective of Production Management
3. RIGHT TIME
Timeliness of delivery is one of the important
parameter to judge the effectiveness of production
department. So, the production department has to make
the optimal utilization of input resources to achieve its
objective.
4. RIGHT MANUFACTURING COST
Manufacturing costs are established before the product
is actually manufactured. Hence, all attempts should be
made to produce the products at pre-established cost, so
as to reduce the variation between actual and the
standard (pre-established) cost.
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Jitendra Patel Assistant Professor PIMR
Indore

8. Production System Model
Production system model comprises:
i. Production system,
ii. Conversion sub-system and
iii. Control sub-system.
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Jitendra Patel Assistant Professor PIMR
Indore

9. A Production System Model
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Jitendra Patel Assistant Professor PIMR
Indore

10. Operation Definition
• Operations are purposeful actions or activities
which are done methodically as part of plan of the
work by a process that is designed to achieve the
pre decided objectives.
• An operating system is a configuration of
resources combined for the provision of goods or
services.
• Operation Management: Operations management
is the process in which resources/inputs are
converted into more useful products or Services.
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Jitendra Patel Assistant Professor PIMR
Indore

11. Scope of Production & Operation Management
• Selection of location
• Acquisition of land
• Constructing buildings
• Procuring and Installing Machinery
• Purchasing and storing Material
• Converting them into Saleable Product
• Other Related Issue include
• Quality Management
• Maintenance Management
• Production Planning and control
• Method Improvement
• Work Simplification
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Jitendra Patel Assistant Professor PIMR
Indore

12. POM
Selection of
location
Acquisition
of land
Procuring
and Installing
Machinery
Constructing
buildings
Work
Simplification
Method
Improvement
Production
Planning and
control
Maintenance
Management
Quality
Management
Other
Related Issue
include
Converting
them into
Saleable
Product
Purchasing
and storing
Material
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Jitendra Patel Assistant Professor PIMR
Indore

13. History and Evolution of Production and Operation Management
Date Contribution Contributor
1776
1799
1832
1900
1900
1901
1915
1927
1931
1935
1940
Specialization of labor in
Manufacturing Interchangeable parts, Cost Accounting
Division of labor by skill; assignment of jobs by skill;
basics of time study.
Scientific management time study and work study
developed; dividing planning and doing of work
Motion of study of jobs
Scheduling techniques for employees, machines jobs in
manufacturing
Economic lot sizes for inventory control
Human relations; the Hawthorne studies
Statistical inference applied to product quality: quality
control charts.
Statistical sampling applied to quality control: inspection
sampling plans
Operations research applications in World War II
Adam Smith
Eli Whitney and
others
Charles Babbage
Frederick W.
Taylor
Frank B. Gilbreth
Henry L. Gantt
F.W. Harris
Elton Mayo
W.A. Shewart
H.F. Dodge & H.G.
Roming
P.M. Blacker and
othersMonday, March 21, 2016 13
Jitendra Patel Assistant Professor PIMR
Indore

14. History and Evolution of Production and Operation Management
Date Contribution Contributor
1946
1947
1950
1951
1960
1970
1980
Digital computer
Linear programming
Mathematical programming, on-linear and
stochastic processes
Commercial digital computer: large-scale
computations available
Organizational behavior: continued study of
people at work
Integrating operations into overall strategy
and policy Computer applications to
manufacturing, Scheduling and control,
Material requirement planning (MRP)
Quality and productivity applications from
Japan: W.E. Deming and robotics, CAD-CAM
John Mauchlly and
J.P. Eckert
G.B. Dantzig, Williams &
Others
A. Charnes, W.W. Cooper
Sperry Univac
L . Cummings, L. Porter ,
W. Skinner J. Orlicky and G.
Wright
W.E. Deming and J. Juran.
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Jitendra Patel Assistant Professor PIMR
Indore

15. Are be Now Able to Answer
1. What do you mean by ‘Production’?
2. What do you mean by production system?
3. Mention the different types of production systems?
4. Define production management.
5. Mention any four objectives of production
management?
6. Briefly explain the production system and its
characteristics?
7. Explain the scope of production and operations
management?
8. Explain the History and Evolution of POM?
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Jitendra Patel Assistant Professor PIMR
Indore

16. References
1. Aswathappa.K., & Bhat.K.S. (2011).
Production and Operations Management .
Mumbai, India: Himalaya Publishing House.
2. Newagepublishers(2013); “INTRODUCTION
TO PRODUCTION AND OPERATION
MANAGEMENT”. Retrieved
fromhttp://www.newagepublishers.com/sam
plechapter/001233.pdf ,last visited on 21 July
2014.
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Jitendra Patel Assistant Professor PIMR
Indore

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Jitendra Patel Assistant Professor PIMR
Indore