This document provides an introduction to production planning and control (POM). It discusses key terms in POM like operations management. POM focuses on managing an organization's production system to convert inputs into products and services. The evolution of POM is then summarized, from the industrial revolution to developments in scientific management, human relations, operations research, and computer technology. Influential contributors to the development of POM concepts are also listed.
Introduction
In life, there are universal laws that govern everything we do. These laws are so perfect that if you were to align yourself with them, you could have so much prosperity that it would be coming out of your ears. This is because God created the universe in the image and likeness of him. It is failure to follow the universal laws that causes one to fail. The laws that were created consisted of the following: ·
Law of Gratitude: The Law of Gratitude states that you must show gratitude for what you have. By having gratitude, you speed your growth and success faster than you normally would. This is because if you appreciate the things you have, even if they are small things, you are open to receiving more.
Law of Attraction: The Law of Attraction states that if you focus your attention on something long enough you will get it. It all starts in the mind. You think of something and when you think of it, you manifest that in your life. This could be a mental picture of a check or actual cash, but you think about it with an image.
Law of Karma: the Law of Karma states that if you go out and do something bad, it will come back to you with something bad. If you do well for others, good things happen to you. The principle here is to know you can create good or bad through your actions. There will always be an effect no matter what.
Law of Love: the Law of Love states that love is more than emotion or feeling; it is energy. It has substance and can be felt. Love is also considered acceptance of oneself or others. This means that no matter what you do in life if you do not approach or leave the situation out of love, it won't work.
Law of Allowing: The Law of Allowing states that for us to get what we want, we must be receptive to it. We can't merely say to the Universe that we want something if we don't allow ourselves to receive it. This will defeat our purpose for wanting it in the first place.
Law of Vibration: the Law of Vibration states that if you wish on something and use your thoughts to visualize it, you are halfway there to get it. To complete the cycle you must use the Law of Vibration to feel part of what you want. Do this and you'll have anything you want in life.
For everything to function properly there has to be structure. Without structure, our world, or universe, would be in utter chaos. Successful people understand universal laws and apply them daily. They may not acknowledge that to you, but they do follow the laws. There is a higher power and this higher power controls the universe and what we get out of it. People who know this, but wish to direct their own lives, follow the reasons. Successful people don't sit around and say "I'll try," they say yes and act on it.
Chapter - 1
The Law of Attraction
The law of attraction is the most powerful force in the universe. If you work against it, it can only bring you pain and misery. Successful people know this but have kept it hidden from the lower class for centuries because th
1. 1
PRODUCTION PLANNING AND CONTROL
CHAPTER 1: INTRODUCTION
Several different terms are used such as:
• operations management, production and operation management,
production planning and control, manufacturing system and
management, etc.
Originally applied primarily in manufacturing companies – focus on
production management. These approaches and tool later applied to
service organisations – focus on managing an organisation’s operation.
Operations management:
• the management of an organisation’s productive resources or its
production system, which converts inputs into the organisation’s
products and services.
A production system:
Figure 1
Conversion Process
(operation & production)
Operations
Create products
or services
Marketing
Create demand
Finance
Manage financial
issues
Managers
Raw
materials,
Personnel,
machines,
buildings,
cash, info,
Other
resources
Products
and
services
Inputs Outputs
2. 2
The Evolution of POM
Historical developments of POM evolution
• The industrial revolution
• Post-civil war period (US)
• Scientific management
Division of Labour Interchangeable parts
Systematic approach to improve worker efficiency:
• Identify ability and skill to assign job
• Stopwatch studies
• Standardised work methods and work flow
• Improve supervision with careful selection & training
• Incentive pay system
Tomorrow
Today’s Development
Computer Revolution
Service Revolution
Operations Research
Scientific Management
Industrial Revolution
Human Relations &
Post-Civil War Period
P
O
M
3. 3
Contributor Contribution
F.W Taylor
1856-1915
Scientific management principles, time study,
method analysis, standards, etc
F.B. Gilbreth
1868-1934
Motion study, therbligs, consulting, etc
L.M. Gilbreth
1878-1973
Fatigue studies, human factor in work, employee
selection and training
Henry L. Gantt
1861-1919
Gantt charts, incentive pay systems, humanistic
approach to labour, training
C.G. Barth
1860-1939
Mathematical analysis, slide rule, feeds and speed
studies, etc
Harrington Emerson
1885-1931
Principles of efficiency, methods of control, etc
Morris L. Cooke
1872-1960
Scientific management application to education
and government
• Human relations and behaviouralism
• Operations research
Hawthrone Studies
Operation research – seeks to replace intuitive decision making
for large complex problems with an approach that identitifies
the optimal, or best, alternative through analysis.
Uses total system approach and of interdisciplinary teams and
the utilisation of complex mathermatical techniques…
4. 4
• Service revolution
- e.g. Airlines, Entertaiment, Telecommunication, Food services,
Banks, etc.
• Computer revolution
- the usage of computers and software, Internet, e-mail, e-business,
etc.
Factors affecting operations management
• Reality of global competition
• Quality, customer service, and cost challenges
• Rapid expansion of advanced technologies
• Continued growth of the service sector
• Scarcity of operations resources
• Social-resplonsibility issues
Operations as a System
A system is a whole that cannot be taken apart without loss of its
essential characteristics, and hence it must be studied as a
whole…
Direct Outputs
Products,
services
Indirect Outputs
Taxes, wages,
environmental
impact, etc…
External
Legal,
social, etc..
Market
Competition,
customer, etc
Primary
Resources
MatL, people
Physical
Mfg, mining
Locational Sve
Transport
Exch Sve
Retail
Sotrage Sve
Warehouse
Other
Insurance, etc.
Government
Inputs
Outputs
Conversion
subsystem
5. 5
Decision making in POM
Assignment 1
Find at least three (3) entry-level jobs (in Malaysia) at three (3) different
companies which are related to the production and operations
management function. Describe the jobs and how they are related to the
production and operation management. Describe the companies,
mentioning what type of prodcution system they are, primary inputs,
conversion subsystem and outputs. You could search for the jobs at
Jobstreet (www.jobstreet.com) or JobsDB (www.jobsdb.com).
[][][]
Strategic
Decision
Operating
Decision
Control
Decision
Decisions about products, processes, and
facilities. These decisions are of strategic
importance and have long-term significance for
the organisation
Decisions about planning production to meet
demand. These decisions are necessary if the
ongoing production of goods and services is to
satisfy the demands of the market and provide
profit for the company
Decisions about planning and controlling
operations. These decisions concern with the
day-to-day activities of workers, quality of
products and service, production and overhead
costs, and maintenance of equipment.
6. 6
Operations management in e-Business
• Trade that occurs over the Internet
• Types of B2B transactions
Globalisation
• Two third of today’s business operate globally.
• Why global?
– Favorable cost
– Access to international markets
– More responsive to demand
– Building reliable supply sources
– Keeping up with latest trends and technologies
BBuussiinneessss
CCoonnssuummeerr
BBuussiinneessss CCoonnssuummeerr
B2B
Commerceone.com
B2C
Amazon.com
C2B
Priceline.com
C2C
eBay.com
7. 7
Competitiveness
• the degree to which a nation can produce goods and services that
meet the test of international market.
• Industry competitiveness can be measured by the number of major
players in an industry and the market share of the industry leader.
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Competing on quality
- Please the customer
- Understand customer attitudes
toward and expectations of quality
Competing on speed
- Fast moves
- Fast adaptations
- Tight linkages
Competing on flexibility
- Produce wide variety of products
- Introduce new products
- Modify existing products quickly
- Respond to customer needs
Competing on cost
- Eliminate all waste
Invest in
- Updated facilities & equipment
- Streamlining operations
- Training & development
8. 8
Strategic decision in operations
Example in operations technology: Wal-Mart
Products
Processes and
Technology
Capacity
Human
Resources Quality
Facilities Sourcing
Services
Operating
Systems
Provide value for our customers
Low prices, everyday
Low inventory levels
Linked communications
between stores
Short flow times
Fast transportation
system
Cross-docking
Focused
locations
EDI/satellites
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9. 9
Product and services
Make-to-order
Made to customer specifications after order received
Make-to-stock
Made in anticipation of demand
Assemble-to-order
Add options according to customer specification
Processes and technology
Project
One-time production of product to customer order
Batch production
Process many jobs at same time in batch
Mass production
Produce large volumes of standard product for mass market
Continuous production
Very high volume commodity product
Product-Process matrix Service-Process matrix
Issues and Trends
Global markets, sourcing,
operations
Virtual companies
Greater choice
Emphasis on service
Speed and flexibility
Supply chains
C-commerce
Technological advances
Knowledge
Environment and social
responsibilities