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Submitted to : Mam Bushra
Submitted by : Tabeer, Maheen, Amna
and Sumble
Managing Operations :
is an area of
management concerned with designing and
controlling the process of production and
redesigning business operations in the
production of goods and services.
Key points
 It creates highest level of efficiency possible
within organizations .
 Its is basically converting materials and labor
into goods and services.
 It helps the organization to work effectively to
maximize profits.
 It involves utilizing resources from staff ,
materials, equipment and technology.
 It handles various strategic issues including
determining the size of manufacturing plants.
 Project management methods.
 Implementing the structure of information
technology networks.
 Management of inventory levels.
 Quality control.
 Materials handling.
 Maintenance policies.
 Productivity :
it describes various measures of
efficiency of production. Productivity is a crucial
factor in production performance of firms and
nations. Increasing national productivity can
raise living standards because more real
income improves people's ability to purchase
goods and services, enjoy leisure, improve
housing and education and contribute to social
and environmental programs. Productivity
growth also helps businesses to be more
profitable.
 Productivity Formula :
you can measure employee productivity
with labor productivity equation :
total output
total input
Let's say your company generated $80,000
worth of goods or services (output) utilizing
1,500 labor hours (input). To calculate your
company's labor productivity, you would divide
80,000 by 1,500, which equals 53.
Efficiency :
 is the (often measurable) ability to avoid
wasting materials, energy, efforts, money, and
time in doing something or in producing a
desired result. In a more general sense, it is
the ability to do things well, successfully, and
without waste.
 In more mathematical or scientific terms, it is
a measure of the extent to which input is well
used for an intended task or function (output).
 It often specifically comprises the capability of
a specific application of effort to produce a
specific outcome with a minimum amount or
quantity of waste, expense, or unnecessary
effort.
While efficiency and productivity are often confused,
the two have vastly different meanings when it comes
to getting your work done. Being efficient means you
are working in a well-organized and competent way.
... Being productive means you are successful in
producing a desired or intended result.
Definition :
Traditional manufacturing refers to
manufacturing principles focused on
producing a certain set number of
products each period and holding a
reserve in case of unexpected demand or
shortages.
 Traditional Manufacturing strategy still works
well for many types of manufacturing, but in
some industries, it is being replaced by lean
manufacturing, which seeks to save money by
matching production flow with changing
demand and focusing on efficiency instead of
reserves.
 High volume production of identical products
(low variety)
 High direct labor cost
 High inventory level
 A focus on individual labor and machine
efficiency
 Management of quality through inspection
and rework rather than prevention
 Risk related to forecast
 Long overall business process cycle
 Good comfort level at various stages leading
to slack in the system
 It hides the problems, waste and obstacles in
the business flow.
 Encourage departmental focus as their
efficiency is judged on the basis of output.
pushes up costs and affects competitiveness
 "The methods, procedure or arrangement
which includes all functions required to
accumulate (gather) the inputs, process or
reprocess the inputs, and deliver the
marketable output (goods).“
 Production system utilizes materials, funds,
infrastructure, and labor to produce the
required output in form of goods.
 A flexible manufacturing system is designed
to react and adapt to changes within the
production process, including any
unexpected issues or problems. Since the
1970s, flexible manufacturing systems have
helped companies to create products quickly
and more efficiently.
Flexible manufacturing systems today still
work to improve the production process and
offer two types of flexibility :
 Machine flexibility refers to how much a
system can change in order to create new
product types. It also describes how a system
can change the order of operations on a
specific part.
 The second category is routing flexibility.
This is the ability of a system to use
many machines to perform the same
operations on one part. It also refers to how
much a system can adapt changes in volume,
capacity, or capability.
 Cost varies in different systems . The systems
that are using the old technology and the
traditional ways are more costly and time
consuming while the systems which are using
up to date modern technology and machines
have only setup cost and the rest is
economical and efficiency rate is high
Managing Operations
Managing Operations

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Managing Operations

  • 1.
  • 2. Submitted to : Mam Bushra Submitted by : Tabeer, Maheen, Amna and Sumble
  • 3. Managing Operations : is an area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods and services.
  • 4. Key points  It creates highest level of efficiency possible within organizations .  Its is basically converting materials and labor into goods and services.  It helps the organization to work effectively to maximize profits.  It involves utilizing resources from staff , materials, equipment and technology.
  • 5.  It handles various strategic issues including determining the size of manufacturing plants.  Project management methods.  Implementing the structure of information technology networks.  Management of inventory levels.  Quality control.  Materials handling.  Maintenance policies.
  • 6.  Productivity : it describes various measures of efficiency of production. Productivity is a crucial factor in production performance of firms and nations. Increasing national productivity can raise living standards because more real income improves people's ability to purchase goods and services, enjoy leisure, improve housing and education and contribute to social and environmental programs. Productivity growth also helps businesses to be more profitable.
  • 7.  Productivity Formula : you can measure employee productivity with labor productivity equation : total output total input Let's say your company generated $80,000 worth of goods or services (output) utilizing 1,500 labor hours (input). To calculate your company's labor productivity, you would divide 80,000 by 1,500, which equals 53.
  • 8.
  • 9. Efficiency :  is the (often measurable) ability to avoid wasting materials, energy, efforts, money, and time in doing something or in producing a desired result. In a more general sense, it is the ability to do things well, successfully, and without waste.  In more mathematical or scientific terms, it is a measure of the extent to which input is well used for an intended task or function (output).  It often specifically comprises the capability of a specific application of effort to produce a specific outcome with a minimum amount or quantity of waste, expense, or unnecessary effort.
  • 10. While efficiency and productivity are often confused, the two have vastly different meanings when it comes to getting your work done. Being efficient means you are working in a well-organized and competent way. ... Being productive means you are successful in producing a desired or intended result.
  • 11. Definition : Traditional manufacturing refers to manufacturing principles focused on producing a certain set number of products each period and holding a reserve in case of unexpected demand or shortages.
  • 12.
  • 13.  Traditional Manufacturing strategy still works well for many types of manufacturing, but in some industries, it is being replaced by lean manufacturing, which seeks to save money by matching production flow with changing demand and focusing on efficiency instead of reserves.
  • 14.  High volume production of identical products (low variety)  High direct labor cost  High inventory level  A focus on individual labor and machine efficiency  Management of quality through inspection and rework rather than prevention
  • 15.  Risk related to forecast  Long overall business process cycle  Good comfort level at various stages leading to slack in the system  It hides the problems, waste and obstacles in the business flow.  Encourage departmental focus as their efficiency is judged on the basis of output. pushes up costs and affects competitiveness
  • 16.  "The methods, procedure or arrangement which includes all functions required to accumulate (gather) the inputs, process or reprocess the inputs, and deliver the marketable output (goods).“  Production system utilizes materials, funds, infrastructure, and labor to produce the required output in form of goods.
  • 17.  A flexible manufacturing system is designed to react and adapt to changes within the production process, including any unexpected issues or problems. Since the 1970s, flexible manufacturing systems have helped companies to create products quickly and more efficiently.
  • 18. Flexible manufacturing systems today still work to improve the production process and offer two types of flexibility :  Machine flexibility refers to how much a system can change in order to create new product types. It also describes how a system can change the order of operations on a specific part.  The second category is routing flexibility. This is the ability of a system to use many machines to perform the same operations on one part. It also refers to how much a system can adapt changes in volume, capacity, or capability.
  • 19.  Cost varies in different systems . The systems that are using the old technology and the traditional ways are more costly and time consuming while the systems which are using up to date modern technology and machines have only setup cost and the rest is economical and efficiency rate is high