1. A MID- TEST
PRESENTED BY
OGBUOKIRI EMMANUEL CHIDIEBUBE
TO
COLLEGE OF PRODUCTON AND
OPERATIONS MANAGEMENT
{COPOM}
DATE: 7TH JUNE, 2013.

2. COLLAGE OF PRODUCTION AND OPERATIONS MANAGEMENT
MID-TEST
1a. Explain the production concept and how it relates to production management in
practice.
Production management is critical to the survival of the entire world and to the
competitiveness, profitability and growth of industries, the production system of every
organization is the most vital organ to which other management processes such as
finance and accounting, sales/marketing and human resource management is
complimentary.
Without production, one wonders what the finance manager or the accountant, the
sales/marketing people, the personnel and administration people will be doing.
Talking about production management concept without mentioning product won’t go
down well, therefore I will quickly discuss product as a vital element in the concept of
production management.
PRODUCT
Though many authors define product with a consumer orientation, I prefer to deal with
it in different angles, because it will be helpful for us to duly understand the subject of
production management in practice, we will look at product as it regards a consumer, a
production manager, a personnel manager and for a financial manager so that we can
have a broad knowledge of this subject matter.
(i). For a Consumer: The product is a combination of or optimal mix of potential utilities,
this is because every consumer expects some use or uses from the product, hence
he/she always identifies the product in terms of the uses, example; soap can be
identified by complexion, cleanliness of the body, freshness, fragrance or health and
etcetera, because of this many producers advertise that they are selling health or they
are selling line star complexion or they are selling freshness and so on.
(ii). For a Production Manager: Product is the combination of various surfaces and
processes (or operations). This is because the production manager is solely responsible
for producing the product, he has to think of the various surfaces by which the product
is made of, so that he can plan for processes by which a particular surface can be made

3. and plan for required capacity of the facility by which the surfaces is produced. While
planning he has to see that the required surface is produced by the best and cheapest
method (optimally), so as to make the product face competition in the market.
(iii). For a Financial Manager: For him the product is a mix of various cost elements as he
is responsible for the profitability of the product.
(IV) For a Personnel Manager: For him the product is a mix of various skills, as he is the
person who selects and trains the personnel to meet the demand of the skill to produce
the product.
In General: We can define Product as a bundle of tangible and intangible attributes,
which along with the service is meant to satisfy the customer’s want.
PRODUCTION
Production means application of processes (Technology) to the raw material to add the
use and economic values to arrive at a desired product by the best method without
sacrificing the desired quality.
We have three method of production, they are;
(I). Production by disintegration: By separating the contents of crude oil or a mixture the
desired products are produced. For example the crude oil is disintegrated into various
fuel oils, similarly salt production is also another example for product produced by
disintegration, and we can use mechanical or chemical or both technologies to get the
desired product, so that it will have desired use value.
(ii). Production by integration: In this type of production various components of the
products are assembled together to get the desired product. In this process, physical
and chemical properties of the materials used may change, the example are; Assembly
of two wheelers, four wheelers and so on.
(iii). Production by service: Here the chemical and the mechanical properties of the
materials are improved without any physical change. The example is heat treatment of
metals, in the real world, a combination of above methods is used.
In General: Production is the use of any process or procedure designed to transform a
set of input elements into a set of output elements which have use value and economic
value.

4. MANAGEMENT
Management can be explained as an art or science, (in fact it is a combination of art and
science) of getting things done by the people, by planning, coordinating, organizing,
directing and controlling the activities to meet specified goals, within the framework of
agreed policies.
The above explanation lays emphasis on getting things done, planning, organizing,
coordinating, controlling, specific objectives and agreed policies. Today’s manager needs
scientific base as well as personal tactics to manage the people under him to achieve
desired goals.
The above discussion about product production and management concept will help us
understand exactly what the production management in practice is.
(1b). State the role and responsibilities of a production manager in a typical
manufacturing firm.
Typically, production managers are responsible for Cost, Quality and Volume. They will
be responsible for analyzing and interpreting sales forecasts for production operations
planning, scheduling and activity control.
They will have to liaise with the technical department for technical specifications; the
sales/marketing department for product specifications and delivery dates; the supply
chain department for required material inputs; the engineering department, on
maintenance and utilities support service; the quality assurance department on
standard and inspections; the finance department on budgets, budgetary control and
factory cost information; and the HR department for manpower recruitment, training,
welfare and etcetera.
Production managers who leave critical issues of adequacy, quality of manpower,
machine efficiency, technology, flow of materials and effective functioning of plant
facilities exclusively in the hands of other executives cannot succeed because the key to
ensuring effective utilization of factors of production would have been lost.

5. Production managers should have authority over (or at least an influence based on the
internal customer concept on) engineering maintenance, production engineering,
production planning, material control and allied functions.
Oftentimes the problem of plant capacity under utilization and high waste level, result
from lack of co-operation between production, engineering and supply chain
departments as well as lack of professional knowledge, skills and attitude on the part of
many production managers. Effective implementation of production and manufacturing
policies and strategies requires sound professional production management
competencies which cannot be fully acquired in a few days training but through
professional education, training and registration as well as continuous training and
development efforts.
(1c). With the aid of an organizational structure of your company, explain how the
various departments in your company relate to one another.
1.0 ORGANIZATIONAL STRUCTURE OF WAMCO

6. BOARD OF DIRECTORS
Operations Department
Can Factory
Milk Factory
Powder Factory
Engineering /
Projects
Material
Management
Supply Chain
Purchasing /
Sourcing
Quality
Control
Sales Marketing
Department
Sales
Marketing
Public Relations
Resarch &
Development
Import/Consumer
Products
Outbound Supply
Chain
MANAGING DIRECTORS
Finance / Account &
Data Processing
Depratment
Finance Acct.
Management Acct.
Treasury
Insurance
Eletronics Date
Processing
Personal Admin
Depratment
PersonalAffairs
Human Resources
General Admin
Secuirity

7. From the above organizational chart (1.0), i.e, West African Milk Company
Plc,[WAMCO] Presently known as Friesland Campina-nin, I realized that every
department is important but some are more important than others, though they must
correlate in order for the company to exist.
The structural diagram above shows the operations department, sales/marketing
department, finance/accounts, data processing department and personnel admin
department. One notable thing is that none of this department can exist without the
operations department, because the operations department is where the production of the
product which the sales/marketing department is going to sale/market, the same product
produced by the operations department is what the finance/accounts and data processing
department is going to give account for and keep record of, the same for personnel admin
department, they are not left out of the race because they are the ones responsible for the
provision of manpower, recruitment and training of the required skilled personnel who
will fit in, in the production plan of the desired product in order to enable maximum
desired output.
Therefore we see that every department is important and contributes to the growth and
stability of the company. I will not want to go deep to start explaining what happens in
different above stated departments, but this little light I have shown from the perspective
of correlationand inter-relationship of different departments to each other, I believe will
best convey the right message and point, though the operations manager finds himself in
the helm of affairs and control with more responsibilities as it was rightfully said in an
adage that “great power comes with great responsibilities”.
In general, the organizational structure indicates that all department must work together
to make production and operation activities a success.
(2a). You are about starting a business, state the factors you will consider in locating the
industry.
The factors you must consider in locating an industry or a business site are as follows;
1. Availability of raw materials
If you intend running a manufacturing or production business, then the nearness or
the availability of raw materials is a factor you must not joke with, when choosing
your business location, if your business is not sited close to these raw materials,
then sourcing and transporting will reduce your profit margin.

8. 2. Nearness to Market
The next important factor to consider is the nearness of your business to it’s
customers, are your customers resellers or end users? Answering this question will
help determine the best area to locate a business or industry.
Remember that for your business to succeed you must make it easy for your
customers to find your product.
3. Availability of basic infrastructures
Availability of basic infrastructures can affect can affect your choice of small
business location.
Amenities and infrastructures such as water supply, power supply, good road
network and security are things to consider when location a business or industry.
4. Economic Policy
The economic policy or system of a particular region may also affect your
decision and choice of location.
Some economy favors capitalist while others are driven by socialism, where the
government controls all businesses.
Other factors to consider are government policy, fiscal and monetary policy,
exchange rate, taxes, levies and duties.
5. Demographics
Demographics as a factor can have a big influence on your choice of business
location.
The types of product or services your business offers and the status of the
customer will play a vital role in your choice of business or industrial location.
Example; suppose you’re into a business of selling stationeries, that means your
demographics should be made up of students so your best bet of location should be
within school vicinity.
6. Psychographics
The mindset of your customer or the aura of a particular region is also a factor to
consider when choosing a location for a business or industry, example; if you site
your business in a region where tribalism thrives, then you are doomed if you are
not a member of the tribe.

9. Another example; if you are in a pornographic industry, you will be making a
grievous mistake to site your business within a region where the inhabitants are
highly religious.
7. Industrial clusters Areas
Some entrepreneur may decide to site their business in industrial areas or clusters
due to the infrastructure and amenities already on ground.
Industrial areas are areas mapped out specifically for commercial purposes
especially manufacturing firms.
These areas are sometimes given special attention such as good road network,
constant power supply etc. in some certain regions heavy duty manufacturers are
forced by the government to site their companies in these industrial areas.
8. Export processing zones
Locating your business in an export processing zone may be a smart choice for
you, especially an exporter.
Locating your business in such regions means a reduction in transportation cost,
faster inspection and clearance of your product by custom officials and so on.
9. Free trade zones
International free trade zones are trade fair centre’s, it is also a good place to site
your business because it is accessible and normally receives wide publicity.
10.Distributive channel
If your business don’t deal directly with end users or final customers, then it’s
wise to put your distribution channel into consideration when choosing a location.
The more you make it easier for your distributors to access your product the better
for your business.
Finally, I want to directly stress that product accessibility is directly hinged on the
location of the business, therefore considering the above factors when making
decision on the best place to locate a business or industry will go a long way to
contributing to the success of the business or industry.
(2b). Enumerate the types of factory layout and state the advantages and
disadvantages.

10. We have different types of factory layout according to the weight of
manufacturing and product sizes and machines but we are going to talk about the
following; Facility layout in manufacturing process, product layout, process
layout, Fixed-position layout, Combination layouts, Cellular layout and other
layouts.
1. Facility layout in a manufacturing process: it consist of the configuring of the
plant site with lines, buildings, major facilities, work areas, aisle and other
pertinent features such as department boundaries.
While Facility layout for services may be similar to that of manufacturing, it
also maybe somewhat different; as it consist of offices, retailers and
warehouses, because of its relative permanence.
Facility layout is one of the most crucial elements affecting efficiency.
Firms in the upper left-hand corner of the product process matrix have a
process structure known as Jumbled f low or disconnected or intermittent line
flow, upper left firms generally have a process layout.
Firms in the lower right –hand corner of the product process matrix can have a
line or continuous flow; firms on the lower right part generally have a product
layout.
Advantages of facility layout
(i). Reduces unnecessary material handling.
(ii). Helps to keep cost low.
(iii). Maintain product flow through the facility.
Disadvantages of facility layout
(i). Absenteeism and downtime due to preventive maintenance and checks.
(ii). Administration; oftentimes the administrative burden is higher, the span of
control can be narrow and makes coordination a bit difficult.
2. Product layout: Product layout is found in flow shops (repetitive assembly and
process or continuous flow industries), flow shops produce high volume, high
standardized products that require highly standardized repetition processes.
In a product layout, resources are arranged sequentially based on the routing of
the products, in theory this sequential layout allows the entire process to be laid
out in a straight line, which at times may be totally dedicated to the production
of only one product or product version.

11. The flow of the line can then be subdivided so that labor and equipment are
utilized smoothly throughout the operation.
Two types of lines are used in product layouts; they are paced and un-paced
lines, Paced line can use some sorte of conveyor that that moves output along a
continuous rate so that workers can perform operations on the product as it
goes by for long generating times, the worker may have to work alongside the
work as it moves until he or she is finished and can work back to the work
station to begin working on another part (this essentially is how automobile
manufacturing works).
Un-Paced line; workers build up queues between work stations to allow a
variable work pace. However, this type of line does not work well with large,
bulky products because of too many storage space maybe required, also it is
difficult to balance an extreme variety of output rates without significant idle
time.
A technique known as assembly-line balancing can be used to group the
individual tasks performed into workstations so that there will be a reasonable
balance of work among the workstations.
Product layout efficiency is oftenenhanced through line balancing.
Line balancing is the assignment of tasks to workstations in such a way that
workstations have approximately equal time requirements.
This minimizes the amount of time that some workstation is idle, due to
waiting on parts from an upstream process or to avoid building up an inventory
queues in front of a downstream process.
Advantages of product layout
(i). Output: product layout can generate a large volume of products in a short
time.
(ii). Cost: Unit cost is low as a result of high volume, labor specialization
results in reduced training time and cost, a wide span of supervision also
reduces labor costs.
Accounting, purchasing and inventory control are routine, because routine is
fixed less attention is required.
(iii). Utilization: There is a high degree of labor and equipment utilization.

12. Disadvantages of product layout
(i). Motivation: The systems inherent division of labor can result in dull,
repetitive jobs that can prove to be quite stressful. Also, assembly-line layouts
make it very hard to administer individual incentive plans.
(ii). Flexibility: Product layouts are inflexible and cannot easily respond to
required system changes-especially changes in product or process design.
(iii). System Protection: The system is at risk from equipment breakdown,
absenteeism and downtime due to preventive maintenance.
3. Process Layout: Process layouts are found primarily in job shops, or firms that
produce customized, low-volume products that may require different
processing requirements and sequences of operations.
Process layout is facility configurations in which operations of a similar nature
or function are grouped together; as such they occasionally are referredto as
functional layouts.
Their purpose is to process goods or to provide services that involve a variety
of processing requirements.
A manufacturing example would be a machine shop; a machine shop generally
has separate departments where general purpose machines are grouped
together by function. (e.g, Milling, grinding, drilling, hydraulics process and
lathes), therefore facilities that are configured according to individual functions
or process have a process layout, this types of layout gives the firm the
flexibility needed to handle a variety of routes and process requirements.
Service that utilizes process requirement includes; hospital, banks, auto repairs,
libraries and universities.
Improving process layouts involves the minimization of transportation cost,
distance or time.
To accomplish this some firms use what is known as a muther grid, where
subjective information is summarized on a grid displaying various
combinations of department, work group or machine pairs.
Each combination (pairs), represented by intersectionon the grid, is assigned a
letter indicating the importance of the closeness of the two, (A = absolutely
necessary, E = very important, I = Important, O = Ordinary important, U =
Unimportant, X = Undesirable), importance generally is based on the shared
use of facilities, equipment, workers or records, work flow, communication
requirements and safety requirements.

13. The departments and other elements are then assigned to clusters in order of
importance.
Advantages of process layout
(i). Flexibility: The firm has the ability to handle a variety of processing
requirements.
(ii). Cost: Sometimes the general purpose equipment utilized maybe less costly
to purchase and easier to maintain than specialized equipment.
(iii). Motivation: Employees in this type of layout will probably be able to
perform a variety of tasks on multiple machines, as opposed to the boredom of
performing a repetitive task on an assembly line.
(iv). A process layout also allows the employer to use some type of individual
incentive system.
(v). System protection: Since there are multiple machines available, process
layouts are not particularly vulnerable to equipment failures.
Disadvantages of process layouts
(i). Utilization: Equipment utilization rate in process layout are frequently very
low, because machine usage is dependent upon a variety of output
requirements.
(ii). Cost: If batch process is used, in-process inventory costs could be high,
lower volume means higher per-unit costs.
More specialized attention is necessary for both products and customers, setups
are more frequent, hence higher setup costs, and material handling is slower
and more inefficient.
(iii). Supervision: The span of supervision is small due to job complexities,
(routing, setups etc), so supervisory cost are higher.
(iv). In this type of layout, accounting, inventory control and purchasing
usually are highly involved.
(v). Confusion: Constantly changing schedules and routines make juggling
process requirements more difficult.

14. (2c). As a production manager, define what leadership motivation is, and
discuss ways to lead and motivate your workers.
LEADERSHIP
Leadership is at its best when its vision is strategic, the voice persuasive and
the result tangible.
In the study of leadership an exact definition is not essential but guiding
concepts are needed.
Establishing a single definition of leadership has its challenges; leadership has
many contexts from politics, military, business, sports and culture, right
through every level and sections of our society, our communities and families,
we all have our individual experiences and expectations of leadership; from
vision and inspiration to serving others, power and control.
Views on what effective leadership is have evolved over time e.g, from issuing
orders to inspiring and empowering workers, successful leadership is defined
by situations e.g. Winston Churchill is not viewed as a particularly successful
peacetime leader, also it is often remarked that the leadership style and strength
of CEO’s employed in a crisis to turn around failing organizations are very
different to those needed to grow them.
Definition of Leadership in the context of a production Manger
Basically; leadership and motivation as a production manager in an
organization can be defined as influencing others to achieve the organizational
goals and deliver its vision.
Many experts have observed however, that in order to inspire and motivate
people to achieve these goals, the goals need to be viewed as worthwhile or for
some greater purpose.
Delivering the organizations goals needs to deliver a benefit to the consumers,
the community or societythat is viewed as worthwhile.
Leadership and motivation
Leadership is not an end in itself, but a means to bring out the best in people, to
inspire and motivate them to commit their energies, skills and talents to
delivering the organizations vision.
A leader is focused on the vision; it is all about the “future” focus.

15. Leaders seek to find new opportunities for individuals and the organization to
be a success in the future; this might mean dealing first with very difficult
situations that threatened survival today, in tackling those threats leadership
seeks to create the better future and seize opportunities.
As leadership tackles the future , it needs to empower and challenge the
capability and potential of the people and other resources which can come
together to make the future and vision a reality and create and see new
opportunities as is about delivering successful and useful change.
In making change work, leadership influences the behaviors and actions of
others.
Some Leadership Skills a Manager needs to know and posses
1. Trust is the foundation of leadership.
2. True leadership learns from others.
3. The greatest display of leadership is service.
4. Leaders are not born, but they’re created.
5. Leadership sees the world while others see the village.
6. Leaders are best handled by someone with a settled life and settled home.
7. Pleasing all brings failure.
8. Leadership is a calculated risk.
9. Leaders praise loudly and blames softly.
10.The best leaders bring out the best on those he has stewardship over.
Leadership Cultivation Habits
1. I posses deep guiding purpose.
2. I have clear vision and mission.
3. I love to serve others
4. I have established goal.
5. I am tolerant.
6. I am honest and sincere.
7. I maximize time.
8. I believe in the worth and value of others.
9. I am result oriented.
10.I learn from my mistakes.
11.I am committed to excellence.
12.I am an avid reader.

16. Modern views of leadership have moved away from influence using
authority, position, command and control, to a focus on influencing by
using the following ways to lead and motivate workers;
1. Relating to and connecting with people.
2. Building trust.
3. Motivating, inspiring and empowering people.
4. Creating a compelling vision in a way that builds commitment to it.
5. Role modeling honesty and integrity.
NB: It’s important to here that leadership is a set of competences and
should not be thought as a particularly personality traits or perceived
charisma.
In conclusion: The key message is that Leadership is about
behaviors that takes the people and organization to a new future.
(3). Team building and communication are essential ingredients of success of a
manager, Discuss.
Team: is a group in which the individuals have a common goal and in which
the job and skills of each member fit in with those of others.
Team Building: refers to the development and maintenance of a group who can
function together to work towards a common goal.
For a manager to be successful, he or she must have a good team building
skills which can unite employees around a common goal and generate greater
productivity.
Without them, you limit yourself and the workers or staff to the effort each
individual can make alone.
Team building is an ongoing process that helps a work group evolve into a
cohesive unit, the team members not only share expectation for accomplishing
group tasks, but trust and support one another and respect each other’s
individual differences.

17. The role of a team builder is to lead the team towards cohesiveness and
productivity.
A team takes on a life of its own; it is the duty of a successful manager to
regularly nurture and maintain it, just as you do for individual employees.
Managing diversities well can enhance team building.
Guiding Principles
Team building can lead to the following;
1. Good communications with participants as team members and individuals.
2. Increase department productivity and creativity.
3. Team members motivated to achieve goals.
4. A climate of cooperation and collaborative problem solving.
5. Higher levels of job satisfaction and commitment.
6. Higher levels of trust and support.
7. Diverse co-workers working well together.
8. Clear work objectives.
9. Better operating policies and procedures.
Steps to Building an Effective Team
The first rule of team building is an obvious one; to lead a team effectively
you must first establish your leadership relationship with each team
member.
Remember that the most effective team leaders build their relationships of
trust and loyalty, rather than fear or the power of their positions.
(a). Considering each employees ideas as valuable: Remember that there is
no such thing as a stupid idea.
(b). Be aware of Employees unspoken feelings: Set example to team
members by being open with employees and sensitive to their moods and
feelings.
( c). Act as a harmonizing influence: Look for chances to mediate and
resolve minor disputes, point continually towards the teams higher goals.
(d). Be clear when communicating: be careful to clarify directives and
communicate with understanding and required feedback.
(e). Encourage trust and cooperation among employees on your team:
Remember that the relationships team members establish among
themselves are very bit as important as those you establish with them.

18. As the team begins to take shape, pay close attention to the ways in which
team members work together and take steps to improving communication,
cooperation, trust and respect in those relationships.
(f). Encourage team members to share information: Emphasize the
importance of each team members contribution and demonstrate how all of
their jobs operate together to move the entire team closer to its goals.
(g). Delegate problem solving tasks to the team: let the team work on
creative solutions together.
(h). Facilitate communication: Remember that communication is the single
most important factor in successful teamwork, facilitating communication
does not mean holding meetings all the time, instead it means setting
examples by remaining open to suggestions and concerns, by asking
questions and offering help, and by doing everything you can to avoid
confusion in your own communication, avoid mistakes and
misunderstanding that comes through unclear communications and poor
listening skills.
(i). Establish teams values and goals, evaluate teams performance: Be sure
to talk to members about the progress they are making towards establishing
goals so that employees get a sense both of their success and of the
challenges that lies ahead.
Address team work in performance standards, discuss with your team on
the following subject matters and questions;
1. What do we really care about in performing our job?
2. What does the word success means to this team?
3. What actions can we take to live up to our stated values?
(j). Make sure you have a clear idea of what you need to accomplish:
That you know what your standard for success are going to be, that you
have clear time frame and that team members understand their
responsibilities.
(k). Use Consensus: Set objectives, solve problems and plan for action,
while it takes much longer to establish a consensus, this method
ultimately provides better decisions and greater productivity because it
secures every employees commitment to all phases of the work.

19. (l). Set ground rules for the team: These are the norms that you and the
team establish to ensure efficiency and success.
They can be simply directives (Team members are to be punctual for
meetings) or general guidelines (Every team member has the right to
offer ideas and suggestions), but you should make sure that the team
creates these ground rules by consensus and commits to them, both as a
group and as individuals.
(m). Establish a method for arriving at a consensus: You may want to
conduct open debate about the pros and cons of proposals or establish
research committees to investigate issues and deliver reports.
(n). Encourage listening and brainstorming: As a manager your first
priority in creating consensus is to stimulate debate, remember that
employees are often afraid to disagree with one another and that this
fear can lead your team to make mediocre decisions.
When you encourage debate, you inspire creativity and that’s how you
will spur your team on to better results.
(o). Establish the parameters of consensus building: Be sensitive to the
frustrations that can mount when the team is not achieving consensus.
At the outset of your meeting, establish time limits and work with the
team to achieve consensus within those parameters.
Watch out for false consensus if agreement is struck too quickly, be
careful to probe individual team members to discover their real feelings
about the proposed solution.
Symptoms that signals a need for team building:
(i). Decrease productivity.
(ii). Conflict or hostility among staff members.
(iii). Confusion about assignments, missed signals and unclear
relationships.
(iv). Decisions misunderstood or not carried through properly.
(v). Apathy and lack of involvement.
(vi). Lack of initiative, imagination, innovation, routine actions taken
for solving complex problems.

20. (vii). Complaints of discrimination or favoritism.
(viii). Ineffective staff meetings, low participation, minimal effective
decisions.
(ix). Negative reaction to the manager.
(x). complaint about quality of service.