The document provides an overview of production operations management concepts. It defines production management and different types of production systems including flow shop, job shop, batch manufacturing, and continuous production. It discusses strategic management approaches, gross domestic product, and world class manufacturing. The types of production systems like job shop, batch, mass, and continuous production are explained along with their characteristics.

1. Unit-I: Introduction to Production Operations Management
Definition, Systems Concept of Production, Types of Production
Systems – Flow Shop, Job Shop, Batch Manufacturing, The Project,
Productivity, Strategic Management – Corporate Strategic, Generic
competitive Strategies, Functional Strategies, Gross Domestic
Product and its impact, World Class Manufacturing.
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2. • Production Management helps the firm to achieve its sales and
business objectives by producing goods and services that meet the
need of consumers. Sales and profit will increase if
the product produced satisfies the customers' needs.
• A Production System receives inputs in the form of men, money,
materials & technology which undergo a conversion process & give
the outputs as goods & service.
• System Concepts in Production System- A system can be defined as a
purposeful collection of people, objects & producers for operating
within an environment
• Definition: Production/ Operations Management is defined as the
process which transforms the inputs/resources of an organization
into final goods (or services) through a set of defined, controlled and
repeatable policies. By policies, we refer to the rules that add value to
the final output.
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3. MARRI LAXMAN REDDY INSTITUTE OF
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4. Production is the process by which raw materials and other inputs are
converted into finished products.
Production system model comprises:
i. Production system,
ii. Conversion sub-system and
iii. Control sub-system
Types of production Systems :
i. Flow Shop
ii. Job Shop
iii. Batch Manufacturing
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5. Production System Model
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6. Scope of Production and Operation Management
• Production and Operations management deals with the
conversion of inputs into outputs using physical resources so
as to provide the desired utilities to the customer while
meeting the other organizational objectives of effectiveness,
efficiency and adaptability. It distinguishes itself from other
functions such as personnel, marketing, finance, etc., by its
primary concern for ‘conversion by using physical resources.’
• Following are the activities which are listed under production
and operations management functions :
Location of facilities, Plant layouts and Material handling,
Product design, Process design, Production and Planning
control, Quality control, Maintenance management.
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7. Objectives of Production/Operations Management
 Maximum customer satisfaction through quality, reliability, cost and delivery
time.
 Minimum scrap/rework resulting in better product quality.
 Minimum possible inventory levels (i.e., optimum inventory levels).
 Maximum utilization of all kinds of resources needed.
 Minimum cash outflow.
 Maximum employee satisfaction.
 Maximum possible production (i.e., outputs).
 Higher operating efficiency.
 Minimum production cycle time.
 Maximum possible profit or return on investment.
 Concern for protection of environment.
 Maximum possible productivity.
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8. System Concepts in Production System
1. A system can be defined as a purposeful collection of
people, objects & producers for operating within an
environment . Thus every organization can be
represented as a system consisting of interacting sub-
system.
2. The features of a system are that these have inputs and
out puts, the basic process of the system converts the
resource inputs into some useful form of outputs.
Depending upon the efficiency of the conversion process
we may have undesirable outputs too-such as pollution,
scraps or wastage , rejection , lose of human life etc.
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9. Types of Production Systems
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10. MARRI LAXMAN REDDY INSTITUTE OF TECHNOLOGY AND MANAGEMENT

11. Job Production
• Job or unit production involves the manufacturing of a
single complete unit with the use of a group of operators
and process as per the customer’s order. This is a “special
order” type of production. Each job or product is
different from the other and no repetition is involved.
The product is usually costly and non-standardised.
• Shipbuilding, electric power plant, dam construction, etc.
are common examples of job production.
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12. Batch Production
• Batch production pertains to repetitive production. It refers to
the production of goods, the quantity of which is known in
advance. It is that form of production where identical
products are produced in batches on the basis of demand of
customers’ or of expected demand for products.
• Definition- “The manufacture of a product in small or large
batches or lots at intervals by a series of operations, each
operation being carried out on the whole batch before any
subsequent operation is performed.”
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13. Mass Production
This production refers to the manufacturing of standardized
parts or components on a large scale. Mass production system
offers economies of scale as the volume of output is large.
Quality of products tends to be uniform and high due to
standardization and mechanization. In a properly designed
and equipped process, individual expertise plays a less
prominent role
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14. Continuous Production
Continuous Production System: It involves a continuous or
almost continuous physical flow of materials. It makes use of
special purpose machines and produces standardized items in
large quantities.
Examples: Petrochemical, cement, steel, sugar and fertilizer
industries, etc.
Processing the materials in different equipment produces the
products. Each machine operates in a single steady state and
performs a specific processing function. Some examples of
continuous processes are pasta production, tomato sauce and
juice production, ice cream production,
mayonnaise production, etc .
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15. Process Production
• Production is carried on continuously through a uniform and
standardized sequence of operations. Highly sophisticated
and automatic machines are used. Process production is
employed in the bulk processing of certain materials. The
typical processing Industries are fertilizers plants,
petrochemical plants, and milk dairies which have highly
automated systems and sophisticated controls.
• They are not labour-intensive and the worker is just an
operator to monitor the system and take corrective steps if
called for. On the basis of the nature of the production
process, flow production may classify into Analytical and
Synthetic Production.
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16. • Analytical Process: In the Analytical Process of production,
the raw material is broken into different products e.g. crude
oil is analyzed into gas, Naptha, petrol, etc. Similarly, coal is
processed to obtain coke, coal gas, coal tar, etc.
• Synthetic Process: Synthetic Process of production involves
the mixing of two or more materials to manufacture a
product, for instance, lauric acid, myristic acid, stearic acid are
synthesized to manufacture soap.
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Process Production Contd.

17. Process Production Contd.
• Flow Shop- It is a form of facility setup, and is also called Line
Layout. This refers to the process or shop which, when all
works (jobs) have the same processing route, is set up based
on the flow.
• Flow production, where identical, standardised items
are produced on an assembly line. Most cars are mass-
produced in large factories using conveyor belts and
expensive machinery such as robot arms. Workers have
specialised jobs, for instance, fitting wheels.
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18. Assembly Lines
• Assembly line a type of flow production which is developed in
the automobile industry in the USA. A manufacturing unit
prefers to develop and employ an assembly line because it
helps to improve the efficiency of production. In an assembly
line, each machine must directly receive material from the
previous machine and pass it directly to the next machine.
• Machine and equipment should be arranged in such a manner
that every operator has free and safe access to each machine.
Space should be provided for free movement of forklifts,
trucks, etc. which deliver materials and collect finished
products.
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19. POM Decisions
Operation managers are required to make a series of decisions
in the production function.
The decisions made by operation managers about the activities
of production systems tend to fall into three general
categories, viz.,
i. Strategic decisions
ii. Operating decisions
iii. Control decisions
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20. POM Decisions and their Applications
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21. Production Management and Operations Management
1. Production management refers to the application of
management principles to the production function in a
factory. In other words, production management
involves application of planning, organizing, directing
and controlling to the production process.
2. Operations management is the process in which
resources/inputs are converted into more useful
products
3. Production management and operations management
are differentiated based on tangibility of finished
goods/services
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22. Recent Trends in Production/Operations Management
1. Global Market Place
2. Production/Operations Strategy
3. Total Quality Management (TQM)
4. Flexibility
5. Time Reduction
6. Technology
7. Worker Involvement
8. Re-engineering
9. Environmental Issues
10. Corporate Downsizing (or Right Sizing)
11. Supply-Chain Management
12. Lean Production
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23. Characteristics of Modern Production
and Operations Function
1. Manufacturing as Competitive Advantage
2. Services Orientation
3. Disappearance of Smokestacks
4. Small has Become Beautiful
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24. Types of Production Systems
1. Manufacturing System
2. Service System
3. Continuous Production
4. Intermittent Production
5. Batch Production
6. Job Production
7. Mass production( Flow)
8. Processing Production
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25. Job Shop Production
• Job Shop Production: Job-shop production are
characterized by manufacturing one or few quantity of
products designed and produced as per the specification
of customers within prefixed time and cost. The
distinguishing feature of this is low volume and high
variety of products.
• One or few units of the products are produced as per the
requirement and specification of the customer.
Production is to meet the delivery schedule and costs are
fixed prior to the contract.
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26. Continuous Production
• Continuous Production: It facilities are arranged as per the
sequence of production operations from the first operations
to the finished product. The items are made to flow through
the sequence of operations through material handling devices
such as conveyors, transfer devices, etc
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27. Mass Production
• Mass Production : Manufacture of discrete parts or
assemblies using a continuous process are called Mass
Production. This production system is justified by very
large volume of production. The machines are arranged
in a line or product layout. Product and process
standardization exists and all outputs follow the same
path
• The production is conducted on a set of machines
arranged according to the sequence of operations. A
huge quantity of same product is manufactured at a time
and is stocked for sale. Different product will require
different manufacturing lines.
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28. Batch Production
• Batch Production: Batch Production
• American Production and Inventory Control Society (APICS)
defines Batch Production as a form of manufacturing in which
the job pass through the functional departments in lots or
batches and each lot may have a different routing
• In this, limited quantities of each of the different types of
products are manufactured on same set of machines.
Different products are produced separately one after the
other.
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29. Generic Strategies
• According to Porter's Generic Strategies, there are five basic
strategic options available to organizations for gaining
competitive advantage. These are:
 Low Cost -Strategy.
 Best Value-Strategy.
 Differentiation.
 Focus- Low Cost.
 Focus –Best value.
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30. Functional Strategies
• Financial strategy
• Marketing strategy
• Production strategy
• Human resources strategy (Personnel strategy)
• Research and Development strategy
• The ideas and plans a company has for its
future business activities, or the process of deciding these
ideas and plans within a company: Management
determines corporate strategy by analyzing
the corporation's capabilities.
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31. The Gross Domestic Product
• GDP of a country is one of the main indicators used to
measure the performance of a country's economy.
When GDP growth is strong, firms hire more workers and can
afford to pay higher salaries and wages, which leads to more
spending by consumers on goods and services.
• GDP is the monetary value of all final goods and services
produced, Consumer spending, C, is the sum of expenditures
by households on durable goods, nondurable goods, and
services. Examples include clothing, food, and health care.
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32. World Class Manufacturing
• World class manufacturing is the philosophy of being the
best, the fastest, and the lowest cost producer of a product or
service. It implies the constant improvement of products,
process and service to remain an industry leader and provide
the best choice for customers, regardless of where they are in
the process.
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33. World Class Manufacturing– Objectives
• Reduce costs (Labour, taxes, tariffs etc)
• Reduce risks (foreign exchange)
• Improve supply chain
• Provide better goods and services
• Attract new markets
• Learn to improve operations
• Attract and retain global talent
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