The document provides an introduction to production and operations functions. It defines production as the processes that transform inputs like raw materials into outputs like goods and services. It describes the production function as a mathematical relationship between physical inputs and outputs. Some key aspects of production and operations management discussed include advantages like shorter lead times and higher quality, as well as the scope involving decisions around location, quality management, and production planning and control.

1. INTRODUCTION TO
PRODUCTION
&
OPERATIONS FUNCTIONS

2. PRODUCTION
 The processes and methods used to
transform tangible inputs (raw
materials, semi-finished
goods, subassemblies)
and intangible inputs
(ideas, information, knowledge)
into goods or services. Resources
 are used in this process
to create an output that is suitable
for use or has exchange value.

3. PRODUCTION FUNCTION

Amathematical equation or graph that
shows the relationship between
physical inputs and
physical outputs for a business.
The production function for a
business typically focuses on the
physical and so does not take
into account non physical aspects of
production like prices.

4. The Production Function
9-4
Production function: the
relationship that describes
how inputs like capital and
labor are transformed into
output.
Mathematically,
Q = F (K, L)
K = Capital
L = Labor
Evolving state of technology

5. ADVANTAGES
 SHORTER NEW-PRODUCT LEAD TIME.
 MORE INVENTORY TURNS.
 SHORTER MANUFACTURING LEAD TIME.
 HIGHER QUALITY.
 GREATER FELXIBILITY.
 BETTER CUSTOMER SERVICE.
 REDUCED WASTAGE.

6. PRODUCTION MANAGEMENT
 PM REFERS TO THE APPLICATION OF
MANAGEMENT PRINCIPLES TO THE
PRODUCTION FUNCTION IN A
FACTORY.
 IN OTHER WORDS, PRODUCTION
MANAGEMENT INVOLVES
APPLICATION OF
PLANNING,ORGANISING,DIRECTING
AND CONTROLLING TO THE
PRODUCTION PROCESS.

7. Operations Management
 Refers to the management of the production
system that transforms inputs into finished
goods and services.
○ Production system: the way a firm acquires
inputs then converts and disposes outputs.
○ Operations managers: responsible for the
transformation process from inputs to outputs.
 Operations management seeks to increase the
quality, efficiency, and responsiveness of the
firm.
○ Seeks to provide a competitive advantage.

8. Operations Management Concepts
 Quality: goods and services that are reliable
and perform correctly.
○ Quality allows customers to receive the
performance that they expect.
 Efficiency: the amount of input to produce a
given output.
○ Less input required lowers cost and waste.
 Responsiveness to customers: actions taken to
respond to customer needs.
○ Firm can react quickly and correctly to
customer needs as they arise.

9. Nine Categories of Operations Management Decisions
 Product plans
 Competitive Priorities
 Positioning Strategies
 Location
 Technological Choices
 Quality management and control
 Inventory management and
control
 Materials Management
 Master production scheduling

10. SCOPE OF PRODUCTION
&
OPERATIONS MANAGEMENT

11.  SELECTION OF LOCATION
 QUALITY MANAGEMENT
 MAINTENANCE MANAGEMENT
 PRODUCTION PLANNING AND
CONTROL

12. EVOLUTION OF
PRODUCTION FUNCTION
 THE INDUSTRIAL REVOLUTION.
 SCIENTIFIC MANAGEMENT.
 THE HUMAN RELATIONS
MANAGEMENT.
 OPERATIONS RESEARCH.
 COMPUTERS & ADVANCED
PRODUCTION TECHNOLOGY.
 THE SERVICE REVOLUTION

13. CHARACTERISTICS OF MODERN
PRODUCTION & OPERATIONS FUNCTION
 MANUFACTURING AS COMPETITIVE
ADVANTAGE.
 SERVICE ORIENTATION.
 DISAPPEARANCE OF SMOKESTACKS
 SMALL HAS BECOME BEAUTIFUL.