Production and Operation Management

Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Unit-1
Semester: BBA Fifth Semester
Name of the Subject:
Production and Operation Management

Operations Management
• Operations management refers to the administration
of business practices to create the highest level of
efficiency possible within an organization. It is
concerned with converting materials and labor into
goods and services as efficiently as possible to
maximize the profit of an organization. Operations
management teams attempt to balance costs with
revenue to achieve the highest net operating
profit possible.

Importance of operations
management
• Operation management involves similar management for
every industry or business irrespective of their nature of the
operation. Planning, organizing, staffing, monitoring
controlling, directing and motivating are its significant
elements. Operation management is obligatory for
organizations to manage the daily activities seamlessly. With
its help, an organization is able to make good use of its
resources like labor, raw material, money and other resources.

• Operation Management is important to improve the overall
productivity. The ratio of input to output is termed as
productivity. It gives a measure of the efficiency of the
manager as well as the employees. Since the discipline
focuses on using the available resources in the best possible
way to achieve end goals, so it improves the overall
productivity
management

• Operation management is the management of the various
business activities that take place within an organization and
contributes in making the products to align with customer’s
requirements. Operation management is the heart of an
organization as it controls the entire operation If the products
are made catering to the needs of the customers then, they’ll
be sold at a rapid rate.
management

• Under operation management, there is the optimum
utilization of resources leading to enormous profits of the
organization. The efforts of the employees and the various
raw materials are efficiently utilized and converted into the
services and goods required by the organization. Operation
management plays a crucial role in an organization as it
handles issues like design, operations, and maintenance of
the system used for the production of goods.
management

Five P’s Types of Transformation.
• Product
Defined as anything that can be offered to a market that
might satisfy a want or need In manufacturing, products are
purchased as raw materials and sold as finished goods.
• Process
Defined as a designed sequence of activities for changing the
properties or attributes of an object or system

• Plant
Refers to a place where goods and services are produced
Commonly referred as factory, mill or establishment.
• People
Referred as human resources who are engaged in operations
• Programmers
Defined as a planned series of events
Five P’s Types of Transformation.

Semester: SEVENTH Semester
WOMEN AND LAW
Unit-2
Semester: BBA Fifth Semester

Waiting Lines
• Waiting in lines is a part of our everyday life. Waiting in lines
may be due to overcrowded, overfilling or due to congestion.
Any time there is more customer demand for a service than
can be provided, a waiting line forms. We wait in lines at the
movie theater, at the bank for a teller, at a grocery store. Wait
time is depends on the number of people waiting before you,
the number of servers serving line, and the amount of service
time for each individual customer. Customers can be either
humans or an object such as customer orders to be process, a
machine waiting for repair.

Waiting Line System Operating
Characteristics
• The probability that no customers (or units) are in the system
• The average number of customers in the line
• The average number of customers in the system (customers in
line plus those being served)
• The average time a customer spends in the waiting line,
• The average time a customer spends in the system (waiting
time plus time in the service facility,

Queueing theory
• Queueing theory is the mathematical study of
waiting lines, or queues. A queueing model is
constructed so that queue lengths and waiting time
can be predicted. Queueing theory is generally
considered a branch of operations research because
the results are often used when making business
decisions about the resources needed to provide a
service.

Waiting Line Problems
• Waiting in line is common phenomena in daily life, for
example, banks have customers in line to get service of teller,
cars queue up for re-filling, workers line up to access machine
to complete their job. Therefore, management needs to work
on formulae, which will reduce wait time and create
delighted customers without incurring an additional cost.
Generally, queue management problems are trade off’s
situation between cost of time spent in waiting v/s cost of
additional capacity or machinery.

SINGLE-SERVER WAITING LINE
MODEL
The easiest waiting line model involves a single-server, single-line,
single-phase system. The following assumptions are made when
we model this environment.
• The customers are patient (no balking, reneging, or jockeying)
and come from a population that can be considered infinite.
• Customer arrivals are described by a Poisson distribution with
a mean arrival rate of (lambda).

Semester: BBA 5th Semester
Unit-3

Total Quality Management
Total Quality Management (TQM) describes a
management approach to long-term success
through customer satisfaction. In a TQM effort,
all members of an organization participate in
improving processes, products, services, and the
culture in which they work

Design Quality
A good design is elegant and simple - but elegance is in the eye
of the beholder. James Shore, in his book The Art of Agile
Development, disagreed with this abstract concept. In fact, he
provided a very concrete definition of design quality: "A good
software design minimizes the time required to create, modify,
and maintain the software while achieving run-time
performance."
This is a very non-traditional view of software design – in fact it
has nothing to do with the organization of components within
the system, class hierarchies, and all of the traditional things that
come to mind when design is discussed.

Quality at the Source
Quality at the source is an approach to quality that places the
responsibility for catching errors in the hands of the operator, or
at the point of build. Successful implementation of this lean tool
requires a major shift in how supervisors and operators look at
quality. Quality is not just the responsibility of the quality control
department. The process in which the product is manufactured
must be set up to allow production line workers to recognize
errors before they become defects. The development of a
proactive culture is needed in quality at the source, and a mind-
set of error prevention rather than reaction to problems should
be taught.

Zero Defects
Zero Defects is a management tool aimed at the
reduction of defects through prevention. It is
directed at motivating people to prevent
mistakes by developing a constant, conscious
desire to do their job right the first time." —
Zero Defects: A New Dimension in Quality
Assurance.

Continuous improvement
• A continual improvement process, also often
called a continuous improvement process
(abbreviated as CIP or CI), is an ongoing effort
to improve products, services, or processes. ...
Improvement in business strategy, business
results, customer, employee and supplier
relationships can be subject to continual
improvement.

Statistical quality control
• Statistical quality control refers to the use of
statistical methods in the monitoring and
maintaining of the quality of products and
services. One method, referred to as
acceptance sampling, can be used when a
decision must be made to accept or reject

Acceptance sampling
• Acceptance sampling uses statistical sampling
to determine whether to accept or reject a
production lot of material. It has been a
common quality control technique used in
industry. It is usually done as products leaves
the factory, or in some cases even within the
factory.

Benchmarking
Benchmarking is comparing ones business processes and
performance metrics to industry bests and best practices from
other companies. In project management benchmarking can also
support the selection, planning and delivery of projects.
Dimensions typically measured are quality, time and cost. In the
process of best practice benchmarking, management identifies
the best firms in their industry, or in another industry where
similar processes exist, and compares the results and processes
of those studied (the "targets") to one's own results and
processes.

Semester: Fifth Semester
Unit-4

Facility Location
Facility Location is the right location for the
manufacturing facility, it will have sufficient
access to the customers, workers,
transportation, etc. ... A manufacturing unit is
the place where all inputs such as raw material,
equipment, skilled labors, etc. come together
and manufacture products for customers.

Plant location
• Plant location refers to the choice of region
and the selection of a particular site for
setting up a business or factory. But the
choice is made only after considering cost and
benefits of different alternative sites. It is a
strategic decision that cannot be changed
once taken.

Factor Rating
Factor rating is a procedure or technique to
evaluate multiple alternatives based on a
number of selected factors.

Center-of-gravity
• The center-of-gravity, or weight center,
technique is a quantitative method for
locating a facility such as a warehouse at the
center of movement in a geographic area
based on weight and distance. This method
identifies a set of coordinates designating a
central location on a map relative to all other
locations

Assembly Line Balancing
Assembly line balancing is a production strategy that
sets an intended rate of production to produce a
particular product within a particular time frame. Also,
the assembly line needs to be designed effectively and
tasks needs to be distributed among workers, machines
and work stations ensuring that every line segments in
the production process can be met within the time
frame and available production capacity.

Layout problems
• Layout problems are found in several types of
manufacturing systems. Typically, layout
problems are related to the location of
facilities (e.g., machines, departments) in a
plant. They are known to greatly impact the
system performance. Most of these problems
are NP hard.

Semester: Fifth Semester
Unit -5

Inventory management
Inventory management is the management of
inventory and stock. As an element of supply
chain management, inventory management
includes aspects such as controlling and
overseeing ordering inventory, storage of
inventory, and controlling the amount of
product for sale.

Inventory forecasting
Inventory forecasting is an important feature for all
businesses that sell physical goods. Inventory
management systems can predict future stock levels by
looking at the past sales of each item in your inventory.
... But, it's almost impossible to determine the exact
number of goods to equal demand.

Forecasting Methods

Qualitative forecasting techniques
An approach to forecasting that is based on intuitive or
judgmental evaluation. It is used generally when data
are scarce, not available, or no longer relevant.
Common types of qualitative techniques include:
personal insight, sales force estimates, panel
consensus, market research, visionary forecasting, and
the Delphi method. Examples include developing long-
range projections and new product introduction.

Quantitative forecasting technique
• Graphical forecasting methods
• Trend forecasting models

Inventory model
Inventory model is a mathematical model that helps
business in determining the optimum level of
inventories that should be maintained in a production
process, managing frequency of ordering, deciding on
quantity of goods or raw materials to be stored,
tracking flow of supply of raw materials and goods to
provide uninterrupted service to customers without
any delay in delivery.

Production and Operation Management

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