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PRODUCTION AND
OPERATIONS
MANAGEMENT
WHAT IS
PRODUCTION?
PRODUCTION
RAW MATERIALS FINISHED PRODUCTS
PROCESS
PRODUCT PRODUCE
4
BREAD PRODUCTION
FLOUR
EGGS
SUGAR
BAKING SODA
WATER
BAKING PROCESS BREAD
ELEMENTS OF
PRODUCTION
PROCESS
5
RAW MATERIALS
7
RAW MATERIALS
•Raw materials are the
inputs or resources that
a company uses to
manufacture its finished
products.
DIRECT MATERIALS
INDIRECT MATERIALS
PROCESS
8
9
UNIT OR JOBTYPE PRODUCTION
•This type of production
is most commonly
observed when you
produce one single unit
of a product.
10
BATCHTYPE OF PRODUCTION
•Batch production takes
place in batches. The
manufacturer already
knows the number of units
he needs to a
manufacturer and they are
manufactured in one
batch.
11
MASS PRODUCTION
• Mass production refers
to the production of a
large number of similar
products efficiently.
12
CONTINUOUS PRODUCTIONOR PROCESS
PRODUCTION
•In continuous production,
most of the work is done
by machines rather than
humans. In this type of
production, the
production is
continuous,24×7 hours, all
days in a year.
MANUFACTURING SYSTEMS
13
14
MANUFACTURING SYSTEMS
•Include the logical groupings of equipment and
workers in the factory.
•A worker performing
one or more tasks
without the aid of
powered tools, but
sometimes using hand
tools.
15
MANUALWORK SYSTEMS
•A worker operating
powered equipment.
16
WORKER-MACHINE
SYSTEMS
•A process performed
by a machine without
direct participation of
a human.
17
AUTOMATED SYSTEMS
FACILITY
LAYOUTS
1
8
FACILITY LAYOUT
OTHER INDUSTRIAL FACILITIESEQUIPMENTMACHINERY
ARRANGEMENT
TYPES OF
FACILITY
LAYOUTS
2
0
Product Layout
•Arrangement of
machines in one line
depending on the
sequence of operations.
Fixed Position Layout
•Movement of men and
machines to the
product.
Service Facility Layout
•Services oriented
industries like banks,
hospitals, etc.
Process Layout
•Functional layout /job
lot manufacture or
batch production layout.
•Involves grouping of like
machines in one
department
PROCESS
DESIGN
Make-to-Stock Strategy
•In the make-to-stock environment, goods are produced
before the customers place orders.
INGRE
DIENTS
MAKE
DOUGH
PREPARE
CRUST
ASSEMBLE
PIZZA
BAKE INVENTORY DELIVERY
CUSTOMER
ORDER
ASSEMBLE-TO-ORDER STRATEGY
INGRE
DIENTS
MAKE
DOUGH
PREPARE
CRUST
INVENTOR
Y (CRUST)
ASSEMBLE
PIZZA
DELIVERY
CUSTOMER
ORDER
MAKE-TO-ORDER STRATEGY
INGRE
DIENTS
MAKE
DOUGH
PREPARE
CRUST
ASSEMBLE
PIZZA
BAKE DELIVERY
CUSTOMER
ORDER
PRODUCT
DEVELOPMENT
PROCESS
Idea Generation
•Systematic search for new product ideas.
•Sources:
•Internal
•External
Idea Screening
•Process to spot good ideas and drop poor ones.
Concept development and testing
PRODUCT IDEA
PRODUCT CONCEPT
PRODUCT IMAGE
CONCEPTTESTING
•Refers to new-product concepts with group of target
customers.
Marketing Strategy Development
•Refers to initial marketing strategy for introducing the
product to the market.
Business Analysis
Review of Product Sales, Costs,
and Profits Projections to See if
They Meet Company Objectives
If Yes, Move to
Product Development
If No, Eliminate
Product Concept
BusinessAnalysis
Product Development
•This is when a prototype or a limited production model
will be created.
Test Marketing
•Test marketing is a tool used by the companies to check
the viability of their new product or a marketing
campaign before it is being launched in the market .
Commercialization
•It is the introduction of the product.
• When to launch
• Where to launch
• Planned market rollout
Production and Operations Management Introduction

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Production and Operations Management Introduction

Editor's Notes

  1. IN THIS TYPE OF LAYOUT, EQUIPMENTS, TOOLS AND MACHINES ARE LOCATED ACCORDING TO HOW A PRODUCT IS MADE. ALSO KNOWN AS ASSEMBLY LINE. PRODUCTS ARE PASSED DOWN THE LINE FROM STATION TO STATION AS THEY ARE BEING MADE.
  2. As the name implies the product stays stationary and, as required, it is the machines, workers and materials that keep on changing position.
  3. Layout is the way or arrangement in which service facility is organized. The arrangement could be ofservice facility area, equipment, workstations or any physical entity.
  4. The first layout to look at is the process layout. In this layout, similar items are grouped together. This type of layout is commonly seen in auto shops and department stores. Looking into an auto shop, you might see that screwdrivers are located in one location, while the car parts are located in a different location. In a department store, you will probably see the women's clothes in one area, the men's clothes in another area, and the toys in yet another area. This type of layout is ideal for facilities that perform custom jobs. Auto shops, for example, are usually asked to perform a different job with each customer. Department stores serve many people at a time, each with a different need.