This document provides an overview of key concepts in production and operations management. It discusses the importance of the production function in generating revenue and lowering costs. It also describes how technology like robots, CAD/CAM, and computer-integrated manufacturing can enhance the production process. Additionally, it covers factors in plant location decisions, alternative facility layouts, inventory control methods, and production planning and control techniques. The goal is to effectively and efficiently convert resources into finished goods and services.

1. PRODUCTION AND
OPERATIONS
MANAGEMENTGuide: Mr. Diganta Munshi by
Pratik Lahiri

2. BRIEF OVERVIEW
● the importance of production and
operations management.
● the roles of computers and related
technologies in production.
● the factors involved in a plant
location decision.
● the major tasks of production and
operations managers.
● alternative layouts for production
facilities.
● the steps in the purchasing process.
● the advantages and disadvantages
of maintaining large inventories.
● the steps in the production control
process.
● the benefits of quality control.

3. •Production: Application of resources such as people
and machinery to convert materials into finished goods
and services.
•Production and Operations Management: Managing
people and machinery in converting materials and
resources into finished goods and services.

4. “
•A vital function is necessary for generating money to
pay employees, lenders, and stockholders.
•Effective production and operations management can:
–lower a firm’s costs of production.
–boost the quality of its goods and services.
–allow it to respond dependably to customer demands.
–enable it to renew itself by providing new products.
STRATEGIC IMPORTANCE OF PRODUCTION FUNCTION

5. THIS IS A SLIDE TITLE
•Mass Production – manufacturing products in large amounts
through standardization, mechanization and specialized skills.
•Flexible Production – producing smaller batches using
information technology, communication and cooperation.
•Customer-Driven Production – evaluating customer demands to
link with manufacturer.

6. •Robots – reprogrammable machines capable of performing routine jobs and
manipulating material
•Computer-Aided Design and Manufacturing – enables engineers to design parts
and buildings on computer screens faster and with fewer mistakes.
•Flexible Manufacturing Systems – a production facility that workers can quickly
modify to manufacture different products.
•Computer-Integrated Manufacturing – integrates robots, computers and other
technologies to help workers design products, control machines, handle materials,
and control the production function.
TECHNOLOGY AND THE PRODUCTION PROCESS

7. White
Is the color of milk and fresh
snow, the color produced by the
combination of all the colors of
the visible spectrum.
THE LOCATION DECISION
Black
Is the color of coal, ebony, and of
outer space. It is the darkest
color, the result of the absence
of or complete absorption of
light.

8. PLANNING THE PRODUCTION PROCESS
Red
Is the color of blood, and
because of this it has
historically been
associated with sacrifice,
danger and courage.
•Choose what goods or services to offer customers.
•Convert original product ideas into final specifications.
•Design the most efficient facilities to produce those products.

9. PROCESS LAYOUT
•Process layout groups
machinery and equipment
according to their functions.
•Facilitates production of a
variety of nonstandard items
in relatively small batches.

10. PRODUCT LAYOUT
•Product layout sets up production equipment along a
product-flow line, and the work in process moves along this
line past workstations.
•Efficiently produces large numbers of similar items.

11. FIXED-POSITION LAYOUT
•A fixed-position layout places the product in one spot, and
workers, materials, and equipment come to it.

12. IMPLEMENTING THE PRODUCTION PLAN
Make, Buy, or Lease Decision
•Choosing whether to manufacture a needed product or component
in-house, purchase it from an outside supplier, or lease it.
•Factors in the decision include cost, availability of reliable outside
suppliers, and the need for confidentiality.
Selection of Suppliers
•Based on comparison of quality, prices, dependability of delivery,
and services offered by competing companies.

13. INVENTORY CONTROL
Inventory Control
–Perpetual inventory
–Vendor-managed inventory
Just-in-Time Systems
•Improving profits and return on investment by minimizing costs and
eliminating waste through cutting inventory on hand.
Materials Requirement Planning
•Computer-based production planning system by which a firm can
ensure that it has the correct materials for production.

14. CONTROLLING THE PRODUCTION PROCESS
Production control creates a well-defined set of procedures for
coordinating people, materials, and machinery.
1)Planning
2)Routing
3)Scheduling
4)Dispatching
5)Follow-up

15. GNATT CHART

16. PERT DIAGRAM

17. THANKS!
Any questions?