The document outlines the objectives and content of a course on operations management, focusing on production systems, planning, and resource utilization. It distinguishes between manufacturing, production, and operations, and describes various production strategies, including job production, batch production, and mass production. Additionally, it introduces concepts like design to order, make to order, assemble to order, and make to stock, each catering to different customer needs and inventory strategies.

1. Operations Management
Prof Padmanav Acharya
Faculty Cabin – 504, ALB
pacharya@nitie.ac.in

2. Course Objective(s)
The objective of the course is to develop
familiarity with the concepts of production
systems their constraints, and their linkages with
the overall business strategy; planning and
control of operations; optimal utilization of
resources and interfaces of operations
management with other managerial areas.

3. Course Content
• Introduction to Operations and Supply
Management
• Demand Management and Forecasting
• Aggregate Sales and Operational Planning
• Material Requirements Planning
• Inventory Control
• Scheduling and Sequencing

4. Reference Books
• Operations & Supply Management, (Latest Edition),
Chase, R. B. Aquilano, N. J. Jacobs, F. R. Boston,
McGraw-Hill.
• Operations Management: Processes and Supply
Chains, (latest Edition), Krajewski, L.J., Ritzman, L.
P. and Malhorta, M.J., Pearson.
• Operations Management, (Latest Edition), Heizer,
Jay; Render, Barry, Upper Saddle River, N.J.:
Prentice-Hall.
• Operations Management, (Latest Edition), William J.
Stevenson, Tata McGraw Hill education Private Ltd.

5. Production management to
Operations Management
• Till 1960s, global economy was predominantly
manufacturing based
• Gradually there was shift towards service
centric economy
• So, Production Management (science of
managing Manufacturing set ups) led to
Operations Management (science of
managing both manufacturing and service set
ups)

6. Manufacturing vs Production vs
Operations
Term Definition
Manufacturing It is the organised activity of engineering
conversion of raw material into finished
goods.
Production It refers to the whole lot of activities
beginning with receiving an order (goods) till
the order reaches the customer.
Operation It refers to the whole lot of activities
beginning with receiving an order
(goods/services) till the order reaches the
customer.

7. Operations Management
Operations
Production
• Manufacturing/Process/Flow
• Automobile
• Heavy Engineering
• Pharmaceutical
• Textile
• FMCG
• Tyre and Rubber
• Electronics
• Locomotives
Services
• Banking
• Insurance
• Education
• Healthcare
• Transport
• Telecom
• Postal
• Tourism
• IT

8. Industry Type
Industry
Analysis
Type
Ex: Furniture
Shop
Synthesis
Type
Ex: Assembly
Line

9. Type of Production
Increasing Variety
Increasing Quantity of Product
Degree of Repetitiveness of operation
Jobbing Type
Jobbing Type
Jobbing Type
Jobbing Type
Production
Batch Production
Mass Production
Pure
Continuous
Production
Unique
Intermittent
Production

10. Job Production
• High degree of flexibility in production
ensures that—
– Wide variety of products
– High degree of customization
– Volume of production in each variety is low
– Firms usually follow make to order process
– Each product is considered as a ‘single separate
Job’

11. Batch Production
• Volume/quantity, Variety lies in between Job
production and Mass Production
• There could be small batch or large batch
depending on the order.
• There is need of change of set up after one
batch is over and new batch is to be produced.

12. Mass Production
Mass
Production
Flow Production
Flow Process
Discrete Item
Flow line
Quantity
Production
Large Discrete
Item Production

13. Flow Production
• Flow Production: Continuous movement of
products through the production process
– Flow process (manufacturing process for
petroleum products, soft drinks, rubber, steel,
aluminum, and other metallurgical processes)
– Discrete item flow line (Also know as Assembly
line, where products are dished out in discrete
manner one after the other, such as bottling units,
automobiles, tyres, electronic goods etc.

14. Quantity Production
• Large discrete item production
• Production cycle time is very small
• Large quantity of production of small items
takes place within a reasonably small time.

15. Comparisons
Job Batch Mass
Customised
paintings, portrait,
Furniture,
automobiles,
designer garments
Biotech
Pharmaceutical
Food Processing
Personal care
Nuts, Bolts
Washers
Pins
Stoppers
Canned Food
Bottled items
costliest costlier cheap
highest higher Production
time/unit small
highest higher Worker skill
Least

16. Production Strategies
• Design to Order
• Make to Order
• Assemble to Order
• Make to Stock

17. Design to order
• Design to order is a manufacturing strategy, that
involves designing a product that does not currently
exist
• And then the individual parts of the product are
manufactured and assembled as per the design
based on a specific/unique customer order.

18. Make to Order
• A strategy that makes products of low volume as per
customer specifications.
• It is a business production strategy whereby
manufacturers build products only once a confirmed
order has been received.

19. Assemble to Order
• A strategy where a large variety of products can be
sold as per customer requirements out of relatively
fewer component parts and subassemblies.
• Products are quickly produced from component
parts once the order is confirmed.

20. Make to Stock
• This Strategy involves holding items in stock for
immediate delivery when order is received.
• It minimizes the delivery lead time.
• It matches inventory with anticipated customer
demand.