Uni,1
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The document provides an overview of production and operations management (POM). It discusses how POM aims to increase value at each stage of production through efficient transformation. This is done by meeting objectives like producing the right quantity, quality, and cost. The document also outlines different production approaches and categories of e-commerce. It discusses benefits and impacts of e-business on operations, including increased demand and changes to logistics. Break-even analysis is introduced as a tool considering total costs and revenues.
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Uni,1
- 1. By:Kirti Kachhadiya Unit 1 Introduction to POM
- 2. Marketing – generates demand Operations – creates the product Finance/accounting – tracks organizational performance, pays bills, collects money It shows us how goods and services are produced 2
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- 4. 4
- 5. Increase product value at each stage • Value added is the net increase between output product value and input material value Provide an efficient transformation • Efficiency – means performing activities well for least possible cost 5
- 6. Input Planning & Supportive Output controlling Subsystems Students Class Times Bookstore Educated Students Professor Course Development Library Research Outcomes Buildings School Computer Regulations Lab Service to Public
- 7. Right quantity Right quality Right time Right manufacturing cost Reduced processing time Productivity Economy
- 8. Scientific management Mass production Lean production Craft production Division of labor Interchangeable parts
- 14. Business Consumer Business B2B B2C Commerceone.com Amazon.com Consumer C2B C2C Priceline.com eBay.com Categories of E-Commerce
- 15. BENEFITS OF E-BUSINESS IMPACT ON OPERATIONS Comparison shopping by Demand increases; order customers fulfillment and logistics become major issues; production moves overseas Logistics change from delivering Direct contact with to a store or distribution center to delivering to individual customers homes; consumer demand is more erratic and unpredictable than business demand Outsourcing increases; more Business processes alliances and partnerships conducted online among firms are formed; supply is less certain; global supply chain issues arise
- 16. BENEFITS OF E-BUSINESS IMPACT ON OPERATIONS Access to customers Demand increases; order fulfillment and logistics worldwide become major issues; production moves overseas Logistics change from Middlemen are eliminated delivering to a store or distribution center to delivering to individual homes; consumer demand is more erratic and unpredictable than business demand Access to suppliers Outsourcing increases; more alliances and partnerships worldwide among firms are formed; supply is less certain; global supply chain issues arise
- 17. BENEFITS OF E-BUSINESS IMPACT ON OPERATIONS Online auctions and e- Competitive bidding lowers cost marketplaces of materials; supply needs can be found in one location Productivity increases as IT synergy information can be shared more efficiently internally and between trading partners Order fulfillment, logistics, warehousing, transportation and Expanded supply chains delivery become focus of operations management; risk is spread out; trade barriers fall
- 18. MFG. SERVICE Tangible product Intangible product Product can be inventoried Product cannot be inventoried Low customer contact High customer contact Longer response time Short response time Labor intensive Capital intensive
- 20. Optimizing global supplier, production, and distribution networks. • optimally control of resources as inventory, transportation, and production equipment. Managing customer touch points. • support personnel
- 21. Increased co-production of goods and services. • monitoring of orders • information technology • improving service
- 22. Raising senior management awareness of operations as a significant competitive weapon. Coordinating the relationships between mutually supportive but separate organizations • Outsourcing
- 24. Product design considerations must include the process Intermittent processes: • Processes used to produce a variety of products with different processing requirements in lower volumes. (such as healthcare facility) Repetitive processes: • Processes used to produce one or a few standardized products in high volume. (such as a cafeteria, or car wash)
- 26. Process selection is based on five principal considerations • Product-Process Grid • Degree of vertical integration • Flexibility of resources • Mix between capital & human resources • Degree of customer contact
- 27. Process types can be: • Project process – make a one-at-a-time product exactly to customer specifications • Batch process – small quantities of product in groups or batches based on customer orders or specifications • Line process – large quantities of a standard product • Continuous process – very high volumes of a fully standard product
- 29. Break-even analysis considers two functions of Q • Total cost – sum of fixed and variable cost • Total cost = F + (VC)*Q • Revenue – amount of money brought in from sales • Revenue = (SP) * Q • Q = number of units sold
- 30. Compute quantity of goods that must be sold to break- even Compute total revenue at an assumed selling price Compute fixed cost and variable cost for several quantities Plot the total revenue line and the total cost line Intersection is break-even Sensitivity analysis can be done to examine changes in all of the assumptions made
Editor's Notes
- Four functional areas of a business: Marketing, Production, Finance & PersonnelProduction is basic functionProduction is a transformation system where inputs are converted into outputs.Transformation can be physical (mfg.) locational (transport) storage based (warehousing) etc.
- Production management is the process of planning, organizing, directing and controlling the activities of production.According to E.S.Buffa “production management deal with decision making related to production processes so that the resulting goods or services are produced according to specification.”
- “production is a systematic process of conversion of inputs ( raw material) into output ( finished goods) through chemical and mechanical processing to create utility of products or services.According to E.S.Buffa “Production is a process by which goods and services are created.”
- JIT eliminate inventory,small lot sizes,low set-up time,containers for fixe no. of lot.
- Systemic analysis of work processONE OFF PROUCTION
- CONT.OBSERAVATION BY TIME KEEPING DEVICE.CAMERA VIDEO RECORDING.Progressive assembly line,1958.
- The Hawthorne effect is a form of reactivity whereby subjects improve or modify an aspect of their behavior being experimentally measured simply in response to the fact that they know they are being studied,[1][2] not in response to any particular experimental manipulation
- program Evaluation and Review Technique (PERT) is a scheduling method originally designed to plan a manufacturing project by employing a network of interrelated activities, coordinating optimum cost and time criteria. PERT emphasizes the relationship between the time each activity takes, the costs associated with each phase, and the resulting time and cost for the anticipated completion of the entire project.PERT is an integrated project management system.pERT was first developed in 1958 by the U.S. Navy Special Projects Office on the Polaris missile system. PERT evolved as a means to deal with the varied time periods it takes to finish the critical activities of an overall project.PERT evolved as a means to deal with the varied time periods it takes to finish the critical activities of an overall project.
- Just in time (JIT) is a production strategy that strives to improve a business ROIby reducing in-process inventory and associated carrying costs. Just-in-time production method is also called the Toyota Production System. To meet JIT objectives, the process relies on signals or Kanban (看板 Kanban?) between different points in the process, TIMWOODJIT inventory systems expose hidden cost of keeping inventory,
- Electronic commerce, commonly known as e-commerce, ecommerce, eCommerce or e-comm, refers to the buying and selling of products or services over electronic systems such as the Internet and other computer networks.
- One business requires goods that are provided by other business holder.eg.onlinetrading,booksbusiness,all kind of selling,hotel prices.
- The American Production and Inventory Control SocietyEuropean Operations Management AssociationInstitute for Operations Research and the Management SciencesAssociation of Technology, Management, and Applied EngineeringThe Manufacturing and Service Operations Management Society
- .Facility Location - Selecting appropriate location for the production 2.Plant layouts and material handling - Deciding upon the machines, equipment and necessary devices which could lead to effectual and desired production in the most economic way. Preparation of plan layout for the establishment of machines in the required sequence. Storage of material and handling it in most effective way to avoid the wastage and delivery at the work centers as and when required. 3.Product design - Designing the product and conceive the idea about its production. 4.Process design - Determination of the production process which is most relevant and efficient in the given state of affairs. 5.Production and planning control - Planning the production and its various aspects how, when and where producing a particular product or its assembly will be done. 6.Quality control - Controlling the production and ensuring the quality by setting the check points and taking the periodic measurements of the current performance. 7.Materials management - Managing the inventories of raw material, semi-finished and finished goods in a way that neither excessive money may block in this non-productive operation nor the required material. 8.Maintenance management - Analysis the deviations and formulating the corrective measures to stay in track with planned quality, time-schedule and predetermined cost schedules.