2. OPM Management: Introduction, definition.
Historical evolution of OPM.
Understanding similarities and difference
among products, goods and services
Strategy framework
Using operations as an competitive advantage
Forecasting in OPM
3. Production is the creation of goods and services.
The production activity is nothing but the step by
step conversion of one form of material into
another either chemically or mechanically.
This is done in factories which have
manufacturing processes.
The basic inputs of production process are men,
machines, plant, services and methods.
The finished products of one manufacturing
process may not become finished product for
consumption it may become the raw material for
other manufacturing process.
Production involves the step by step conversion
of one form of materials into another through
processing to create or enhance the utility of the
products or services.
4. Production refers to the use of any process
which is designed to transform a set of input
elements into set an output elements.
It involves the step by step conversion of one
form of material into another to create or
enhance the utility of the products or
services.
5. According to Elwood Butta, “Production is a
process by which goods or services are
created.”
6. Production by disintegration i.e., by separating the
contents the desired product is produced. Ex: Crude
oil, fuel oils etc.,
Production by Integration i.e., production by
assembling various components of the products to
get desired product. Ex: 2 wheelers, 4wheelers etc.,
Production by services i.e., production is based on
chemical and mechanical properties of materials
without physical change. Ex: heat treatment of metals
etc.,
7. a. Job shop production – It refers to the manufacturing
facility that produces several different products in smaller
batches. They are manufactured by one or few quantity of
products designed and produced as per the specification
of the customers within prefixed time and cost.
b. Batch production – It refers to the manufacturing
process in which components or goods are produced in
groups and not in continuous stream. A limited number of
products are produced at regular intervals.
c. Mass production – Under this, the manufacturing or
processing of uniform products in large quantities takes
place. It is either a wholly automated process or a series of
short or repetitive procedures.
d. Continuous production -it is a method used to
manufacture, produce or process materials without
interruption.
8. The job of coordinating and controlling the
activities required to make a product, typically
involving effective control of scheduling, cost,
performance, quality, and waste requirement.
It means planning, organizing, directing and
controlling of production activities. It deals with
decision making regarding the quality, quantity,
cost etc. It applies management principles for
production. It deals with converting raw materials
into finished goods or products.
9. According to H.A.Harding, “Production
management is concerned with those
processes which convert the inputs into
outputs. The inputs are various resources like
raw materials, men, machines, methods etc.,
and outputs are goods and services”
According to A.W.Field, “Production
management is the process of planning and
regulating the operations of that part of an
enterprise which is responsible for actual
transformation of materials into finished
products.”
10. 1. Produce goods at right quality, right
quantity, right time and at minimum cost.
2. Optimum utilization of resources and
available production capacity.
3. Produce required quantities at a required
quality.
4. Ensure maximum capacity utilization.
5. Flexible working conditions.
6. Minimum raw material, labour cost and
maintenance cost.
7. Minimum storage, material handling and
inspection. 8. Improve productivity of all
inputs. JIT= JUST IN TIME
11. 1) Location of facilities: Selection of appropriate
location must ensure the availability of power supply,
water supply, road conditions, nearness of raw
materials, skilled labors etc.
2) Plant layout and job design: Preparation of plant
layout for the establishment of machines in the
required sequence. A job design must be prepared to
organize machines, tasks into a unit of work to
achieve certain objectives.
3) Materials handling: It is the process of ensuring
the movement of raw materials and semi finished
goods inside the factory.
4) Product design: Designing the product and
conceiving the idea about its production. Product
design considers the product size, weight, color etc.
12. 5) Process design: It is the complete description of specific steps in the
production process. This determines the production process which is
most relevant.
6) Production and planning control: It means coordination of series of
functions according to a plan which will economically utilizes the plant
facilities and regulates orderly movement of goods.
7) Quality control: It is a staff function concerned with the prevention of
defects in manufacturing so that, items may be made right way and
ensure the quality standard.
8) Inventory management: It is the process of maintaining proper
records of raw materials semi finished goods and finished goods.
9) Maintenance management: It is the process of formulating the
corrective measures to stay in track with planned quality, time schedule
and predetermined cost schedules. 10) Automation: It is the technique
of operating or controlling a productive process by electronic device and
reducing human intervention to the minimum
13. Location of facilities for operations is a long-term capacity
decision which involves a long term commitment about the
geographically static factors that affect a business
organization.
It is an important strategic level decision-making for an
organization.
The selection of location is a key-decision as large
investment is made in building plant and machinery. An
improper location of plant may lead to the waste of all the
investments made in the plant and machinery equipment.
Hence, location of plant should be based on the
company‟s expansion plan and policy, diversification plan
for the products, changing sources of raw materials and
many other factors.
The purpose of the location study is to find the optimal
location that will result in the greatest advantage to the
organization.
14. Plant layout refers to the physical arrangement of
facilities. It is the configuration of departments,
work centres and equipment in the conversion
process. The overall objective of the plant layout
is to design a physical arrangement that meets
the required output quality and quantity most
economically.
According to James Moore, “Plant layout is a plan
of an optimum arrangement of facilities including
personnel, operating equipment, storage space,
material handling equipments and all other
supporting services along with the design of best
structure to contain all these facilities”.
15. Material Handling‟ refers to the „moving of materials
from the store room to the machine and from one
machine to the next during the process of
manufacture‟. WIP= WORK IN PROGRSS
It is also defined as the „art and science of moving,
packing and storing of products in any form‟.
It is a specialized activity for a modern manufacturing
concern, with 50 to 75% of the cost of production.
This cost can be reduced by proper section, operation
and maintenance of material handling devices.
Material handling devices increases the output,
improves quality, speeds up the deliveries and
decreases the cost of production.
Hence, material handling is a prime consideration in
the designing new plant and several existing plants
16. Product design deals with conversion of ideas into reality.
Every business organization has to design, develop and
introduce new products as a survival and growth strategy.
Developing the new products and launching them in the
market is the biggest challenge faced by the
organizations.
The entire process of need identification to physical
manufactures of product involves three functions:
marketing, product development, and manufacturing.
Product development translates the needs of customers
given by marketing into technical specifications and
designing the various features into the product to these
specifications.
Manufacturing has the responsibility of selecting the
processes by which the product can be manufactured.
Product design and development provides link between
marketing, customer needs and expectations and the
activities required to manufacture the product.
17. 4. Process design
Process design is a macroscopic decision-
making of an overall process route for
converting the raw material into finished
goods.
These decisions encompass the selection of a
process, choice of technology, process flow
analysis( PERT/CPM) and layout of the
facilities.
Hence, the important decisions in process
design are to analyze the work flow for
converting raw material into finished product
and to select the workstation for each
included in the workflow.
18. 5. Production planning and control
Production planning and control can be defined
as the process of planning the production in
advance, setting the exact route of each item,
fixing the starting and finishing dates for each
item, to give production orders to shops and to
follow up the progress of products according to
orders.
The principle of production planning and control
lies in the statement „First Plan Your Work and
then Work on Your Plan‟.
Main functions of production planning and
control includes planning, routing, scheduling,
dispatching and follow-up.
19. Planning is deciding in advance what to do, how to do
it, when to do it and who has to do it.
Planning bridges the gap from where we are, to where
we want to go. It makes it possible for things to occur
which would not otherwise happen.
Routing – PERT/CPM may be defined as the selection
of path which each part of the product will follow,
which being transformed from raw material to
finished products.
Routing determines the most advantageous path to
be followed from department to department and
machine to machine till raw material gets its final
shape.
Scheduling determines the programme for the
operations. Scheduling may be defined as „the
fixation of time and date for each operation‟ as well
as it determines the sequence of operations to be
followed.
20. Dispatching is concerned with the starting the
processes.
It gives necessary authority so as to start a
particular work, which has already been planned
under „Routing‟ and „Scheduling‟.
Therefore, dispatching is „release of orders and
instruction for the starting of production for any
item in acceptance with the route sheet and
schedule charts‟.
The function of follow-up is to report daily the
progress of work in each shop in a prescribed
Performa and to investigate the causes of
deviations from the planned performance.
21. 6. Quality control –
TQM- Total Quality Management
Quality Control (QC) may be defined as „a
system that is used to maintain a desired
level of quality in a product or service‟.
It is a systematic control of various factors
that affect the quality of the product.
Quality control aims at prevention of defects
at the source, relies on effective feedback
system and corrective action procedure.
22. Quality control can also be defined as „that
industrial management technique by means
of which product of uniform acceptable
quality is manufactured‟.
It is the entire collection of activities which
ensures that the operation will produce the
optimum quality products at minimum cost.
23. :
To improve the company‟s income by making the
production more acceptable to the customers i.e. by
providing long life, greater usefulness,
maintainability, etc.
To reduce companies cost through reduction of
losses due to defects.
To achieve inter changeability of manufacture in
large scale production.
To produce optimal quality at reduced price.
To ensure satisfaction of customers with
productions or services or high quality level, to build
customer goodwill, confidence and reputation of
manufacturer.
To make inspection prompt to ensure quality
control.
To check the variation during manufacturing.
24. 7. Materials management
Materials management is that aspect of management function
which is primarily concerned with the acquisition, control and
use of materials needed and flow of goods and services
connected with the production process having some
predetermined objectives in view.
The main objectives of materials management are:
To minimize material cost.
To purchase, receive, transport and store materials efficiently
and to reduce the related cost.
To cut down costs through simplification,
standardisation, value analysis, import substitution, etc.
To trace new sources of supply and to develop cordial relations
with them in order to ensure continuous supply at reasonable
rates.
To reduce investment tied in the inventories for use in other
productive purposes and to develop high inventory turnover
ratios.
25. 1. Accomplishment of firm's objectives: Production
management helps the business firm to achieve all its
objectives. It produces products, which satisfy the
customers' needs and wants. So, the firm will increase its
sales. This will help it to achieve its objectives.
2. Enhances reputation, goodwill and image: Production
management helps the firm to satisfy its customers. This
increases the firms reputation, goodwill and image. A
good image helps the firm to expand and grow.
3. Helps to introduce new products: Production
management helps to introduce new products in the
market. It conducts Research and Development (R&D). This
helps the firm to develop newer and better quality
products. These products are successful in the market
because they and they give full satisfaction to the
customers.
26. 4. Supports other functional areas: Production
management supports other functional areas in an
organization, such as marketing, finance, and personnel.
The marketing department will find it easier to sell good-
quality products, and the finance department will get more
funds due to increase in sales. It will also get more loans
and share capital for expansion and modernization. The
personnel department will be able to manage the human
resources effectively due to the better performance of the
production department.
5. Helps to face competition: Production management
helps the firm to face competition in the market. This is
because production management produces products of
right quantity, right quality, right price and at the right
time. These products are delivered to the customers as per
their requirements
6. Optimum utilization of resources: Production
management facilitates optimum utilization of resources
such as manpower, machines, etc. So, the firm can meet
its capacity utilization objective. This will bring higher
returns to the organization.
27. 7. Minimizes cost of production: Production
management helps to minimize the cost of
production. It tries to maximize the output and
minimize the inputs. This helps the firm to
achieve its cost reduction and efficiency
objective.
8. Expansion of the firm: Production
management helps the firm to expand and grow.
This is because it tries to improve quality and
reduce costs. This helps the firm to earn higher
profits. These profits help the firm to expand and
grow.
28. 1. Higher standard of living: Production management
conducts continuous research and development (R&D).
Based on the research conducted an industrial concern will
produce new and better varieties of products. People use
these products and enjoy a higher standard of living.
2. Generates employment: Production activities create
many different job opportunities in the country, either
directly or indirectly. Direct employment is generated in
the production area, and indirect employment is generated
in the supporting areas such as marketing, finance,
customer support, etc
3. Spread effect: Because of production, other sectors also
expand. Companies making spare parts will expand. The
service sector such as banking, transport, communication,
insurance, BPO, etc. also expand. This spread effect offers
more job opportunities and boosts economy.
29. 4. Creates utility: Production creates Form
Utility. Consumers can get form utility in the
shape, size and designs of the product.
Production also creates time utility, because
goods are available whenever consumers
need it.
5. Boosts economy: Production management
ensures optimum utilization of resources and
effective production of goods and services.
This leads to speedy economic growth and
well-being of the nation.
30. Five P’s of Production Management
The division of production management
functions in to
5 p‟s (product, plant, programme, processes
and people)
will provide useful conceptual framework for
the various activities performed by
production or operations manager.
31. The Five P’s:
1. The Product:
Product is the link between production and marketing. It is not
enough that a customer requires product but the organization
must be capable of producing the product. As per the product
policy of the organization, an agreement is reached between the
various functions on the following aspects of the product
1. Performance
2. Quality and reliability
3. Aesthetics and ergonomics
4. Quantity and selling price
5. Delivery schedule.
To arrive at the above, the external and the internal factors
which affect the various aspects such as market needs, existing
culture and legal constraints and the environmental demands
should be given due consideration. Thus the major policy
decisions regarding variety of product mix is going to affect the
producing system.
32. 2. The Plant:
The plant accounts for major investment (fixed
assets). The plant should match the needs of the
product market, the worker and the organization. The
plant is concerned with:
1. Design and layout of building and offices.
2. Reliability, perfect, maintenance of equipment.
3. Safety of operations.
4. The financial constraint.
Plant layout deals with physical arrangement of plants
and machineries within the selected site. The layout
should be such that it should allow for smooth
movement of men and materials with minimum back
tracking. The type of the layout is dependent on
production type, volume of demand, etc.
33. 3. The Process:
There is always number of alternative methods of
creating a product. It is required to select the one
best method, which attains the objectives.
In deciding about the process, it is necessary to
examine the following factors:
1. Available capacity
2. Manpower skills available
3. Type of production
4. Layout of plant
5. Safety
6. Maintenance required
7. Manufacturing costs
34. 4. The Programme:
The programme here refers to the time-table
of production. Thus, the programme prepares
schedules for:
1. Purchasing = 10 days
2. Transforming= 30 days
3. Maintenance = 10 days
4. Cash = 30 days
5. Storage and transport = 10 days
90 days= operating cycle
360/90= 4 times
35. 5. The People:
Production depends upon people. The people
vary in their attitudes, skill and expectations
from the work. Thus, to make the best use of
available human resource, it is required to have a
good match between people and jobs which may
lead to job satisfaction. The production manager
should be involved in issues like:
1. Wages/salary administration. = Personnel
2. Conditions of work/safety. =
3. Motivation. = OB& HR
4. Training of employees. =New – Induction
Program
Existing- new product, new tech.
36. Meaning of Operation Management
It refers to the process of design, execution
and control of operations that convert
resources into desired goods and services.
It is the activity where the resource flow
within a defined system are transformed in a
controller manner with policies / desired by
the management
37. Objectives of Operation management
Improve productivity by better utilization of
resources like men, material, method etc.,
Have less/ no defects.
Utilize plants and machinery effectively and
effectively .
Improve material handling equipments.
Have proper control on raw materials, semi-
finished goods and finished goods.
Achieve proper cash management.
Enhance production staff with respect to
their salary, wages etc.,.
38. Scope of Operations Management
1) Product selection and design: The product selection makes a
system efficient or inefficient. So it is very important to select
right product keeping over all objectives in mind.
2) Process selection and planning: Selection of process involves
taking decisions about technology, machines and equipment
3) Location facilities: It is the most important facility as it looks
for long term decisions; a wrong decision can makes it pay a lot.
The operation management helps to select that particular
location where distribution, production cost and location cost is
less.
4) Layout and material handling facilities: Layout means
positioning of machinery. The machine should be so arranged
that the flow of production remains smooth. There should be a
proper choice of material handling equipments.
5) Capacity planning: Capacity refers to a level of output of the
conversion process over a period of time. Industry creates
challenging problems in capacity planning, requiring in the long
run, expansion and contraction of major facilitates in the
conversion process. Some tools helps in capacity planning are
marginal costing, linear programming etc.
39. Importance of Operation Management
1) Towards customers: Customers are the most affected by
any business. The objectives of the operation management
always depend on the customer‟s preferences and their
requirements.
2) Towards suppliers: Operations will have a major impact
on suppliers, both on how they prosper themselves, and
on how effective they are at supplying the operation.
3) Towards share holders: Better the operation is at
producing goods and services, the more likely the whole
business is to prosper and shareholders will be one of the
major beneficiaries of this.
4) Towards employees: Similarly employees will be
generally better off if the company is prosperous. It
includes the general working conditions which are
determined by the way the operation is designed.
5) Towards society: Although often having no direct
economic connection with the company individuals and
groups in society at large can be impacted by the way its
operation managers behave. CSR POLICY= 2.5% OF PROFIT
40. Production and Operation management
Meaning
It refers to the management of the conversion
process which converts land, labour, capital
and management inputs into desired output
goods and services.
The conversion is done by using physical
resources to meet the organizational
objectives. It is the transformation of
production and operation inputs and outputs
to be distributed to meet the customers'
needs
41. Need for Production and Operation management
i) Produce right quality of product: The quality of
product is established based upon the
customers‟ needs. The right quality is not
necessarily best quality. It is determined by the
cost of the product and the technical features
suited to the specific requirements.
ii) Right quantity: The manufacturing
organization should produce the products in
right number. If they are produced in excess of
demand the capital will block up in the form of
inventory and if the quantity produced in short of
demand, leads to shortage of products.
42. iii) Right time: Timely delivery is one of the
important parameter to judge the
effectiveness of production department has
to make the optimal utilization of input
resources to achieve its objective.
iv) Right manufacturing cost: Manufacturing
costs are established before the product is
actually manufactured. Hence all attempts
should be made to produce the products at
pre-established cost, so as to reduce the
variation between actual and standard cost.
43. Objectives of Production and Operation
management
To attain maximum output with lowest cost.
To control pollution and wastage.
To ensure optimum capacity and resources
utilization .
To ensure quality of products.
To suggest changes in machinery and
equipment.
To ensure timely delivery of output.
To maintain inventory.
44. Elements of Production and Operation management
i) Planning: Activities that establish a course of action and guide
future decision making is planning. It includes clarifying the role
and focus of operation in the organization, product planning,
facility designing, conversion process etc.,
ii) Organizing: Activities that establish a structure of tasks and
authority. Operation managers establish a structure of roles and
flow of information within the operation subsystem.
iii) Controlling: The operation manager must exercise control by
measuring actual outputs and comparing them to planned
operations management.
iv) Behavior: Operations managers are concerned with how their
efforts to plan, organize, and control affect human behavior.
v) Model: The Operation Manager can prepare break even models
and linear programming to solve the organizational related
problems
45. Scope of Production and Operation management
1) Location of facilities: Selection of appropriate location
must ensure the availability of power supply, water supply,
road conditions, nearness of raw materials, skilled labors
etc.
2) Plant layout and job design: Preparation of plant layout
for the establishment of machines in the required
sequence. A job design must be prepared to organize
machines, tasks into a unit of work to achieve certain
objectives.
3) Materials handling: It is the process of ensuring the
movement of raw materials and semi finished goods inside
the factory.
4) Product design: Designing the product and conceiving
the idea about its production. Product design considers
the product size, weight, color etc.
5) Process design: It is the complete description of specific
steps in the production process. This determines the
production process which is most relevant.
46. 6) Production and planning control: It means coordination
of series of functions according to a plan which will
economically utilizes the plant facilities and regulates
orderly movement of goods.
7) Quality control: It is a staff function concerned with the
prevention of defects in manufacturing so that, items may
be made right way and ensure the quality standard.
8) Inventory management: It is the process of maintaining
proper records of raw materials semi finished goods and
finished goods.
9) Maintenance management: It is the process of
formulating the corrective measures to stay in track with
planned quality, time schedule and predetermined cost
schedules.
10) Automation: It is the technique of operating or
controlling a productive process by electronic device and
reducing human intervention to the minimum.
47. Functions of Production and Operation Management
1) Creation of goods and services: The foundation of
every production and operation department is
creation of goods or services. Traditionally,
production and operations department includes the
physical assembling of goods and also contains many
customer care services to satisfy the needs of
customers.
2) Profit: The main function of production and
operations department is to produce a product or
service that creates profit and revenue to the
company.
3) Evaluation: Every production and operation
department must function as self-evaluating entity
that monitors the quality, quantity, and cost of goods
produced.
48. 4) Tasks: It includes forecasting, scheduling,
purchasing, design, maintenance, people
management, flow analysis, reporting, assembly
and testing.
5) Fulfillment: It ensures timely delivery of the
output from production to customers.
6) Analysis: Standard analysis function in a
production and operation department include
critical path analysis, stock control analysis,
utilization analysis, capacity analysis and just-in-
time analysis of inputs, break- even analysis and
metric analysis.
49. Reasons for Production and Operation
Management
Helps in understanding the role played by
the people in producing goods & services.
Helps in getting a clear picture about the
factory.
Helps in selecting a career.
It has strategic use to the executives.
Helps to understand how important it is to
Nation
50. Production/Operation management is the process
which combines and transforms various resources
used in the production/operation subsystem of
the organization into value added
products/services in a controlled manner as per
the policies of the organization
51. The set of interrelated management activities
which are involved in manufacturing certain
products is called production management and
for service management, then corresponding set
of management activities is called as operation
management.
Examples: (Products/goods)
Boiler with a specific capacity,
Constructing flats,
Car, bus, radio, television.
Examples: (Services)
Medical facilities,
Travel booking services.
52. Operations management is an area of
management
concerned with overseeing, designing, and
controlling the process of production and
redesigning business operations in the
production of
goods or services.
53. It refers to the process of design, execution
and control of operations that convert
resources into desired goods and services.
It is the activity where the resource flow
within a defined system are transformed in a
controller manner with policies / desired by
the management.
54. •Production
•Transformation of a range of inputs into
the required outputs (products)
•Operations
•Set of activities related to services
management
57. Production Management
Right Quality
Right Quantity
Right Time
Right Manufacturing Cost
Operations Management
Customer Service
Resource Utilization
58. The ratio of output to input.
For example,
productivity of labour can be measured as
units produced per labour hour worked.
Productivity can be improved by
(a) controlling inputs
(b) improving process so that the same input
yields higher output, and
(c) by improvement of technology
59. Productivity is a relationship between the output
(product/service) and input (resources consumed
in providing them) of a business system. The
ratio of aggregate output to the aggregate input
is called productivity.
Productivity = output/Input
For survival of any organization, this
productivity ratio must be at least 1.If it is more
than 1, the organization is in a comfortable
position. The ratio of output produced to the
input resources utilized in the production.
61. It helps to cut down cost per unit and thereby improve
the profits.
Gains from productivity can be transferred to the
consumers in form of lower priced Products or better
quality products.
These gains can also be shared with workers or
employees by paying them at higher rate.
A more productive entrepreneur can have better chances
to exploit expert opportunities.
It would generate more employment opportunity.
Overall productivity reflects the efficiency of production
system.
More output is produced with same or less input.
The same output is produced with lesser input.
More output is produced with more input.
The proportional increase in output being more than the
proportional increase in input.
62. Capital/labour ratio
Scarcity of some resources
Work-force changes
Innovations and technology
Regulatory effects
Bargaining power
Managerial factors
Quality of work life
63. Location of facilities.
Plant layouts and Material Handling.
Product Design.
Process Design.
Production and Planning Control.
Quality Control.
Materials Management.
Maintenance Management.
64. Improve productivity by better utilization of
resources like men, material, method etc.,
Have less/ no defects.
Utilize plants and machinery effectively and
effectively .
Improve material handling equipments.
Have proper control on raw materials,
semi-finished goods and finished goods.
Achieve proper cash management.
Enhance production staff with respect to
their salary, wages etc.,.
65. 1) Towards customers: Customers are the most affected by any
business. The objectives of the operation management always
depend on the customer‟s preferences and their requirements.
2) Towards suppliers: Operations will have a major impact on
suppliers, both on how they prosper themselves, and on how
effective they are at supplying the operation.
3) Towards share holders: Better the operation is at producing
goods and services, the more likely the whole business is to
prosper and shareholders will be one of the major beneficiaries
of this.
4) Towards employees: Similarly employees will be generally
better off if the company is prosperous. It includes the general
working conditions which are determined by the way the
operation is designed.
5) Towards society: Although often having no direct economic
connection with the company individuals and groups in society at
large can be impacted by the way its operation managers
behave.
66. i) Produce right quality of product: The quality of product is
established based upon the customers‟ needs. The right
quality is not necessarily best quality. It is determined by
the cost of the product and the technical features suited to
the specific requirements.
ii) Right quantity: The manufacturing organization should
produce the products in right number. If they are produced
in excess of demand the capital will block up in the form of
inventory and if the quantity produced in short of demand,
leads to shortage of products.
iii) Right time: Timely delivery is one of the important
parameter to judge the effectiveness of production
department has to make the optimal utilization of input
resources to achieve its objective.
iv) Right manufacturing cost: Manufacturing costs are
established before the product is actually manufactured.
Hence all attempts should be made to produce the products
at pre-established cost, so as to reduce the variation
between actual and standard cost.
67. To attain maximum output with lowest cost.
To control pollution and wastage.
To ensure optimum capacity and resources
utilization .
To ensure quality of products.
To suggest changes in machinery and
equipment. To ensure timely delivery of
output.
To maintain inventory.
68. Planning: Activities that establish a course of action and
guide future decision making is planning. It includes
clarifying the role and focus of operation in the
organization, product planning, facility designing,
conversion process etc.,
ii) Organizing: Activities that establish a structure of
tasks and authority. Operation managers establish a
structure of roles and flow of information within the
operation subsystem.
iii) Controlling: The operation manager must exercise
control by measuring actual outputs and comparing
them to planned operations management.
iv) Behavior: Operations managers are concerned with
how their efforts to plan, organize, and control affect
human behavior.
v) Model: The Operation Manager can prepare break
even models and linear programming to solve the
organizational related problems
69. 1) Creation of goods and services: The foundation of every
production and operation department is creation of goods or
services. Traditionally, production and operations department
includes the physical assembling of goods and also contains
many customer care services to satisfy the needs of customers.
2) Profit: The main function of production and operations
department is to produce a product or service that creates profit
and revenue to the company.
3) Evaluation: Every production and operation department must
function as self-evaluating entity that monitors the quality,
quantity, and cost of goods produced.
4) Tasks: It includes forecasting, scheduling, purchasing, design,
maintenance, people management, flow analysis, reporting,
assembly and testing.
5) Fulfillment: It ensures timely delivery of the output from
production to customers.
6) Analysis: Standard analysis function in a production and
operation department include critical path analysis, stock control
analysis, utilization analysis, capacity analysis and just-in-time
analysis of inputs, break- even analysis and metric analysis
70. Helps in understanding the role played by
the people in producing goods & services.
Helps in getting a clear picture about the
factory. Helps in selecting a career. It has
strategic use to the executives. Helps to
understand how important it is to Nation
71. 1776 -Specialization of labor in manufacturing -
Adam Smith
1799 -Interchangeable parts, cost accounting -
Eli Viihitney and
others
1832 -Division of labor by skill; assignment of
jobs by skill; basics of time study -Charles
Babbage
1900- Scientific management time study and
work study developed; dividing planning and
doing of work -Frederick W. Taylor
1900- Motion of study of jobs -Frank B.
Gilbreth
72. 1901- Scheduling techniques for employees,
machines jobs in manufacturing -Henry L. Gantt
1915 -Economic lot sizes for inventory control
-F.W. Harris
1927 -Human relations; the Hawthorne studies
-Elton Mayo
1931 -Statistical inference applied to product
quality: qualitycontrol charts -W.A. Shewart
1935 -Statistical sampling applied to quality
control;
inspection sampling plans -H.F. Dodge &H.G.
Roming
73. 1940- Operations research applications in World War
ll -
P.M. Blacker and others.
1946- Digital computer -John Mauchlly and J.P.
Eckert
1947-Linear programming -GB. Dantzig, Williams &
others
1950- Mathematical programming, on-Iinear and
stochastic
processes –A. Charnes, W.W. Cooper & others
1951- Commercial digital computer; large s-cale
computations available. -Sperry Univac
74. 1960- Organizational behavior; continued
study of people at work -L. Cummings, L.
Porter
1970- Integrating operations into overall
strategy and policy. Computer applications to
manufacturing. Scheduling and control.
Material requirement planning (MRP)-W.
Skinner J. Orlicky and G. Wright
1980-Quality and productivity applications
from Japan robotics. CAD-CAM -W.E. Deming
and J. Juran
