submitted by pawan kumar sharma pgdm 2 nd sem.. objective of presentation introduction definition...
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Production and operationmanagement (unit 1st)
Submitted by
Pawan kumar sharma Pgdm 2nd sem.
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Objective of presentation Introduction Definition History Production Types of production Operation Objective Scope Function Designs
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Introduction of production &operation management
Production and operation management concerns itself with the conversion of input into output. Using physical resources, so as to provide the desire utility of form,place,possession or state or a combination therefore to the customer while meeting the other organisational objectives of effectiveness.
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Definition of production & operation management
planning, coordination and controlling of an organization's resources to facilitate the production process. POM is an extremely important management area. Issues such as the location of production facilities, labor and transportation costs, and production forecasting are extremely important considerations
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History of pomUntil the end of the 18th century, agriculture was the
predominant industry in every country. The advent of the steam engine and Eli Whitney's concept of standardized parts paved the way for the Industrial Revolution with its large manufacturing facilities powered by steam or water. A number of countries (the United States included) evolved from an agricultural economy to an industrial economy. But for a time, manufacturing was more of an art than a science. This changed with the introduction of Frederick W. Taylor's systematic approach to scientific management at the beginning of the twentieth century. The introduction of Taylor's method of scientific management and Henry Ford's moving assembly line brought the world into an age where management was predominantly centered around the production of goods.
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What is production
According to Elwood Butta “production is a process by which goods or
services are created”. Production involves the step by step
convertion of one form of material into another through chemical or mechanical
process with a view to enhance the utility of the product or services.
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Types of production
Batch productionJob productionIntermittent Production
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Batch production
Batch production is as a form of manufacturing in which the jobs pass through
the functional department in lots or batches and each lot may have a different routing.
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Job production
Job production are characterized by manufacturing of one or few quantity of
product is designed and produced as per the specification of customers with in
prefixed time and cost.
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Intermittent Production
Under this system the goods are produced partly
for inventory and partly for customer's orders. E.g. components are made for
inventory but they are combined differently for different customers. . Automobile
plants, printing presses, electrical goods plant are examples of this type of
manufacturing
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Operation management
The planning,organizingand directing,of system or process that creates goods or service
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Objectives of POMRight qualityRight quantityRight timeRight manufacturing costPlanning
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Right quality
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 characteristics as suited to the specific requirements.
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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 is produced in short of demand, leads to shortage of products
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Right time
Timeliness of delivery is one of the important parameter to judge the effectiveness of production department. So, the production department has to make the optimal utilization of input resources to achieve its objective
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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 the standard (pre-established) cost
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Planning
Activities that establishes a course of action and guide future decision-making is planning. The operations manager defines the objectives for the operations subsystem of the organization, and the policies, and procedures for achieving the objectives. This stage includes clarifying the role and focus of operations in the organization’s overall strategy. It also involves product planning, facility designing and using the conversion process.
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Scope of production and operation management Production and operations management concern with
the conversion of inputs into outputs, using physical resources, so as to provide the desired
utilities to the customer while meeting the other organizational objectives of effectiveness, efficiency
and adoptability. It distinguishes itself from other functions such as personnel, marketing, finance,
etc., by its primary concern for ‘conversion by using physical resources.’ Following are the
activities which are listed under production and operations management functions
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Cont….LOCATION OF FACILITIES 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. It deals with the questions such as
‘where our main operations should be based
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Cont….
PLANT LAYOUT AND MATERIAL HANDLING 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 economicall
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Cont…
PRODUCT DESIGN Product design deals with conversion of ideas into
reality. Every business organization have 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,manufacturing
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Cont…..
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 and layout of
the facilities. Hence, the important decisions in process design are to analyse the workflow for
converting raw material into finished product and to select the workstation for each included in
the workflo
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Cont….
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
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Funcation of production & operation management
1. Plant layout2. Physical Environment3. Inventory control4. Quality control
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Types of decisions
Production PlanningProduction ControlImproving Production & Operations
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Thank you