ABHIJITH R KRISHNANROLL NO : 1

INTRODUCTION TO

PRODUCTION

& OPERATIONS FUNCTIONS

PRODUCTION The processes and methods used

to transform tangible inputs (raw materials, semi-finished goods, subassemblies) and intangible inputs (ideas, information, knowledge) into goods or services. Resources 

are used in this process to create an output that is suitable for use or has exchange value.

PRODUCTION FUNCTION Amathematical equation or graph

 that shows the relationship between physical inputs and physical outputs for a business. The production function for a business typically focuses on the physical and so does not take into account non physical aspects of production like prices.

The Production Function

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Production function: the relationship that describes how inputs like capital and labor are transformed into output.

Mathematically,Q = F (K, L)

K = CapitalL = Labor

Evolving state of technology

ADVANTAGES SHORTER NEW-PRODUCT LEAD TIME.

MORE INVENTORY TURNS.

SHORTER MANUFACTURING LEAD TIME.

HIGHER QUALITY.

GREATER FELXIBILITY.

BETTER CUSTOMER SERVICE.

REDUCED WASTAGE.

PRODUCTION MANAGEMENT

PM REFERS TO THE APPLICATION OF MANAGEMENT PRINCIPLES TO THE PRODUCTION FUNCTION IN A FACTORY.

IN OTHER WORDS, PRODUCTION MANAGEMENT INVOLVES APPLICATION OF PLANNING,ORGANISING,DIRECTING AND CONTROLLING TO THE PRODUCTION PROCESS.

Operations ManagementOperations Management

Refers to the management of the production system that transforms inputs into finished goods and services.○ Production system: the way a firm

acquires inputs then converts and disposes outputs.

○ Operations managers: responsible for the transformation process from inputs to outputs.

Operations management seeks to increase the quality, efficiency, and responsiveness of the firm.○ Seeks to provide a competitive

advantage.

Operations Management ConceptsOperations Management Concepts

Quality: goods and services that are reliable and perform correctly.○ Quality allows customers to receive the

performance that they expect.Efficiency: the amount of input to

produce a given output.○ Less input required lowers cost and waste.

Responsiveness to customers: actions taken to respond to customer needs.○ Firm can react quickly and correctly to

customer needs as they arise.

Nine Categories of Operations Management Decisions

Product plans Competitive Priorities Positioning Strategies Location Technological Choices Quality management and

control Inventory management and

control Materials Management Master production scheduling

SCOPE OF PRODUCTION &

OPERATIONS MANAGEMENT

SELECTION OF LOCATION QUALITY MANAGEMENT MAINTENANCE MANAGEMENT PRODUCTION PLANNING AND CONTROL

EVOLUTION OF PRODUCTION FUNCTION

THE INDUSTRIAL REVOLUTION. SCIENTIFIC MANAGEMENT. THE HUMAN RELATIONS

MANAGEMENT. OPERATIONS RESEARCH. COMPUTERS & ADVANCED

PRODUCTION TECHNOLOGY. THE SERVICE REVOLUTION

CHARACTERISTICS OF MODERN PRODUCTION & OPERATIONS FUNCTION

MANUFACTURING AS COMPETITIVE ADVANTAGE.

SERVICE ORIENTATION. DISAPPEARANCE OF

SMOKESTACKS SMALL HAS BECOME BEAUTIFUL.

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