Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One

8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One

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KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy

Production ManagementUnit 1- Introduction and Operations Strategy

Significance of Operations Function

2011


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Subject: 70% - Theory and 30% - Problems

Unit 1 - Topics

Significance of Operations Function.

Products and Services Concepts Characteristics.

Different Systems.

Concept of Productivity.

Evolutions of Operations Management Discipline.

Competitive Positioning of products and services.

Strategic and Tactical Decisions of OperationsManagement.


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Today we are going to discuss about

Introduction to Production Management.

Significance of Operations Function.


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Definition

Production/Operations management isthe process which combines andtransforms various resources used in the

production or operations subsystem of theorganization into value addedproducts/services in a controlled manner

as per the policies of the organization.


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The set of interrelated management activities which areinvolved in manufacturing certain products is called asproduction management.

If the same concept is extended to servicesmanagement, then the corresponding set ofmanagement activities is called as operationsmanagement.


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In general, the concept of manufacturingproducts or providing services is called asproduction or operations management


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Examples - Production

Manufacturing custom made products like, boilers with aspecific capacity, constructing flats, some structuralfabrication works for selected customers, etc.

Manufacturing standardized products like, car, bus, etc.

Examples of services Custom made services likeMedical Facilities and clinical tests, arranging food forparties, travel booking services, etc.

Standardized Services Developing Standardcomputer software, Providing standard insurancepolicies, etc.


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Functional Sub-systems of Organizations

Functional subsystems

production

FinanceMarketing

Personnel


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Subsystems

Marketing function Production function

Finance function

Personnel function


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Organizational Model

Marketing

MISEngineering

HRM

Quality

Accounting

Sales

Finance

OM


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Productions or operations Function


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Production Function

It is the part of an organization which is concerned withthe transformation of a range of inputs into the requiredoutputs (products/Services) having the requisite qualitylevel


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Systems concept of production

Systems aspect of production/operations function

Inputs

Land

Labor

Capital

Material

OutputsGoods

Services

ConversionProcess

Comparison:

Actual vs.desired

Monitor Output

Random Fluctuation

Adjustments needed?

Feedback

Source: Everett E. Adam Jr. and Ronald J. Ebert Production and Operations Management


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System:

It is a collection of interrelated entities.

Inputs:The inputs to the system are materials, labor, equipmentand capital as shown in Fig 1.3.

These inputs are combined and converted into goodsand /or services by a suitable process technology.

The types of inputs used vary from one industry toanother.


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Product Manufacturing Major Inputs4 Ms

Capital = Money

Equipment = Machines

Labor = Men

Materials

Now, 4 Ms is Transformed to 5 Ms with the addition ofMethods.


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Fig 1.3 explains the systems aspect ofproduction/operation function of an organization.

The organization receives several inputs as

indicated on the left hand side and convertsthem into useful products and or services usingits facilities.


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Transformation Process

In the process of conversion, definitely there willbe some deviations in the products attributeslike quality, size, shape and number of units

produced.


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Feedback

Just to cope up with the predeterminedplans and policies, it is highly essential tocommunicate these deviations to the input

stage in the form of feedback for makingnecessary corrections.


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Sample List of Corrections

Tight quality check on the incoming rawmaterials.

Adjustment of machine settings.


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Change of tools.

Proper allocation of operators to machineswith matching skills.


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Change in the production plans, likeincrease or decrease in volume ofproduction.

Rigid in process quality Programme toavoid re work.


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Based on this feedback, the system onceagain tries to produce the product/servicewith modified parameters, in order to meet

the specifications.

The feedback mechanism is a continuousexercise to monitor the status of the

system.


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Production or Operation Subsystem

A detailed schematic diagram of theproduction/operation subsystems is shown in Fig1.4, where in the different components of the

production or operation systems are indicated.This system receives different inputs asindicated in the figure and converts them intouseful products or services by utilizing the

equipments at the transformation stage.


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Techniques and procedures used inproduction/operation system

1 Forecasting

2 Location and layout techniques

3 Product design and analysis, work study

4 Production control techniques

(a) Aggregate planning

(b) Master production scheduling(c) MRP

(d) Capacity planning


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Techniques

(e) Scheduling and Control

Line balancing

Line of balance

Single machine scheduling

Flow shop scheduling Job shop scheduling

5 Maintenance management

6 Feedback and control techniques

(a) quality control

(b) inventory control


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Functions of production and operations management

As production and operations management is aseparate functional field of management, themain functions of production and operationsmanager are as follows:

Planning, Organizing, Controlling

Behaviors (know behaviors and interests ofsubordinates)

Modeling (use mathematical and quantitativetechniques in decision making such as networkanalysis, linear programming, queuing theory, etc)


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Overview

The concept of manufacturing products or providing services is called asproduction or operations management.

Production Function:

It is the part of an organization which is concerned with the transformation of

a range of inputs into the required outputs (products/Services) having therequisite quality level


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Thank You

Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One

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