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Program : MBA
Semester : II
Subject Code : MB0044
BOOK ID : B1133
Subject Name : Production and Operations Management
Unit number : 1
Unit Title : Production Management
Lecture Number : 1
Lecture Title : POM
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Objectives :
� Define production management
� Describe production planning & production control
� Describe Material control & Material handling
� Define Productivity
� Understand types of Productivity
� Describe Quality circles
� Understand the need for training
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Lecture Outline
� Introduction ± Production Management
� Production Planning & Production Control
� Material Control & Material Handling
� Productivity
� Types of Productivity
� Quality Circles
� Training
� Summary� Check Your Learning
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IntroductionProduction Management
Production Management encompasses all activities that go into conversion of a set
of inputs into outputs which are useful to meet human needs.
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Unit-1 Production Management
PMPM
MarketingMarketing
MISMISEngineeringEngineering
HRMHRM
QAQA
AccountingAccounting
SalesSalesFinanceFinance
Production Management typically starts with Aggregate Planning
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Unit-1 Production Management
Production Planning
� Estimating
� Routing
� Scheduling
Production Control
� Dispatching
� Expediting
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Productivity
Productivity is generally expressed as the ratio of outputs to inputs. It is
a measure of the efficiency of the system and looks at the economies
achieved during the processes.
Capital Productivity
Labour Productivity
Personnel Productivity
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Types of Productivity
Capital Productivity
� takes account of inputs of machines or land.
� Strategies needed to maximize the utilization of funds allotted
towards are:
Outsourcing strategies
Methods improvement
Balancing of workstations
Quality circles
Rationalisation of packaging methods
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Labour Productivity:
� It takes account of inputs of employee hours worked
� It is measured by calculating the number of products per hour for an
individual.
Measurement of time required for any task is measured using
Motion Study and Work Measurement methods.
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Types of Productivity
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Types of Productivity
Personnel Productivity:
Personnel are the ones who:
� Facilitates the operations
� Coordinates between various operations in identifying the jobs that
have to be done
� Checks the set ups
� Verifies that proper jigs and fixtures are provided
� Inspects allocated machines
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Quality Circles
Quality Circles:
� Kaoru Ishikawa is the originator of the concept of Quality Circles.
� Uses the principle of fish bone diagram
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Training
� Jobs need to be performed efficiently.
� For efficient job completion, person should be evaluated for
Knowledge level, skill level and behavioral aspect.
� Any shortfall in the above is corrected by the process of training.
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Summary
� Production operations involve conversion of materials into saleable
products.
� Getting maximum productivity depends on the utilization of
machines most efficiently with well trained and motivated workforce.
� Transferring of materials inside the operations area also has to be
optimized for efficiency.
� Job descriptions are important to select, train and deploy personnel.
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Check Your Learning
1. What are the functions of Production Planning?
Ans. Estimating, Routing, Scheduling
2. Mention the types of Productivity.
Ans. Capital, Labour and Personnel
3. Who is the originator of Quality Circles?
Ans. Kaoru Ishikawa
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Unit-1 Production Management