PRODUCTION PRODUCTION AND OPERATION AND OPERATION MANAGEMENTMANAGEMENT

FROM FROM MAYURI BHARGAVAMAYURI BHARGAVA

AND AND PREETI SRIVASTAVAPREETI SRIVASTAVA

INTRODUCTION OF INTRODUCTION OF MANAGEMENTMANAGEMENT ””MANAGEMENT IS THE ART AND SCIENCE OF MANAGEMENT IS THE ART AND SCIENCE OF

PLANNING ,DIRECTING AND CONTROLLING PLANNING ,DIRECTING AND CONTROLLING HUMAN EFFORT SO THAT THE ESTABLISHED HUMAN EFFORT SO THAT THE ESTABLISHED OBJECTIVES OF AN ENTERPRISE MAY BE OBJECTIVES OF AN ENTERPRISE MAY BE ATTAINED IN ACCORDANCE WITH ACCEPTED ATTAINED IN ACCORDANCE WITH ACCEPTED POLICIES.”POLICIES.”

CONCEPT OF CONCEPT OF PRODUCTION PRODUCTION

PRODUCTION IS DEFINED AS PRODUCTION IS DEFINED AS ”the step ”the step by step conversion of one form of by step conversion of one form of material into another form through material into another form through chemical or mechanical process to chemical or mechanical process to create or enhance the utility of the create or enhance the utility of the product of the user”product of the user”

ACCORDING TO EDWOOD BUFFA ”a ACCORDING TO EDWOOD BUFFA ”a process by which goods and services process by which goods and services are created.”are created.”

SCHEMATIC SCHEMATIC PRODUCTION SYSTEMPRODUCTION SYSTEM

INPUTS:

MEN

MATERIAL

MACHINES

MONEY

METHOD

TRANSFORMATION PROCESS:

PRODUCT DESIGN

PROCESS PLANNING

PRODUCTION-

CONTROL

MAINTENENCE

OUTPUT:

PRODUCTS

SERVICES

CONTINUOUS:

INVENTORY

QUALITY

COSTenvironment

Feedback information

CLASSIFICATION OF CLASSIFICATION OF PRODUCTION SYSTEMPRODUCTION SYSTEM

Continuous

production

Mass production

Batch production

Job-shop

production

Production

Operation

volume

Output/product variety

INTRODUCTION TO INTRODUCTION TO PRODUCTION MANAGEMENTPRODUCTION MANAGEMENT

The word production management has two The word production management has two parts:-parts:-

Production + management = production management

Production:- it is an intentional act of producing Production:- it is an intentional act of producing something in a specific manner.something in a specific manner.

Management:- it is an art & science concerned Management:- it is an art & science concerned with planning , controlling the human beings with planning , controlling the human beings towards common aim with agreed policies. towards common aim with agreed policies.

PRODUCTION PRODUCTION MANAGEMENTMANAGEMENT In the words of Mr. E.L. Btech: In the words of Mr. E.L. Btech: ”production ”production

management is the process of effective planning management is the process of effective planning and regulating the operations of that section of and regulating the operations of that section of an enterprise which is responsible for the actual an enterprise which is responsible for the actual transformation of materials into finished transformation of materials into finished products.”products.”

E.S. Buffa defines production management as, E.S. Buffa defines production management as, ”Production management deals with decision ”Production management deals with decision making related to production processes so that making related to production processes so that the resulting goods or services are produced the resulting goods or services are produced according to specifications, in the amount and by according to specifications, in the amount and by the schedule demanded and out of minimum the schedule demanded and out of minimum cost.”cost.”

Production management deals with decision Production management deals with decision making related production process. So that making related production process. So that the resulting goods and services are the resulting goods and services are produced in accordance with the quantitative produced in accordance with the quantitative specification and demand schedule with specification and demand schedule with minimum cost.minimum cost.

Production management is a set of general Production management is a set of general principle s for production economies facility principle s for production economies facility design ,job design. Schedule design ,quality design ,job design. Schedule design ,quality control , inventory control ,work study and control , inventory control ,work study and cost and budgetory control.cost and budgetory control.

PRODUCTION PROCESS PRODUCTION PROCESS SYSTEMSYSTEM

INPUT:INPUT:

INFORMATION

TRANSFORMATION

MANAGEMENT

MATERIAL&LAND

LABOUR, CAPITAL

TECHNOLOGY

PROCESS

ORGANIZATION

TRANSFORMATION

GOODS

SERVICE

OPERATION OPERATION MANAGEMENT MANAGEMENT

Operation management may be defined as the Operation management may be defined as the design ,operation ,and improvement of the production system design ,operation ,and improvement of the production system that the firm’s products or services.that the firm’s products or services.

Concerned with the operations performed during the production Concerned with the operations performed during the production process system.process system.

It is called as the core activity of the management.It is called as the core activity of the management. It is often used with the production management in literature.It is often used with the production management in literature. It is defined as the process where by resources or inputs are It is defined as the process where by resources or inputs are

converted into more useful products.converted into more useful products.

OPERATION OPERATION MANAGEMENTMANAGEMENT

Operation management is more frequently Operation management is more frequently used where various inputs are transformed used where various inputs are transformed into tangible services.into tangible services.

Operation management covers the services Operation management covers the services like banks, airlines, pollution control, like banks, airlines, pollution control, consultancies firms, and hospitals.consultancies firms, and hospitals.

Operation management includes the Operation management includes the activities such as managing purchase , activities such as managing purchase , invetory control , storage, logistics, invetory control , storage, logistics, measurement and analysis of internal measurement and analysis of internal process.process.

FIVE P’S OF OPERATION FIVE P’S OF OPERATION MANAGEMENTMANAGEMENT

PEOPLE ( Are the direct and indirect work PEOPLE ( Are the direct and indirect work force )force )

PLANTS (includes factories where production PLANTS (includes factories where production is carried out)is carried out)

PARTS (includes materials which go into the PARTS (includes materials which go into the system)system)

PROCESS (includes equipment and steps by PROCESS (includes equipment and steps by which production is accomplished.)which production is accomplished.)

PLANNING AND CONTROL SYSTEM PLANNING AND CONTROL SYSTEM (procedures and information to operate (procedures and information to operate system )system )

GENERAL MODEL FOR MANAGING GENERAL MODEL FOR MANAGING OPERATIONSOPERATIONS

PLANNING

PLANNING CONVERSION SYTEM

OPERATIONS STRATEGY

FORECASTING

PRODUCT AND PROCESS CHOICES

SCHEDULING CONVERSION SYSTEM:

OPERATIONS SCHEDULING

SCHEDULING SYSTEM AND AGGREGATE PLANNING

ORGANISING:

ORGANISING FOR CONVERSION

JOB DESIGN,PRODUCTION/OPERATIONS

STANDARDS,WORK MEASUREMENT

PROJECT MANAGEMENT

CONVERSION

MODELS BEHAVIOUR

CONTROLLING

MATERIAL CONTROL

INVENTORY CONTROL

MANAGING FOR WORLD-CLASS COMPETITION

MANAGING FOR QUALITY

Scope of production Scope of production and operation and operation managementmanagement

Maintenancemanagement

Materialcontrol

Qualitycontrol

ProductionPlanning and

control

Processdesign

Productdesign

Plant layout&

Materialhandling

LocationOf

facilities

Production/Operation

management

SCOPE OF PRODUCTION AND SCOPE OF PRODUCTION AND OPERATION MANAGEMENTOPERATION MANAGEMENT

(A)(A) Product selection and designProduct selection and design1.Choosing the right product by keeping the objective of the organization.1.Choosing the right product by keeping the objective of the organization.

2. Design of the product must be attractive, aesthetic and functional.2. Design of the product must be attractive, aesthetic and functional.

3.Product design must be made in such way to face competitor.3.Product design must be made in such way to face competitor.

4.Unnecessary cost must be eliminated.4.Unnecessary cost must be eliminated.

(B) (B) Process selection and planningProcess selection and planning1.Selection of the process involves taking decision as technology, 1.Selection of the process involves taking decision as technology,

machines and equipments.machines and equipments.

2.First thing is that we have to optimize the output from the given 2.First thing is that we have to optimize the output from the given process.process.

3.Planning includes the stages of the process and automation and 3.Planning includes the stages of the process and automation and mechanizationmechanization

4. Alternatives , evaluation and judging factors must be there.4. Alternatives , evaluation and judging factors must be there.

(C) Facilities location(C) Facilities location1.1. Includes where we can locate our operation.Includes where we can locate our operation.2.2. In this wrong decision may prove disastrous.In this wrong decision may prove disastrous.3.3. Location should be in way that the cost of transportation Location should be in way that the cost of transportation

is minimized.is minimized.

(D) Facilities layout and material (D) Facilities layout and material handlinghandling

1.1. Arrangement of machines and plant facilities.Arrangement of machines and plant facilities.2.2. Over-lapping and no interruption should be thereOver-lapping and no interruption should be there3.3. Sequence of machinesSequence of machines4.4. How to handle the material and in which manner so that How to handle the material and in which manner so that

the cost of material handling is minimized.the cost of material handling is minimized.5.5. Factor of flexibility should be there to adapt changes.Factor of flexibility should be there to adapt changes.

(F) Capacity planning(F) Capacity planning1.1. Estimating the capacity of manpower , man , machines.Estimating the capacity of manpower , man , machines.

2.2. Capacity refers to a level of output of the conversion Capacity refers to a level of output of the conversion process over a period of time.process over a period of time.

3.3. The Transformation process.The Transformation process.

OPERATIONS: A OPERATIONS: A TRANSFORMATION PROCESSTRANSFORMATION PROCESS

input

Workers

Managers

Equipment

Material

Land

Energy

output

feedback

Goods

services

Goods

servicesOperations

And

processes

performance

EXAMPLE: FOOD PROCESSOREXAMPLE: FOOD PROCESSOR

INPUTSINPUTS PROCESSING

OUTPUT

Raw material

Metal sheets

Water

Energy

Labor

Building

equipment

Cleaning

Making cans

Cutting

Cooking

Packing

labeling

Canned vegetable

Consumer feedback

EXAMPLE: HOSPITALEXAMPLE: HOSPITAL

INPUTS INPUTS PROCESSING

OUTPUT

Doctors, nurses

Hospital

Medical supplies

Equipment

laboratories

Examination

Surgery

Monitoring

Medication

Therapy

Healthy

Patients

Improvement of patients health condition

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