2 April 2017

Production and Operation Management-1


Production and operation management (Unit-1)

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Operation management
Ø  Introduction :- it is defined as the management of the conversion process , which converts land, labour, capital, and management inputs into the desired outputs of goods and services.
Ø  Subsystem :-  1. Classical management, 2. Behavioural management and 3. Modelling mansgement
Ø  Elements :- 1. Customer demand , 2. Operating system and 3. Process capacity
Ø  Important aspects:- 1. Quality, 2. Revenue , 3. Value , 4. Customers, 5. Human resources, 6. Flexibility, 7. System development, 7. Information technology
Ø  Function :- 1. Planning, 2. Designing and engineering, 3. Production-it is responsible for the physical production of the production or services as developed by the design and engineering division. 3. Maintenance-it can defined as an activity or set of activity in order to keep equipment in working condition. 4. Marketing , 5. Finance, 6. Accounting
Ø  Advantage :- 1. Reducing the cost of producing products and service and being efficient. 2. Increasing revenue by increasing customers satisfaction through good quality product/services. 3. Reducing the amount of investment that is necessary to produce the required type and quality of products and services by increasing the effective capacity of the operation.
Operation Management
Production management
Ø     It is concerned with service.
Ø     Its output is intangible
Ø     In this, job use more labour and less equipment.
Ø     Customer participates frequently.
Ø     It is concerned with manufacturing
Ø     Its output is tangible
Ø     In this, job use less labour and more equipment.
Ø     Customer doesn’t participate in production management.
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Production and operation management
Ø  Introduction :- it is defined as the design , operation and improvement of the transformation process, which converts the various inputs the into the desired outputs of products and services.
Ø  Function :-  1. The operation management function of an organization is the part that produces the organization products .In some organizations the product is a physical good while in others it is a service. 2. Image

3. Once goods and services are produces, they are converted into cash to acquire more resources to keep the conversion process alive.
4. The exact form of the conversion process varies from industry to industry, but it is an economic phenomenon that exists in every industry.
5. Economists refer to this transformation of resources into goods and services as the production function.
6. For all operations management systems the general function is to create some kind of value-addition, so that the outputs are worth more to consumers than just the sum of the individual inputs.
Ø  Evolution :- 1. For over two centuries, operation management has been recognized as an important factor in a country’s economic well-being. 2. The evolution of the term reflects the evolution of modern operation management. 3. The traditional view of manufacturing management began in the eighteenth century, when Adam Smith recognized the economic benefits of specialization of labour.
4. He recommended breaking jobs into subtasks and reassigning workers to specialized task in which they would become highly skilled and efficient.
5. Production management become the more widely accepted term from 1930’s Frederick Taylor’s work became more widely known for developing techniques that focused on economic efficiency in manufacturing.
6. Table
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Ø  System view :- 1. In a very general sense, a system is a collection of objects related by regular interaction and interdependence.
2. Systems can vary from the large nation wide communications networks to the small system for processing paper work in an office.
3. To help people communicate about a system models are often developed that represent a system or some aspect of it. The system models as applied to organization, can help to develop your understanding of operations.
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5.  A systems model of the organization indentifies the subsystems, or subcomponents, that make up the organization.
6. A business firm might well have finance, marketing, accounting, personnel, engineering, purchasing and physical distribution system in addition to the operation system.
7. These systems are not independent but are interrelated to one another in many vital ways.
8. Finally, we would understand that the boundaries separating the various subsystems are not clear and distinct.
Ø  Strategic planning :- 1. Introduction :- it is the process of thinking through the current mission of the organization and the current environmental conditions facing it, then setting forth a guide for tomorrow’s decisions and results.
2. Fundamental concept :- A. current decisions are based on future conditions and results. B. strategic planning is a process. C. it embodies a philosophy. D. it provide a linkage or structure within the organization.
3. In the production or operation functions, overall planning that precedes the more detailed operation planning.
4. Executives who head the production and operations are actively involved in strategic planning developing plans that are consistent with the firm’s overall strategic as well as such functions as marketing, finance, accounting, and engineering.
Ø  Operation strategy:- 1. Introduction:- it is the process for making appropriate decisions in the operations function on the basis of inputs from the corporate strategy.
2. strategy :- it is defined as the determination of the basic long-term goals and objectives of an enterprise, and the adoption of course of action and the allocation of resources necessaryfor carrying out these goals.
3. Scope of strategy operation:- image
The fig. shows the basic downward flow of strategy influence leading to managing conversion operations and results. The general thrust of the process is guided by competitive and market conditions in the industry, which provide the basis for determining the organisation’s strategy:
I) where is the industry now, and where will it be in future?
ii.) what are the existing and potential markets?
Iii.) what does market gap exists?
Iv.)what competencies do we have filling them?
A careful analysis of market segments and the ability of our competitors and ourselves to meet the needs of these segments will determine the best direction for focusing an organization’s efforts.
Ø  Fig.2
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Ø  Key factors for the success of any business:- 1. Product performance. 2. Technology leadership. 3. New product introduction. 4. Delivery service.
Ø  Principle of world-class manufacturing:- 1. Just-in-time(JIT) . 2. Total quality management(TQM)