Operation & Production
Management
INPUT
Design
Operation
Output
Nature & Scope
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Four Functional areas in a business
organization. Marketing, Production, Finance
And Personnel.
All activities revolve around Production.
The end product is for the satisfaction of
human wants.
Basic inputs are Men, Machine, Plant,
Services, and Methods.
The Raw Materials are from Mine, Sea, Farm
and Forest.
Definitions
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Production
– Step by step conversion of one form of material to
other through chemical or mechanical process.
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Production Management
– Planning, organizing, directing and controlling the
activities of the production function.
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Operation Management
– Service oriented industry is broadly known as
operations management.
Scope in Detail
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Aim - Customer satisfaction at
optimum cost.
1.
2.
3.
4.
5.
Product Selection Design
Process Selection and Planning
Facilities Location
Facilities Layout and Materials Handling
Capacity Planning
Scope in Detail
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Operational decisions
1.
2.
Production Planning
Production Control (PPC)
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3.
4.
5.
6.
7.
Planning
Routing
Dispatching
Follow Up
Inventory Control
Quality Control
Method Study
Maintenance & Replacement
Cost Reduction And Control
Historical Development
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Adam Smith is the first person who
introduced Production Management in
1776.
– Emphasized the division of labour
– This effected in turn for improving the
quality & quantity of goods.
Historical Development
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Charles Babbage in 1883 introduced
the principle of limiting skills as a basis
for pay fixation.
Also agreeing on Adam Smith’s theory.
Historical Development
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Management techniques by F M Taylor.
– The workers should not be allowed to evolve
their own operations.
– Proper selection, training and development
programmers given to workers to get the best
result.
– Close cooperation and understanding between
workers and management.
– Importance of specialization & expertise to carry
different operations.
Historical Development
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Short Comings on Taylor technique
– Production Management was very slow.
– Study materials were unavailable.
– Output depended on man, job and job
conditions.
Historical Development
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In 1914 F W Harris introduced the economic
lot size method to control the inventory of
an Enterprise.
In 1931 Walter Schewart introduced
statistical quality control. Applied in second
World War.
In 1934 L H C Tippet developed ‘Sampling
Theory’. Applied in Production Analysis in
1950.
Where Do We Stand Today?
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Advent of computer introduced the field of
Automation.
Efficient use of Labour, Material &
Equipment Economies in Production.
Continuous improvement in design & layout.
Sophisticated production control techniques
to produce goods & service at desired time
& minimal cost.
References
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Production and Operations Management
– R. Paneerselvam – Prentice Hall India
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Production and Operations Management
– Chunawala & Patel – Himalaya Publishing
house
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Production and Operations Management
– Kanishka Bedi - Oxford
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Production Operations Management
– Dr. B. S. Goel - Pragati
What Next?
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Operations Strategy
Layout
Layout Planning