Operation & Production ManagementINPUTDesignOperationOutput

Nature & ScopeFour 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.

DefinitionsProductionStep by step conversion of one form of material to other through chemical or mechanical process.Production ManagementPlanning, organizing, directing and controlling the activities of the production function.Operation ManagementService oriented industry is broadly known as operations management.

Scope in DetailAim - Customer satisfaction at optimum cost. Product Selection DesignProcess Selection and PlanningFacilities LocationFacilities Layout and Materials HandlingCapacity Planning

Scope in DetailOperational decisionsProduction PlanningProduction Control (PPC)PlanningRoutingDispatchingFollow UpInventory ControlQuality ControlMethod StudyMaintenance & ReplacementCost Reduction And Control

Historical DevelopmentAdam Smith is the first person who introduced Production Management in 1776.Emphasized the division of labourThis effected in turn for improving the quality & quantity of goods.

Historical DevelopmentCharles Babbage in 1883 introduced the principle of limiting skills as a basis for pay fixation.Also agreeing on Adam Smiths theory.

Historical DevelopmentManagement 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 DevelopmentShort Comings on Taylor techniqueProduction Management was very slow.Study materials were unavailable.Output depended on man, job and job conditions.

Historical DevelopmentIn 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?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.

ReferencesProduction and Operations ManagementR. Paneerselvam Prentice Hall IndiaProduction and Operations ManagementChunawala & Patel Himalaya Publishing houseProduction and Operations ManagementKanishka Bedi - OxfordProduction Operations ManagementDr. B. S. Goel - Pragati

What Next?Operations StrategyLayoutLayout Planning

Production control is a managerial decision to stick to predetermined standards and schedules of production