8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
1/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
Production ManagementUnit 1- Introduction and Operations Strategy
Significance of Operations Function
2011
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
2/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
Subject: 70% - Theory and 30% - Problems
Unit 1 - Topics
Significance of Operations Function.
Products and Services Concepts Characteristics.
Different Systems.
Concept of Productivity.
Evolutions of Operations Management Discipline.
Competitive Positioning of products and services.
Strategic and Tactical Decisions of OperationsManagement.
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
3/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
Today we are going to discuss about
Introduction to Production Management.
Significance of Operations Function.
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
4/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
Definition
Production/Operations management isthe process which combines andtransforms various resources used in the
production or operations subsystem of theorganization into value addedproducts/services in a controlled manner
as per the policies of the organization.
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
5/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
The set of interrelated management activities which areinvolved in manufacturing certain products is called asproduction management.
If the same concept is extended to servicesmanagement, then the corresponding set ofmanagement activities is called as operationsmanagement.
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
6/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
In general, the concept of manufacturingproducts or providing services is called asproduction or operations management
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
7/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
Examples - Production
Manufacturing custom made products like, boilers with aspecific capacity, constructing flats, some structuralfabrication works for selected customers, etc.
Manufacturing standardized products like, car, bus, etc.
Examples of services Custom made services likeMedical Facilities and clinical tests, arranging food forparties, travel booking services, etc.
Standardized Services Developing Standardcomputer software, Providing standard insurancepolicies, etc.
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
8/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
Functional Sub-systems of Organizations
Functional subsystems
production
FinanceMarketing
Personnel
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
9/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
Subsystems
Marketing function Production function
Finance function
Personnel function
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
10/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
Organizational Model
Marketing
MISEngineering
HRM
Quality
Accounting
Sales
Finance
OM
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
11/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
Productions or operations Function
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
12/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
Production Function
It is the part of an organization which is concerned withthe transformation of a range of inputs into the requiredoutputs (products/Services) having the requisite qualitylevel
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
13/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
Systems concept of production
Systems aspect of production/operations function
Inputs
Land
Labor
Capital
Material
OutputsGoods
Services
ConversionProcess
Comparison:
Actual vs.desired
Monitor Output
Random Fluctuation
Adjustments needed?
Feedback
Source: Everett E. Adam Jr. and Ronald J. Ebert Production and Operations Management
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
14/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
15/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
System:
It is a collection of interrelated entities.
Inputs:The inputs to the system are materials, labor, equipmentand capital as shown in Fig 1.3.
These inputs are combined and converted into goodsand /or services by a suitable process technology.
The types of inputs used vary from one industry toanother.
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
16/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
Product Manufacturing Major Inputs4 Ms
Capital = Money
Equipment = Machines
Labor = Men
Materials
Now, 4 Ms is Transformed to 5 Ms with the addition ofMethods.
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
17/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
Fig 1.3 explains the systems aspect ofproduction/operation function of an organization.
The organization receives several inputs as
indicated on the left hand side and convertsthem into useful products and or services usingits facilities.
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
18/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
Transformation Process
In the process of conversion, definitely there willbe some deviations in the products attributeslike quality, size, shape and number of units
produced.
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
19/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
Feedback
Just to cope up with the predeterminedplans and policies, it is highly essential tocommunicate these deviations to the input
stage in the form of feedback for makingnecessary corrections.
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
20/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
Sample List of Corrections
Tight quality check on the incoming rawmaterials.
Adjustment of machine settings.
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
21/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
Change of tools.
Proper allocation of operators to machineswith matching skills.
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
22/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
Change in the production plans, likeincrease or decrease in volume ofproduction.
Rigid in process quality Programme toavoid re work.
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
23/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
Based on this feedback, the system onceagain tries to produce the product/servicewith modified parameters, in order to meet
the specifications.
The feedback mechanism is a continuousexercise to monitor the status of the
system.
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
24/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
Production or Operation Subsystem
A detailed schematic diagram of theproduction/operation subsystems is shown in Fig1.4, where in the different components of the
production or operation systems are indicated.This system receives different inputs asindicated in the figure and converts them intouseful products or services by utilizing the
equipments at the transformation stage.
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
25/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
26/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
Techniques and procedures used inproduction/operation system
1 Forecasting
2 Location and layout techniques
3 Product design and analysis, work study
4 Production control techniques
(a) Aggregate planning
(b) Master production scheduling(c) MRP
(d) Capacity planning
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
27/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
Techniques
(e) Scheduling and Control
Line balancing
Line of balance
Single machine scheduling
Flow shop scheduling Job shop scheduling
5 Maintenance management
6 Feedback and control techniques
(a) quality control
(b) inventory control
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
28/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
Functions of production and operations management
As production and operations management is aseparate functional field of management, themain functions of production and operationsmanager are as follows:
Planning, Organizing, Controlling
Behaviors (know behaviors and interests ofsubordinates)
Modeling (use mathematical and quantitativetechniques in decision making such as networkanalysis, linear programming, queuing theory, etc)
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
29/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
Overview
The concept of manufacturing products or providing services is called asproduction or operations management.
Production Function:
It is the part of an organization which is concerned with the transformation of
a range of inputs into the required outputs (products/Services) having therequisite quality level
8/3/2019 Unit 1_Significance of Operations Function_16!3!10.Pptx....POM NOTE Unite One
30/30
KVIMIS-MBA0931-PM 1. Introduction and OperationsStrategy
Thank You