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Operation & Production Management. Design. INPUT. Operation. Output. Nature & Scope. 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.
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Operation & Production Management Design INPUT Operation Output
Nature & Scope • 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 • Production • Step by step conversion of one form of material to other through chemical or mechanical process. • Production Management • Planning, organizing, directing and controlling the activities of the production function. • Operation Management • Service oriented industry is broadly known as operations management.
Scope in Detail • Aim - Customer satisfaction at optimum cost. • Product Selection Design • Process Selection and Planning • Facilities Location • Facilities Layout and Materials Handling • Capacity Planning
Scope in Detail • Operational decisions • Production Planning • Production Control (PPC) • Planning • Routing • Dispatching • Follow Up • Inventory Control • Quality Control • Method Study • Maintenance & Replacement • Cost Reduction And Control
Historical Development • 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 • 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 • 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 • Short Comings on Taylor technique • Production Management was very slow. • Study materials were unavailable. • Output depended on man, job and job conditions.
Historical Development • 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? • 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 • Production and Operations Management • R. Paneerselvam – Prentice Hall India • Production and Operations Management • Chunawala & Patel – Himalaya Publishing house • Production and Operations Management • Kanishka Bedi - Oxford • Production Operations Management • Dr. B. S. Goel - Pragati
What Next? • Operations Strategy • Layout • Layout Planning
