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Operation & Production Management

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Operation & Production Management Design INPUT Operation Output Nature & Scope Four Functional areas in a business organization. Marketing, Production, Finance And ... – PowerPoint PPT presentation

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Title: Operation & Production Management


1
Operation Production Management
Design
INPUT
Operation
Output
2
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.

3
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.

4
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

5
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

6
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.

7
Historical Development
  • Charles Babbage in 1883 introduced the principle
    of limiting skills as a basis for pay fixation.
  • Also agreeing on Adam Smiths theory.

8
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.

9
Historical Development
  • Short Comings on Taylor technique
  • Production Management was very slow.
  • Study materials were unavailable.
  • Output depended on man, job and job conditions.

10
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.

11
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.

12
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

13
What Next?
  • Operations Strategy
  • Layout
  • Layout Planning
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