1. Production and Operations
Management
Introduction
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2. Operations as a
Transformation Process
INPUT
•Material
•Machines OUTPUT
TRANSFORMATION
•Labor •Goods
PROCESS
•Management •Services
•Capital
Feedback & Requirements
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3. Production management is concerned with the
manufacturing of goods:
Examples of goods:
cars
books
chairs
computers
houses
etc.
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4. Examples of services:
retailing/food
banking
education
health care
utilities
insurance
government agencies
etc.
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5. OPERATIONS MANAGEMENT QUESTIONS
1. How many items will be demanded next
month?
2. How many items should be produced next
month?
3. How many workers are needed to satisfy the
proposed production level?
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6. OPERATIONS MANAGEMENT QUESTIONS
4. If a plant is built, how should the activities be
scheduled so that the project is completed on
time, within budget, and with acceptable
quality?
5. How is the quality of our output measured
and how is it improved?
6. If sodas are needed, how many should be
ordered?
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7. Introduction
• Production means application of processes
(technology) to the raw material to add the use
and economic values to arrive at the desired
product by the best method without sacrificing
the desired quality.
• Production is of 3 major ways
• Production by Disintegration -separating the
contents, the desired products are produced.
For example …………..
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8. • Production by Integration- in this type of
production various components of the product
are assembled together to form the desired
product. Eg……….
• Production by Service- here the chemical and
mechanical properties are improved without
any physical change. Eg……… heat treatment
of metals
• Generally speaking, production is the use of
any process or procedure designed to
transform a set of input elements, which have
use value and economic value.
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9. Management
• Do it yourself;
• Ask your neighbor …………..
• What is management?
• What are the activities involved in
management?
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10. Operations- An overview
• Operations management is the conversion of
inputs into outputs, using physical resources so
as to provide the desired utility to the customer
while meeting the other organizational
objectives of effectiveness, efficiency and
adaptability.
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11. A product
• Many of us know of a product from the
consumers orientation. It is better for us to deal
with different angles, because it will be helpful
for us to understand the subject of production and
operations manegement.
• To a consumer; the product is a combination of
or optimal mix of utilities. This is because every
consumer expects some use or uses from the
product. For example soap can be identified by
cleanliness of body, freshness, fragrance or health
etc
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12. • To a production manager; a product is the
combination of various surfaces and processes
(operations). This is because the production
manager is solely responsible for producing
the product. He has to think of the various
surfaces by which the product is made of so
that he can plan for processes by which a
particular surface can be made.
• To a financial manager; a product is a mix of
various cost elements as he is responsible for
the profitability of the product.
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13. • To a personnel/Human resource manager; a
product is a mix of various skills as he is the
person who selects and trains the personnel to
meet the demand of the skill to produce the
product.
• In general a product is a bundle of tangible and
intangible attributes which along with the
service is meant to satisfy the customer wants.
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14. Importance of operations management
• Efficient production management will give
benefits to the various sections of society. That
is the stakeholders
 Consumer benefits from increased
productivity, increased use value in the
product. Products are available to him/her at a
right place, at right price, at right time, in
desired quantity and of desired quality.
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15. Importance of operations mgt con….
 Investors; they get increased security for their
investments, adequate market returns and
creditability and good image in the society.
 Employee gets adequate wages, job security,
improved working conditions and increased
personal and job satisfaction.
 Suppliers will get confidence in management
and their bills can be realized without any
delay.
 Community enjoys benefits from economic 15

16. and social stability.
 The nation will achieve prospects and security
because of increased productivity and healthy
industrial atmosphere.
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17. Functions of production mgt department
• The functions of the production department
depend on the size of the firm. As such there
may be no guidelines to specify the function
of production dept but the following are some
of the functions which are looked after by the
production department
 Materials: the selection of materials for the
product, production manager must have
sound knowledge of materials and their
properties so that he can select appropriate
materials for his product.
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18. Functions of production mgt cont…
 Methods: Finding the best method for the
process, to search for the methods that suit the
available resources, identifying the sequence
of processes for manufacture of the product.
 Machines and equipment: selection of suitable
machinery for the process desired, designing
the maintenance policy and design of lay out
of machines are taken care of by the
production department.
 Estimating: To fix the production targets and
delivery dates and to keep the production costs
a
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19. at minimum, production department does a
thorough of production times and costs.
 Loading and scheduling; the production
management department has to draw a time
table for various activities specifying when to
start and when to finish the process required.
 Routing, this is concerned with fixing the flow
lines for various raw materials, components
etc from stores to the packing of finished
products so that all the concerned know what
exactly is happening on the shop floor.
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20.  Despatching; the activities of the shop floor
follow given instructions which are given by
the production department.
 Expediting or follow up; it is the responsibility
of the production department to know
whether activities are being carried out as per
plans or not. Expediting helps to evaluate the
plans
 Inspection; this is generally done during
production, but a separate quality control
department does quality inspection which is
not normally under prodn department. 20

21.  Evaluation; the production department must
evaluate itself and its contribution in fulfilling
the corporate objectives and departmental
objectives. This is necessary for setting future
standards.
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