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1. Assignment # 1
Subject: Production & Operation Management
Submitted By:
H.M. Shakir Abdullah
(27-M.COM-5A)
Submitted To:
Prof. Frooq Qaisar sb

2. Assignment Question:
How companies are working successfully and achieving goals. How production department
works and collaborate with rest of others departments and its process?
Production is defined as “the step-by-step conversion of one form of material into another form
through chemical or mechanical process to create or enhance the utility of the product to the
user.”
“Production management deals with decision making related to production processes so that
the resulting goods or services are produced according to specifications, in the amount and by the
schedule demanded and out of minimum cost.”
Operations management refers to the administration of business practices to create the highest
level of efficiency possible within an organization. It is concerned with converting materials and
labor into goods and services as efficiently as possible to maximize the profit of an organization.
Scope of Production and Operations Management
Production and operations management concern with the conversion of inputs into outputs, using
physical resources, so as to provide the desired utilities to the customer while meeting the other
organizational objectives of effectiveness, efficiency and adoptability it distinguishes itself from
other functions such as personnel, marketing, finance, etc., by its primary concern for
‘conversion by using physical resources.’ Following are the activities which are listed under
production and operations management functions:
1. Location of facilities
2. Plant layouts and material handling
3. Product design
4. Process design
5. Production and planning control

3. 6. Quality control
7. Materials management
8. Maintenance management.
LOCATION OF FACILITIES
The purpose of the location study is to find the optimal location that will results in the greatest
advantage to the organization. Location of facilities for operations is a long-term capacity
decision which involves a long term commitment about the geographically static factors that
affect a business organization. It is an important strategic level decision-making for an
organization. It deals with the questions such as ‘where our main operations should be based?’
PLANT LAYOUT AND MATERIAL HANDLING
The overall objective of the plant layout is to design a physical arrangement that meets the
required output quality and quantity most economically.
‘Material Handling’ refers to the ‘moving of materials from the store room to the machine and
from one machine to the next during the process of manufacture’. It is also defined as the ‘art
and science of moving, packing and storing of products in any form’. It is a specialized activity
for a modern manufacturing concern, with 50 to 75% of the cost of production. This cost can be
reduced by proper section, operation and maintenance of material handling devices. Material
handling devices increases the output, improves quality, speeds up the deliveries and decreases
the cost of production.
PRODUCT DESIGN
Product design and development provides link between marketing, customer needs and
expectations and the activities required to manufacture the product. Product design deals with
conversion of ideas into reality. Every business organization has to design, develop and
introduce new products as a survival and growth strategy. Developing the new products and
launching them in the market is the biggest challenge faced by the organizations. The entire

4. process of need identification to physical manufactures of product involves three functions:
marketing, product development, and manufacturing. Product development translates the needs
of customers given by marketing into technical specifications and designing the various features
into the product to these specifications.
PROCESS DESIGN
Process design is a macroscopic decision-making of an overall process route for converting the
raw material into finished goods. These decisions encompass the selection of a process, choice of
technology, process flow analysis and layout of the facilities.
PRODUCTION PLANNING AND CONTROL
Production planning and control can be defined as the process of planning the production in
advance, setting the exact route of each item, fixing the starting and finishing dates for each item,
to give production orders to shops and to follow up the progress of products according to orders.
The principle of production planning and control lies in the statement ‘First Plan Your Work and
then Work on Your Plan’. Main functions of production planning and control includes planning,
routing, scheduling, dispatching and follow-up.
Planning is deciding in advance what to do, how to do it, when to do it and who is to do it.
Planning bridges the gap from where we are, to where we want to go
Routing may be defined as the selection of path which each part of the product will follow,
which being transformed from raw material to finished products. Routing determines the most
advantageous path to be followed from department to department and machine to machine till
raw material gets its final shape.
Scheduling determines the program for the operations. Scheduling may be defined as ‘the
fixation of time and date for each operation’ as well as it determines the sequence of operations
to be followed.

5. There are some points which can help the companies to achieve its goals and run their business
successfully
 Strategic Goal Planning
It’s one thing to set a goal for the future, but how accurately are you keeping track of your
accomplishments? What systems do you have in place to keep you on target? Writing your goals
down is the first step, of course, but that’s just the beginning. Set your goals incrementally, with
short-term plans that take steps toward the larger things you want to complete. Write down what
you want to accomplish this year, and then take a step back. What do you need to do this month
to realize that goal? Take another step. What do you need to do this week to move closer to your
monthly goal? One more step. What can you do today to make progress on your weekly goals?
Most people fail to achieve their goals because they have a flawed process, set unattainably high
expectations, or because they set goals that do not inspire them.
 Be Prepared for Change
Every year, new technology, legislation, trends, and tons of other factors change the needs of
various industries and consumer groups. It’s inevitable, really. And you need to be prepared –
just as one of my mentors, Keith Cunningham would say: “Ask yourself, what I am not seeing?”
Looking down the road for potential change is always a good practice. What rumbles are you
hearing in your marketplace? What results are your customers’ actively seeking out/asking for?
What other advantage or benefit can you offer the marketplace? This is where our Growth Factor
question (“What can I do today to provide my customers with a greater advantage or benefit, to
get them closer to the ultimate result they are after?”) can really offer some real breakthroughs
for your business.

6.  Develop for Tomorrow
Similar to the point above, the products and services you are selling today should meet the needs
of your customers today, right? What about the stuff you have on the drawing board? Everything
you plan on releasing tomorrow needs to be a solution to the problems of tomorrow! This means
taking steps now to anticipate what you customers will need in the future. This can be done with
focus groups, through customer feedback channels, anything you can do to paint a picture of
tomorrow’s customers. Take time to know what results they are ultimately after – and how you
can play a part in making this become a reality for your customers. The ground you gain today
planning ahead will position you in the lead tomorrow.
 Avoid Obstacles With Foresight
Just as you should be preparing yourself (and your business) for inevitable changes, you can
proactively avoid problems and roadblocks with the same type of forward thinking. What
potential problems might you face in the coming year, and what can you do now to avoid them?
When planning for problems, sometimes it even pays to include some unlikely extremes – at
least you’ll be thinking about what do in the face of disaster.
 Define Your Purpose
This is an absolute must for any successful business, whether you’re a solo-pruner or an
international corporation. You have to know why you’re doing what you’re doing (and I don’t
just mean making profits). This sense of purpose is ideally shared throughout your workforce, no
matter how large or small it might be. What impact do you want to have on this world? How
will your business change lives with the advantage and benefit that you’re offering? Are you
driven to spread awareness, to educate? By defining the purpose of your business, you set the
standard for the direction you should be moving in. With a clear purpose, you can compare every
proposal and every project to your overarching goal and ask yourself, “Does this align with the
purpose of this company?” Set clear, measurable goals that aligns with your purpose and stick to
them — and you too can have your most phenomenal week, month or year in business yet.

7. The functions of the production department
There are so many functions of the production department. Below are some of the most common
functions of this department:
 The production department manufactures goods for the business which are then sold in order
to bring revenue for the business.
 The production department is also responsible for the designing of the goods or products of
the business which are sold to other businesses or to the general public.
 Every aspect of production is controlled by the production department. By controlling
production, the department efficiently uses things such as labor, machines and materials
judiciously in order to prevent any wastage.
 The department improves on the products of the business by bringing changes and
innovations.
 The production department makes sure that it produces goods or products at very low costs in
order to maximize profit.
 The production department works in collaboration with the purchasing department of the
company in order to make sure that materials needed for production are always available.
 The department also makes sure that the machines and equipment used in production are
serviced and properly maintained all the time.