1. TOPIC : IMPORTANCE OF PRODUCTION
& OPERATION MANAGEMENT(POM)
Made By :
Bhavyesh Ashar (13014)
Bindi Shah (13015)
Disha Shah (13020)
Harsh Shah (13028)
Imad Sirkhot (13032)
Jay Loliyania (13035)

2. • PRODUCTION:
 Is conversion/transformation of inputs into
desired outputs.
 One of the important activity of economy
 Social Activity
 Value Added Activity
 Narrow Concept

3. THE PRODUCTION PROCESS :
INPUTS
(Resources, Raw
Materials)
CONVERSION
PROCESS
(Add Value)
OUTPUT
(Goods &
Services)

4. • OPERATION:
 Process in which desired output is distinguished
as tangible or intangible
 Includes services During & After Sale
 Also known as Execution / Implementation
Process
 Wide Concept

5. THE OPERATION PROCESS :
INPUTS
CONVERSION DESIRED OUTPUTS
TANGIBLE PRODUCTS
INTANGIBLE
PRODUCTS

6. PRODUCTION & OPERATION
MANAGEMENT
 Production – Application of Management functions to
the production function in a factory
 Operation – Resources / Inputs converted into more
useful products
 Production Management & Operation Management
differentiated on the bases of tangibilities of goods /
services

7. CHARACTERISTICS OF POM
 Manufacturing as Competitive Advantage
 Services Orientation
 Disappearance of Smokestacks
 Small has Become Beautiful

8. IMPORTANCE OF POM TO A BUSINESS
FIRM
• Accomplishment of firm's objectives
• Reputation, Goodwill and Image
• Helps to introduce new products
• Supports other functional areas

9. (...continued)
• Helps to face competition
• Optimum utilisation of resources
• Minimises cost of production
• Expansion of the firm

10. (...continued)
• More inventory turns
• Higher Quality
• Greater Flexibility
• Better Customer Services
• Shorter Manufacturing Lead Time

11. IMPORTANCE OF POM TO ITS CUSTOMER
& SOCIETY
• Higher standard of living
• Generates employment
• Improves quality and reduces cost

12. (...continued)
• Spread effect
• Creates utility
• Boosts economy

13. STRATEGIC IMPORTANCE OF POM
• It is a vital function is necessary for generating money to
pay employees, lenders, and stockholders.
• Effective production operations management can:
– lower a firm’s costs of production.
– boost the quality of its goods and services.
– allow it to respond dependably to customer demands.
– enable it to renew itself by providing new products.

14. EMERGING ROLE OF PRODUCTION &
OPERATION MANAGER
 Strategic Decision Making
 Implementation & use of Enterprise Resource
Planning
 Automate Process as per the requirements of the
company
 Enhance R&D (using new technology)

15. (...continued)
 Reduce lag in implementation of Process
 Protect environment
 Act as a member of Concurrent Engineering Teams
 Develop long-term strategic relationship with
suppliers

16. (...continued)
 More attention to technology management
 Be an Internal Quality Auditor in Quality
Certification Programming – ISO 9000 series and ISO
14000

17. o Global Market Place
o Production/Operation
Strategy
o Total Quality
Management (TQM)
o Flexibility
o Time Reduction
o Technology
o Worker Involvement
o Re-engineering
o Environmental Issues
o Corporate Downsizing
o Supply Chain
Management
o Lean Production
RECENT TRENDS & CHALLENGES IN POM

18. CONCLUSION
• It is very essential in meeting objective of an organization.
• It talks about applying business organization and
management concepts in creation of goods and services.
• It is managing people and machinery in converting
materials and resources into finished goods and services.
• Hence, POM plays a very important role in today’s
business world.

19. THANK YOU