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07/11/2014

BCM524
CONSTRUCTION
SYSTEM ANALYSIS
INTRODUCTION TO PRODUCTION
MANAGEMENT

NOR ZAILAH ABDULLAH

ANI MASLINA SALEH
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INTRODUCTION
o

Production/operations management is
the process which combines and
transforms various resources into value
added product/services in a controlled
manner as per the policies of the
organization.

It is that part of an organization which is

concerned with the transformation of a
range of inputs into the required
products/services having the requisite
quality level.

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Functional Subsystems of Organisations

Supporting function

Communicate

PERSONNEL

MARKETING

Figure 1 Subsystem
in organisation

Authorization & control

FINANCE

PRODUCTION

The set of interrelated management

activities,
which
are
involved
in
manufacturing certain products, is
called production management.

If the same concept is extended to

services
management,
then
the
corresponding set of management
activities
is
called
operations
management.

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Production and Operation Management

Production and
Operations
Management
("POM") is about the
transformation of
production and
operational inputs
into "outputs" that,
when distributed,
meet the needs of
customers.

Output

Figure 2 Conversion Process

PRODUCTION MANAGEMENT

Activities which are involved in manufacturing

certain products is called as PRODUCTION
MANAGEMENT

Examples of productions are : manufacturing

custom-made products like, boilers with a
specific capacity, constructing flats, some
structural fabrication works for selected
customers.
Manufacturing standardized products like ;
car, bus, motor cycle, radio, television etc.

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OPERATIONS MANAGEMENT

Management activities which extended to

services is called as OPERATIONS MANAGEMENT

Examples of services custom made services

like medical facilities and clinical tests,
arranging food for parties, travel booking
services etc.
Standardised services like, developing standard
computer soft wares, providing standard
insurance policies etc

POM 5 Main Headings

Product

Plant

Programmes

Processes

People

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Matrix of Functional Subsystems and Management Activities

SYSTEMS CONCEPT OF PRODUCTION

System is a collection of interrelated entities

Figure 4 explains the systems aspects of

production/operations function of an organisation

The organisation receives several inputs as indicated on the

left hand side and converts them into useful products
and/or services using its facilities (manufacturing facilities)

In the process of conversion, definitely. There will be some

deviations in the products attributes like quality, size, shape
and number of units produced.

The feedback mechanism is a continuous exercise to

monitor the status of the system.

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Figure 4 - Systems aspect of production / operations function

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The system operates in an environment. So,

the system has to take feedback from its
environment and adjust its parameters
accordingly.
The environment can be classified into ;
Internal environment (e.g. top management)
External environment (e.g. legal, political, social
or economic conditions considers the
feedback and adjust its parameter accordingly)

Figure 5 shown the detailed schematic

diagram of production/operations subsystem.

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Figure 5 - Schematic representation of production/operations

subsystem
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Matrix of Functional Subsystems

and Management Activities

Figure 3 - Relative frequency of decisions at different levels of

management
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TYPES OF PRODUCTION SYSTEM

The production system of a company mainly

uses facilities, equipment, and operating
methods (called the production system) to
produce goods that satisfy customers
demand.
The requirements of a production system
depend on the of product that the company
offers and the strategy that it employs to serve
its customers.
The classification of production system is
summarised in the Table 1 below.

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Table 1 Classification of Production System

Basic

Classifications

Examples

Types of
output

Products

Consumer goods like furniture, TV, radio,

etc. Producer goods like, lathe, milling ,
etc
Transportation, health, entertainment,
banking services, education system, etc.

Types of flow

Projects
Job shop

Services

Flow Shop
Continuous
process

Types of
Customized
specification Standardized
under service
type

Construction of bridge, dam, road, etc.

Hospital, auto repair, machine shop,
furniture company, etc.
High volume TV factory, auto factory,
etc.
Postal services, telephone company,
power corporation, oil refinery, chemical
plant
Medical care, legal services
Insurance, wholesale stores

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i) Flow Shop

Conversion process in which successive units of

output undergo the same sequence of
operations, using specialised equipment usually
positioned along a production line: example
auto assembly, assembly of television sets,
assembly of electric motors, assembly of
computer keyboards, etc.

Extreme form of flow shop is sometimes treated

as a continuous process in which there is a
constant flow of materials, as in oil refining,
chemical processing and other in which there is
no way to identify successive units of output.

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Flow Shop (contd)

Ordinary flow shop can be classified into;

Continuous flow shop

Will produce the same type of output

like cigarettes, fertilizer, cement, etc.

Intermittent flow shop

The process is interrupted to set it up to

handle different specifications of the
same basic design. (e.g. bottling
factories, mass production of clothing,
television sets, etc.)

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ii) Job Shop

This is a conversion process in which units of

different types of products follow different
sequences through different shops.

This type of system has more flexibility. But

this system results into more set-up time,
more in-process inventory, complex
scheduling, varying quality and so forth.

Example furniture company, Hospital,

machine shop etc.

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iii) The Project

project refers to refers to process of creating a

complex one-of-a-kind product or service with a
set of well-defined tasks in terms of resources
required and time phasing.

Some

examples of projects are : dam

constructions, starting new industries, fabricating
boilers, and so on.

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DISCUSSION

Services can pose a variety of managerial challenges

for managers challenges that in manufacturing are
either much less or nonexistent. And because services
represent an increasing share of the economy, this
places added importance to understanding and
dealing with challenges of managing services.

QUESTIONS
What managerial challenges do services present that
manufacturing does not?
Why does service management present more
challenges than manufacturing?
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