Introduction to Production & Operations Management Management is the study and development of techniques like organizing, planning,staffing, controlling,

and directing an organization's resources to achieve the policy's objectives. What is POM? Production is the creation of goods and services Production and/or Operations Management are the activities that transform resources into goods and services Why Study POM? It is one of the 3 critical parts of any organization: Marketing generates demand Operations creates the product Finance/accounting tracks organizational performance, pays bills, collects money It shows us how goods and services are produced It shows us what POM managers do It is the most costly part of any organization The Critical Decisions Service and product design What product or service should we offer? How should we design these products and services? Quality management Who is responsible for quality? How do we define quality? Process and capacity design What processes will these products require and in what order? What equipment and technology is necessary for these processes? Location Where should we put the facility On what criteria should we base this location decision? Layout design How should we arrange the facility? How large a facility is required? Human resources and job design How do we provide a reasonable work environment? How much can we expect our employees to produce? Supply chain management

 Should we make or buy this item? Who are our good suppliers and how many should we have? Inventory, material requirements planning, How much inventory of each item should we have? When do we re-order? Intermediate, short term, and project scheduling Is subcontracting production a good idea? Are we better off keeping people on the payroll during slowdowns? Maintenance Who is responsible for maintenance? When do we do maintenance? New Challenges in OM From Local or national focus Batch shipments Lengthy product development cycles To Global focus Just-in-time Supply chain Management Rapid product development Goods vs. Services Characteristics of Goods Tangible product Consistent product definition Production usually separate from consumption Can be inventoried Low customer interaction Characteristics of Services Intangible product Produced & consumed at same time Often unique High customer interaction Inconsistent product definition Goods vs. Services Can be resold Reselling unusual Can be inventoried Difficult to inventory

Some aspects of quality measurable Selling is distinct from production Product is transportable Site of facility important for cost Often easy to automate

Quality difficult to measure Selling is part of service Provider, not product is transportable Site of facility important for customer contact Often difficult to automate

Types of production There are 3 basic types of production 1. Job order production 2. Batch production 3. Continuous production Points to Remember Volume of production Variety of product Variety of raw material Nature of work Worker skill level Equipment level Facility utilization factor Volume discount The Productivity Challenge Productivity Measure of process improvement Represents output relative to input stands for elimination of waste of all kinds material, machine,manpower, working apace, building utilization Tools of productivity External factors Internal Factors External factors Natural resources and their mobility Taxation Laws & restrictions imposed by Govt. Availability of water, power & other inputs Technical & training facilities Internal factors Product Design

 Input Material Plant Layout Material handling techniques Work study Reason for Low Productivity Product Design Lack of Standardization Improper Equipment Poor Plant layout Frequent change of product design Lack of motivation among workers Factors that help increase Productivity Wastage of material Poor working conditions Poor management Material handling Waiting related to man power/ machine Kinds of Productivity Material Productivity Labor Productivity Capital Productivity Machine Productivity Energy Productivity Technical Method to improve Productivity Task based Techniques Product based Techniques Technology based Techniques Material based Techniques Employee based techniques