Production and Operations Management

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Chapter 01 : INTRODUCTION TO P & O MGMT

Concept of Production
Production :
* A crucial function in any organisation
* Transformation of a range of inputs into the planned outputs ( goods or services ) meeting laid down quality standards * Step-by-step conversion of one form of material into another form through chemical or mechanical process to enhance the utility of the product to the end users. * Value addition process at each stage

* A process by which “goods and services are created” ………Edwood Buffa * Some examples: Chilly powder, Furniture, edible oils, Petrol

Concept of Operation
Operation :
* Categorised into
* Manufacturing operations and Service operations
* Manufacturing operations is a
* Conversion process that includes mfg yields and
* produce a tangible output called product
* Service operations is a
* Conversion process that includes service yields and * produce an intangible output like performance, an effort etc

Manufacturing v/s Service Operations

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ACTIVITIES OF PRODUCTION FUNCTION
* The Activities of Production Function
1. Planning2. Organising
3. Directing4. Controlling
5. Training & Dev6. Coordinating
7. Motivation 8. Cont. improvement
* Combines and transforms various resources into value added products as per policies of the Organisation * E.S. Buffa : Deals with decision making process so that resulting goods or services are * produced according to specifications ( Quality )

* in the quantity and by the schedule demanded
* out of minimum cost

OBJECTIVES OF PRODUCTION MANAGEMENT
* To produce right goods or services of / at right
* QUALITY
* QUANTITY
* TIME
* COST
* Without compromising on
* SAFETY
* STATUTORY RULES & REGULATIONS
* By effectively utilising the
* The loop : MONITORING / FEEDBACK / ACTION
* For PREVENTION & CORRECTION of deficiencies

OBJECTIVES OF OPERATIONS MANAGEMENT
* Customer service : Primary objective
* Customer satisfaction in terms of
Right thing/ at right cost /at right time/ of right quality * Principle functions :
Manufacture, Transport, Supply , Service
* Reliability and Consistency
* Resource Utilisation : Major objective
* More with less :
Space, equipment, Labour, Raw materials etc
* Minimising loss / waste / recycling

SCOPE OF PRODUCTION & OPERATIONS MANAGEMENT
* Basic objectives : conversion of inputs into outputs
* Each forms a separate chapter
Each forms a separate chapter
Effectiveness, Efficiency & Adoptability
* Associated activities :
* Location of facilities
* Plant layout and material handling
* Product design
* Process design
* Production and Planning control
* Quality control
* Material management
* Maintenance management

Chapter 02
FORECASTING

MEANING AND NEED FOR FORECASTING
* Forecasting :
* Fundamental to planning
* Estimating the future demand for products and services and the resources necessary to produce these outputs * Sales forecasts trigger all other forecasts in the production function * Need / reasons for sales forecasting:

* New facility planning – lead time for building new factory and processes * Production planning – lead time for to provide capacity * Work force scheduling – lead time to provide work force to meet varying demands * Financial planning – lead time to arrange finance and prepare budget to plan and control financial performance * Planning :

* First step in the process of management
* Process of setting goals and choosing means to achieve the goals

Types of Forecasts
Types of forecasts required by Operations managers:...
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