Production Management
CP-206: PRODUCTION AND OPERATIONS MANAGEMENT
Production & Operations Management:
Production is the process by which raw materials and other inputs are converted into finished products.
The essential feature of production is to bring together people, machines and materials to provide goods and services and thereby to satisfy the wants of people. Since both manufacturing and service organizations involve the above-mentioned features, the term production management is gradually replaced by the term Operations Management. An Operation may be defined as the process of changing inputs into outputs and thereby adding value to some entity. The value can be added by alteration, transportation, storage or inspection.
Productivity of Conversion Process:
The Productivity can be measured by the ratio of the output to the input.
Productivity or Operational efficiency = Output / Input = [Goods & Services] / [Capital, Manpower, Material, Machine, Land & Buildings]
Production as a System:
A System is a collection of objects related by regular interaction and interdependence. A systems model of organization identifies the subsystems that make up the organization. As for example a business firm might have finance, marketing, accounting, personnel, engineering, purchase and physical distribution systems in addition to the production/operations system. Considering the systems perspective of production, there are three systems: (i) Production system, (ii) Conversion subsystem and (iii) Control subsystem.
Production system receives inputs in the form of materials, personnel, capital, utilities and information. These inputs are changed in a conversion subsystem into desired products and services, which are called outputs. A portion of the output is maintained in the control subsystem to determine whether it is acceptable in terms of quantity, quality and cost. If it is acceptable then no change is
Production & Operations Management:
Production is the process by which raw materials and other inputs are converted into finished products.
The essential feature of production is to bring together people, machines and materials to provide goods and services and thereby to satisfy the wants of people. Since both manufacturing and service organizations involve the above-mentioned features, the term production management is gradually replaced by the term Operations Management. An Operation may be defined as the process of changing inputs into outputs and thereby adding value to some entity. The value can be added by alteration, transportation, storage or inspection.
Productivity of Conversion Process:
The Productivity can be measured by the ratio of the output to the input.
Productivity or Operational efficiency = Output / Input = [Goods & Services] / [Capital, Manpower, Material, Machine, Land & Buildings]
Production as a System:
A System is a collection of objects related by regular interaction and interdependence. A systems model of organization identifies the subsystems that make up the organization. As for example a business firm might have finance, marketing, accounting, personnel, engineering, purchase and physical distribution systems in addition to the production/operations system. Considering the systems perspective of production, there are three systems: (i) Production system, (ii) Conversion subsystem and (iii) Control subsystem.
Production system receives inputs in the form of materials, personnel, capital, utilities and information. These inputs are changed in a conversion subsystem into desired products and services, which are called outputs. A portion of the output is maintained in the control subsystem to determine whether it is acceptable in terms of quantity, quality and cost. If it is acceptable then no change is