BBA/305 LECTURE-1 INTRODUCTION TO PRODUCTION AND OPERATIONS MANAGEMENT DEFINITION Production/operations management is the process, which combines and

transforms various resources used in the production/operations subsystem of the organization into value added product/services in a controlled manner as per the policies of the organization. Therefore, 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. The set of interrelated management activities, which are involved in manufacturing certain products, is called as production management. If the same concept is extended to services management, then the corresponding set of management activities is called as operations management. Production is a value addition process. At each stage of processing, there will be value addition. Some examples of production are: manufacturing custom-made products like, boilers with a specific capacity, constructing flats, some structural fabrication works for selected customers, etc., and manufacturing standardized products like, car, bus, motor cycle, radio, television, etc.
Fig. 1.1 Schematic production system

Input Men Material Machine

Transformation Processes Product design Process Planning Production control

Output Products Services

Continuous Inventory Quality Cost

Feedback Information

Environment

The production system has the following characteristics: 1. Production is an organized activity, so every production system has an objective. 2. The system transforms the various inputs to useful outputs. 3. It does not operate in isolation from the other organization system. 4. There exists a feedback about the activities, which is essential to control and improve For Example: in Auto Industry , the operation of installing the right hand door has inputs ( door panel, anchor pins and other fixtures to hold the door in place while it is being assembled, etc.) , the assembly process itself, and the output ( car body with the door installed) all of which carry assembly forward one more step. Or taking a service oriented example, obtaining a drivers licence commonly involves one step (operation) of paying a fee. These steps or operations are organized into appropriate sequences to produce larger systems of production.

BBA/305 Objective of Production & Operations Management The objective of the production management is to produce goods services of right quality and quantity at the right time and right manufacturing cost.

1. RIGHT QUALITY
The quality of product is established based upon the customers needs. The right quality is not necessarily best quality. It is determined by the cost of the product and the technical characteristics as suited to the specific requirements.

2. RIGHT QUANTITY
The manufacturing organization should produce the products in right number. If they are produced in excess of demand the capital will block up in the form of inventory and if the quantity is produced in short of demand, leads to shortage of products.

3. RIGHT TIME
Timeliness of delivery is one of the important parameter to judge the effectiveness of production department. So, the production department has to make the optimal utilization of input resources to achieve its objective.

4. RIGHT MANUFACTURING COST

Manufacturing costs are established before the product is actually manufactured. Hence, all attempts should be made to produce the products at pre-established cost. DIFFERENCE BETWEEN PRODUCTION & OPERATIONS MANAGEMENT

PRODUCTION MANAGEMENT 1. Deals with manufacturing of products which are tangible things 2. Products may be made to inventory & made available off-the-shelf. 3. In product systems, there is very little contact between the producers & users of the product; that is left to distribution & retailing when customers purchase an item or have it serviced. 4. Complex and interrelated processing 5. Demand on system variable on weekly, monthly and seasonal basis. 6. Markets served by productive systems are regional, national and international. 7. Large units that can take advantage of economies of scale. 8. Location of system is in relation to regional, national and international markets.

OPERATIONS MANAGEMENT Services are intangible & perishable and are consumed in the process of their production. Availability of services requires keeping the productive system that produces them in readiness to produce the services as they are needed. The person being serviced often participates in the productive processes. There is a great deal of contact with the client or customer in service systems. Simple processing Demand commonly variable on hourly, daily, and weekly basis. Markets served by productive system are usually local. Relatively small units to serve local markets. Location dependent on customers, clients & users. location of local

CHALLENGES FACED BY OPERATIONS MANAGEMENT

BBA/305 Quality Management Issues Need Greater Attention: India has shown poor performance w.r.t. customer care and quality. Manufacturing Companies Have Long Lead Time for Order Fulfilment : Long lead time forces organisations to either carry large inventories, further bringing in new variations of the product to the market will also be delayed. All these will result in high cost, large non-moving inventory, poor delivery reliability and eroded market share. Low labour Productivity Offsets Cost Advantages: Low productivity levels largely offset the advantage of low labour cost. Therefore, improving productivity is a major concern. Acquire Capabilities To Tolerate Product Proliferation: Customers are likely to demand more choices & value offerings from manufacturing & service organisations. In order to remain competitive, every organisation needs understand customer requirements & incorporate them into new product development. Relate the Operations System to Customer/ Market: All choices made in the organisation demand that the customer be central to design, whether they concern performance measures, manufacturing & service delivery system design. Develop Systems & Procedures That Promote Learning: Continuous improvement in quality, delivery, cost & responsive are very important for every organization. Technological change: the challenges of investing in and mastering the right technologies is a major one. No firm has either the financial or managerial resources to engage every new technology. Short product/process life spans mean that investing firms must recover investments even faster. Vocal customers: Some customers become increasingly vocal especially those with single issue agendas. Environmental concerns will be voiced loudly. Human resource scarcity: Business will find it increasingly difficult to hire and keep quality workers. A shortage of hireable unskilled workers will continue to plague the service industry. Employee diversity: The job of managing an increasingly diverse workforce will become an even greater challenge. Market fragmentation: Nowadays domestic customers want their goods & services their way. Organizations will need an increased ability to customize products for local markets. RECENT TRENDS IN PRODUCTION & OPERATIONS
CHANGE OF FOCUS: from seller to buyer/customer GLOBALIZATION PRODUCTION SYSTEM: contribution of japan Quality comes first

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Continual improvement of products & services Elimination of waste

QUALITY MANAGEMENT SYSTEMS TQM: quality at source, Poke-yoke,, continuous improvement ISO 9000/QS 9000, ISO 14000 & government regulations

BUSINESS PROCESSES: Analysis, Improvement & re engineering SUPPLY CHAIN MANAGEMENT SERVICES OPERATIONS MANAGEMENT ENVIRONMENTAL & SOCIAL ISSUES ETHICAL PRODUCTION NEW TECHNOLOGIES TIME REDUCTION ( GPS, Robotics, Biotechnology, computer controlled manufacturing) FLEXIBLE MANUFACTURING SYSTEMS

SCOPE OF PRODUCTION AND OPERATIONS MANAGEMENT Production and operations management concern with the conversion of inputs into outputs, using physical resources, so as to provide the desired utilities to the customer while meeting the other organizational objectives of effectiveness, efficiency and adoptability. It distinguishes itself from other functions such as personnel, marketing, finance, etc., by its primary concern for conversion by using physical resources. Following are the activities which are listed under production and operations management functions: 1. Location of facilities 2. Plant layouts and material handling 3. Product design 4. Process design 5. Production and planning control 6. Quality control 7. Materials management 8. Maintenance management. 1. LOCATION OF FACILITIES Location of facilities for operations is a long-term capacity decision. It is an important strategic level decision-making for an organization. It deals with the questions such as where our main operations should be based? The selection of location is a key-decision as large investment is made in building plant and machinery. An improper location of plant may lead to waste of all the investments made in plant and machinery equipments. The purpose of the location study is to find the optimal location that will results in the greatest advantage to the organization. 2. PLANT LAYOUT AND MATERIAL HANDLING Plant layout refers to the physical arrangement of facilities. It is the configuration of departments, work centres and equipment in the conversion process. The overall objective of the plant layout is to design a physical arrangement that meets the required output quality and quantity most economically. Material Handling refers to the moving of materials from the store room to the machine and from one machine to the next during the process of manufacture. It is also defined as the art and science

BBA/305 of moving, packing and storing of products in any form. Material handling is a prime consideration in the designing new plant and several existing plants. 3. PRODUCT DESIGN Product design deals with conversion of ideas into reality. Every business organization has to design, develop and introduce new products as a survival and growth strategy. Developing the new products and launching them in the market is the biggest challenge faced by the organizations. The entire process of need identification to physical manufacture of product involves three functions: marketing, product development, and manufacturing. Product design and development provides link between marketing, customer needs and expectations and the activities required to manufacture the product. 4. PROCESS DESIGN Process design is decision-making of an overall process route for converting the raw material into finished goods. These decisions encompass the selection of a process, choice of technology, process flow analysis and layout of the facilities. Hence, the important decisions in process design are to analyse the workflow for converting raw material into finished product and to select the workstation for each included in the workflow.

5. PRODUCTION PLANNING AND CONTROL

Production planning and control can be defined as the process of planning the production in advance, setting the exact route of each item, fixing the starting and finishing dates for each item, to give production orders to shops and to follow up the progress of products according to orders. Main functions of production planning and control include planning, routing, scheduling, dispatching and follow-up. Planning is deciding in advance what to do, how to do it, when to do it and who is to do it. Planning bridges the gap from where we are, to where we want to go. It makes it possible for things to occur which would not otherwise happen. Routing may be defined as the selection of path which each part of the product will follow, which being transformed from raw material to finished products. Routing determines the most advantageous path to be followed from department to department and machine to machine till raw material gets its final shape. Scheduling determines the programme for the operations. Scheduling may be defined as the fixation of time and date for each operation as well as it determines the sequence of operations to be followed. Dispatching is concerned with the starting the processes. It gives necessary authority so as to start a particular work, which has already been planned under Routing and Scheduling. Therefore, dispatching is release of orders and instruction for the starting of production for any item in acceptance with the route sheet and schedule charts. The function of follow-up is to report daily the progress of work in each shop in a prescribed proforma and to investigate the causes of deviations from the planned performance.

6. QUALITY CONTROL
Quality Control (QC) may be defined as a system that is used to maintain a desired level of quality in a product or service. It is a systematic control of various factors that affect the quality of the product. Quality control aims at prevention of defects at the source, relies on effective feedback system and corrective action procedure. The main objectives of quality control are: _ To improve the companies income by making the production more acceptable to the customers i.e., by providing long life, greater usefulness, maintainability, etc. _ To reduce companies cost through reduction of losses due to defects. _ To produce optimal quality at reduced price. _ To ensure satisfaction of customers with productions or services or high quality level, to build customer goodwill, confidence and reputation of manufacturer. _ To make inspection prompt to ensure quality control. _ To check the variation during manufacturing.

7. MATERIALS MANAGEMENT
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BBA/305 Materials management is that aspect of management function which is primarily concerned withthe acquisition, control and use of materials needed and flow of goods and services connected with the production process having some predetermined objectives in view. The main objectives of materials management are: _ To minimise material cost . _ To purchase, receive, transport and store materials efficiently and to reduce the related cost. _ To cut down costs through simplification, standardisation, value analysis, import substitution , etc. _ To trace new sources of supply and to develop cordial relations with them in order to ensure continuous supply at reasonable rates. _ To reduce investment tied in the inventories for use in other productive purposes and to develop high inventory turnover ratios. 8. MAINTENANCE MANAGEMENT In modern industry, equipment and machinery are a very important part of the total productive effort. Therefore, their idleness or downtime becomes are very expensive. Hence, it is very important that the plant machinery should be properly maintained. The main objectives of maintenance management are: 1. To achieve minimum breakdown and to keep the plant in good working condition at the lowest possible cost. 2. To keep the machines and other facilities in such a condition that permits them to be used at their optimal capacity without interruption. 3. To ensure the availability of the machines, buildings and services required by other sections of the factory for the performance of their functions at optimal return on investment. NATURE OF PRODUCTION & OPERATIONS MANAGEMENT To understand nature, lets view the manufacturing function from 3 angles. Production as a system Production as an organisational function Decision making in production.

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Production system & its environment INTERNAL ENVIRONMENT: Internal factors affecting production: Engineering- Product quality R& D Product development Quality- Quality control & assurance EXTERNAL ENVIRONMENT: External factors affecting production: Government Competition Technology Economic conditions Legal environment Social environment System operates in an environment, so system has to take feedback from its environment & adjust its parameters accordingly. Production as an organization function:
Marketing Finance Production

Personnel

Production makes goods & services; it plays a vital role in achieving a firms strategic plans or goals. 7

BBA/305 Production involves greatest employees & is responsible for large portion of the firms assets. Production has an impact on quality of the goods. Companies cannot compete using marketing, finance, accounting, and engineering alone. We focus on POM as we think of global competitiveness, because that is where the vast majority of a firms workers, capital assets, and expenses reside. To succeed, a firm must have a strong operations function teaming with the other organization functions. Decision making in production Strategic decisions ( Long term, top management ) Operating decisions Control decisions I. Strategic decisions: Planning products, processes & facilities. I. II. III. IV. Relating to products , processes & manufacturing facilities Involving top management Long-term decisions EXAMPLES: selecting & managing production technology, facility location, facility layout

Operating decisions: planning production to meet demand how much finished goods inventory to carry, the details of purchasing raw materials next week etc. Relating to planning production to meet demand Short-term decisions Involving lower level management Examples include deciding:how much finished-goods inventory to carry, the amount of overtime to use next week, the details for purchasing raw material next month, aggregate planning & master production scheduling Control Decisions: Planning & controlling decisions; frequency of preventive maintenance, new quality control acceptance criteria, labour cost standards for a new product These decisions concern the day-to-day activities of workers, quality of products and services, production and overhead costs, and machine maintenance. Examples include deciding: labor cost standards for a new product, frequency of preventive maintenance, new quality control acceptance criteria Five Ps of production: PRODUCT PROCESS PLANT PLANNING & CONTROL (PROGRAMMES) PEOPLE

PRODUCT: - anything tangible that is capable of satisfying a felt need. New Product: - truly innovative and significantly different from other existing products. Product life cycle: Figure of product life cycle refer to class notes Role of Production & Operations management : to ensure that business actually makes the required products in accordance with the plan. Role of product in POM: concerns areas such as
PERFORMANCE AESTHETICS QUALITY

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RELIABILITY QUANTITY PRODUCTION COSTS DELIVERY DATES

2. PLANT: bulk of fixed assets. In determining which plant to use, management must consider areas such as : future demand design & layout of factory, equipment, offices productivity & reliability of equipment need for ( and costs of ) maintenance health & safety environmental issues ( creation of waste product ) Plant layout: is a floor plan of physical facilities which are used in production. Objectives of plant layout: Minimize investment in equipment Minimize overall production time Utilize existing space effectively Provide for employee convenience, safety & comfort Maintain flexibility of arrangement & operation Classification of layout: 1. Process layout 2. Product layout 3. Group layout 4. Fixed position layout 3. PLANNING & CONTROL: planning process within an organization is dynamic & continuous. Production planning & control has three phases: (i) Planning phase (ii) Action phase (iii) Control phase Planning phase: (a) Pre-Production planning: This consists of product development & design, forecasting, capacity planning. (b) Active Planning: This consists of forecasting, aggregate planning; master scheduling, material resource planning. Action phase: Consists of dispatching which is transition from planning phase to action phase wherein worker is ordered to start manufacturing the product. Control phase: consists of progress reporting (data regarding what is happening with the job) & corrective action (consists of schedule flexibility, schedule modifications, capacity modifications, make or buy decisions) 4. PROCESS: A production process is a series of manufacturing operations performed at work stations to achieve the design specifications of the planning output. The design or redesign of products & production processes are interrelated. Five Types of production processes: Project production Job-shop production Batch production 9

BBA/305 Assembly line/Mass production Continuous production The management must choose the best process or series of processes while considering the following points: Available capacity Available skills Type of production Layout of plant & equipment Safety Production costs Maintenance requirements 5. PEOPLE: production depends on people whose skills, experience & motivation vary. Keypeople related decisions will consider the following areas Wages & salaries Safety & training: Work conditions Leadership & motivation Communication Unionisation TYPES OF TRANSFORMATIONS:

Types of transformation: 1. Physical: manufacturing, mining 2. Locational services: transportation 3. Exchange services: Retailing/Wholesaling 10

BBA/305 4. 5. 6. 7. 8. Storage services: warehousing Physiological : Health care Informational: Telecommunications Government services: Local , state, control Other private services: Insurance, finance, utilities, real estate, business & personal services etc.

Characteristics of a transformation system: Transformation is enabled by 5 Ps of production & operations management. Managing transformation system involves continual monitoring of the system and environment. Conversion or transformation process which transforms some of the inputs into outputs which are useful for the consumers. The outputs should have more value to consumer than the cost of producing them. Conversion is at heart of production function & is present in some form in all organization. Examples of transformation process INPUT PHYSICAL TRANSFORMATION: Ores LOCATIONAL SERVICE: Taxi services Customer at railway station EXCHANGE SERVICES: Petrol Pump: Petrol in possession of the pump owner GOVT. SERVICES: Income tax office Information PHYSIOLOGICAL: Outpatient ward of a general hospital Unhealthy patients PHYSICAL RESOURCES OUTPUT USED Chemical plant & equipment , chemical other chemicals used, use of labour etc. Driver, Taxi itself, petrol Customer at his residence Operators, errand equipments etc. boys, Petrol in possession of the car

Officers, other staff & office facility Doctors, nurses, other staff, equipment, other facilities

Raid Healthier patients

WHY STUDY PRODUCTION & OPERATIONS MANAGEMENT: Manufacturing, services & agriculture are the major economic activities in any country. In India manufacturing & services together constitute 75% of our GDP. During the last 10 years share of services has grown from 40% to 51%. Using appropriate methods for planning & control of operations in manufacturing & services organizations can achieve significant productivity improvements & cost savings. It can thus influence the health of an economy. Production & operations management focuses on this aspect. Factories lift our economy from traditional & agrarian to a modern and industrialized economy. Next to agriculture, factories are our largest employers. Factories produce various goods & services for our day-to-day consumption.

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BBA/305 Factories bring out the desired changes in our socio-economic outlook. Our incomes, living standards, wants, thoughts, lifestyles are influenced by factories. Take the instance of Japan as a reference. A study about POM helps us in appreciating the role played by people in producing goods & services. Factory is not merely buildings & machines, factory is people. Total picture about factories becomes clear by a closer study of the subject. Taking a closer look at the subject by practising managers helps them in ; recognising that high productivity is a key to the high standard of living, knowledge about ways of managing production & operations management will be strategically useful to the executives, factories are potential employers thus factory study helps in selecting a career.

Because operations management is central to the functioning of all business organizations it is included in the core of courses business students are required to take. Finance & OM personnel cooperate by exchanging information and expertise in such activities as the following: Marketing is responsible for assessing customer wants & needs and for communicating those to operations people (short term) and to design people (long term). Marketing design and production must work closely together to successfully implement design changes and to develop and produce new products. Marketing can provide valuable insights on what competitors are doing, on consumer preferences & operations can supply information about capacities and manufacturabilty of design. Finance people should be included in these exchanges in order to provide information on what funds might be available (short term) and to learn what funds might be needed for new products. Thus marketing, operations and finance must interface on product & process design , forecasting, setting schedules, quality and quantity decisions and keeping each other informed on others strengths & weaknesses. Operations also interacts with other functional areas of the organization including legal, management information systems, accounting, personnel/HR and public relations. IMPORTANCE OF PRODUCTION AND OPERATIONS MANAGEMENT The importance of operations management both for organizations and for society should be fairly obvious: The consumption of goods and services is an integral part of our society. Operations management is responsible for creating those goods and services . Organizations primarily exist to provide service or create goods. Hence operations is the core function of an organization. Without this core, there would be no need for any of the other functions- the organization would have no purpose. Given the central nature of its function it is not surprising that more than half of all employed people in this country have jobs in operations. Furthermore the operations function is responsible for a major portion of assets in most business organizations. The service sector and the manufacturing sector are both important to the economy. Production makes significant contribution to a societys well being. The standard of living of people depends on production of goods & services. More the production, higher the standard of living of the people. Competitive advantage of companies is highly talked about these days. Its believed that a firm strong in competitive advantage, is well poised to succeed whatever may be the constraints or restraints. Firms look to production function to achieve competitive advantage. Production function can offer competitive advantage to a firm in the following areas: Shorter new product lead time Shorter manufacturing lead time Higher quality 12

BBA/305 Greater flexibility Better customer service Reduced wastage Many causes that deny competitive advantages to any firm can be attributed to manufacturing function specifically to poor quality and reliability, delayed deliveries, high production costs and lack of adequate inventory at the right time.

It has long been recognised that high productivity is one of the keys to high standard of living and is the backbone of a nations economic progress. Japans economic prosperity & a greater standard of living of Japanese may be attributed to high productivity. It may be stated that the production function offers vast scope for achieving productivity with effective management of materials and lead time a firm will be able to bring out more output from a given input at reasonable cost. Better management of a companys operations can add substantial value to the company for improving its competitiveness and long-term profitability. Poor operations decisions can hurt a companys competitive position and increase its costs. Good operations decisions can improve the value of the company by increasing profitability and growth. Understanding the fundamental concepts of operations management and being able to use a variety of common decision making tools and problem solving approaches is key to making better operations decisions. Operations management is an important discipline in the struggle to remain competitive in an ever changing global market place. PRODUCTION PLANNING & CONTROL(PPC) IN DIFFERENT PRODUCTION SYSTEMS PPC IN JOB PRODUCTION Job production involves the production on order basis i.e. on the basis of specification given by the customers. The quantity involved is relatively small. PPC involved is relatively difficult because every order is of different type and requires a particular sequence of operations. There is no standardised routing for job orders. Production schedules are drawn up according to relative urgency of orders. Despatching and follow up are also order-oriented. For every order fresh instructions and follow up have to be undertaken. PPC IN BATCH INDUSTRY Batch production involves the production of identical products in batches either to meet specific order or to satisfy the continuous demand. Volume is relatively large as compared to Job production. PPC in intermittent production is mixture of those used in continuous industry and job production. Routes & Schedules for various operations have to be changed every time. Before issuing despatch orders need for new raw materials & tools, overloading & under loading of particular machines or work centres must be anticipated. Follow-up is different in intermittent system. PPC IN CONTINUOUS PRODUCTION SYSTEM Continuous production system involves the production of same kind of standard products on a large scale. PPC in continuous production is simple as compared to Job & Batch production. Extensive effort is required for detailed planning before production starts but both scheduling and control need not be elaborate. PPC involves the maintenance of continuous and uniform flow of work at the pre-determined rate in order to utilise the plant & equipments fully and to complete the production in time. JUST-IN-TIME Aims at: Shortening lead times 13

BBA/305 Achieving low inventory levels High- product quality Quick response production system Improves competitiveness & profitability JIT: The primary elements of Just-in-time are to have only the required inventory when needed; to improve quality to zero defects, to reduce lead times by reducing set up times, queue lengths & lot sizes, to incrementally revise the operations themselves ; and to accomplish these things at minimum cost. Its no longer good enough for firms to be high quality and low cost producers. To succeed today they must also be first in getting products and services to the customer fast. Firms like Xerox, HP, Motorola, GE, Honda, Toyota, Sony & Boeing are using JIT as a weapon in speeding market responsiveness. To compete in this new environment the order-to-delivery cycle must be drastically reduced. JIT is the weapon of choice today in reducing the elapsed time of this cycle. The JIT philosophy can eliminate large inventories in favour of producing just enough products to fill customer orders. PREREQUISITES FOR JIT The basic idea of JIT drastically reduces WIP inventories throughout the production system. Products flow from suppliers to production to customers with little or no delays or interruptions beyond the amount of time they spend being produced at work centres in manufacturing. Main objective of JIT manufacturing is to reduce manufacturing lead times and is achieved by drastic reductions in WIP. The result is a smooth uninterrupted flow of small lots of products throughout production. Most successful JIT applications have been in repetitive manufacturing operations where batches of standard products are produced at high speeds and high volumes with materials moving in a continuous flow. In these factories, continuous flow of products makes planning and control rather simple and JIT works best in these shop floor situations. Successful use of JIT is rare in large highly complex jobs where production planning and control is extremely complicated. Changes to factory & way it is managed must occur before benefits can be realized: 1) Stabilize production schedules 2) Increase production capacities of manufacturing work centers 3) Improve product quality 4) Cross train workers so that they are multi skilled and competent in several jobs. 5) Reduce equipment breakdowns through preventive maintenance. 6) Develop long-term supplier relations that avoid interruptions to material flows. BENEFITS OF JIT MANUFACTURING 1. Inventory levels are drastically reduced. 2. The time it takes for products to get through the factory is greatly reduced, thus enabling factories to engage in time based competition, using speed as a weapon to capture market share. 3. Product quality is improved and the cost of scrap is reduced. 4. With less in-process inventory, less space is taken up with inventory and materials handling equipment. Workers are closer together so that they can see each other , communicate more easily, work out problems more efficiently, learn each others jobs and switch jobs as needed. 5. Because focus in manufacturing is on finding & correcting causes of production problems, manufacturing operations are streamlined and problem free. ROLE OF AN OPERATIONS MANAGER The operations manager is the key figure in the system. He/she has the ultimate responsibility for the creation of goods or provision of services.

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BBA/305 The kind of jobs that operations managers oversee vary tremendously from organization to organization largely because of different products or services involved. Thus managing a banking operation requires different kind of expertise than managing a steel making operation. However in a avery important respect jobs are the same. They are both essentially managerial. In every case operations manager must coordinate the use of resources through the management process of planning, organizing, staffing , directing and controlling. PLANNING
CAPACITY LOCATION PRODUCTS & SERVICES MAKE OR BUY LAYOUT PROJECTS SCHEDULING DEGREE OF CENTRALIZATION PROCESS SELECTION HIRING/LAYING OFF USE OF OVERTIME INCENTIVE PLANS ISSUANCE OF WORK ORDERS JOB ASSIGNMENTS INVENTORY QUALITY COSTS PRODUCTIVITY

ORGANIZING STAFFING

DIRECTING

CONTROLLING/IMPROVING

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