Introduction to Production & Operations Management

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The Product/Process Continuum

Automobile manufacturers

Photocopier manufacturers & service providers

Automobile retailers Restaurants

Banks

Consultancies Airlines Undertakers

Product orientation

Process orientation

Organizations on a Product/Process Continuum

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The Transformation Process

Quality of inputs monitored Random disturbances Quality of outputs monitored

INPUTS

Transformation Process

OUTPUTS

Feedback Mechanisms

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The Transformation Process For a Service Organization (An MBA Institute)

Random disturbances Strikes of students, teachers or staff Undue interference of the government in the working of institutions

Raw minds (students) Teachers Class rooms Computer lab Library Projectors (OHP, LCD etc) Administrative staff

Quality of inputs monitored

Quality of outputs monitored

Transformation Process

Enlightened students with: Good communication skills Pleasant personalities Leadership qualities Good analytical ability Team spirit Decision making abilities Computer skills

INPUTS

Feedback Mechanisms Success at placement interviews Grades obtained in examinations Rising career graph of alumni in the industry Number of applications for admission in the institute Ratings of surveys Oxford University Press 2007. All rights reserved.

OUTPUTS

The Transformation Process For a Hybrid Service & Manufacturing Organization (A Restaurant)
Random disturbances High turnover of chefs, waiters, etc. Inflation Governments taxation policy Quality of outputs monitored

Customers Building Chef Vegetables Furniture Mutton, chicken, pork, etc. Cooking oil, Spices, etc. Waiters Manager

Quality of inputs monitored

Transformation Process

Customers satisfied with: Good preparation of the food Pleasant behavior and personality of the waiter Genuine prices charged

INPUTS

Feedback Mechanisms Rising Revenues Repeat Customers Appreciation of customers

OUTPUTS

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The Transformation Process For a Purely Manufacturing Organization (A Refrigerator Manufacturer)

Random disturbances High turnover of workers and managers Recession Governments taxation policy Strikes instigated by trade unions Transformation Process Quality of outputs monitored

Machines & Equipments Building Components, parts, subassemblies, etc. Workers Office infrastructure (computers, furniture, etc.) Packaging material Capital Managers

Quality of inputs monitored

Customers satisfied with: Good cooling performance Less consumption with electricity Good after-sales service New advanced features

INPUTS

Feedback Mechanisms Rising sales volume Lesser customer complaints Positive response of customers in the feedback forms Oxford University Press 2007. All rights reserved.

OUTPUTS
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Production & Operations Management (POM) Defined

Production & Operations Management is defined as the design, operation, and improvement of the transformation process, which converts the various inputs into desired outputs of products and services.

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Product/Process Choice Service Operations Management Business Process Outsourcing and Off-shoring

Steps in the production/operations process from the point of view of an entrepreneur

Facility Location Planning

Facility Layout Planning

Facility Capacity Planning

Project Management

Inventory Management for Independent Demand Items

Materials Requirement Planning (MRP)/ Just-In-Time (JIT) System/ Supply Chain Mgt. (SCM)

Total Productive Maintenance (TPM)

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Steps in the production/operations process from the point of view of an entrepreneur

Aggregate Production/ Operations Planning

Work Design

Operations Scheduling

Quality Management

Demand Forecasting

Operations Strategies

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Product Design
Reverse Engineering Research & Development Concepts in Product Design

Manufacturability

Standardization

Product Life Cycle

Robust Design

Concurrent Engineering Computer Aided Design (CAD)

Modular Design

Concepts in Product Design

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Process Design

Types of Processes

Continuous Process

Semi-continuous (Repetitive/Assembly) Process

Intermittent Process

Project

Batch Process

Job Shop

Types of Processes
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Automation
State-of-the-art fully automated plants increase the market value of the firm/ improve client base in international markets More reliable and consistent performance than that of humans Machines take exactly the same time in repetitive tasks Behavioral problems in humans like boredom, frustration, fatigue, etc. can be avoided by using machines

Advantages

Industrial relations problems like strikes, lockouts, etc. can be avoided

Automation

Usually more expensive than the human work force

Disadvantages

Loss of creativity on the part of workers due to inflexibility in automation

Less flexible than the humans; even small changes in the process are expensive

Leads to unemployment/ retrenchment of the labor force

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Emerging Role of the Production & Operations Manager in India today

To act as internal quality auditors in certification programmes like ISO 9000 Increased attention to technology management in view of JVs of MNCs with domestic companies To act as supply chain managers in forging long-term strategic relationships with suppliers To act as a member of the concurrent engineering team in new product design To implement the environmental and pollution norms established by the government from time to time To take part in strategic decision making of the organization To implement total productive maintenance (TPM) programme

To take part in the implementation & use of ERP software in the organization

New Responsibilities of Operations Managers

To automate the processes according to the requirements of the organization To enhance the R & D effort of the organization for becoming self-reliant in developing new technologies

To take decisions regarding outsourcing/ offshoring of business processes

To oversee timely implementation of projects (like commissioning of facilities, launching of new products/ services, etc.) in view of the increased competition

To take care of issues relating to services operations management

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