POM-2.pptx
- 1. BBA-Semester V (2020-23) Mr. Rajeev Sinha
- 2. OPM Management: Introduction, definition. Historical evolution of OPM. Understanding similarities and difference among products, goods and services Strategy framework Using operations as an competitive advantage Forecasting in OPM
- 3. Production is the creation of goods and services. The production activity is nothing but the step by step conversion of one form of material into another either chemically or mechanically. This is done in factories which have manufacturing processes. The basic inputs of production process are men, machines, plant, services and methods. The finished products of one manufacturing process may not become finished product for consumption it may become the raw material for other manufacturing process. Production involves the step by step conversion of one form of materials into another through processing to create or enhance the utility of the products or services.
- 4. Production refers to the use of any process which is designed to transform a set of input elements into set an output elements. It involves the step by step conversion of one form of material into another to create or enhance the utility of the products or services.
- 5. According to Elwood Butta, “Production is a process by which goods or services are created.”
- 6. Production by disintegration i.e., by separating the contents the desired product is produced. Ex: Crude oil, fuel oils etc., Production by Integration i.e., production by assembling various components of the products to get desired product. Ex: 2 wheelers, 4wheelers etc., Production by services i.e., production is based on chemical and mechanical properties of materials without physical change. Ex: heat treatment of metals etc.,
- 7. a. Job shop production – It refers to the manufacturing facility that produces several different products in smaller batches. They are manufactured by one or few quantity of products designed and produced as per the specification of the customers within prefixed time and cost. b. Batch production – It refers to the manufacturing process in which components or goods are produced in groups and not in continuous stream. A limited number of products are produced at regular intervals. c. Mass production – Under this, the manufacturing or processing of uniform products in large quantities takes place. It is either a wholly automated process or a series of short or repetitive procedures. d. Continuous production -it is a method used to manufacture, produce or process materials without interruption.
- 8. The job of coordinating and controlling the activities required to make a product, typically involving effective control of scheduling, cost, performance, quality, and waste requirement. It means planning, organizing, directing and controlling of production activities. It deals with decision making regarding the quality, quantity, cost etc. It applies management principles for production. It deals with converting raw materials into finished goods or products.
- 9. According to H.A.Harding, “Production management is concerned with those processes which convert the inputs into outputs. The inputs are various resources like raw materials, men, machines, methods etc., and outputs are goods and services” According to A.W.Field, “Production management is the process of planning and regulating the operations of that part of an enterprise which is responsible for actual transformation of materials into finished products.”
- 10. 1. Produce goods at right quality, right quantity, right time and at minimum cost. 2. Optimum utilization of resources and available production capacity. 3. Produce required quantities at a required quality. 4. Ensure maximum capacity utilization. 5. Flexible working conditions. 6. Minimum raw material, labour cost and maintenance cost. 7. Minimum storage, material handling and inspection. 8. Improve productivity of all inputs. JIT= JUST IN TIME
- 11. 1) Location of facilities: Selection of appropriate location must ensure the availability of power supply, water supply, road conditions, nearness of raw materials, skilled labors etc. 2) Plant layout and job design: Preparation of plant layout for the establishment of machines in the required sequence. A job design must be prepared to organize machines, tasks into a unit of work to achieve certain objectives. 3) Materials handling: It is the process of ensuring the movement of raw materials and semi finished goods inside the factory. 4) Product design: Designing the product and conceiving the idea about its production. Product design considers the product size, weight, color etc.
- 12. 5) Process design: It is the complete description of specific steps in the production process. This determines the production process which is most relevant. 6) Production and planning control: It means coordination of series of functions according to a plan which will economically utilizes the plant facilities and regulates orderly movement of goods. 7) Quality control: It is a staff function concerned with the prevention of defects in manufacturing so that, items may be made right way and ensure the quality standard. 8) Inventory management: It is the process of maintaining proper records of raw materials semi finished goods and finished goods. 9) Maintenance management: It is the process of formulating the corrective measures to stay in track with planned quality, time schedule and predetermined cost schedules. 10) Automation: It is the technique of operating or controlling a productive process by electronic device and reducing human intervention to the minimum
- 13. Location of facilities for operations is a long-term capacity decision which involves a long term commitment about the geographically static factors that affect a business organization. It is an important strategic level decision-making for an organization. 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 the waste of all the investments made in the plant and machinery equipment. Hence, location of plant should be based on the company‟s expansion plan and policy, diversification plan for the products, changing sources of raw materials and many other factors. The purpose of the location study is to find the optimal location that will result in the greatest advantage to the organization.
- 14. 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. According to James Moore, “Plant layout is a plan of an optimum arrangement of facilities including personnel, operating equipment, storage space, material handling equipments and all other supporting services along with the design of best structure to contain all these facilities”.
- 15. 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‟. WIP= WORK IN PROGRSS It is also defined as the „art and science of moving, packing and storing of products in any form‟. It is a specialized activity for a modern manufacturing concern, with 50 to 75% of the cost of production. This cost can be reduced by proper section, operation and maintenance of material handling devices. Material handling devices increases the output, improves quality, speeds up the deliveries and decreases the cost of production. Hence, material handling is a prime consideration in the designing new plant and several existing plants
- 16. 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 manufactures of product involves three functions: marketing, product development, and manufacturing. Product development translates the needs of customers given by marketing into technical specifications and designing the various features into the product to these specifications. Manufacturing has the responsibility of selecting the processes by which the product can be manufactured. Product design and development provides link between marketing, customer needs and expectations and the activities required to manufacture the product.
- 17. 4. Process design Process design is a macroscopic 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( PERT/CPM) and layout of the facilities. Hence, the important decisions in process design are to analyze the work flow for converting raw material into finished product and to select the workstation for each included in the workflow.
- 18. 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. The principle of production planning and control lies in the statement „First Plan Your Work and then Work on Your Plan‟. Main functions of production planning and control includes planning, routing, scheduling, dispatching and follow-up.
- 19. Planning is deciding in advance what to do, how to do it, when to do it and who has 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 – PERT/CPM 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.
- 20. 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 Performa and to investigate the causes of deviations from the planned performance.
- 21. 6. Quality control – TQM- Total Quality Management 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.
- 22. Quality control can also be defined as „that industrial management technique by means of which product of uniform acceptable quality is manufactured‟. It is the entire collection of activities which ensures that the operation will produce the optimum quality products at minimum cost.
- 23. : To improve the company‟s 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 achieve inter changeability of manufacture in large scale production. 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.
- 24. 7. Materials management Materials management is that aspect of management function which is primarily concerned with the 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 minimize 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.
- 25. 1. Accomplishment of firm's objectives: Production management helps the business firm to achieve all its objectives. It produces products, which satisfy the customers' needs and wants. So, the firm will increase its sales. This will help it to achieve its objectives. 2. Enhances reputation, goodwill and image: Production management helps the firm to satisfy its customers. This increases the firms reputation, goodwill and image. A good image helps the firm to expand and grow. 3. Helps to introduce new products: Production management helps to introduce new products in the market. It conducts Research and Development (R&D). This helps the firm to develop newer and better quality products. These products are successful in the market because they and they give full satisfaction to the customers.
- 26. 4. Supports other functional areas: Production management supports other functional areas in an organization, such as marketing, finance, and personnel. The marketing department will find it easier to sell good- quality products, and the finance department will get more funds due to increase in sales. It will also get more loans and share capital for expansion and modernization. The personnel department will be able to manage the human resources effectively due to the better performance of the production department. 5. Helps to face competition: Production management helps the firm to face competition in the market. This is because production management produces products of right quantity, right quality, right price and at the right time. These products are delivered to the customers as per their requirements 6. Optimum utilization of resources: Production management facilitates optimum utilization of resources such as manpower, machines, etc. So, the firm can meet its capacity utilization objective. This will bring higher returns to the organization.
- 27. 7. Minimizes cost of production: Production management helps to minimize the cost of production. It tries to maximize the output and minimize the inputs. This helps the firm to achieve its cost reduction and efficiency objective. 8. Expansion of the firm: Production management helps the firm to expand and grow. This is because it tries to improve quality and reduce costs. This helps the firm to earn higher profits. These profits help the firm to expand and grow.
- 28. 1. Higher standard of living: Production management conducts continuous research and development (R&D). Based on the research conducted an industrial concern will produce new and better varieties of products. People use these products and enjoy a higher standard of living. 2. Generates employment: Production activities create many different job opportunities in the country, either directly or indirectly. Direct employment is generated in the production area, and indirect employment is generated in the supporting areas such as marketing, finance, customer support, etc 3. Spread effect: Because of production, other sectors also expand. Companies making spare parts will expand. The service sector such as banking, transport, communication, insurance, BPO, etc. also expand. This spread effect offers more job opportunities and boosts economy.
- 29. 4. Creates utility: Production creates Form Utility. Consumers can get form utility in the shape, size and designs of the product. Production also creates time utility, because goods are available whenever consumers need it. 5. Boosts economy: Production management ensures optimum utilization of resources and effective production of goods and services. This leads to speedy economic growth and well-being of the nation.
- 30. Five P’s of Production Management The division of production management functions in to 5 p‟s (product, plant, programme, processes and people) will provide useful conceptual framework for the various activities performed by production or operations manager.
- 31. The Five P’s: 1. The Product: Product is the link between production and marketing. It is not enough that a customer requires product but the organization must be capable of producing the product. As per the product policy of the organization, an agreement is reached between the various functions on the following aspects of the product 1. Performance 2. Quality and reliability 3. Aesthetics and ergonomics 4. Quantity and selling price 5. Delivery schedule. To arrive at the above, the external and the internal factors which affect the various aspects such as market needs, existing culture and legal constraints and the environmental demands should be given due consideration. Thus the major policy decisions regarding variety of product mix is going to affect the producing system.
- 32. 2. The Plant: The plant accounts for major investment (fixed assets). The plant should match the needs of the product market, the worker and the organization. The plant is concerned with: 1. Design and layout of building and offices. 2. Reliability, perfect, maintenance of equipment. 3. Safety of operations. 4. The financial constraint. Plant layout deals with physical arrangement of plants and machineries within the selected site. The layout should be such that it should allow for smooth movement of men and materials with minimum back tracking. The type of the layout is dependent on production type, volume of demand, etc.
- 33. 3. The Process: There is always number of alternative methods of creating a product. It is required to select the one best method, which attains the objectives. In deciding about the process, it is necessary to examine the following factors: 1. Available capacity 2. Manpower skills available 3. Type of production 4. Layout of plant 5. Safety 6. Maintenance required 7. Manufacturing costs
- 34. 4. The Programme: The programme here refers to the time-table of production. Thus, the programme prepares schedules for: 1. Purchasing = 10 days 2. Transforming= 30 days 3. Maintenance = 10 days 4. Cash = 30 days 5. Storage and transport = 10 days 90 days= operating cycle 360/90= 4 times
- 35. 5. The People: Production depends upon people. The people vary in their attitudes, skill and expectations from the work. Thus, to make the best use of available human resource, it is required to have a good match between people and jobs which may lead to job satisfaction. The production manager should be involved in issues like: 1. Wages/salary administration. = Personnel 2. Conditions of work/safety. = 3. Motivation. = OB& HR 4. Training of employees. =New – Induction Program Existing- new product, new tech.
- 36. Meaning of Operation Management It refers to the process of design, execution and control of operations that convert resources into desired goods and services. It is the activity where the resource flow within a defined system are transformed in a controller manner with policies / desired by the management
- 37. Objectives of Operation management Improve productivity by better utilization of resources like men, material, method etc., Have less/ no defects. Utilize plants and machinery effectively and effectively . Improve material handling equipments. Have proper control on raw materials, semi- finished goods and finished goods. Achieve proper cash management. Enhance production staff with respect to their salary, wages etc.,.
- 38. Scope of Operations Management 1) Product selection and design: The product selection makes a system efficient or inefficient. So it is very important to select right product keeping over all objectives in mind. 2) Process selection and planning: Selection of process involves taking decisions about technology, machines and equipment 3) Location facilities: It is the most important facility as it looks for long term decisions; a wrong decision can makes it pay a lot. The operation management helps to select that particular location where distribution, production cost and location cost is less. 4) Layout and material handling facilities: Layout means positioning of machinery. The machine should be so arranged that the flow of production remains smooth. There should be a proper choice of material handling equipments. 5) Capacity planning: Capacity refers to a level of output of the conversion process over a period of time. Industry creates challenging problems in capacity planning, requiring in the long run, expansion and contraction of major facilitates in the conversion process. Some tools helps in capacity planning are marginal costing, linear programming etc.
- 39. Importance of Operation Management 1) Towards customers: Customers are the most affected by any business. The objectives of the operation management always depend on the customer‟s preferences and their requirements. 2) Towards suppliers: Operations will have a major impact on suppliers, both on how they prosper themselves, and on how effective they are at supplying the operation. 3) Towards share holders: Better the operation is at producing goods and services, the more likely the whole business is to prosper and shareholders will be one of the major beneficiaries of this. 4) Towards employees: Similarly employees will be generally better off if the company is prosperous. It includes the general working conditions which are determined by the way the operation is designed. 5) Towards society: Although often having no direct economic connection with the company individuals and groups in society at large can be impacted by the way its operation managers behave. CSR POLICY= 2.5% OF PROFIT
- 40. Production and Operation management Meaning It refers to the management of the conversion process which converts land, labour, capital and management inputs into desired output goods and services. The conversion is done by using physical resources to meet the organizational objectives. It is the transformation of production and operation inputs and outputs to be distributed to meet the customers' needs
- 41. Need for Production and Operation management i) Produce right quality of product: 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 features suited to the specific requirements. ii) 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 produced in short of demand, leads to shortage of products.
- 42. iii) Right time: Timely delivery is one of the important parameter to judge the effectiveness of production department has to make the optimal utilization of input resources to achieve its objective. iv) 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, so as to reduce the variation between actual and standard cost.
- 43. Objectives of Production and Operation management To attain maximum output with lowest cost. To control pollution and wastage. To ensure optimum capacity and resources utilization . To ensure quality of products. To suggest changes in machinery and equipment. To ensure timely delivery of output. To maintain inventory.
- 44. Elements of Production and Operation management i) Planning: Activities that establish a course of action and guide future decision making is planning. It includes clarifying the role and focus of operation in the organization, product planning, facility designing, conversion process etc., ii) Organizing: Activities that establish a structure of tasks and authority. Operation managers establish a structure of roles and flow of information within the operation subsystem. iii) Controlling: The operation manager must exercise control by measuring actual outputs and comparing them to planned operations management. iv) Behavior: Operations managers are concerned with how their efforts to plan, organize, and control affect human behavior. v) Model: The Operation Manager can prepare break even models and linear programming to solve the organizational related problems
- 45. Scope of Production and Operation management 1) Location of facilities: Selection of appropriate location must ensure the availability of power supply, water supply, road conditions, nearness of raw materials, skilled labors etc. 2) Plant layout and job design: Preparation of plant layout for the establishment of machines in the required sequence. A job design must be prepared to organize machines, tasks into a unit of work to achieve certain objectives. 3) Materials handling: It is the process of ensuring the movement of raw materials and semi finished goods inside the factory. 4) Product design: Designing the product and conceiving the idea about its production. Product design considers the product size, weight, color etc. 5) Process design: It is the complete description of specific steps in the production process. This determines the production process which is most relevant.
- 46. 6) Production and planning control: It means coordination of series of functions according to a plan which will economically utilizes the plant facilities and regulates orderly movement of goods. 7) Quality control: It is a staff function concerned with the prevention of defects in manufacturing so that, items may be made right way and ensure the quality standard. 8) Inventory management: It is the process of maintaining proper records of raw materials semi finished goods and finished goods. 9) Maintenance management: It is the process of formulating the corrective measures to stay in track with planned quality, time schedule and predetermined cost schedules. 10) Automation: It is the technique of operating or controlling a productive process by electronic device and reducing human intervention to the minimum.
- 47. Functions of Production and Operation Management 1) Creation of goods and services: The foundation of every production and operation department is creation of goods or services. Traditionally, production and operations department includes the physical assembling of goods and also contains many customer care services to satisfy the needs of customers. 2) Profit: The main function of production and operations department is to produce a product or service that creates profit and revenue to the company. 3) Evaluation: Every production and operation department must function as self-evaluating entity that monitors the quality, quantity, and cost of goods produced.
- 48. 4) Tasks: It includes forecasting, scheduling, purchasing, design, maintenance, people management, flow analysis, reporting, assembly and testing. 5) Fulfillment: It ensures timely delivery of the output from production to customers. 6) Analysis: Standard analysis function in a production and operation department include critical path analysis, stock control analysis, utilization analysis, capacity analysis and just-in- time analysis of inputs, break- even analysis and metric analysis.
- 49. Reasons for Production and Operation Management Helps in understanding the role played by the people in producing goods & services. Helps in getting a clear picture about the factory. Helps in selecting a career. It has strategic use to the executives. Helps to understand how important it is to Nation
- 50. Production/Operation management is the process which combines and transforms various resources used in the production/operation subsystem of the organization into value added products/services in a controlled manner as per the policies of the organization
- 51. The set of interrelated management activities which are involved in manufacturing certain products is called production management and for service management, then corresponding set of management activities is called as operation management. Examples: (Products/goods) Boiler with a specific capacity, Constructing flats, Car, bus, radio, television. Examples: (Services) Medical facilities, Travel booking services.
- 52. Operations management is an area of management concerned with overseeing, designing, and controlling the process of production and redesigning business operations in the production of goods or services.
- 53. It refers to the process of design, execution and control of operations that convert resources into desired goods and services. It is the activity where the resource flow within a defined system are transformed in a controller manner with policies / desired by the management.
- 54. •Production •Transformation of a range of inputs into the required outputs (products) •Operations •Set of activities related to services management
- 56. •Continuous production •Batch production •Mass production •Job-Shop production
- 57. Production Management Right Quality Right Quantity Right Time Right Manufacturing Cost Operations Management Customer Service Resource Utilization
- 58. The ratio of output to input. For example, productivity of labour can be measured as units produced per labour hour worked. Productivity can be improved by (a) controlling inputs (b) improving process so that the same input yields higher output, and (c) by improvement of technology
- 59. Productivity is a relationship between the output (product/service) and input (resources consumed in providing them) of a business system. The ratio of aggregate output to the aggregate input is called productivity. Productivity = output/Input For survival of any organization, this productivity ratio must be at least 1.If it is more than 1, the organization is in a comfortable position. The ratio of output produced to the input resources utilized in the production.
- 60. Trend analysis Horizontal analysis Vertical analysis Budgetary analysis
- 61. It helps to cut down cost per unit and thereby improve the profits. Gains from productivity can be transferred to the consumers in form of lower priced Products or better quality products. These gains can also be shared with workers or employees by paying them at higher rate. A more productive entrepreneur can have better chances to exploit expert opportunities. It would generate more employment opportunity. Overall productivity reflects the efficiency of production system. More output is produced with same or less input. The same output is produced with lesser input. More output is produced with more input. The proportional increase in output being more than the proportional increase in input.
- 62. Capital/labour ratio Scarcity of some resources Work-force changes Innovations and technology Regulatory effects Bargaining power Managerial factors Quality of work life
- 63. Location of facilities. Plant layouts and Material Handling. Product Design. Process Design. Production and Planning Control. Quality Control. Materials Management. Maintenance Management.
- 64. Improve productivity by better utilization of resources like men, material, method etc., Have less/ no defects. Utilize plants and machinery effectively and effectively . Improve material handling equipments. Have proper control on raw materials, semi-finished goods and finished goods. Achieve proper cash management. Enhance production staff with respect to their salary, wages etc.,.
- 65. 1) Towards customers: Customers are the most affected by any business. The objectives of the operation management always depend on the customer‟s preferences and their requirements. 2) Towards suppliers: Operations will have a major impact on suppliers, both on how they prosper themselves, and on how effective they are at supplying the operation. 3) Towards share holders: Better the operation is at producing goods and services, the more likely the whole business is to prosper and shareholders will be one of the major beneficiaries of this. 4) Towards employees: Similarly employees will be generally better off if the company is prosperous. It includes the general working conditions which are determined by the way the operation is designed. 5) Towards society: Although often having no direct economic connection with the company individuals and groups in society at large can be impacted by the way its operation managers behave.
- 66. i) Produce right quality of product: 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 features suited to the specific requirements. ii) 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 produced in short of demand, leads to shortage of products. iii) Right time: Timely delivery is one of the important parameter to judge the effectiveness of production department has to make the optimal utilization of input resources to achieve its objective. iv) 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, so as to reduce the variation between actual and standard cost.
- 67. To attain maximum output with lowest cost. To control pollution and wastage. To ensure optimum capacity and resources utilization . To ensure quality of products. To suggest changes in machinery and equipment. To ensure timely delivery of output. To maintain inventory.
- 68. Planning: Activities that establish a course of action and guide future decision making is planning. It includes clarifying the role and focus of operation in the organization, product planning, facility designing, conversion process etc., ii) Organizing: Activities that establish a structure of tasks and authority. Operation managers establish a structure of roles and flow of information within the operation subsystem. iii) Controlling: The operation manager must exercise control by measuring actual outputs and comparing them to planned operations management. iv) Behavior: Operations managers are concerned with how their efforts to plan, organize, and control affect human behavior. v) Model: The Operation Manager can prepare break even models and linear programming to solve the organizational related problems
- 69. 1) Creation of goods and services: The foundation of every production and operation department is creation of goods or services. Traditionally, production and operations department includes the physical assembling of goods and also contains many customer care services to satisfy the needs of customers. 2) Profit: The main function of production and operations department is to produce a product or service that creates profit and revenue to the company. 3) Evaluation: Every production and operation department must function as self-evaluating entity that monitors the quality, quantity, and cost of goods produced. 4) Tasks: It includes forecasting, scheduling, purchasing, design, maintenance, people management, flow analysis, reporting, assembly and testing. 5) Fulfillment: It ensures timely delivery of the output from production to customers. 6) Analysis: Standard analysis function in a production and operation department include critical path analysis, stock control analysis, utilization analysis, capacity analysis and just-in-time analysis of inputs, break- even analysis and metric analysis
- 70. Helps in understanding the role played by the people in producing goods & services. Helps in getting a clear picture about the factory. Helps in selecting a career. It has strategic use to the executives. Helps to understand how important it is to Nation
- 71. 1776 -Specialization of labor in manufacturing - Adam Smith 1799 -Interchangeable parts, cost accounting - Eli Viihitney and others 1832 -Division of labor by skill; assignment of jobs by skill; basics of time study -Charles Babbage 1900- Scientific management time study and work study developed; dividing planning and doing of work -Frederick W. Taylor 1900- Motion of study of jobs -Frank B. Gilbreth
- 72. 1901- Scheduling techniques for employees, machines jobs in manufacturing -Henry L. Gantt 1915 -Economic lot sizes for inventory control -F.W. Harris 1927 -Human relations; the Hawthorne studies -Elton Mayo 1931 -Statistical inference applied to product quality: qualitycontrol charts -W.A. Shewart 1935 -Statistical sampling applied to quality control; inspection sampling plans -H.F. Dodge &H.G. Roming
- 73. 1940- Operations research applications in World War ll - P.M. Blacker and others. 1946- Digital computer -John Mauchlly and J.P. Eckert 1947-Linear programming -GB. Dantzig, Williams & others 1950- Mathematical programming, on-Iinear and stochastic processes –A. Charnes, W.W. Cooper & others 1951- Commercial digital computer; large s-cale computations available. -Sperry Univac
- 74. 1960- Organizational behavior; continued study of people at work -L. Cummings, L. Porter 1970- Integrating operations into overall strategy and policy. Computer applications to manufacturing. Scheduling and control. Material requirement planning (MRP)-W. Skinner J. Orlicky and G. Wright 1980-Quality and productivity applications from Japan robotics. CAD-CAM -W.E. Deming and J. Juran