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This refers to the transformation of raw materials into finished goods/ or creation of services in order to satisfy the customer needs.

Production involves application of processes by which the inputs can be transformed into desired product (output) of potential utility while improving properties and adding economic values through the best method without compromising on quality.

Different forms of production-

1. Production by extraction or separation

2. Production by modification

3. Production by assembly

PRODUCTION

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Production System

Conversion/Transformation

Output

Goods

services

Inputs 6MsMaterials

Men

Machine

Methods

Management

Money

Adjustment

Monitoring(Feedback)Comparison of actual vs. planned

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1. PRODUCTION AS A WHOLE SYSTEM

2. CONVERSION SUB SYSTEM

3. CONTROL SUB SYSTEM

RELATIONSHIP AMONG VARIOUS DEPARTMENTS

Essentials of Production System

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Nature of Production

1. Production as a system2. Production as creating utility and

adding value3. Production as a transformation process4. Production as an organizational

function

Value = Satisfaction/ Cost

All organizational functions create value in synergy.

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Production Management (PM)

PM means application of all management

principles in production department.

“PM means a process of effective planning,

coordinating and controlling of production.”

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Decisions Taken by Production Managers-

Types of Decisions Area of involvementStrategic Decisions Production processes

TechnologyLayoutsAllocation of resourcesLong range capacity planning

Operating Decisions Production planning systemsIndependent demand inventory systemResource requirements planning systemsShop floor planning and controlMaterial management

Control Decisions Productivity and employeesTotal quality controlControl techniquesMaintenance

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Comparison between Goods & Services

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Comparison between PM & OM

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OPERATIONS MANAGEMENT

Operations management deals with all the processes and activities involved with designing, producing and delivering a product/service. It is an extension of PM.

OM is systematic direction and control of the processes and applications.

The operations management functions consists of five sequential steps as below-

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OPERATIONS DIAGRAM

FORECAST

PRODUCTION INPUTS

Unsatisfied Satisfied

CUSTOMER

IDENTIFICATION CUSTOMER NEEDS

ANALYSING RESOURCE AND INTEGRATING PLANFACILITY

SUPPLY INGFACILITY

CONVERSION FACILITY

DISTRIBUTION O/PFACILITY

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1. Identification of customer needs and translation them into a statement of clear forecast

2. Analysis of forecast and integration of facility for a statement of resource plan

3. Execution of resource plans by the suppliers either external or internal and generation of the inputs

4. Movement of inputs into conversion facility that produces the output (physical or service)

5. Delivering goods/services to customers upto their satisfaction with distribution facility

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Characteristics of OM

1. Basic business function to satisfy customer

2. Responsibility to produce and deliver on time

3. Real value addition function

4. Competitive edge to business

5. Decision making is a core function

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Components of Operations Management

1. Product Development

2. Process design and management

3. Supply chain

Significance of POM in Business

1. Line functional area, 70% of total resources

2. Supports corporate strategy

3. Exchanging critical information with different departments

4. Important role in satisfying customers.

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Manufacturing Operations/Processes

Manufacturing processes convert inputs (6 Ms) into tangible

products. They can be classified as follows-

Forming Processes- change the physical shape and size of

the jobs without any removal of material.

1. Casting- pouring the molten material into a moulded cavity and is allowed sufficient time to retain the shape of cavity.

2. Forging- Metal is heated and placed in a die and a compressive force is applied to the metal and finally metal takes the shape of the die. Hot and cold forging.

3. Moulding- Material is fed into heated barrel, mixed and forced into mould cavity where it cools and hardens to the configuration of the mould cavity.

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Manufacturing Operations/Processes

4. Extrusion- it is a process of creating objects of cross sectional profile. Material is pushed through a die, barrel or mandrel of the desired cross section.

5. Stamping- Cold working process. A force is applied to acquire the desired size and shape with the help of die and punch.

6. Embossing-Metal is expanded and pulled and the diameter/ thickness is reduced with the help of applied force.

7. Spinning- It is shaping the metal against a mandrel rotating on high speed lathe.

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Manufacturing Operations/Processes

Machining Processes – In this, usually metal is removed from

the job. This metal removal operation is performed with the

help of machine and a tool that changes the shape of the raw

material, provides the required surface finish and converts

into needed dimensions.

1. Turning- metal is cut using lathe machine

2. Drilling- drilling bit is used to drill

3. Boring- A hole diameter is enlarged using boring bit

4. Etching- also known as chemical milling. Under control chemical reactions, metal is removed from surface

5. Electro-chemical machining- in this electrodes and chemicals are used to remove the metal

6. Laser machining- electric beam is used to remove the metal

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Manufacturing Operations/Processes

Assembly Processes – In this, various components are joined

using various mechanisms as follows-1. Welding- Two pieces of metals are joined using heat or electrical

energy with pressure

2. Soldering- it is a metal joining process with the help of soldering alloy at a lower temp

3. Brazing- It is a metal joining process in which base metal is filled up between the joints by capillary action and solidifies upon cooling

4. Fastening- Screws, nuts and bolts are tightened to join the parts/components. Here, disassembly is also possible

5. Adhesives- various adhesives are used to join similar or dissimilar materials

6. Riveting- A metal bolt or pin having a head on one end, inserted through aligned holes in the pieces to be joined and then hammered on the plain end so as to form a second head.

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Manufacturing Operations/Processes

Treatment Processes – Various treatments are as follows-

Heat Treatment- The alloys are subjected to heat treatment to

obtain desired mechanical properties like toughness,

hardness, or even softness.

1. Annealing- It is a metal softening process in which internal stress are removed by slow cooling the job in the furnace itself to make machining easy.

2. Normalizing- Modified form of annealing but cooled at room temp outside the furnace.

3. Tempering – Metal is reheated to critical point and kept for a particular time at the same temp, then cooled slowly in air to reduce the brittleness and ductility of the metal.

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Manufacturing Operations/Processes

Surface Treatment-

This treatment is applicable to the metals and alloys for the

use of industrial and domestic uses to remove the

deficiencies of tarnishing and corrosion if exposed to

atmosphere. First cleaning of surface with acids, alkaline,

electrolyte etc and then finishing using coating, electroplating,

powder coating, galvanizing, phosphating etc.

Chemical Processes- It is metal removing or metal addition

process. It is usually applied in combination with electrical

process.

Testing Process- used to produce the products as per the

specifications and required quality. Destructive and non-

destructive testing processes

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Service Operations/Processes

Service operations are required to offer a service to end users.

1. Standard Operations/processes

2. Custom services- according to degree of standardization

Mail services, whole sale & retail distribution, Transporters.

Logistics

Health care, travel agents, legal advisors, marriage

consultants

21Recent Trends in POM

1. Change of focus from seller to customer

2. Globalization

3. Production systems- new aspects were introduced by Japanese. Mainly three principles-

a) Quality comes first

b) Continual improvement of product and processes

c) Elimination of wastage

4. Quality Management System (QMS)

5. Supply Chain Management

6. Environmental and Social Issues

7. New Technologies- robotics, CCM, biotechnology, Nano technology, global positing system etc

8. Flexible Manufacturing System (FMS)- latest trend, capacity flexibility, increased productivity, quick shift from one product to another product.

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Current Issues in OM

Coordinate the relationships between mutually supportive but separate organizations.

Optimizing global supplier, production, and distribution networks.

Increased co-production of goods and services

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Current Issues in OM (cont’d)

Managing the customers experience during the service encounter

Raising the awareness of operations as a significant competitive weapon