productivity and operation management

PRODUCTIVITYAND

OPERATION MANAGEMENT

INTRODUCTION

PRODUCTION MANAGEMENT

DEFINITION

• According to E.F.L. BRECH, “ Production management then becomes the process of effectively planning and regulating the operation of that part of an enterprise which is responsible for actual transformation of materials into finished products”.

PRODUCTION ANDOPERATION MANAGEMENT

OPERATION MANAGEMENT

NATURE OF PRODUCTION AND OPERATION MANAGEMENT

1.Transformational Process2.Results into Value Addition3.System Itself4.Exists for Certain Objective5.Carried-Out in Part of Organization6. Interrelationship among the System7.Stratum Formation8.Specialization of Function9. Increase in Entropy10.Increase in Productivity

SCOPE OF PRODUCTION AND OPERATION MANAGEMENT

OBJECTIVE OF PRODUCTION AND OPERATION MANAGEMENT

• ULTIMATE OBJECTIVE 1.Right Quality2.Right Quantity3.Right Time4.Pre-established Cost

ObjectiveOf

POM UltimateObjective

IntermediateObjective

• INTERMEDIATE OBJECTIVE

1. Machinery and Equipment2. Materials3. Manpower4. Manufacturing Services

PRODUCTIVITYINTRODUCTION

• Productivity is the output of any production process, per unit of input.

• To increase productivity means to produce more with less.

• In factories and corporates, productivity is a measure of the ability to create goods and services from the given amount of human resource, capital, land, knowledge, time or any combination of these above.

DEFINITION

According to International Labor Organization(ILO), “ The ratio between the volumes of output is measure by production indices and the corresponding volumes of labor input is measured by the employment indices. The productivity is a measure of how much input is required to achieve a given output. To increase productivity, the ratio of outputs to inputs is made as large as practical.

Example

• In case A, 10 products are produced spending 1000 rupees and in case B, 15 products are produced by spending 2000 rupees.• Productivity in case A=10/1000• Productivity in case B=15/2000 In case B, it’s a clear indication that the productivity has reduced.

TYPES OF PRODUCTIVITY

TYPE

S OF

PRO

DUCT

IVIT

Y

PARTIAL PRODUCTIVITY

TOTAL FACTOR PRODUCTIVITY

TOTAL PRODUCTIVITY

PARTIAL PRODUCTIVITY

• The resources of productivity when measured separately are called as Partial Productivity.• A measure of partial productivity plays a very important role in

improving the productivity.

LABOUR PRODUCTIVITY OUTPUT LABOUR

INPUT

CAPITAL PRODUCTIVITY

MATERIAL PRODUCTIVITY

OUTPUT

OUTPUT

CAPITAL INPUT

MATERIAL INPUT

TOTAL FACTOR PRODUCTIVITY

• In any production process, many of the resources inputs are available within the organization, while a few others are purchased from outside.

TOTAL FACTOR PRODUCTIVITY

NET OUTPUT

(LABOUR+CAPITAL)INPUTS

TOTAL PRODUCTIVITY

• The method of calculating productivity considering all the resources is called Total Productivity.• It is systematic and qualitative to approach to complete the

products considering the quality, price and time.• Total productivity provides a systematic framework and

structure to an organization and increase profitability.

TOTAL PRODUCTIVITY

TOTAL TANGIBLE OUTPUT

TOTAL TANGIBLE

INPUT

FACTORS AFFECTING PRODUCTIVITY

WAYS TO IMPROVE PRODUCTIVITY1.PRODUCT DEVELOPMENT2.SPECIALISATION AND STANDARDISATION3.MARKET, CONSUMER AND PRODUCT RESEARCH4.VALUE ANALYSIS5.PROCESS PLANNING AND RESEARCH6.METHOD STUDY7.SAFETY8.OPERATOR TRAINING9.PRODUCTION PLANNING AND CONTROL10.MATERIAL CONTROL

IMPORTANCE OF PRODUCTIVITY• Productiveness increases the overall efficiency of an

organization.• Increased production due to efficient utilization of

organizational resources leads to a lower cost production resulting in better sales and profits.• Concept of productivity can be viewed from the following

points:1.To Beat the Competition2.Guide the Management3. Indicator of Progress4.Maximum Utilization of Scarce Resources5.Key to National Prosperity

IMPORTANCE AND PROBLEMS OF OPERATION AND MANAGEMENT

IMPORTANCE

• Consumers• Investors• Employee• Suppliers• Community• Nation

PROBLEMS

• Location of the Plant• Plant Layout• Product Designing• Inventory and Production

Control• Quality and Labor Control

THANK YOU

BYSHREYAS.M