introduction to production and operations

7/28/2019 Introduction to Production and operations

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Topic-1

Concept & Scope ofPOM


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Operations as a System

Inputs OutputsConversion

Subsystem

Production System

Control

Subsystem

Production:Application of resources such as people andmachinery to convert materials into finished goods and services.

Production and Operations Management:Managing peopleand machinery in converting materials and resources into

finished goods and services.


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Introduction to operations Management Operations: All activities that involved in the

Conversion Process of Input to Output (Goods/service)

Management: The Process of Planning, Organizingand Controlling in achieving the desired objectives.

University as an Example:


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Introduction to Operations Management

Input Planning &

controlling

Supportive

Subsystems

Output

Students

Professor

Buildings

Class Times

Course

Development

School

Regulations

Bookstore

Library

Computer

Lab

EducatedStudents

Research

Outcomes

Service to

Public


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Operations Management as

a Function


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Functions of Operations Management

MarketingProductionFinance

Relationship between Operations and Other Functions:

Three Primary Functions in Business:

Broader Perspective of Operations Management:

An Integrated Production System Including:

Inventory Control / Aggregate Planning / Demand

Forecasting


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Scheduling / Capacity Planning / Purchasing / QualityControl / Facility Location & Layout / Production andProcess Design / Job Design / Maintenance / ProjectManagement /

Operations Managers Responsibility: (typically)

75% of the Firms Investment

80% of the Firms Personnel

85% of Firms Expenditures for Materials

Functions of Operations Management


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Entry-Level Jobs in OM Purchasing planner/buyer

Production (or operations) supervisor

Production (or operations) scheduler/controller

Production (or operations) analyst

Inventory analyst

Quality specialist


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Manufacturing vs Service

Manufacturing: Provide Tangible Goods (Cars / TVSets / Foods /

Service: Provide Intangible (Goods) (Education /Banking / Legal/Repairing / Medical Service /Transportations/

Four Major Differences between Manufacturingand Service:


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Measure of Productivity

Measure of Quality

Customer Involvement

Ability to Inventory

Manufacturing

Easy

Easy

Low

Yes

Service

Difficult

Difficult

High

No

Most Principles and Techniques for Manufacturing

can also be applied to Service Operations.

Manufacturing vs Service


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A Classification Scheme For Service

Organizations

The Classification scheme is based upon the extentof customer contact in the creation of the service.

Customer Contact---The physical presence of thecustomer in the system. The extent of contact is thepresence time of the customer must be in the systemrelative to the total time required to service the

customer.

Creation of the service---The work process that isinvolved in providing the service.

S i O i i


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Type contact

High

Low

Service Organization

Entertainment Centers

Hospital / ClinicsHotels

Public Transportation

Schools

Jails

RestaurantsBranch Offices of Banks

Branch Offices of post offices

Police and Fire Protections

Moving Companies

Home Offices of BanksCentral Post Offices

Mail Order Services

Durable Goods Factory

Food Processing Plants

Pure service

Increasing

Efficiency in

Designing

Efficient

Production

Procedures

Strict

Manufacturing


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Operations Approaches to Improving Service

Design

1.Substitute Technology for personnel

Automatic Teller Machine

Scanners at Grocery and Department stores Long Distance Direct Dialing

Vending Machines Automatic Car Wash

Computerized Legal Research System


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Design

2. Increasing Customer Involved in Production ofService:

Self Service Department Store Customer Reading of Utility meters Mail Order Shopping Customer Fills out Order Blank at Discount Store .


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Design

General System Approach in Service Operations

Color Coding of Food Wrappers at Fast FoodRestaurants

Drive-In Claims Service in Insurance-Use of RateBooks

Computerized Allocation of Police to PatrolRoutes


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Classification of Operations 1.Based on Demand Pattern:

a) Make-to-Order (e.g. Airplane / Film

Developing/)Assembly-to-Order (e.g. Car/ Fast food/)

b) Make-to-Stock (e.g. Clothes/ Toys/)

Assembly-to-Stock (e.g. Electronic Products/ TVSets/)


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Classification of Operations 2.Based on Type of Conversion Process:

Type of Conversion

1.Project Shop

2.Job Shop

(Batch Shop)

3.Assembly Line4.Continuous Process

Goods

House Building

Printing Shop

AutomobileOil Refinery

Food Process

Service

Landscaping

Dept. Store

AirportGas Station

TV Channels


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Major Characteristics of Operations Process

Type of Conversion

1.Project Shop

2.Job Shop

(Batch Shop)

3.Assembly Line

4.Continuous Process

Product

Mix Size

Few

Many

(Several)

Few

Single

Production

Volume

Single or Few

Low

(Medium)

High

Very High


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Trends Impacting Operations Management

From ToMassification

Relatively simple task process

Long delivery cycles

(people can wait)

Loyal employees(want to be let)

Customization

Complex, High-Tech Operations

Short delivery cycles

(time is money)

Empowered employees(value-driven)


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From To

Margins in production(manufacturing)

Service quality

important

Multiple vendors

(suppliers) competing

on price (commodity)

Quality costs more

Regulated markets

Domestic markets

Margins after-market(service)

Service quality critical

(uptime, customer interface)

Few, strategic, value-added

suppliers(service partners)

Quality costs less

Competitive markets

Global markets


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Today's Factors Affecting OM Global Competition

Quality, Customer Service, and Cost Challenges

Rapid Expansion of Advanced Technologies

Continued Growth of the Service Sector

Scarcity of Operations Resources

Social-Responsibility Issues

introduction to production and operations

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