production & operations management
TRANSCRIPT
TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75
Affiliated to Institution of G.G.S.IP.U, Delhi
BBA (V SEMESTER)
PRODUCTION & OPERATIONS MANAGEMENT
(17305)
Dr. Shaily SaxenaAssociate Professor
TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75
Understanding Management
MANAGEMENT is the
ART of getting
THINGS done through and with
PEOPLE in formally ORGANISED
groups.
TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75
An organisation fulfills the needs of its customers.
An organisation provides products and services.
What does an Organisation do?
TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75
Organizing to Produce Goods and Services
MARKETING(creates demand)
PRODUCTION/OPERATIONS
(creates the product)
FINANCE(arranges money,
capital)
FINANCE(arranges money,
capital)
TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75
Production Process
Fig:1
TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75
Production (Vs) Operation
• “The transformation process of inputs into the
form of output, thereby adding value to some
entity”.
• Output may be a product or service. If it is a
product centric that is known as production, If
it is a service centric then that is known as
operation.
TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75
Production Systems
Fig:2
TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75
Job of Production Managers
Oversee the work of people and machinery to convert inputs
(materials and resources) into finished goods and services.
Fig:3
TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75
Strategic Importance of the Production Function
• A vital function is necessary for generating money to pay employees, lenders,
and stockholders.
• Effective production and operations management can:
– lower a firm’s costs of production.
– boost the quality of its goods and services.
– allow it to respond dependably to customer demands.
– enable it to renew itself by providing new products.
TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75
Relationship with other Disciplines
TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75
Decision Making in OM
• Strategic Decisions
• Operating Decisions
• Control Decisions
TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75
Strategic Decisions
• These decisions are of strategic importance and
have long-term significance for the organization.
• Examples include deciding:
– whether to launch a new product
Demand forecasting
– the design for a new product’s production process
Transformation Process
– where to locate a new factory
Plant location & layout
TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75
Operating Decisions
• These decisions are necessary if the ongoing
production of goods and services is to satisfy
market demands and provide profits.
• Examples include deciding:
– Inventory levels
Inventory Management
– To avoid delays and stoppages in production time
Waiting Line Management
TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75
Control Decisions
• These decisions concern the day-to-day
activities of workers, quality of products and
services, production and overhead costs, and
machine maintenance.
• Examples include deciding:
– Defining quality
– frequency of preventive maintenance
– new quality control acceptance criteria