productivity and operation management
TRANSCRIPT
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