POM Notes for Cycle Test (1)

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SRM UNIVERSITY RAMAPURAM CAMPUS DEPARTMENT OF MANAGEMENTUNIT - 1 Chapter1 - Overview of Production Management Chapter 2 - Production System

UNIT II

By Mrs.VIJAYA RANI ANANDAN, MBA., M.Phil., (Ph.D)., Assistant Professor (OG) Department of Management studies SRM University Ramapuram Campus.

Chapter 1 - Product Design Chapter 2 Process planning Chapter 3 Make or Buy Decisions Chapter 4 Modern production management ( CAD,CAM) UNIT - III Chapter 1 Production Planning & Control Chapter 2 - Demand Forecasting Chapter 3 Plant location Chapter 4 Plant Layout Chapter 5 - Capacity planning Chapter 6 - Inventory control UNIT IV Chapter 1 - Quality Control

STUDIES Study Material MBN 510 - Production and Operations ManagementCONTENTS

Chapter 2 Work Study ( method study/ time Study/ Work measurement) UNIT V Chapter 1 Maintenance Management Chapter 2 Purchasing Chapter 3 Store Keeping

MEANING OF PRODUCTION Production is an intentional act of producing something in an organized manner. It is the fabrication of a physical object through the use of men, material and some function which has some utility e.g. repair of an automobile, legal advice to a client, banks, hotels, transport companies etc. The main inputs are materials, Machines, Men ( Labour), Money and Methods.

Unit - 1 Chapter - 1 Overview of Production Management Synopsis Materials Meaning of POM Scope of POM Objectives of POM Functions of POM Factors affecting POM POM relation with other functional areas Money Transformation Goods & services Machines Men OUTPUT INPUTS PROCESS

Production management deals with decision making related to production process so that the resulting goods Production and operations management (POM) is the management of an organizations production system. A production system takes inputs and converts them into outputs. The conversion process is the predominant activity of a production system. The primary concern of an operations manager is the activities of the conversion process. MEANING OF PRODUCTION MANAGEMENT A few definitions of production management are being reproduced here under to understand the meaning of the term clearly: Production management is the process of effectively planning and regulating the operations of that part of an enterprise which is responsible for actual transformation of materials into finished products. Elwood S. Buffa has defined the term in a broader sense as: or services are produced according to specifications, in amounts and by the schedules demanded and at a minimum cost. SCOPE OF PRODUCTION MANAGEMENT Specifying and accumulating the input resources, i.e., management, men, information, materials, machine and capital. Designing and installing the assembling or conversion process to transform the inputs into output, and Coordinating and operating the production process so that the desired goods and services may be produced efficiently and at a minimum cost. FUNCTIONS OF PRODUCTION MANAGEMENT a) Product selection and design: the product mix marks the production system either efficient or inefficient. Choosing the right products keeping the mission and overall objective of the organization in mind is the key to success. It is the design of the product, which makes the organization competitive or noncompetitive.

b) Activities relating to production system designing: decision related to the production system design is one of the most important activities of the production management. This activity is related to production engineering and includes problems regarding design of tools and jigs, the design, development and installation of equipment and the selection of the optimum size of the firm. All these areas require the technical expertise on the part of the production manager and his staff. c) Facilities location: the selection of an optimum plant location very much depends upon the decision taken regarding production engineering. A wrong decision may prove disastrous. Location should as far as possible cut down the production and distribution cost. There are diverse factors to be considered for selecting the location of a plant. d) Method study: the next decision regarding production system design concerns the use of those techniques, which are concerned with work environment and work measurement. Standard method should be devised for performing the repetitive functions efficiently.

suitable positioning of the workers for different processes should be developed. Such methods should be devised with the help of time study and motion study. The workers should be trained accordingly. e) Facilities layout and materials handling: plant layout deals with the arrangements of machines and plant facilities. The machine should be so arranged that the flow of production remains smooth. There should not be overlapping, duplication or interruption in

production flow. Product layout where machines are arranged in a sequence required for the processing of a particular product, and process layout, where machines performing the similar processes are grouped together are two popular methods of layout. The departments are layout in such a way that the cost of material handling is reduced. There should be proper choice of material handling equipment. f) Capacity planning: This deals with the procurement of productive resources. Capacity refers to a level of output of the conversion process over a period of time. Full capacity indicates maximum level of output. Capacity is planned for short-term as well as for long

Unnecessary movements should be eliminated and

term. Process industries pose challenging problems in capacity planning, requiring in the long run, expansion and contraction of major facilities in the conversion process. Tools for capacity planning are marginal costing (Break Even Analysis), learning programming, and decision trees. g) Production planning: the decision in production planning include preparation of short-term production schedules, plan for maintaining the records of raw materials, finished and semi-finished stock, specifying how the production resources of the concern are to be employed over some future time in response to the predicted demand for products and services h) Production control: after planning, the next curves, linear

setting, starting and finishing dates for each important item, assembly and the finished products; and releasing the necessary orders as well as initiating the required follow-up to effect the smooth functioning of the enterprise. i) Inventory Control: inventory control deals with the control over raw-materials, work-in-progress, finished products, stores, supplies, tools, and so is included in production management. The raw materials, supplies etc should be purchased at right time, right quality, in right quantity, from right source and at right price.

PRODUCTS VERSUS SERVICES The output is spoken as a bundle of products and services . The line between product & services is not necessarily always clear. Nevertheless, there are important differences between them. Products are tangible things that we can carry away with us, where as services are intangible and perishable and are consumed in the process of their production. Products may be produced to inventory and made available off-the-shelf whereas the availability of the services requires keeping the productive system that produces them in readiness

managerial production function is to control the production according to the production plans because production plans cannot be activated unless they are properly guided and controlled. Production control is the process of planning production in advance of operations; establishing the exact route of each individual item, part or assembly;

to produce the services, as they are needed. In addition the person being served often participates in the productive process. In product systems, there is very little if any, contact between the producers and consumer.

advantage of economies of scale

of local customers, clients and users

OBJECTIVES MANAGEMENT

OF

PRODUCTION/

OPERATIONS

PRODUCTS Tangible Can be produced to inventory for-off theshelf availability Minimal contact ultimate consumer with

SERVICES Intangible and perishable; consumed in the process of their production

Every system (or organization) has a purpose, certain objectives & goals to achieve since the objectives of an organization have hierarchical structure, sub-goals lead to

accomplishment of goals, which contribute, to the achievement Availability achieved by keeping the of objectives and eventually the purpose or mission of an productive system open for organization .It is very important that these objectives should services be unambiguously identified, properly structured and explicitly High contact with clients or stated. customers Simple processing In general terms, the objectives of an organization may be to produce the goods/or services in required quantities and of

Complex and interrelated processing Demand on productive systems variable on weekly, monthly, and seasonal basis Markets served productive system regional, national international by are and

Demand commonly variable right quality as per schedule and at a minimum cost. on hourly, daily and weekly bases . Thus quantity, quality and time schedule are the objectives that determine the extent of customer satisfaction. If an Markets served by productive organization can provide for these at a minimum cost then the system are usually local value of goods created or services rendered enhances and that Relatively small units to serve is the only way to remain competitive. Thus various objectives local markets can be grouped as- performance objectives and cost objectives. Location depende