PRODUCTION AND

OPERATION
MANAGEMENT
FROM
MAYURI BHARGAVA
AND
PREETI SRIVASTAVA
INTRODUCTION OF
MANAGEMENT
 ”MANAGEMENT IS THE ART AND SCIENCE OF
PLANNING ,DIRECTING AND CONTROLLING
HUMAN EFFORT SO THAT THE ESTABLISHED
OBJECTIVES OF AN ENTERPRISE MAY BE
ATTAINED IN ACCORDANCE WITH ACCEPTED
POLICIES.”
 CONCEPT OF
PRODUCTION
 PRODUCTION IS DEFINED AS ”the step by
step conversion of one form of material into
another form through chemical or
mechanical process to create or enhance
the utility of the product of the user”
 ACCORDING TO EDWOOD BUFFA ”a
process by which goods and services are
created.”
 SCHEMATIC PRODUCTION
SYSTEM

INPUTS: TRANSFORMATION
PROCESS: OUTPUT:
MEN
PRODUCT DESIGN PRODUCTS
MATERIAL
PROCESS PLANNING SERVICES
MACHINES
PRODUCTION-
MONEY
CONTROL
METHOD
MAINTENENCE

CONTINUOUS:
INVENTORY
QUALITY
environment COST Feedback information
CLASSIFICATION OF PRODUCTION
SYSTEM

Continuous
Production
production
Operation
volume Mass production

Batch
production

Job-shop
production

Output/product variety
 INTRODUCTION TO PRODUCTION
MANAGEMENT

 The word production management has two parts:-

Production + management = production
management

 Production:- it is an intentional act of producing

something in a specific manner.
 Management:- it is an art & science concerned with
planning , controlling the human beings towards
common aim with agreed policies.
PRODUCTION MANAGEMENT
 In the words of Mr. E.L. Btech: ”production
management is the process of effective planning
and regulating the operations of that section of an
enterprise which is responsible for the actual
transformation of materials into finished products.”
 E.S. Buffa defines production management as,
”Production management deals with decision
making related to production processes so that the
resulting goods or services are produced according
to specifications, in the amount and by the
schedule demanded and out of minimum cost.”
 Production management deals with decision making
related production process. So that the resulting
goods and services are produced in accordance
with the quantitative specification and demand
schedule with minimum cost.
 Production management is a set of general
principle s for production economies facility
design ,job design. Schedule design ,quality control
, inventory control ,work study and cost and
budgetory control.
 PRODUCTION PROCESS
SYSTEM
 INPUT: GOODS

INFORMATION
PROCESS
TRANSFORMATION
ORGANIZATION TRANSFORMATION
MANAGEMENT
MATERIAL&LAND
LABOUR, CAPITAL SERVICE
TECHNOLOGY
 OPERATION
MANAGEMENT
 Operation management may be defined as the design
,operation ,and improvement of the production system that the
firm’s products or services.
 Concerned with the operations performed during the production
process system.
 It is called as the core activity of the management.
 It is often used with the production management in literature.
 It is defined as the process where by resources or inputs are
converted into more useful products.
 OPERATION
MANAGEMENT
 Operation management is more frequently used
where various inputs are transformed into tangible
services.
 Operation management covers the services like
banks, airlines, pollution control, consultancies
firms, and hospitals.
 Operation management includes the activities such
as managing purchase , invetory control , storage,
logistics, measurement and analysis of internal
process.
 FIVE P’S OF OPERATION
MANAGEMENT

 PEOPLE ( Are the direct and indirect work force )

 PLANTS (includes factories where production is
carried out)
 PARTS (includes materials which go into the
system)
 PROCESS (includes equipment and steps by which
production is accomplished.)
 PLANNING AND CONTROL SYSTEM (procedures
and information to operate system )
 GENERAL MODEL FOR MANAGING
OPERATIONS

PLANNING ORGANISING:
PLANNING CONVERSION SYTEM ORGANISING FOR
CONVERSION
OPERATIONS STRATEGY
JOB
FORECASTING
DESIGN,PRODUCTION/OPERATIONS
PRODUCT AND PROCESS CHOICES
STANDARDS,WORK
SCHEDULING CONVERSION CONVERSION MEASUREMENT
SYSTEM:
MODELS BEHAVIOUR PROJECT MANAGEMENT
OPERATIONS SCHEDULING
CONTROLLING
SCHEDULING SYSTEM AND
MATERIAL CONTROL
AGGREGATE PLANNING
INVENTORY CONTROL
MANAGING FOR WORLD-CLASS
COMPETITION
MANAGING FOR QUALITY
Scope of production and
operation management
Location
Of
facilities Plant layout
Maintenance &
management Material
handling

Material Production/
Product
control Operation
design
management

Quality Process
control design
Production
Planning and
control
 SCOPE OF PRODUCTION AND
OPERATION MANAGEMENT

(A) Product selection and design

1.Choosing the right product by keeping the objective of the organization.
2. Design of the product must be attractive, aesthetic and functional.
3.Product design must be made in such way to face competitor.
4.Unnecessary cost must be eliminated.

(B) Process selection and planning

1.Selection of the process involves taking decision as technology, machines and
equipments.
2.First thing is that we have to optimize the output from the given process.
3.Planning includes the stages of the process and automation and mechanization
4. Alternatives , evaluation and judging factors must be there.
(C) Facilities location
1. Includes where we can locate our operation.
2. In this wrong decision may prove disastrous.
3. Location should be in way that the cost of transportation is
minimized.
(D) Facilities layout and material handling
1. Arrangement of machines and plant facilities.
2. Over-lapping and no interruption should be there
3. Sequence of machines
4. How to handle the material and in which manner so that the cost
of material handling is minimized.
5. Factor of flexibility should be there to adapt changes.
(F) Capacity planning
1. Estimating the capacity of manpower , man , machines.
2. Capacity refers to a level of output of the conversion process over
a period of time.
3. The Transformation process.
OPERATIONS: A TRANSFORMATION
PROCESS
feedback

input output

performance
Workers
Goods
Goods
Managers
Operations services
Equipment services
And
Material
processes
Land
Energy
 EXAMPLE: FOOD PROCESSOR

 INPUTS PROCESSING OUTPUT

Cleaning Canned
Raw material vegetable
Making cans
Metal sheets
Cutting
Water
Cooking
Energy
Packing
Labor
labeling
Building
equipment

Consumer feedback
 EXAMPLE: HOSPITAL

INPUTS PROCESSING OUTPUT

Examination Healthy
Doctors, nurses
Surgery Patients
Hospital
Medical supplies Monitoring

Equipment Medication

laboratories Therapy

Improvement of patients health condition

END