Production & operation
management
Engr.Ghias Mahmood khan
Introduction
Class introduction
Course learning outcomes
• This course is designed to teach students the role of
production and operation management in organizations, as
well as the phases of product design development. The
course will teach you about the requirements for effective
project management, inventory management. You will also
learn about production planning problems using linear
programming, as well as the concept of total quality
management, and probabilistic time estimates.
Course distribution
• Midterm 30%
• Final exam 50%
• Sessional 20%
• Sessional distribution
• Class participation 5%
• Term assignment & presentation 10%
• Quizes and other class activities 5%
What is production?
• Production is the method of turning raw materials or inputs into
finished goods or products in a manufacturing process. In other
words, it means the creation of something from basic inputs.
• Production may also refer to the goods being produced. For instance,
some business call a set of products being produced at the same time
a production run. Both of these definitions are interchangeable.
Basically, it just means a manufacturing process or the end result of a
manufacturing process.
What is Productionmanagement?
• According to dictionary Britannica “Production management, also
called operations management, planning and control of industrial
processes to ensure that they move smoothly at the required level.
Techniques of production management are employed in service as
well as in manufacturing industries. It is a responsibility similar in
level and scope to other specialties such as marketing or human
resource and financial management. In manufacturing operations,
production management includes responsibility for product and
process design, planning and control issues involving capacity and
quality, and organization and supervision of the workforce.”
• Production/Operation management is the process which combines
and transforms various resources used in the production/operation
subsystem of the organization into value added products/services in a
controlled manner as per the policies of the organization.
Range of inputs Required output or
range of services
• The set of interrelated management activities which are involved in
manufacturing certain products is called production management and
for service management, then corresponding set of management
activities is called as operation management.
Class activity
• Write down the range of inputs:
• Examples: (Products/goods)
• Boiler, with a specific capacity,
• Constructing flats,
• Car, bus, radio, television.
• Examples: (Services)
• Medical facilities,
• Travel booking services.
• In the process of managing various subsystems of the organization
executives at different levels of the organization need to track several
management decisions. The management decisions are Strategic,
tactical and operational.
What is productivity?
• Productivity–a ratio of production output to the input required to
produce it–is one measure of production efficiency. Productivity is
defined as a total output per one unit of a total input. Control
management must implement control processes to maintain or
improve productivity.
PRODUCTIVITY
• Productivity is a measure of the efficiency of production. It is a ratio
of actual output (production) to what is required to produce it (
inputs ). Productivity is measured as a total output per one unit of a
total input. Control managers in a given organization are concerned
with maximizing productivity through process-oriented observations
and improvements.
PRODUCTIVITY
• For businesses, productivity growth is important because providing
more goods and services to consumers translates to higher profits. As
productivity increases, an organization can turn resources into
revenues, paying stakeholders and retaining cash flows for future
growth and expansion. Productivity leads to competitiveness and
potentially competitive advantages.
INPUTS
At the plant level, common input statistics are monetary units, weights
or volumes of raw or semi-finished materials, kilowatt hours of power,
and worker hours. These are tracked as sets of partial productivity, such
as kilowatt-hours per ton or yield (weight of output divided by weight
of input), both of which are used in the chemical, refining, wood pulp,
and other process industries. Quality statistics like defect rates are
tracked in the same way. Summary reports are routinely issued to
various departments and department managers are held accountable
for managing inputs in their respective areas.
OUTPUTS
• Output is simply the rate of which goods are being produced and
readied for sale. Managing production levels is part of the control
process–management teams must predict demand to avoid market
saturation.
Class assignment
• Select one industry of your choice and list down the all possible
inputs and out puts.
