PRODUCTION MANAGEMENT The job of coordinating or controlling the activities required to make a product , involving effective control of cost , ensuring good quality and performance as well as checking the waste requirements .

OPERATIONS MANAGEMENT Operations management refers to the administration of business practices to create the highest level of efficiency possible within an organization. It is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization.

TYPES OF PRODUCTION SYSTEMS There are two types of production systems : 1. Intermittent 2. Continuous

INTERMITTENT PRODUCTION SYSTEM Starts and stops at irregular intervals Production is irregular according to the job and then , the process starts again with new and customised specifications Intermittent production system is of two types viz , job production and batch production

CONTINUOUS PRODUCTION SYSTEM Production here is continuous Applicable where the object to be produced is of standardised weight and size Example – production of soaps Continuous production system is of two types viz , mass production and flow production

Operation Management Operation management is a branch of management that deals with planning, organizing, coordinating and controlling all activities related with operations of an organization. The whole process starting from product design & development; converting the raw material into finished goods or creating services and ending with proper distribution of these products and services to end customer is called production management.

Issues of Operation Management Strategic Issue Comprise deciding the size of the market on the basis of demand forecasting, selection of location, deciding required facilities and logistics. Tactical Issue Contain product design and development, finalization of layout, machinery, equipments, establishing a production schedule, setting work standards and method and ensuring quality control and inspection. Operational Issue Involve purchase management, inventory control and ensuring efficient functioning of supply chain.

Production Management Difference Production Management Old term that was used when business scale and operations was small and complexities and competition was less. The focus was on production as market was production driven. Focused on products. Narrow concept confined only to conversion of raw material into finished goods. No customer contact. Operation Management Modern term as it includes organizations that deal in supply of services and also watch overall operations pf organization. It is more in sync with concept of consumer is the king. Focused on both product and services. Broad concept that includes planning, design development, conversion and distribution. Continuous customer contact.

Objectives of Production and Operation Management Production planning Ensure timely delivery of products Optimum utilization of resources To control production cost To maintain quality standards To help in achievement of organizational objectives.

Scope of Production and Operation Management Facility Location Layout planning Developing the product design Production planning and control Work study Inventory management Purchase management Supply chain management

Functions of Production and Operation Management Deciding about the product Product design Process design Capacity planning Plant location Plant layout Method study Work measurement Production planning Production control Inventory control

Importance of Production Management Builds good image of organisation. Helps in development of new products. Ability to face competition Efficient utilization of resources. Improved performance Cost control Facilitates growth and expansion

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