Production and Operations Management Function CHAPTER 1 Production and Operations Management Function
Definition and Criteria Production and operations management (POM) concerns itself with the conversion of inputs into outputs using physical resources so as to meet its criteria of performance. Criteria of Performance Customer satisfaction Effectiveness Efficiency
OM as Transformation process Inputs = Transformation = Outputs INPUTS PROCESS OUTPUTS PERFORMANCE MANAGEMENT
The Value Model The value seesaw Short & long Term costs Order Loser Delivered Performance The value seesaw
The Operation Manager’s Role Feedback Inputs: Materials Capital Equipment People Power Information Output Goods Or Services Processes customers suppliers Operation management
New product development Determine needs Determine functional requirements and constraints specifications Identify essential problems , propose functional structure, evaluate technical and economic criteria Concept Develop preliminary configurations , introductory analysis , select best preliminary Design refine tech. and economic criterion
Finalize details , conduct final analysis Preliminary design Refine complete configuration, conduct detail analysis ,review cost, prepare drawings Definite design Finalize details , conduct final analysis Documentations Prototype Test and evaluate Solutions
POM Systems Continuous flow Mass production Batch production Job-shop production
Decision Areas People-centric: Product-centric: HR (Employees) Supply (Associates) Timing (Customer) Spatial (all) Product-centric: Technology Capacity Scheduling System maintenance
History of POM: Milestones Individual efficiency Work study Collective efficiency Production control, Assembly line Quality and materials Statistical quality control, Inventory control Operations Research Computer era Service & Relationships era
Basic Effort in Production Management The basic effort, historically speaking, has been to ensure: Swift and even flow of materials achieved through Reducing variability within the system output, flows, quality, supplies and delivery Market variability is handled by further reducing systemic variability
Future of POM Past trend has been: What will the future be? Product Services Techniques Relationships What will the future be? More services New services Softer services Psychological services POM will have to meet its criteria of performance in the new/unforeseen services