1. Introduction to Production & Operations Management

2. Nature of Production
In an industrial organization, production is the most important functional area
Production is the process by which inputs are converted into output
Usually, the term production and manufacturing is used interchangeably, but both the terms are different in management.
Manufacturing is used in the case of tangible goods and production includes both tangible gods as well as services.
Production can be easily understood if we view the manufacturing function from three angles:
Production as a system
Production as an organizational function
Production as a decision making function

3. PRODUCTION AS A SYSTEM
A system is understood as a whole that functions with the help of various sub-components. From this angel, production comprises of three sytems:
PRODUCTION SYSTEM
CONVERSION SUB-SYSTEM
CONTROL SUB-SYSTEM

4. PRODUCTION SYSTEM CONCEPTS
PRODUCTION AS A SYSTEM
PRODUCTION SYSTEM CONCEPTS
CONCEPT
DEFINITION
1. Production System
A system whose function is to convert a set of inputs into a set of desired outputs
2. Conversion Sub-System
A sub system of the larger production system where inputs are converted into outputs
3. Control sub-system
A sub system of the larger production system where a portion of the output is monitored for feedback signals to provide corrective action if required

5. PRODUCTION AS AN ORGANIZATIONAL FUNCTION
The core of production system is its conversion sub-system , wherein workers , materials and machines are used to convert inputs into products and services.
This process of conversion is the heart of production function in an organization where manufacturing is the key process.

6. PRODUCTION AS DECISION MAKING SYSTEM
The operations manager in an organization need to take various decisions related to production function.
They plan , organize, staff, direct and control all the activities in the process of production.
The decisions taken by operations manager related to production falls into three general level of categories. They are:

7. PRODUCTION AS DECISION MAKING SYSTEM
STRATEGIC DECISIONS
These decisions are major ones have strategic importance in production
OPERATING DECISIONS
These decisions are related to planning production to meet demand
CONTROL DECISIONS
These decisions relates to planning and controlling operations

8. Types of Decisions - Strategic
Type of Decisions
Area of Involvement
Nature of Activities
Strategic Decisions
Production Process
Developing long range production plans
Production Technology
Selecting and managing production technology
Facility Layout
Planning the arrangement of facilities
Allocating resources to strategic alternatives
Planning for the optimal distribution of scarce resources among product lines or business units
Long range capacity
Answering ‘how much’ and ‘where’ questions about long range production capacity

9. Operating Decisions Types of Decisions – Operating Decisions
Type of Decisions
Area of Involvement
Nature of Activities
Operating Decisions
Production planning system
Aggregate planning and master production scheduling
Independent demand inventory system
Planning and controlling finished goods inventories
Resource requirement planning system
Planning materials and capacity requirements
Shop floor planning and control at each work center
Short range decisions about what to produce and when to produce
Materials management
Managing all facets of material system

10. Control Decisions Types of Decisions – Control Decisions
Type of Decisions
Area of Involvement
Nature of Activities
Control Decisions
Productivity and employees
Planning for effective and efficient use of human resources in operations
Total quality control
Planning and controlling the quality of products and services
Project planning and control techniques
Planning and controlling projects
Maintenance management and reliability
Planning for maintaining the machines and facilities of production

11. DISTINCTION BETWEEN PRODUCTION & OPERATIONS MANAGEMENT
Even though both the terms are used frequently together, there exists at least two distinctions between the two terms. They are:
The term production management is used for a system where tangible goods are produced whereas operations management is more frequently used where various inputs are transformed into intangible services.
Viewed from this perspective, operations management will cover services such as banks, airlines, utilities, pollution control agencies, super bazaars, educational institutions, libraries etc. in addition to the manufacturing enterprises
2. The second difference is the evolution of the term as operations management is a term used nowadays. Production management precedes operations management in the historical perspective of the growth of the subject.

12. RECENT TRENDS IN PRODUCTIONS AND OPERATIONS MANAGEMENT
Global market place
Production/operations strategy
TQM
Flexibility
Time Reduction
Technology
Worker involvement
Re-engineering
Environmental issues
Corporate downsizing
Supply chain management
Lean production

13. Product A
Product B
Feature 1
Feature 2
Feature 3
Feature 1
Feature 2
Feature 3