1. Production and Operations Management Function
CHAPTER 1
Production and Operations
Management Function

2. 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

3. OM as Transformation process
Inputs = Transformation = Outputs
INPUTS
PROCESS
OUTPUTS
PERFORMANCE
MANAGEMENT

4. The Value Model The value seesaw Short & long Term costs Order Loser
Delivered
Performance
The value seesaw

5. The Operation Manager’s Role
Feedback
Inputs:
Materials
Capital
Equipment
People
Power
Information
Output
Goods Or
Services
Processes
customers
suppliers
Operation
management

6. 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

7. 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

8. POM Systems Continuous flow Mass production Batch production
Job-shop production

9. Decision Areas People-centric: Product-centric: HR (Employees)
Supply (Associates)
Timing (Customer)
Spatial (all)
Product-centric:
Technology
Capacity
Scheduling
System maintenance

10. 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

11. 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

12. 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