PRODUCTION / OPERATIONS MANAGEMENT
N.K.AGARWAL
PRODUCTION FUNCTION
MANAGEMENT OF A PROCESS OR PROCEDURE INTENDED TO CONVERT (TRANSFORM) A SET OF INPUTS INTO A PREDETERMINED SET OF OUTPUTS IN ACCORDANCE WITH THE OBJECTIVES ASSIGNED TO THAT PRODUCTION SYSTEM.
PRODUCTION MANAGER
RESPONSIBLE FOR PUTTING TOGETHER INPUTS OF MEN, MATERIAL, CAPITAL, INFORMATION & ENERGY & TRANSFORMING THEM INTO PRODUCTS AND SERVICES IN THE QUANTITY, QUALITY,TIME & LOCATION TO MEET ORGANISATIONAL OBJECTIVES
PRODUCTIVE SYSTEM
MEANS BY WHICH INPUT RESOURCES ARE TRANSFORMED TO CREATE USEFUL GOODS (PRODUCTS) & SERVICES AS OUTPUTS.
AN OPERATING SYSTEM
Inputs Conversion subsystem Material Labour Energy
Transformation
Output Products
Capital
Information
Production process (Converter)
Services Information
Control (Feedback) subsystem
Information Processor (controller)
Environment
PRODUCTS AND SERVICES
PRODUCTS
TANGIBLE THINGS THAT CAN BE CARRIED AWAY WITH THE PERSON
SERVICES
INTANGIBLE AND PERISHABLE AND ARE CONSUMED IN THE PROCESS OF THEIR PRODUCTION.
PRODUCTION / OPERATION MANAGEMENT (POM)
INCLUDES ALL TYPES OF PRODUCTIVE WORKS WHICH ARE GEARED TO THE CRITERIA OF EFFICIENCY AND EFFECTIVENESS INPUTS MUST BE CONVERTED EFFICIENTLY AND EFFECTIVELY TO THE DESIRED OUTPUT, IRRESPECTIVE OF THE TYPE OF ORGANISATION OR NATURE OF PRODUCT/SERVICE
INTERFACING WITH OTHER SYSTEMS
BASIC FUNCTIONAL GROUPS:
MARKETING
GENERATES DEMAND
FINANCE
GENERATES THE CAPITAL
PRODUCTION
GENERATES THE SUPPLY OF OUTPUTS.
ORGANISATION & ENVIRONMENT
FLOWS BETWEEN ENVIRONMENT AND MARKETING, POM, FINANCE AND ACCOUNTING & MANAGEMENT SYSTEMS ALSO TAKE THE FORM OF ORDERS, MATERIALS, CASH AND INFORMATION. INFORMATION SYSTEM SERVES TO CONNECT ALL SYSTEMS VIA THE INFORMATIONAL FLOWS THAT PROVIDE CONTROL, INFORMATION AND FEEDBACK
Relationship between POM & Rest of organisation
Orders & Inf Marketing Order flow Advt,Promotion, system Sales
Business organisation
R&D
Engineering
Raw matl Material flow Finished goods Control Inf Prod.Ops. Mgt. system Performance information Policy flow Information system
Management System
General informa tion
Purchasing Collections Cash flow Disbursements
Philosophy Policy Feedback Objectives Opportunity
Fin & A/c system
Personnel
MARKETING AND POM
MARKETING SYSTEM
DISCOVERS AND TRANSMITS THE NEED OF CONSUMERS TO THE TOTAL ORGANISATION INCLUDING THE POM SYSTEM
WHICH SUPPLIES THESE NEEDS.
TRANSLATES THE DEMAND FOR FUTURE INTO UNITS OF PRODUCTION & DESIRED DELIVERY SCHEDULES.
Relationship between POM & Rest of organisation
Orders & Inf Marketing Order flow Advt,Promotion, system Sales
Business organisation
R&D
Engineering
Raw matl Material flow Finished goods Control Inf Prod.Ops. Mgt. system Performance information Policy flow Information system
Management System
General informa tion
Purchasing Collections Cash flow Disbursements
Philosophy Policy Feedback Objectives Opportunity
Fin & A/c system
Personnel
POM-MARKETING INTERFACE
MARKETING FURNISHES DATA ON:
SIZE OF MARKET VOLUME OF PRODUCTION NEEDED TO MEET ANTICIPATED MARKET NEEDS DESIRED INVENTORIES ANTICIPATED CHANGES IN PRODUCTION OF OTHER PRODUCTS ANTICIPATED DELIVERY SCHEDULES: AMOUNT,LOCATION,TIMING PACKAGING NEEDS
CONFLICTS BETWEEN MARKETING AND POM
UNREASONABLE COMMITMENT TO CUSTOMERS REGARDING
CUSTOMISATION DELIVERY SCHEDULE ORDER QUANTITY
PRODUCTION/OPERATION MANAGEMENT
POM SYSTEM GENERALLY CONSISTS OF:
FORECASTING FACILITY REQUIREMENT DESIGNING TOTAL PRODUCTION FACILITY PLANNING OUTPUT LEVELS PLANNING INVENTORY LEVELS CONTROLLING WORK INPUT CONTROLLING WORK OUTPUT FEEDBACK REPLANNING
PRODUCTION/OPERATION MANAGEMENT
POM
PROVIDES PRODUCTION FACILITIESPLANTS,EQUIPMENT AND PERSONNEL. PROVIDES STATISTICAL QUALITY CONTROL SUSTAINS TECHNOLOGICAL GROWTH AND IMPROVEMENT & ECONOMIC VIABILITY.
POM SYSTEMS:TYPES
FLOW SHOP
CONTINUOUS UNINTERRUPTED FLOW OF OBJECTS
JOB SHOP
PRODUCTION IN BATCHES INDIVIDUAL ORDERS/INVENTORIES
PROJECT
ONLY ONE PRODUCT/LIMITED NUMBER OF LARGE JOBS
PRODUCTION SUB-SYSTEM
RAW MATERIALS RECEIVING
OPERATION B STORAGE OPERATION A MATERIAL FLOW OPERATION D EDP CONTROL SYSTEMS
OPERATION C SHIPPING FINISHED GOODS INFORMATION FLOWS
CONTINUOUS FLOW PRODUCTION SYSTEM (FLOW SHOP)
PRODUCTION SUB-SYSTEM
RAW MATERIALS RECEIVING OPERATION A WIP STORAGE FINISHED GOODS OPERATION B WIP EDP CONTROL SYSTEMS WIP WIP OPERATION C INFORMATION FLOWS
MATERIAL FLOW
OPERATION D SHIPPING FINISHED GOODS
INTERMITTENT FLOW PRODUCTION SYSTEM (JOB SHOP )
RAW MATERIALS FINISHED PRODUCT (AIRCRAFT)
MACHINE & EQUIPMENT
AIRCRAFT ASSEMBLY
LABOUR
FIXED POSITION OR STATIC LAYOUT
POM- FINANCE & ACCOUNTING INTERFACE
F&A FUNCTION
RESPONSIBLE FOR ALL CASH FLOWS BETWEEN THE ORGANISATION AND EXTERNAL ENVIRONMENT. INTERFACES FROM THE INCEPTION OF THE IDEA OF PRODUCT THROUGH ITS DEVELOPMENT STAGES TILL IT IS SOLD
Money accounts Profits Surplus & Reserves Working Capital Production/Product Labour Taxes
Materials Man-Job/ Materials / Equipments Physuical Plant Depreciation Reserve Depreciation charge Process Product
CASH FLOW
Money
Stock
Sales: product becomes money
Money, time, and the POM system
POM-F&A INTERFACING
IMPORTANT AREAS
ACCUMULATION OF OPERATING DATA TO FORM A STARTING POINT FOR STANDARDS ACCUMULATION OF COST DATA OF A JOB, A TIME PERIOD OR A PROCESS ASSIGNMENT OF GENERAL COSTS TO PROFIT CENTRES
POM-F&A INTERFACING
DETERMINATION OF PROFIT/LOSS OF PROFIT CENTRES DETERMINATION OF VALUE OF WORKIN-PROCESS (W-I-P) DETERMINATION OF FINANCIAL VALUE OF RAW MATERIAL & FINISHED GOODS INVENTORIES PROVIDING STATUS OF JOBS OR W-I-P
Relationship between POM & Rest of organisation
Orders & Inf Marketing Order flow Advt,Promotion, system Sales
Business organisation
R&D
Engineering
Raw matl Material flow Finished goods Control Inf Prod.Ops. Mgt. system Performance information Policy flow Information system
Management System
General informa tion
Purchasing Collections Cash flow Disbursements
Philosophy Policy Feedback Objectives Opportunity
Fin & A/c system
Personnel
POM- INFORMATION SYSTEM
INFORMATION FUNCTION
INCORPORATES POLICY INFORMATION FLOW FROM MANAGEMENT AND FEEDBACK INFORMATION TO MANAGEMENT ACCOMODATES INFORMATION FROM EXTERNAL AS WELL AS INTERNAL SYSTEMS WITHIN THE ORGANISATION
Relationship between POM & Rest of organisation
Orders & Inf Marketing Order flow Advt,Promotion, system Sales
Business organisation
R&D
Engineering
Raw matl Material flow Finished goods Control Inf Prod.Ops. Mgt. system Performance information Policy flow Information system
Management System
General informa tion
Purchasing Collections Cash flow Disbursements
Philosophy Policy Feedback Objectives Opportunity
Fin & A/c system
Personnel
POM-INFORMATION INTERFACING
INFORMATION FUNCTION INTERFACES IN RESPECT OF
INVENTORY CONTROL COST CONTROL REPORTING STATUS ON ORDERS PRODUCTION SCHEDULES FORECASTING & SCHEDULING MATERIAL REQUIREMENT CONTROL OF W-I-P
POM-INFORMATION INTERFACING
QUALITY CONTROL PREVENTIVE MAINTENANCE PLANNING MAKE OR BUY DECISION LABOUR EFFICIENCY RECORDS
POM INTERFACING WITH OTHER FUNCTIONS
R&D AND ENGINEERING
TO EFFECT PRODUCT DEVELOPMENT, PRODUCTION PLANNING & CONTROL AND QUALITY CONTROL
PURCHASING
PURCHASES, INVENTORY CONTROL, TRAFFIC, RECEIVING AND WAREHOUSING
PERSONNEL
MANPOWER PLANNING, WAGES AND SALARIES, LABOUR RELATIONS, EMPLOYEE SERVICES AND PERSONNEL RECORDS
Relationship between POM & Rest of organisation
Orders & Inf Marketing Order flow Advt,Promotion, system Sales
Business organisation
R&D
Engineering
Raw matl Material flow Finished goods Control Inf Prod.Ops. Mgt. system Performance information Policy flow Information system
Management System
General informa tion
Purchasing Collections Cash flow Disbursements
Philosophy Policy Feedback Objectives Opportunity
Fin & A/c system
Personnel
ORGANISATIONAL ROLE OF POM
BOUNDARIES OF POM OFTEN OVERLAPS WITH THE BOUNDARIES OF OTHER AREAS EACH ORGANISATION DECIDES IT BASED ON ITS CURRENT OBJECTIVES AND CONSTRAINTS FROM ITS OWN PERSONNEL AND FACILITIES.
REFERENCES
PRODUCTION & OPERATIONS MANAGEMENT: ASWATHAPPA / BHAT MODERN PRODUCTION/OPERATIONS MANAGEMENT: BUFFA / SARIN PRODUCTION/OPERATIONS MANAGEMENT : LEVIN / McLAUGHLIN / LAMONE / KOTTAS
THANK YOU
POM-MARKETING INTERFACE
POM-MARKETING JOINTLY RESOLVE MANY IMPORTANT ISSUES SUCH AS :
PRODUCT DESIGN EQUIPMENT NEEDED FOR PRODUCTION FACILITIES AVAILABLE QUALITY CONTROL RAW MATERIAL STORAGE,HANDLING & USE INVENTORY NEEDS POSSIBLE PRODUCTION SCHEDULE & DELIVERY SCHEDULE COST OF TOOLING/PRODUCTION
ASSIGNMENT CHAPTER 1
DISCUSS THE VARIOUS FUNCTIONS IN THE EXTERNAL AS WELL AS INTERNAL ENVIRONMENT OF YOUR ORGANISATION THAT THE PRODUCTION FUNCTION IS CONCERNED WITH DISCUSS THE FUNCTIONAL RELATIONSHIP OF PRODUCTION FUNCTION WITH THE OTHER FUNCTIONS IN THE INTERNAL ENVIRONMENT OF YOUR RESPECTIVE ORGANISATIONS. HOW DO THEY SUPPORT EACH OTHER? OR IF YOU BELONG TO A SERVICE ORGANISATION OR ARE A PROFESSIONAL HAVING YOUR OWN PRACTICE, HOW IS THIS RELATIONSHIP WITH THE VARIOUS INTERNAL ENVIRONMENTAL FUNCTIONS ?
