POM

Introduction to Production Management

Production
 Production is the process by which raw
materials and other inputs are converted into
finished products.

Production Management
 Production management refers to the
application of management principles to the
production function in a factory.
 In other words, production management
involves application of planning, organizing,
directing and controlling to the production
process.
History of Production Management
1. Craft production
 Process of handcrafting products or services for
individual customers.
2. Division of labor
 dividing a job into a series of small tasks each
performed by a different worker
3. Interchangeable parts
 standardization of parts initially as replacement
parts; enabled mass production
4. Scientific management
 systematic analysis of work methods
5. Mass production
 high-volume production of a standardized
product for a mass market
6. Lean production
 adaptation of mass production that prizes
quality and flexibility

History of Production and Operations

Management
- The successful creation of the steam engine by
James Watt (1736–1819), a Scottish inventor
and mechanical engineer, served as a harbinger
of the industrial revolution in Great Britain and
the rest of the world.
- Charles Babbage (1772–1871), a British
inventor, was a firm believer of the merits of
division of labor. He promoted the idea of profit
sharing with workers based on their
productivity and encouraged the use of
employee suggestion schemes. He gave 1st
Programmable Computer to the world.
- Robert Owen (1771–1858), a British social
reformer, is remembered for his reforms
regarding child labour in factories, providing
meals in the factories to on-the-job workers,
and creating suitable housing facilities for the
workers.
- Thomas Alva Edison (1847–1931), an American
inventor and businessman, made several
significant inventions and had set up the
world’s first industrial research laboratory.
Some of his prominent inventions are the long-
lasting electric bulb, motion picture camera,
and the phonograph
- Frederick Winslow Taylor (1856–1915), an
American mechanical engineer, is aptly hailed
as the father of scientific management. His
book The Principles of Scientific Management
was published in 1911 and is regarded a
cornerstone of management thought. He is
famous for his stop watch time studies, in which
 he measured the time taken by workers in
performing various parts of a task.
- Henry Ford (1863–1947), an American
entrepreneur, engineer and innovator, is best
known for his invention of the modern
assembly line. In his factory, Ford implemented
several concepts of Frederick Taylor, including
standardized and interchangeable parts,
precision manufacturing, and division of labor.
Transformation Process
- A transformation process is defined as a user of
resources to transform inputs into some desired
outputs

The Product/Process Continuum

PRODUCT DESIGN
1. Research and Development
- In R&D, fundamental research is the
advancement of the state of knowledge in a
subject, though it may not be practically
converted into commercial applications
- Applied research has the objective of
developing commercial applications. Most of
the corporate houses have a R&D department
devoted for this purpose.
- Development is the process of converting the
results of applied research into useful
commercial applications
2. Reverse Engineering
- Reverse Engineering is the process of carefully
dismantling an existing product (for a
competitor) step by step in order to understand
the unique underlying concepts. If helps in
designing new products, which are better than
those of the competitors.
3. Manufacturability
- Manufacturability implies designing a product in
such a way that its manufacturing assembling
can be done easily. While designing a new
product, the manufacturing capabilities (such as
existing machines, equipment, skills of workers,
etc.) of the organization have to be kept in
mind.
4. Standardization
- Standardization refers to less variety in the
design of products, i.e., new products are
designed such that there is no major variation
from the existing products
- For example, all computers and typewriters
have the same arrangement of keys in the
keyboard because it has become a standard
consumers are used to.
5. Modular Design
- Modular Design is another type of
standardization, which means designing a
product in pars of modules. The modules are
 sub- assemblies of different components and
parts
6. Robust Design
- Robust Design means designing a product that
is operational in varying environmental
conditions
- For eg., if you compare a car with a jeep, the
jeep is more robust in design as it can even be
used efficiently on hilly areas with poor road
conditions
- The Japanese engineer Genichi Taguchi
emphasized that it is easier to create a product
with robust design rather than making changes
in the environment to suit the product.
7. Concurrent Engineering
- Concurrent engineering is the product design
approach in which the design team includes
personnel from the marketing department (to
specify the customer requirements),
engineering department (to look at the
feasibility of the design), production
 department (to suggest if production capability
exists for the design), materials department (to
give inputs material availability according to
design specifications), and finance department
(to suggest financial feasibility of the design) in
addition to the design department.
8. Computer-aided Design (CAD)
- CAD is a software which helps the designer to
make the three dimensional design of a product
on the computer and visualize the design form
various angles.
9. Life Cycle of a Product
- The product life cycle has five stages spread
throughout the life of a product. These are
incubation, growth, maturity, saturation, and
decline.
- The incubation stage witnesses a low demand
of the product owing to the customer not being
aware of the new product. As the awareness
increases and new features are added to the
product over a period of time., the demand
 starts growing and this phase is called the
growth phase
- Next follows the maturity stage, when the
demand tends to become stable and even new
features do not appeal much to the masses,
leading to the saturation phase and eventually
the decline phase

PROCESS DESIGN
1. Continuous Process
- The continuous process as the name suggests is
continuous in nature. The set-up time for
starting such processes is usually very long, and
once started, they continue for a long duration
- he products produced by such a process are
highly standardized with almost no variety, and
are measured on a continuous basis (tonnes per
day, meter lengths per day, etc.) rather than in
terms of discreet units
- Ex: Chemicals, steel, plastic, textiles, sugar, urea
etc
2. Semi-continuous Process
- Semi-continuous processes are assembly
processes, which are repetitive in nature. They
produce high volume of output and the
products produced have little variety.
- For example, automobiles, electronic items,
white goods, etc. These processes require
 highly specialized machines, semi-skilled
workers, and result in low cost per unit.
3. Intermittent Process
- Intermittent processes stop at regular
intervals of time because the product requires
processing on a variety of machines. The
products produced are of different varieties,
thus making the production process slow in
comparison to the continuous/semi-
continuous process
- They are of two types: Batch process and Job
shop
4. Batch process
- This process is adopted when batches or lots of
items are to be produced using the same set of
machines in the same sequence.
- Ex. Bakery
- Cleaning and adjustments are required after
each production run.
 5. Job Shop
- This process can handle a larger variety of
products than the batch process. The
products may be so different from each other
that their processing requirements may be
varied processes, on different machines, in
different sequences, and with different
processing times.
- The batches of items produced in job shop
may vary in size from large, comprising many
units, to very small, comprising a single unit.
- Ex. Restaurant

6. Projects
- Projects are processes that handle very complex
and unique sets of activities or tasks, which
have to be completed in a limited span of time.
- Ex. Construction of Building, R & D Project,
construction of Plant, implementation of specialized
software in an organization
 DUTIES AND RESPONSIBILITIES Of
PRODUCTION MANAGER

- Planning the geographical location of the

factory
- Purchasing production equipment
- Layout of equipment within the factory
- Designing production processes and equipment
- Product design
- Designing production work and establishing
work standards.
- Capacity planning
- Production planning and scheduling
- Production control
- Inventory Management
Emerging Role of the Production & Operations
Manager in India Today
- To act as internal quality auditors in
certification programmes like ISO 9000
- Increased attention to technology management
in view of JVs of MNCs with domestic
companies
- to act as supply chain managers in forging long-
term strategic relationships with suppliers
- To act as a member of the concurrent
engineering team in new product design
- To take decisions regarding outsourcing/ off-
shoring of business processes
- To implement the environmental and pollution
norms established by the government from
time to time
- To oversee timely implementation of projects
(like commissioning of facilities, launching of
new products/ services, etc.) in view of the
increased competition
- To take care of issues relating to services
operations management
- To enhance the R & D effort of the organization
for becoming self-reliant in developing new
technologies
- To automate the processes according to the
requirements of the organization
- To take part in the implementation & use of ERP
software in the organization
- To implement total productive maintenance
(TPM) programme
- To take part in strategic decision making of the
organization

Productivity and Employee

Labor Productivity= Output/Labor Hours
Machine Productivity= Output/Machine Hours
Multifactor Productivity= Output/ (Labor cost+
Machine Cost+ Material Cost+ Energy Cost

Trends in Production Management

- JIT and TQC
- Service Quality and Productivity
- Total Quality Management and Quality
Certification
- Business Process Reengineering
- Supply Chain Management
- Electronic Commerce
Current Issues in OM
• Coordinate the relationships between mutually
supportive but separate organizations
• Optimizing global supplier, production, and
distribution networks
• Increased co-production of goods and services
• Managing the customers experience during the
service encounter
• Raising the awareness of operations as a
significant competitive weapon

Artificial Intelligence in Production Management

• AI which stands for artificial intelligence refers to
systems or machines that mimic human intelligence
to perform tasks and can iteratively improve
themselves based on the information they collect.
AI manifests in a number of forms.
Example:
• Chatbots use AI to understand customer problems
faster and provide more efficient answers
• Recommendation engines can provide automated
recommendations for TV shows based on users’
viewing habits
Companies using AI
 Alphabet – Google
 Amazon
 Apple
 Tesla
• Although AI brings up images of high- functioning,
human-like robots taking over the world, AI isn’t
intended to replace humans.
• It’s intended to significantly enhance human
capabilities and contributions. That makes it a very
valuable business asset.