Production & Operations Management Notes

Vocabulary-style flashcards covering key terms, concepts, and definitions from the lecture notes on Production & Operations Management.

Production

Step-by-step conversion of inputs into outputs, creating utility and adding value (value addition).

Inputs

Resources required for production: Men, Materials, Machines, Information, and Capital.

Transformation Process

Activities that convert inputs into outputs: Product Design, Process Planning, Production Control, and Maintenance.

Outputs

The final products and services produced.

Environment

External conditions affecting production, including inventory, quality, cost, and feedback information.

Value Addition

The process at each stage that increases the utility of a product.

Buffa Production

A process by which goods and services are created.

Production and Operations Management

Decision-making in production activities to produce goods or services in required quantity and schedule at minimum cost.

Production Management

Planning, organizing, directing, and controlling the production function to meet specifications, demand, schedule, and minimum cost.

Right Quality

Producing to meet required quality standards.

Right Quantity

Producing the correct amount to meet demand.

Right Time

Delivering products when needed, aligned with demand schedules.

Right Manufacturing Cost

Producing at the minimum possible cost.

Operations Management

Administration of business operations to achieve best quality products and services and maximize profitability.

Planning

Setting objectives and determining activities, resources, and sequences to achieve production goals.

Product Design

Designing products to meet customer needs and be manufacturable.

Process Planning

Defining the production steps, routing, and methods to produce a product.

Production Control

Monitoring and adjusting production to ensure schedules are met.

Maintenance

Maintaining equipment and facilities to ensure reliability and safety.

Inventory

Stock of inputs, work-in-progress, and finished goods.

Quality Control

Systematic inspection to ensure products meet standards.

Materials Management

Planning and controlling the flow and storage of materials.

Productivity

Output per unit of input; the ratio of total output to total input.

Direct Production

Production on a small scale for personal or family use.

Indirect Production

Production that yields inputs for further production (e.g., components).

Primary Production

Initial extraction or resource-based production.

Secondary Production

Manufacturing using primary inputs.

Tertiary Production

Services and distribution activities in the economy.

Unit Production

Producing in single units, typically for small-scale use.

Batch Production

Producing items in batches or lots.

Mass Production

High-volume production of standardized products, often with assembly lines.

Continuous Production

Non-stop production with very high volume and low variety.

Intermittent Production System

Flow is not continuous; variety of products; small volumes; general-purpose machines; orders-driven.

Project Production

Producing a single, complex order or contract completed within time and cost.

Job Shop Production

Produce one or a few units to customer specifications; cost fixed on contract.

Batch Production Flows

Production scheduled by orders or forecasts; items produced in lots.

Advantages of Job Shop

Product variety; skilled operators; learning opportunities; full utilization; but higher setup/inventory costs.

Batch Production Advantages

Better plant utilization; functional specialization; lower unit cost; flexibility.

Continuous Production System (Advantages)

Standardization, high rate, high capacity utilization; automation reduces manual handling.

Continuous Production System (Limitations)

Very high capital investment; limited product differentiation.

Mass Production (Advantages)

High rate, high capacity utilization; less skilled operators; low unit cost.

Process Production

Producing a single product stored until demanded; low flexibility.

Strategic Decisions

Top-level decisions affecting long-term direction (e.g., plant location, layout, mergers, R&D, etc.).

Tactical Decisions

Middle-management decisions for short- to medium-term actions (e.g., scheduling, make/buy, pricing).

Operational Decisions

Front-line decisions on day-to-day production scheduling and execution.

Production Planning and Scheduling

Develop detailed schedules and allocate resources to meet deadlines and demand.

Resource Management

Managing inventory, labor, equipment, and materials to support production.

Supervision and Team Management

Overseeing staff, training, performance, safety, and motivation.

Quality Control (Role in PM)

Ensuring products meet required quality standards through inspections and testing.

Budget Management

Planning and controlling production costs and budgets.

Process Improvement

Identifying bottlenecks and applying Lean/Six Sigma to improve efficiency.

Health and Safety Compliance

Ensuring safety regulations are followed; audits and training.

Coordination with Other Departments

Collaborating with engineering, quality, supply chain, sales to align goals.

Problem-Solving and Crisis Management

Addressing unexpected issues and implementing corrective actions.

Reporting and Documentation

Maintaining records and reporting production performance to management.

Technology and Equipment Management

Maintaining machinery and adopting new technologies to improve production.

Strategic Production Planning

Long-term planning for capacity, investments, and future growth.

Advanced Process Optimization

Lean, Six Sigma, automation, and Industry 4.0 initiatives to improve productivity.

Data-Driven Decision Making

Using data analytics and AI to guide production decisions and KPI monitoring.

Cross-Departmental Leadership

Leading across departments to align production with R&D, finance, procurement, and logistics.

Leadership and Organizational Development

Developing future leaders and managing change within production teams.

Financial and Risk Management

Cost optimization, risk assessment, and capital expenditure oversight.

Compliance and Global Standards

Adherence to ISO/OSHA and other regulations across sites.

Innovation and R&D Collaboration

Working with R&D to integrate new technologies and processes into production.

Global Production and Operations Management

Managing multi-site production and coordinating across locations.

Customer and Market Alignment

Aligning production with customer needs and market demands.

Customization and Flexibility

Flexible manufacturing to accommodate mass customization.

Sustainability and CSR

Eco-friendly production practices and socially responsible sourcing.

Capacity Planning

Determining the production capacity needed to meet changing demands.

Steps in Capacity Planning

Check current levels; analyze capacity; determine future needs; consolidate; act on recommendations.

Determinants of Effective Capacity

Facilities, process, human, policy, operational, supply chain, and external factors.

Importance of Capacity Decisions

They affect future demand fulfillment, costs, and competitiveness.

Process Design and Management

Designing workflows to produce efficiently; standardizing and improving processes.

Forecasting

Predicting future demand using historical data and trends.

Scheduling

Planning the timing of production activities and resource use.

Maintenance and Facility Management

Scheduling and executing maintenance to prevent downtime and ensure safety.

Logistics and Distribution

Coordinating movement and storage of materials and products.

Lean and Continuous Improvement

Ongoing elimination of waste and enhancement of processes using lean tools.

Project Management (OM)

Managing projects related to new processes, equipment, or technologies.

Definition of Operations Management (Buffa & Sarin)

Design, operation, and improvement of systems that create and deliver a firm’s primary products and services.

Definition of Operations Management (Russell & Taylor)

Management of processes used to design, supply, produce, and deliver valuable goods and services.

Customer Orientation

A focus on meeting customer needs and satisfaction.

Process Orientation

A focus on the processes used to create goods and services.

Decision Making (OM)

Making informed choices to optimize production and operations.

Integration Function

Operations links with other functions to align goals and activities.

Continuous Improvement (OM)

Ongoing efforts to improve processes and performance.

Resource Optimization

Efficient use of resources to maximize output.

Time Sensitivity

Timely decisions and deliveries are critical to success.