Production Management

Production and Operations Management Production and Operations Management (POM) concerns itself with the conversion of inputs into outputs, using physical resources, so as to provide the desired utility / utilities of form, place, possession or state or a combination thereof to the customer while meeting the other organizational objectives of: Effectiveness. Efficiency. Adaptability. Agility.

POM within other Management Functions There may be and would be a number of situations in either marketing or human resources or other functions which can be classified under productions and operations management: The physical distribution of items to the customer. The arrangement of collection of marketing information. The actual selection and recruitment process. The paper flow and conversion of data into information usable by the judge in a court of law.

POM within other Management Functions. The input and/or output could also be non-physical such as “information”, but the conversion process uses physical resources in addition to other non-physical resources. The management of the use of physical resources for the conversion process is what distinguish production and operations management from other functional disciplines.

POM in Providing Goods and Services. Often, production and operations management systems are described as providing physical goods or services. Perhaps, a sharper distinction such as the five customer utilities and physical / nonphysical nature of inputs and / or outputs would be more appropriate. 1. Form How well a product or service meets the customer’s needs. 2. Place Making goods or services physically available or accessible to potential customers. 3. State The conversion of the state of the product or service needed 4. Possession Is the amount of usefulness or perceived value from owning a product. 5. Time A company maximizes the availability of a product so that customers can buy it during the times that are the most convenient or desirable for them.

POM in Providing Goods and Services Today, our customers need not only be outsiders but also our own “inside staff”. In spite of these variations in -Input type. -Output type. - Customer serviced. - Type of utility provided to the customers. POM distinguishes itself in terms of conversion effected by the use of physical resources such as men, materials, and machinery.

Criteria of performance for the production and operations management system Three objectives or criteria of performance of the production and operations management systems are: a) Efficiency. b) Effectiveness. c) Customer satisfaction.

Criteria of performance for the production and operations management system The case of “efficiency”, whether the organization is in the private sector or in the public sector, profit making or a non-profit organization, the productive or optimal utilization of resource inputs is always a desired objective. Effectiveness has more dimensions to it including the vital objective of customer satisfaction. It involves an optimality in the fulfillment of multiple objectives, with the possible prioritization within the objectives.

Criteria of performance for the production and operations management system The effectiveness of the operations system may depend not only upon a multi-objectives satisfaction but also on its flexibility or adaptability to changed situations in the future and its agility to react quickly, so that it continues to fulfil the desirable objectives set while maintaining optimal efficiency.

Jobs / decisions of production / operations management As a discipline of management which involves basically planning, implementation, monitoring and control, we have some of the jobs / decisions involved in the production and operations management function as: Long time horizon Intermediate time horizon Short time horizon Product design Product variations Production / operations scheduling Quality policy Methods selection Breakdown maintenance Technology to be employed Forecasting Available materials allocation Site selection Overtime decisions Temporary manpower Supply chain and outsourcing Purchasing policy Supervision to problems areas in labor.

Classification of decision areas The production and operations management function can be broadly divided into the following four areas: 1. Technology selection and management. 2. Capacity management. 3. Scheduling / Timing / Time allocation. 4. System maintenance.

Classification of decision areas Each of the Production and Operation Management Systems is uniquely suitable for the level of variety needed in the output. Decisions are taken according to each situation.

New ways of looking at the decision areas The nature of production and Operations management function is changing to an increasing Service orientation and therefore it has become necessary to relook at the classification of the decision areas. Traditionally, the focus of production and operations management discipline has been the product and the process producing the product. The traditional view may be termed as having been “product-centric” or “self-centric”. Self meaning company.

New ways of looking at the decision areas The nature of production and Operations management function is changing to an increasing Service orientation and therefore it has become necessary to relook at the classification of the decision areas. Traditionally, the focus of production and operations management discipline has been the product and the process producing the product. The traditional view may be termed as having been “product-centric” or “self-centric”. Self meaning company.

New ways of looking at the decision areas Changes in the Long-term / Shor-term Decisions According to the People-centric View, we need to make some changes… Intermediate time horizon, Product design, Product design.

Brief history of the Production and Operations Management Function The nature of the industrial workers was changing and methods of exercising control over the workers, to get the desired output, had also to be changed. Individual Efficiency Collective Efficiency Quality Effectiveness as a function of internal climate Advent of Operations Research Techniques The Computer era Service and Relationships Era Era of Advances in Technology for Enhanced Services: Industrial Revolution 4.0

Progression of Production and Operations Management The scope of production and operations management has been expanding and the discipline is getting more inclusive. From employees to business associates in supply chains to external physical environment to the society at large.