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Introduction to Production and

Operations Management
Jaime S.C. Lizada

Outline
I. What is Production and
Operations Management?
II. Goods & Services
III. Processes
IV. Scope of OpMan
V. Why Learn OpMan?

What is Production and


Operations Management?
Process which combines and transforms various resources used
in the production/operations subsystems of the organization into
value added product/services in a controlled manner as per the
policies of the organization. Therefore it is that part of an
organization, which is concerned with the transformation of a
range of inputs into the required (product/services) having the
requisite quality level.
!

- Production & Operations Management by S. Anil Kumar & N.


Suresh [2008]

What is Production and


Operations Management?

What is Production and


Operations Management?

The management of systems or processes that create


goods and/or provide services
- Operations Management by Stevenson [2011]

Goods & Services

Goods

Physical items produced by


business organizations

Services

Activities that provide some


combination of time, location,
form and psychological value

Goods & Services


Differences
1. Degree of Customer Contact
2. Labor Content of Jobs
3. Uniformity of Inputs
4. Measurement of Productivity
5. Quality Assurance
6. Inventory
7. Wages
8. Ability to Patent

Goods & Services


Similarities
1. Forecasting
2. Process Management
3. Managing Variations
4. Monitoring Costs &
Productivity
5. Supply Chain Management
6. Location Planning, Inventory
Management, Quality Control
& Scheduling

Processes

Processes - One or more


actions that transform inputs
into outputs

Scope of OpMan
Activities:
Forecasting
Capacity Planning
Facilities and Layout
Scheduling
Managing Inventories
Assuring Quality
Motivating and Training Employees
Locating Facilities

Scope of OpMan

Scope of OpMan

Scope of OpMan

Why Learn OpMan?

Every aspect of business


affects or is affected by
operations

Everything is process-driven

OpMan is central to the


functioning of every business
organization

Questions?

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