Definition production-

Set of activities that creates goods

and services through the
transformation of inputs into
outputs.
Related Areas
Technology/Methods
Facilities/Space Utilization
Response Time
Customer Service
Quality
Cost Reduction
Inventory Reduction and Supply Chain Management
Productivity Improvement

Difference B/w Goods &

Services
Intangible/Tangible
Consumption (Production & Consumption)
Uniqueness
Customer Interaction
Knowledge Based
Reselling
Inventory
Measurement of Quality
 Site of facility is important for….Cost
Customer contact
Strategic Decisions in Operations
Quality Management


Service or Product Design



Process & Capacity Design



Location


Layout Design


Human Resource & Job Design



Supply Chain Management



Inventory planning and JIT



Project Scheduling


Maintenance


The twin objectives of operations

management
• The customer service objective
Providinggoods or services with the right
specification, at the right cost and at the right time.

• The resource utilizations objective

To achieve adequate levels of resource utilizations

(or productivity) e.g. to achieve agreed levels of
utilizations of materials, machines and labour.
Other Objectives of OM
Product/servicequality.
Efficiency
Effectiveemployeerelationsandcostcontroloflabour.


 Costcontrolofmaterial.
 Costcontrolinfacilityutilization.

Customerservice(schedule)
 Producingquantitiestomeetexpecteddemand.
 Meetingtherequireddeliverydateforgoodsorservices.
Adaptabilityforfuturesurvival.

Factors Affecting Productivity

Capital/labour ratio
Scarcity of some resources
Work-force changes

Innovations and technology

Regulatory effects

Bargaining power

Managerial factors

Quality of work life