PRODUCTIVITY

AND
OPERATION MANAGEMENT
INTRODUCTION

PRODUCTION
MANAGEMENT
DEFINITION

• According to E.F.L. BRECH, “ Production management

then becomes the process of effectively planning and
regulating the operation of that part of an enterprise
which is responsible for actual transformation of
materials into finished products”.

PRODUCTION AND
OPERATION MANAGEMENT
OPERATION MANAGEMENT
 NATURE OF PRODUCTION AND
OPERATION MANAGEMENT
1. Transformational Process
2. Results into Value Addition
3. System Itself
4. Exists for Certain Objective
5. Carried-Out in Part of Organization
6. Interrelationship among the System
7. Stratum Formation
8. Specialization of Function
9. Increase in Entropy
10.Increase in Productivity
SCOPE OF PRODUCTION AND
OPERATION MANAGEMENT
 OBJECTIVE OF PRODUCTION AND
OPERATION MANAGEMENT
Objective
Ultimate Intermediate
Of
Objective Objective
POM

• ULTIMATE OBJECTIVE
1. Right Quality
2. Right Quantity
3. Right Time
4. Pre-established Cost
• INTERMEDIATE OBJECTIVE

1. Machinery and Equipment

2. Materials
3. Manpower
4. Manufacturing Services
 PRODUCTIVITY
INTRODUCTION
• Productivity is the output of any production process, per
unit of input.

• To increase productivity means to produce more with

less.

• In factories and corporates, productivity is a measure of

the ability to create goods and services from the given
amount of human resource, capital, land, knowledge,
time or any combination of these above.
DEFINITION

According to International Labor Organization(ILO), “ The

ratio between the volumes of output is measure by
production indices and the corresponding volumes of
labor input is measured by the employment indices. The
productivity is a measure of how much input is required to
achieve a given output.

To increase productivity, the ratio of outputs to inputs is

made as large as practical.
Example

• Incase A, 10 products are produced spending 1000

rupees and in case B, 15 products are produced by
spending 2000 rupees.
• Productivity in case A=10/1000
• Productivity in case B=15/2000
In case B, it’s a clear indication that the productivity
has reduced.
TYPES OF PRODUCTIVITY

TYPES OF PRODUCTIVITY
PARTIAL
PRODUCTIVITY

TOTAL FACTOR
PRODUCTIVITY

TOTAL
PRODUCTIVITY
 PARTIAL PRODUCTIVITY
• The resources of productivity when measured separately
are called as Partial Productivity.
•A measure of partial productivity plays a very important
role in improving the productivity.

LABOUR LABOUR
OUTPUT
PRODUCTIVITY INPUT

CAPITAL CAPITAL
OUTPUT
PRODUCTIVITY INPUT

MATERIAL MATERIAL
OUTPUT
PRODUCTIVITY INPUT
 TOTAL FACTOR PRODUCTIVITY

• In any production process, many of the resources inputs

are available within the organization, while a few others
are purchased from outside.

TOTAL FACTOR NET (LABOUR+CAPITAL)

PRODUCTIVITY OUTPUT INPUTS
 TOTAL PRODUCTIVITY

• The method of calculating productivity considering all

the resources is called Total Productivity.
• Itis systematic and qualitative to approach to complete
the products considering the quality, price and time.
• Total productivity provides a systematic framework and
structure to an organization and increase profitability.

TOTAL TOTAL
TOTAL
TANGIBLE TANGIBLE
PRODUCTIVITY
OUTPUT INPUT
FACTORS AFFECTING
PRODUCTIVITY
WAYS TO IMPROVE PRODUCTIVITY
1. PRODUCT DEVELOPMENT
2. SPECIALISATION AND STANDARDISATION
3. MARKET, CONSUMER AND PRODUCT RESEARCH
4. VALUE ANALYSIS
5. PROCESS PLANNING AND RESEARCH
6. METHOD STUDY
7. SAFETY
8. OPERATOR TRAINING
9. PRODUCTION PLANNING AND CONTROL
10.MATERIAL CONTROL
 IMPORTANCE OF PRODUCTIVITY
• Productiveness increases the overall efficiency of an
organization.
• Increased production due to efficient utilization of
organizational resources leads to a lower cost
production resulting in better sales and profits.
• Concept of productivity can be viewed from the
following points:
1. To Beat the Competition
2. Guide the Management
3. Indicator of Progress
4. Maximum Utilization of Scarce Resources
5. Key to National Prosperity
 IMPORTANCE AND PROBLEMS OF
OPERATION AND MANAGEMENT
IMPORTANCE PROBLEMS
• Consumers • Location of the Plant
• Investors • Plant Layout
• Employee • Product Designing
• Suppliers • Inventory and Production
• Community Control

• Nation • Quality and Labor Control

THANK YOU

BY
SHREYAS.M