PRODUCTION AND OPERATIONS

MANAGEMENT. Lecture 5 and 6

Topics
Areas for Questions
PROFESSOR E .S. WICKRAMASINGHE
 Distinguish Production
Management and Operations
Management
Production management is defined as management
functions of planning, organizing, coordinating ,
directing and controlling the material supply and
Processing activities of an enterprise, so that
specified products are produced by specified
methods to meet in such a manner that Labour, Plant
and Capital available are used to the best advantage
of the organization.
 OPERATIONS MANAGEMENT
Operations Management is physical distribution process
or outbound activities in connection with the a product to
the users or customers through the arrangement of
collection of marketing information up to the
consumption. Operations management systems are
complex, involving multiple physical distribution
processes. Operations Management system must create
Effectiveness, Customer satisfaction, and Efficiency in
continuous basis Ex, Continuous availability of Sugar,
Cement, Gas, Rice Milk powder in this country.
 PM is responsible for producing
various surfaces
Production Manager is solely responsible for
producing various surfaces by which the product is
made of, so that manager can plan the processes by
which a particular surface can be made and plan for
required capacity of the facility. While planning he /
she has to see that the required surface is produced
by the best and cheapest method, so as to make the
product to face the competition in the market place.
Production means application of processes or
Technology to the raw material to add the use and
economic values to arrive at desired product by the
best method,
Benefits of POM
Consumer benefits
Investors benefits
Employee benefits
Community benefits
National benefits:
 Nature & Scope of Small,
Medium and Large Firms
Small Firms
Production Planning, Production
controlling and also HR, Marketing and
Finance
 Medium sized
Firms

There is a separate manager for HR,

Marketing and Finance, thus PM is
responsible for Production Planning,
Production controlling, in addition, purchase
and stores
 Large Firms
Activities are confined to management of
Production activities only. However PM is solely
responsible for P. Planning and P. Controlling.
Hence PM is a well experienced person and
should have sound knowledge of Materials,
mechine and equipment. Knowledge o material
handling, Labour handling.
In addition to the technical skills, human skills
and conceptual skills
Major and common FUNCTIONS
OF PRODUCTION MANAGEMENT
Finding the best method for the process,
Selection of suitable machinery for the process
desired
Fix up the Production targets and delivery dates
Scheduling:
Routing:
Dispatching:
Expediting or Follow up
Inspection
Evaluation
 OBJECTIVES AND PURPOSES OF
THE THREE PRODUCTION SYSTEMS
THREE PRODUCTION SYSTEMS
1. Job shop Production
2. Batch Production
3. Mass Production
 Job shop Production
Products are manufactured to meet the
requirements of the specific order. Quantity are
small. Specifications are given by the customer.
Ex. 1.Tailor Shop
2.Printing Shop
3.Vehicle Repair Shop
4.Job Typing Shop
 Batch Production
Manufacture of number of identical products to
meet the specific or standard order.
Ex 1. Tyre production shop
Ex 2. Ready made dress production shop
Ex 3. Cosmetic production shop
 Mass Production
Manufacture of number of identical products
to meet the specific order. plant and equipment
can be used for producing similar products. This
system also can be classified under three
categories.
 Mass Production continued
Batch produced only once
Batch produced at Irregular intervals
Batch produced at regular intervals
 Production Cycle in the Firm
•Market Research
•Designs the product to fulfill consumer needs
•Verifies whether the product can be
manufactured with the technology and skill
available in the firm.
•Production Manager, Design engineer and
Marketing Manager discuss together and make
alterations in the product, without sacrificing the
customer needs.
•Design department conduct the market survey
 Production Cycle continued
•Top management after going through the
proposals sanctions the budget and gives green
signal for production
•Production department produces a trial run
•sales department release the product in the test
markets
•production department prepares the detailed
production plans and production scheduling
•After getting the acceptance from the marketing
department, actual production of product starts
to meet the marketing program.
Conceptual Questions
1. Productivity
2. Competitive Advantage
3. Supply Chain Management
4. Supply Chain Sustainability
5. Market Scenario Analysis
6. Industry Analysis
7. SWOT Analysis
 Conceptual Questions
continued

8.Strategic Plans for Production oriented firms

9.Supply Chain Collaboration
10.Selecting Outsource Vendors
11. Inventory Management related logistics
12.Poduction Scheduling Charts
13. Transport Management related logistics
14.Building an ideal distribution Network
Conceptual Questions continued
15.Direct Distribution Network
16. Network Analysis
17.Capital Intensive Products
18.Labour Intensive Products
19.Product Design
20.Process Design
21. Production Planning
22. Statistical Quality Controlling
Conceptual Questions continued
23.Material Management
24. Maintenance Management
25.JIT
26.TQM
27.PLC
28.Product Features
29 CAD & CAM
30. ISO 9000
31.ISO 14000
Conceptual Questions continued
32.Six Sigma
33.Benchmarking
34.Fish bone charts
35.Process Flow Charts
36.Cause Effect Diagrams
Conceptual Questions continued
37. Bottle Neck Charts
38.Break Even Charts
39.EMV Charts
40. Layout Charts
41.Process Charts
45.Supply Chain Charts
Conceptual Questions continued
46.Lean Operations
47.Manufacturing Strategy Paradigm
48.Services Quality
49.Reengineering
50.Major Constraints of POM
End of the note

Thank you