BBA 303

Production and
Operations
Management

DEPARTMENT OF MANAGEMENT STUDIES

RDIAS
Topic Outline
A
Definition of Production & Operations
Management

B
Objectives of Production & Operations
Management

C
Scope and Functions of Production &
Operations Management

D Types of Production systems

 Learning Outcome CO (Mapped) KL (Mapped) PO (Mapped)

Learner will be able to

understand about
production and operation
CO 1 KL 2 PO 1
management and
related elementary
concepts.
 WHAT IS PRODUCTION AND OPERATION
MANAGEMENT?
PRODUCTION : THE ACTION OF MAKING OR MANUFACTURING FROM
COMPONENTS OR RAW MATERIALS, OR THE PROCESS OF BEING SO
MANUFACTURED.
+
OPERATIONS: THE ACTION OF FUNCTIONING; AN ACTIVE PROCESS

PRODUCTION AND OPERATIONS MANAGEMENT

IT IS DEFINED AS THE PROCESS WHICH TRANSFORMS THE

INPUTS/RESOURCES OF AN ORGANIZATION INTO FINAL GOODS (OR
SERVICES) THROUGH A SET OF DEFINED, CONTROLLED AND
REPEATABLE POLICIES.

SOURCE : HTTPS://THEINTACTONE.COM/2019/06/16/POM-U1-TOPIC-1-DEFINITION-OBJECTIVES-SCOPE-AND-FUNCTIONS-OF-PRODUCTION-OPERATION-MANAGEMENT/
 OBJECTIVES OF POM
OBJECTIVES CAN BE BROKEN DOWN INTO:

• RIGHT QUALITY,
• RIGHT QUANTITY,
• RIGHT TIME AND
• RIGHT COST

“TO PRODUCE GOODS AND SERVICES OF THE RIGHT QUALITY,

IN THE RIGHT QUANTITIES, ACCORDING TO THE TIME
SCHEDULE AND A MINIMUM COST”

SOURCE: HTTPS://THEINTACTONE.COM/2019/06/16/POM-U1-TOPIC-1-DEFINITION-OBJECTIVES-SCOPE-AND-FUNCTIONS-OF-
PRODUCTION-OPERATION-MANAGEMENT/HTTPS://WWW.MBACRYSTALBALL.COM/BLOG/OPERATIONS-MANAGEMENT/
SCOPE AND FUNCTIONS OF PRODUCTION
AND OPERATION MANAGEMENT
LOCATION OF FACILITIES

PLANT LAYOUTS AND MATERIAL HANDLING

PRODUCT DESIGN

PROCESS DESIGN

PRODUCTION AND PLANNING CONTROL

QUALITY CONTROL

MATERIALS MANAGEMENT

MAINTENANCE MANAGEMENT
SOURCE : HTTPS://THEINTACTONE.COM/2018/02/21/OM-U1-TOPIC-1-NATURE-AND-SCOPE-OF-
PRODUCTION-AND-OPERATION-MANAGEMENT/
 Functions of POM
A Location of facilities: It deals with the questions such as
‘where our main operations should be based?’. It is an
important strategic level decision-making for an
organization

B Plant Layout and material handling: Plant layout refers

to the physical arrangement of facilities. It is also
defined as the ‘art and science of moving, packing and
storing of products in any form’.

C Product design: deals with conversion of ideas into

reality. Every business organization have to design,
develop and introduce new products as a survival and
growth strategy.
SOURCE : HTTPS://THEINTACTONE.COM/2018/02/21/OM-U1-TOPIC-1-NATURE-AND-SCOPE-OF-PRODUCTION-AND-OPERATION-
MANAGEMENT/
 Functions of POM
D
Process design: It is a macroscopic decision-making of
an overall process route for converting the raw material
into finished goods.

E
Production and Planning control: The process of planning the
production in advance, setting the exact route of each item, fixing the
starting and finishing dates for each item, to give production orders to
shops and to follow up the progress of products according to orders

F
Quality Control: It is defined as a system that is used to
maintain a desired level of quality in a product or service. It is
a systematic control of various factors that affect the quality
of the product.

SOURCE:HTTPS://THEINTACTONE.COM/2018/02/21/OM-U1-TOPIC-1-NATURE-AND-SCOPE-OF-PRODUCTION-
AND-OPERATION-MANAGEMENT/
 Functions of POM

G Materials Management: It is primarily concerned

with the acquisition, control and use of materials
needed and flow of goods and services connected
with the production process having some
predetermined objectives in view.

H Maintenance Management: It involves keeping

track of assets and parts. The purpose is to ensure
that production proceeds efficiently and the
minimum amount of resources are wasted

SOURCE:HTTPS://THEINTACTONE.COM/2018/02/21/
OM-U1-TOPIC-1-NATURE-AND-SCOPE-OF-
PRODUCTION-AND-OPERATION-MANAGEMENT/
Types of Production System

Three common types of basic

production systems:

Batch system
Continuous system
Project system or One-shot system
SOURCE: HTTPS://WWW.BRITANNICA.COM/TECHNOLOGY/PRODUCTION-SYSTEM/IMPORTANT-
CONSIDERATIONS
 Batch System

• General-purpose equipment and methods are used to

produce small quantities of output (goods or services) with
specifications that vary greatly from one batch to the next.

• Examples include systems for producing specialized machine

tools or heavy-duty construction equipment, specialty
chemicals, and processed food products, or, in the service
sector, the system for processing claims in a large insurance
company. Note: These are often referred to as job shops

SOURCE: HTTPS://WWW.BRITANNICA.COM/TECHNOLOGY/PRODUCTION-SYSTEM/IMPORTANT-CONSIDERATIONS
 Continuous System

•Items to be processed flow through a series of steps, or operations, that are

common to most other products being processed.

• Large volumes of throughput are expected therefore specially designed

equipment and methods are often used so that lower production costs can be
achieved.

• Frequently the tasks handled by workers are divided into relatively small
segments that can be quickly mastered and efficiently performed.

• Examples include systems for assembling automobile engines and automobiles

themselves, as well as other consumer products such as televisions, washing
machines, and personal computers. Note: often referred to as assembly systems
or assembly line systems and are common in mass production operations.

SOURCE: HTTPS://WWW.BRITANNICA.COM/TECHNOLOGY/PRODUCTION-SYSTEM/IMPORTANT-CONSIDERATIONS
 Project System

• For a single or one-kind of product.

• For example, a building, a ship, or the prototype of a product such

as an airplane or a large computer, resources are brought together
only once.

• Because of the singular nature of project systems, special methods

of management have been developed to contain the costs of
production within reasonable levels.

SOURCE: HTTPS://WWW.BRITANNICA.COM/TECHNOLOGY/PRODUCTION-SYSTEM/IMPORTANT-CONSIDERATIONS
 Summary
• Production is the process by which the goods and services are
created.

• Production function is the basic function of an industrial

enterprise around which all other activities of an organization
revolve.

• Operation management is an extension of Production

Management.

• Different types of production system includes Batch, continuous,

and Project system.
 1. https://theintactone.com/2019/06/16/pom-u1-topic-1-
definition-objectives-scope-and-functions-of-production-
operationmanagement/https://www.mbacrystalball.com/blog
References /operations-management/
2. https://theintactone.com/2018/02/21/om-u1-topic-1-nature-
and-scope-of-production-and-operation-management/
3. https://www.britannica.com/technology/production-
system/Important-considerations