CHAPTER 1 (CONT)
Are established before the product is
12. Objective of Production
Management
 ‘TO PRODUCE GOODS AND
SERVICES OF RIGHT QUALITY
AND QUANTITY AT THE RIGHT
TIME AND RIGHT
MANUFACTURING COST’.
13. Quality of product is established
based upon the customers need. The
right quality is not necessarily being
the best quality. It is determined by
the cost of the product and the
technical characteristics as suited to
the specific requirements.
 RIGHT QUALITY
14. Manufacturing organization should
produce the products in right number. If
they are produced in excess of demand the
capital will block up in the form of inventory
and if the quantity is produced in short of
demand, leads to shortage of products.
 RIGHT QUANTITY
15. Timeliness of delivery is one of the
important parameters to judge the
effectiveness of production department. So,
the production department has to make the
optimal utilization of input resources to
achieve its objective.
 RIGHT TIME
16.
actually manufactured. Hence, all attempts
should be made to produce the products at
pre-established cost, so as to reduce the
variation between actual and the standard
cost.
 RIGHT MANUFACTURING COST
17. Defined in terms of the mission it
serves for the organization,
technology it employs and the human
and managerial processes it involves.
 OPERATION
18. Categories wherein an
organization grouped operations
as;
 MANUFACTURING OPERATIONS
& SERVICE OPERATIONS
19. Conversion process that includes
manufacturing yields a tangible
output: a product
 MANUFACTURING OPERATIONS
20. Conversion process that involves
services yields intangible output:
deed, performance, effort.
 SERVICE OPERATIONS
21. Converts inputs in order to provide
outputs, which are required by a customer.
It converts physical resources into outputs,
the function of which is to satisfy customer
wants.
 OPERATIONS SYSTEM
22. Defined; operating system is the part of
an organization that produces the
organization’s physical goods and services
 EVERETT E. ADAM & RONALD J.
EBERT
23. Defined; operations system as ‘a
configuration of resources combined for the
provision of goods or services.
 RAY WILD
24. Concerned with planning, organizing,
and controlling the activities, which affect
human behaviors through models.
 OPERATIONS MANAGER
25. Activity that establishes a course of
action and guide future decision-making.
The objectives for the operations subsystem
of the organization, and the policies, and
procedures for achieving the objectives.
This stage includes clarifying the role and
focus of operations in the organization’s
overall strategy. It also involves product
planning, facility designing and using the
conversion process.
 PLANNING
26. Activities that establish a structure of
tasks and authority. Establishment of
structure of roles and the flow of
information within the operations
subsystem. Determining the activities
required to achieve the goals and assign
authority and responsibility for carrying
them out.
 ORGANIZING
27. Activities that assure the actual
performance in accordance with planned
performance. Ensuring that the plans for
the operations subsystems are
accomplished, the operations manager
must exercise control by measuring actual
outputs and comparing them to planned
operations management. Controlling costs,
quality, and schedules are the important
functions here.
 CONTROLLING
28. Operations managers are concerned
with the activities, which affect human
behaviors through models. They want to
know the behaviors of subordinates, which
affects managerial activities. Their main
interest lies in the decision-making
behaviors.
 BEHAVIOUR
29. Represents schematic representation of
the situation, which will be used as a tool
for decision-making.
 MODELS
30. Defined; Operations Management as
the process whereby resources, flowing
within a defined system, are combined and
transformed by a controlled manner to add
value in accordance with policies
communicated by management.
 JOSEPH G. MONKS