Moduleie-1

Introduction to Production
and Operations Managemnent
Syllabus
Introduction

Meaning of Production and Operations

Differences between Production and
Operations Management
Scope of Production Management
Production System
Types of Production
Benefits of Production Management
Responsibility of a Production Manager
Decisions of Production Management
Operations Management
Concept of Operations Management
Functions of Operations Management
 INTRODUCTION
ement
Introduction to Production and Operations, Management
material
one form of into another
step conversion of
Production involves step by
chemjcal or mechanical
process with
with
a view
converting
to enhance the utility of the
product
raw materials into finished goods or
through
or servicea,
WAYS OF PRODUCTION

Production management deals

bringstogether the 6M's i.e.
Men, Money, Machines,
Management is the
Materials.
Methods and Markets
management of the conversion
prtooducsattsis.fy k Ways of Production

Operations
the wants of the people.
goodsprocess,and
into desired
capital, and management inputs outputs of ) Production by Disintegration
which converts land, labour,
with the design and the operation of systems for
services. It is also concerned
transport, supply or service.
manufacture
) Production by Integration
process of combining and
Production and operations management is the
various resources used in the production and operations subsystem of the torgani
ransfozratmiionn,g
product or services in a
operations management ensure the value added () Production by Service
Production and
Manner as per the policies of the organization. It is that part of an organization, which is controlled
concerned with the transformation of a range of inputs into the required outputs., The set There are three ways of production:
interelated management activities, which are involved in manufacturing certain products, is callet contents of crude oil or a mixture the desired
) Production by Disintegration: By separating the
as production management. If the same concept is extended to services management, then the oil is disintegrated into various fuel oils.
products are produced. For example the crude
corresponding set of management acivities is called as operations management. produced by disintegration.
Similarly salt production is also an example for product
production various components of the products are
MEANING OFPRODUCTION (ti) Production by Integration: In this type of
product. In this process, physical and chemical
assembled together to get the desired
Production refers to the use of any process which is designed to transform a set of input Examples are: Assembly of two wheelers, four
properties of the materials used may change.
elements into a set of output elements. wheelers and so on.
production chemical and mechanical properties of
Examples: Manufacturing custom-made products like, boilers with a specific capacity, (üi) Production by Service: In this type of treatment of metals.
constructing flats, some structural fabrication works for selected customers etc. and without any physical change. Example: heat
materials are improved
manufacturing standardized products like, car, bus, motor cycle, radio, television etc.
OBJECTIVES OF PRODUCTION
The
DEFINITION OF PRoDUCTION essential for the manufacture of products.
Production involves the things which are right quality and
to produce goods services of
According to Ehwood Buta, Production is a process by which goods or objective of the production management is
cost.
created", services are quantity at the right time and right manufacturing
product is established based upon the customers
Production generally refers to the process of creating, 1. To produce right quality: The quality of deterrmined by the cost of the
best quality. It is
and services through various activities and manufacturing,
resouroes. lt 1s a
or generating goods needs. The right quality is not necessarily
suited to the specific requirements.
acivity that inyolves transforming inputs (such as raw crucial economic and industrial product and the technical characteristics as
in
technolog) into outputs (finished products or services) thatmaterials, labor, capital, and 2 To produce right quantity: The
manufacturing organization should produce the products
hold value and utility for capital will block up in the form
consumers. excess of demand the
right number. If they are produced in products.
and if the quantity is produced in short of demand, leads to shortage of
of inventory
the
is one of the important parameter to judge
3 To maintain right time: Timeliness of delivery department has to make the
the production
effectiveness of production department. So,
achieve its objective.
optimal utilization of input resources to
 Production and Operations

right
manufacturing cost:
Manufacturing costs are
attempts should
be made to
established Management
produce thehefoproducts
re the protuet Introduetion to Produetton and Operations Management

Toensure manufactured. Hence, all achieve high productivity. minimize waste, reduce costs, and maintain product quality and
is actually reduce the
variation between
actual and the
standard cost. at pre consistency.
as to
established cost. so
MEANING OF OPERATION
DEFINITIONS OF PRODUCTION MANAGEMENT
depending on the context in
"operation" can have
various meanings
activity. task, or process that is which it is According to Elwood Spencer Buffa, "Production managernent deais with decision-maling
used.
The term
general, an operation refers to a
specific
carried out to related to production processes so that the resuiting goods or service is produced according
goal or outcome. to specification, in the amount and by the schedule demanded and at minimum cost."
achieve a particular mathematical procedure or action
an operation
refers to a
Addition, subtraction, that is Accordtng to A. W. Field, "Production management is the process of plaming and regulating
In
mathematics,
performed on one or more values to
basic
produce a result.
mathematical operations.
multiplication, and the operations of that part of an enterprise which is responsible fot actual transformation of
materials into finished products".
division are examples of refers to a medical
known as surgery)
In the medical field, an operation (also
intervention on a patient's body to treat a procedure in According to E.FL.Brech, "Production Management is the process of effectivety planning
which a surgeon performs
symptoms, or
a physical
achieve a medical objective.
condition, and régulating the operations of that part of an enterprise which is responsible for actual
transformation of materials into finished Products".
alleviate
refers to a planned and coordinated set of According to HA.Harding, Production Managenent is concerned with those processes
context, an operation
In a miitary or security
to achieve a SpeciiC objective. This which convert the inputs into outputs. The inputs are various resources like raw materials,
activities carried out by agroup or organization
enforcement operations, or intelligence-gathering operatione men, machines, methods etc and the outputs are goods and Services".
include military operations, law
In business and management, an operation reters
to the acivites and processes thot Production Management involves Application of Planning. organising. irecting &controlling
organization undertakes to produce goods, provide services, or achieve its goals. It encompasses the production process.
sales, finance, and more.
various funcions such as production, marketing,
a comnuter MEANING OF OPERATIONS MANAGEMENT
In computer science, an operation refers to a specific action or instruction that
program or system carries out. This can include tasks like data manipulation, calculations. data Operations management has a broader scope and encompasses the entire set of activities
storage, and communication with other systems. required to run a business efficiently. This inchades producion, supply chain management,
inventory. management, logistics, distribution, facility managernent, and customer service.
In manufacturing and production, an operation refers to a specific step or task in the
Operations management focuses on optimizing processes across different departments to ensure
production process. It can involve activities such as assembling components, testing products, that the organization's resources are used efiecively to meet customer demands while
packaging, and quality control.
maintaining high levels of quality and efficiency.
In transportation, an operation refers to the process of managing and coordinating the
movement of goods, people, or vehicles from one location to another. This could involve MEANING OF PRODUCTION AND OPERATION MANAGEMENT
logistics, scheduling, and ensuring the safe transport of resources.
Production and Operations Management (POM) is a field of management that focuses on
planning, organizing, coordinating, and controlling the processes involved in producing goods and
MEANING OF PRODUCTION MANAGEMENT delivering services. It combines principles from various disciplines such as operations research,
Production management primarily deals with the processes involved in industrial engineering, and management to ensure efficient and effective utilization of resources in
materials, components, and resources into finished converting a the production of goods and services The primary goal of Production and Operations
designing the products. It includes various stages Du Management is to streamline proOcesses, optimize resource usage, and enhance overall
production process, planning and scheduling production activities, managing
inventory, ensuring quality control, and aim is to
productivity and quality.
overseeing the production workforce. The
 4. 3. 2. Scope1.
iplinary
Approach ality
Function-4. GoodsVs.
Interdisc- Service3. Focus
DIF RENT
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s. 2
acturing
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is manAgenent main Poduct
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ion
typically and with
concerned involves transform
quality concern oriented quality to organizing,
manAgementcontrol,
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with
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whereinvolved methods,
raw associated assurance
of
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isfocus
and
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optimizing of contrtool ing focusesItprocesses PRODUCTION
materials the inventory factorsmanaging|3. production production|2. eiiciently
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1.
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y human clorganizational
ose objachi
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mlessSupplresources,
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es. manufacturing,
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a
to
managing
involves
encompass
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ns different
optimizing morne control,
production, Operations
more.and
SupplServiycemanufact
encompasses
production, processesuringbroader
Operations
OPERATION
chain collaboration It wider
service
approach,
holistic Operations
management,
qualty chain scope
tionsCusantodmer , areas, hospitality, managernent and servicesphysical
focuses functions,
logistics,
and processes
management
takes
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n
anagement range managment not that
Sucmanagement
delivery,
customer manageMent
MANAGEMENT
butManagement
service
h
between on
processes
related includes
also
of
as proccssesmanagnto
finance, indstries isquality.
as
goods services,
inchuding
focusing various

to marketingdif erea relevat well.

ensur requits nd
extends
to
acros ohe

scienceTaylor, Management
The Scientificapproach
progressed largebegan
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replacements skilled replaced. made iron steam byfurniture,personbe
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Industrial
The Introduction

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o earliest
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from major emerged, had
management rural systems.
and materials the States HISTORY
simple, days
have costs much to
spearheaded to offinish.
referred changes areas. grow occurred
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innovations
based provided be of provided for andduring
This each did stronger for and
days. manufacturing,
custom parts,majorflexible loom making
rapidly, not for their began
on to era that greatly
that with generating the OF
Operations
as by What were decrease production revolutionized human
servation, the brought
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gave itmajor
s a shortcomings.
made, tools and
source
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the product, a
PRODUCTION
the
father
efficiency was taking reduced the own which produced goods
more
power
power. 18th century.
1770s
widespread set
incentive as of Management
needed Industrial was durable century
asurement, of place, jobs ofvolume was were thepower
Perhaps such Under
Prior in
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ow goods and
scientific
engineer for for also thanmaking
textile England
as MANAGEMENT
was need
management countlessRevolution increased; slow and according produced to changed that to
changes companies machines
industry. operate in
the
horse-drawnsystem,
a
that
an for products
costly. the most and
management.
analysis and to enlightened custom-made and machinery.
simple the time,
therecostly. And using significant face spread
people a Ample
and
inventor the theory boost to to
werecustomer craft wooden was
it
goods
management who expand. were
Another
when The
supplies
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to
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Frederick
and and the
no parts made production:
production
of common were
rest
morepractice were goods.
development Instead, specifications. machines,
machines new factories.The these or
produced
believed economies
shortcomingfailed, by of a of
of attracted coal was piece for Europe
ofWinslfactories.
ow systematic had Factories skilled highly
forever
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od
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portions study.
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able
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ng
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an do tFord'
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American semiskilled this
of cars. part was
Principles
Eventualy, th e
selecting each
for production
contributions great between
line,
principles Model of a used principles anscientific Taylor emphasized job.
incentives.
million applied thought
angeable mass by In
the organizational
industrialist, industrial also compensation.
taking which an system the of andTaylor
inventor workers
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Scientific management
dollars Taylor's the training
advantage which was espoused
in
had for
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century, motion public maximizing
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parts
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and
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of automobiles to who principles were
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erchangeable a Frederick the applying output. workers,
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tothspecialized,
e efficiency that scientific this testify
ardize impact testified that often to was management
concept of the were principles Gantt movemen, achieve companies They and
of of Winslow rewards could published. in th e
standardized
mass referred unfairly inc the
important on company management structure 1911, in
of just in charts. halls separating best
parts,
to and
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operations,
parts
sembling Taylor. coming congressional of a toapplied to wide the
mchang of did
increase
output wayshould
sometimcs often had scientific and motivate The not detail
soconcepts. acceptance
as same abuse
goods the
Congress, managemit acivit to
costly, He trouble techniques encouraged always
that to
methods Ford into to publicity responsible be to
the also year perfomn be
muskets
any are management. incrediblyfather the identify be
the
attributed Perhaps vogue workers, workers
equipmenL automnotrve introduced keeping adopted hearing followios
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his

The important methodsachieving

development
an unskilled
living services.Assembly
associated Lines viii) Introduction
work, theories,
employees busband, job work
revealed1930s,worker
and critical
operations.
leanproductivity,
design. Human Assembly thatassigned
for anThe during A time could didbatch
Theory design,
Whereas of automobile, second
and for thatElton
fatigue.
focusing peopleworkers. to high with But virtuallydoing Wealth
production
and also
not
of
which
improving of the have parts to
have view Y Mayo Lillian theRelations roleproducedassembly many to concept cost. be
Production
in in the in volumes
what Henry
importance
lines one of
In human no used would to
to Frederick
work. the addition the on scientific
in
industrial By tasks,
skill
Nations
of is Ford be
be conducted Gilbreth, a we
Ford's
are divided used and for
the Movement affordable
newer lines, those custom fit
1960s.
productivity. following relations using now of one was and accomplished
trolledTheory to human
(1776). by by
replacement any and
nations. producers standardized of required. tasks.
Hertzberg the management
a
automobile
refer of thus up Ford using automobile fitted,
studiespsychologist approach assembly assembly Operations
These products,
several into
Division
movement required was newly
X, physical decades,factor to Unlike
ewarded theories As as a thisparts. as
refinedDuring
on at toyou industrialized production,
lines, wereproducts.
approaches
lines theto series the
developed
they
coming
the the inmovemnent
and skill, craft division of by Management
The
negative the and therework. emphasized
and
operations will
able
to
production,
ofstandardizing were
labor
represented 1940s,
and in Hawthorne in
they business with many result down
thetechnical was the
learn
the
to
As they
meansprocessesof in
Many heavily division craft the
punished achieved nations.such,
process small
labor, was
called later
end, 1950s. much wife the successfully were and that assembly
production.
Abrahamaspectsdivision of in
production where which tremendousthe a
the they of tasks, to
assumedto emphasis importance of
her emphasized lean the
greatly
tremendous
By the society
labor operation, produce
an
gauges
twDouglas
o Frank each
get studies production book, shifting hallmark
played and Adam line.
Maslow of of employ is the used The
them that ends increased hard of worker
individual Smith uniformdecrease This
McGregor work,Western on Gilbreth, ofthe
in
assembly
from a goods tasks
such standardized
to
workers of motivation. the gains large pivotal of to to mcant
developed
the worker
the technical or, mass
craft overstate. and
were was wrote measure
as parts.
do Electric. human the workers
in
spectrum 1920sworked more lines numbers in production, responsible assembling assembly that
good added standard production role delivering so about
do motivation industrial narrow parts parts parts
motivational During His dealt elementaspects generally, also in Often
work not Theory with the
are in
studies with her play
ike bow of of of
the in of
 Prodeetion and Prods MANAGEMENu
troa PRODUCTION right quality,
right
and in
some other
industries,ofhertntils OBJECTIVES OF produce gDods of the
indstryanpm8ch Theory Y, on the management is to
prndnetion
Butomobile that mentel aspects of wort enê
and becom obfective of minimum cost
the
rethink
andadvergariel The main right tíme
nd at capacity.
commonin themto physical environment, qrantity. at the production
attitude
quite
ws cmpetition
forced
workers
enjoythe
appronch
an
resulted n nore cOoperative
approach with
spirit whereas
In he 1970,th
To ensre optimm
utilisation of available
resources at optimai
cost.
threat of
global
assumed that
Theory X wonkers
anda
Japancse such fecatures To ensre
optimumuse of
required qusity s
per scheduie.
the
spectrurn,
wort
The empOWered
reuedin which
combinedthe consensus
building, and the traditions required quantities of
ommittedto specialists, and To produce in
TheoryY
approach TheoryZ
added problem
solvimg,
and
cmployment,
employoe short-term
individunl decisien iv)
To consider the
minimum lesd time.
capecity utilization.
Ouchi v)
Willianemployment, maximum
featres
tifetime pproech that vi) To ensure the
conditions.
flexible working costs.
Westernandrespnonsibility.
mAking development of
several quantitative To consider md Tintenance
Sconce vA) cost, labor cost
Renent
ccomnaied by
the
1915- a mathematical ensure minium raw material
Dectsion
Meels nd
movementws
the frst
models in
Telephone Labs, HR
model for vi)) To
material handling amd
storage,
inspection.
fctory of
developed one coworkes at
Bell
Dodge, H. iK) To consider minimum
The
techniqus. F W
Hamis
1930s. tree procedures for sampling and quality control. n To improve productivity
of all inputs.
the groundwork
manement In statistical for statistical-
DVentory
GRomig.
nd W
Shewhart
developed
conducted studies that
provided the sampling SCOPE OF
PRODUCTON MANAGEMENT
1935, L H. C Tippett concepts such as:
industry. However, the
onset of management concentrates on three basic
WIdely used n Scope of prodction
theorv. were Dot prosSures on manufacturing output
quantitative models tremendous
At first, these that The wr generated achieve advancements in the military Scope of
World Wr II
chaned cfiorts to
disciplines combined refne quantitative tools for decision Produetion Management!
from mny to develop and
and specialists After the wa, cfforts forecasting inventory management, project
and in mamufcturing modcs for
resuiting in decision
making continued, operations manaeemcnt.
of ) Procuction Engineering
Management, and other arcas regarded: in d
science techniques were highly
During the 1960s and 1970s, management computers and user
widespread use of personal
1980s, they lost some favour. Howeve, the the popularity of these
friendly software in the workplace contributed to
resurgence in i) Prochaction Plnning
techniqucs.
The Infiuence of Japanese Mancturers
) Prochction Control
Amumber of Japanese mamufcturers developed or refined managenent practices that
increased the productivity of their operations and the quality of their products. This made them i) Production Engineering
very competive, sparking interest in their approaches by companies
approaches cmphasized quality and continual improvement, worker teams and outside Japan. na Production engineering is a combination of manufacturing technology with management
achieving customer satisfacion. The Janancse can be credited with empowermenl, science. A production engineer typically has a wide knowledge of engineering
practices and is
revolution" that occured in
industrialized countries, and with generating spawning De g aware of the management challenges related to
time-based management (just-in-ime widespread interest in production process in the production. The goal is to accomplish the
producion). smoothest, mostjudicious and
engineering encompasses the application of castings, joining most-economic way. Production
processes, metal cutting and tool
 Production ahu
gement Introducton to Production and Operations Management 13
12
systems, automation, jigs and fixtures, and
metrology, machine
tools, machining substantially with manufacturing dies and Helps to face competition: Production management helps the firm to face competition in the
engineering
overlaps 5
design, also
Productionengineering market. This is because production management produces products of right quantity, right
mould design.
andindustrialengineering. quality, and right price and at the right time. These products are delivered to the customers as
iD Production Plannng per their requirements.
means to fix the production goals
and to estimate the resources which
Production planning
6. Optimum utilisation of resources: Production management facilitates optimum utilisation of
these goals. It prepares a detailed plan for achieving the production goals resources such as manpower, machines, etc. So, the fim can meet its capacity utilisation
achieve
are required to
in time. It forecasts each step in the production process. It objective. This will bring higher returns to the organisation.
cconomically, eficiently and
which may arise in the production process. It tries to remove these 7 Mininises cost of production: Production management helps to minimise the cost of
forecasts the problems,
causes of wastage
problems, It also ties to remove the production. It tries to maximise the output and minimise the inputs. This helps the firm to
achieve its cost reduction and efficiency objective.
) Production Control
8. Expansion of the firm: The Production management helps the fm to expand and grow. This
Production control activities involved in handling materials, parts, assemblies, and is because it tries to improve quality and reduce costs. This helps the firm to earn
uhassemblies, from their raw or inittal stage to the finished product stage in an organized and higher
profits. These profits help the fim to expand and grow.
efficient manner. It may also include activities such as planning, scheduling, routing, dispatching.
storage, ctc.
9 Higher standard of livig: Production management conducts continuous research and
development (R&D). So they produce new and better varieties of products. People use these
products and enjoy a higher standard of living.
IMPORTANCE OF PRODUCTION MANAGEMENT
10. Generates employment: Production activities create many different job
The importance of production management can be summarised as follows: opportunities in the
country, either directly or indirectly. Direct employment is generated in the production area,
1. Accomplishment of firm's objectives: Production management helps the business firm to and indirect employment is generated in the supporting areas such as
achieve all its objectives. It produces products, which satisfy the customers' needs and wants, marketing, finance,
customer support, etc.
So, the firm will increase its sales and it helps to achieve its objectives.
l1. Improves quality and reduces cost: Production
2. Reputation, Goodwill and Image: Production management helps the management improves the quality of the
fim to satisfy its products because of research and development Because of large-scale
production,
customers. This increases the firm's reputation, goodwill and image. A good image
helps the economies of large scale. This brings down the cost of production. So, consumer there are
firm to expand and grow. reduce. prices also
3. Helps to introduce new products: Production management helps to
introduce new products in 12. Spread effect: Because of production, other
the market. It conducts Rescarch and sectors also expand. Companies making spare
Development. This helps the firm to develop newer and parts will expand. The service sector such as banking,
transport, communication, insurance,
better quality products. These products are successful in the BPO, etc. also expand. This spread effect offers more job
market because they give ful opportunities and boosts economy.
satisfaction to the customers. 13. Creates utility: Production creates Form
4
Supports other functional areas: Production management Utility. Consumers can get form utility in the shape,
supports other functional areas in size and designs of the product.
an organisation, such as marketing, finance, and Production also creates time utility, because goods are
personnel. The marketing department will available whenever consumers need it.
find it easier to sell good-quality
products, and the finance department will get more funds due 14. Boosts economy: Production
to increase in sales. It will management ensures
also get more loans and
modernisation. The personnel department will be able toshare capital for expansion and effective production of goods and services. This leadsoptimum utilisation of resources and
to speedy economic growth and well
manage the human resources being of the nation.
effectively due to the better performance of the
production department.
 as:
) ) assets Plant 2.
Delivery
datesvi) Quantity
v) iv) iñQuality
) )
Production makes needs
Design Future
of To Production
costs ReliabilityPerformance
the make the Marketers
and
and demand
business. andrequiredwants. Five
layout product,
Operations Ps
(volume, in
of In products The a ofProduction
factory, determining plant business
role
timing) of Management Flve p
in of Produettof
quipment, some Production must
accordance hagement Management FIVE
which kind P'S
ensure
therefore OF
offices plant is are
with and that
needed.
to Operations People 5.
Programmes 4. Process3. Plant 2.
PRODUCTI
given ON
use, concerms the a Product 1.
below:
This plan. business
management
will areas is ProduCt

comprise
such ensure
tosells
MANAGEMENT
must products
as:
the that
consider
bulk the that
business
of meet
areas
the
customer
actually
sucn fixed

Communicationvi) V) iv) iü) i) i) 5.

related i) factors
suchas: and
producedMaintenance
requirements
Programmes vii) costsvi)
Production v) iv) ü) i)
process, vi) V iv) i ü)
Introduetion
Unionization
Leadership
motivationand Worktraining
Safetyandsalaries
Wagesand Production PeopleAvailability
Purchasing production
The Safety LayoutVariousAvailable
skills
decisions Available
capacity ThereProceee
Environmental HealthandProductivity
Need
conditions or
oftypes series are for
supplied to
depends patterns plant many (and fo
wil of of safety Produetion
and
consider storage, and of issues costs
production processes.
programme different (particularly reliability
on (e.g. customers.The equipment of)
(e.g.
the Transportation, lead
people, maintenance and
They ways creation of
following Operatlens
time), concerns the equipment
whose will of
producing operation
of
Cash decisions
made consider.
areas:skills, the waste
flow, dates Management
of
experience a products)
equipment)
and product.
programme
about times
Management
and
of
motivation the
products
will must
people
vary.
Key be choose
infhuenced that
are the
to best
by be
 Production Ml
19
Introduetion to Production and Operatlons Management
PRODUCTION SYSTEM
Job shop production are characterised by manufacturing of one or few quantity of products
organization is that part, which produces products of an designed and produced as per the specification of customers within prefied time and cost. The
system of an
The production
activity whereby resources, flowing within a defined system, are combined distinguishing feature of this is low volume and high variety of products.
organization. It is that add value in accordance to the policies
in a controlled manner to communicated A job shop comprises of general purpose machines arranged into different departments.
and transformed
by management. Each job demands unique technological requirements, demands processing on machines in a
certain sequence.
Classification
of A Job Shop Production
Production

Dermand PRODUCTION Products

B. Batch Production

Information SYSTEM C. Mass Production

D. Contimuous Production
Rw
Features of Job Shop Production
Materials Resources
and The features ofJob-shop production system can be sumnarised as follows:
Parts 1. Job-shop production system helps to produce variety of products.

2. It utilizes of general purpose machines and facilities.

CHARACTERISTICS OF PRODUCTION SYSTEM 3 Job-shop production system requires skilled operators.
The production system has the following characteristics:
4. Large inventory of materials, tools, parts.
5
1 The production system transforms the tangible inputs into useful outputs. It assists for detailed planning is essential for sequencing the requirements of cach product,
capacities for each work centre and order pioriies.
2. It does not function in isolation from the other organization system.
3. The system afeedback about the activities.
Merits of Job Shop Production
The merits of job shop production are as follows:
4 Production system is a planned activity.
1 Job-shop production systern helps to produce variety of products.
5. Production system is essential to controland improve system performance.
2
Job-shop production system requires skilled operators, as each job gives those learming
opportunities.
TYPES OFPRODUCTION
3 Full potential of operators can be utilised.
The production can be classified as follows.:
4 Opportunity exists for creative methods and innovative ideas.
(A) Job Shop Production Demerits of Job Shop Produetion
Job shop production refers to the manufacturing facility that produces several The demerits of job shop production are as follows:
different
products in smaller batches. A machine shop is a type of job shop. 1 Job-shop production system requires skilled operators which lead to higher operating cost.
 Demerits 6. 5. 4. 3. 2. 1.
The Merits 5 4
4. 3. 2. 1. The 3. 2. 1 maiThen
demerits Flexibility
Job Lower Cost It merits
It The The
Features limited 4
3.
Work Its promotes helps of The Is It producedProduction
Batch B) 2. 2
Higher Production plant has
material satisfaction
of per manufacturing
ofBatch change plant features ofnumber Bstch requirLar ement
spsce
ger s.
in investment for batch shorter in
setprocess Batch
of unit and and Batch Production HigherJob-shop
to functional better Production ofmachinery of
product
groups ion
of level
up planninghandling batch accommodate is prouction machinery
set production
costs Production lower Production sales.
batch awaiting
products and planning prodvcoftion
exists lead up
inventory production in utilisation refers inventisory
due plant is proauction produced not
and is for specialisation.as time
required set are ina in to
complex system runs. syatstem
to control compared flexible. the complicated.
is
operators. and and of and up al
frequent are continuous
higher machinery. plant regular
followe:areas intervals at
manufacturing
as process are cost for Used 1S levels leads to
because
is
complex. follows: to and as processing are
And higher
changes
compared job follows: for hence
number machinery. lower stream. It
of order the cost
in iregular production process higher
changes.due to
to production. as the
set of compared and is
continuous products. next inventory
up. and characterised
stocked frequent
batch. of
longer which
to item
production. job cost. set
in components
flows. order up
a by
batch the
production.
manufacture
ot
goods

of are
8 3. 2.1Peatures
The procedures. of perts
5. 4. 3 2. 1. TheMertts 7. 6. 4
4 3 2. Demertts
1. The interchangeable Production
MansTntrodeeton
C)
Shorter output
rates.
t and Mass featres
This Manufachring and
inventory.
process
Low Less Mass Mass merits Production Flow
Perfectly Lower
The The High Linedemerits Production of leads of machinery
breakdown
cycleinvestment design of skilled production
production ofMass of producion system ofMass Mats
incycle to to
ofMass mass materiais,balanced process mas
time Productionplanning the
mass and operstors leads Produeton produetion
parts, Protietfon
needsProduction production time large produetion or
is of in production operation leads leads contributes for processing t
production
components inventory. of large-scaie is
oDe
determined production major and volume
are production. standardisation either
machine to to is and
change cost required. bigher higher are: control can a
are of special ystem a of Dperntons
byacilities. per lines. products. beproduetion, wholly
uniform
the will capacity rate is nd ummartzed
withfolows: as unit simple. parts of
slowest stop of purpose of
the is sutomated
mamufacturing
producion
nilisation is produet
an changes low. nd protucts Mensgement
cotinaous
operation. entüre machines s the
md
follow:
in high-volume process in
production due with process
the based large
to and having
procuct reduced
line wihout quantities
or
sequence.
ine. balancing higher assembly
on &
design. cycle principies series
Sny
time. prouetion using
back line. of
uch short,
interchangeable
racking
capacities as
repetitive
the
use
 Introduetton to Produetton and Öperations Managememt
oduction
Continuous production is & method used to manufacture, produce, or process material,
D Cont company are not necessarily the highest quality or lowest price available but are instead the
production is called a
Continuous continuous process or a
continuous fo materials best suited for a company's production model. Strong production management
interuption. fluids that are
dries bulk or being departrments are able to find dependable suppliers who offer just the right materials.
without
process because
the
materials, either
chemical reactions or subject to mechanical or heatprocessed continuousk
is

in motion,
undergoing treatment. Benefits of Production Management
Production
Continuous
Featuresof
ofcontinuoS production area are as follows:
The)featres 1. Availability of raw materials
Continuous Prouction offers plant and equipment with zero flexibility.
1.
computerized.
2 Material handling is fully
2. Managing the production process
3 Process follows a predetermined sequence of operations.
4. Cormnonent materials cannot be readily identified with final product
3. Ensure customer satisfaction
5.
Planning and scheduling is a routine action.

Mertts of Continuons Production

4. Contributes to the profitability of a company
The merits of contimuous production are:
1. Higher rate of manufacture with reduced cycle time. 2. Managing the production process: Managing the production process is the most important

2
function of a production management department. The department must decide how many
Higher competence utilisation due to line balancing.
workers are necessary, which equipment should be used, and what process will provide the
3. Standardisation of product and process sequence. best product to meet customer needs. A strong production management department will
4 Material handling is completely automatic. streamline the production process so that it costs the least amount of money while still
maintaining the necessary level of quality.
5. Person with limited skills can be used on the production line.
3. Ensure customer satisfaction: By ensuring a quality product, keeping costs low and delivering
6 Unit cost is lower due to high volume of production. products in a timely manner, a successful production management team helps a company
Demerits of Continuous Production attract and retain customers. Adding to a company's customer base brings in profits and is the
primary benefit of efective managenent of the production process.
The demerits of continuous production are as follows: 4 Contributes to the proftability of a conpany: Because efective production management
1. Flexibility to contain and process number of products does not exist. contributes to the profitability of a company, it lends that company an image of success and
2 The investment for seting flow lines is high. contributes to investor confidence. Fortune 500 companies understand this principle better
than most businesses. By attracting investors, a well-managed company can attain more
3 Product differentiation is limited.
capital, allowing it to further improve or expand its business. In the final analysis, strong
production management makes a business successful because it attracts money through both
BENEFITSOF PRODUCTION MANAGEMENT profits and investment.

The advantages of production management are as follows:

department is able to analy
1. Availability ofraw materials: A strong production management
necessary for produ
the different options available for the raw materials and resources
mater
and to procure materials of the right quality and at the right price. The optimal
 me
Introduction to Production and Operations Management
RESPONSIBILITY OF PRODUCTION MANAGER
2. Resource Allocation: Allocating labor, equipment, and materials effectively to different
Responsibility of Production Manaper production tasks and projects to ensure optimal utilization of resources.
3 Quality Control and Assurance: Implementing and maintaining quality controlmeasures to
ensure that products meet or exceed quality standards. This involves setting quality
ProductionPlanning and Scheduling benchmarks, conducting inspections, and addresing any quality-related issues.
4.
Process Improvement: ldentifying areas for process optimization and efficiency improvement.
Resource Allocation Implementing strategies such as Lean, Six Sigma, or other contimuous improverment
methodologies to streamine processes and reduce waste.
5. Inventory Management: Managing inventory levels to ensure that materials are available when
Quality Oontrol and Assurance needed without excess stockpiling, which can tie up capital and increase storage costs.
6
Health and Safety Compliance: Ensuring that all production processes and activitics comply
with safety regulations and guidelines. Creating a safe working environment for employees is
Process Improvenent a critical responsibility.
Equipment Maintenance: Overseeing the maintenance and repair of production equipment to
minimize downtime and ensure that machinery operates eticiently.
Inventory Management 8. Supplier Coordination: Collaborating with suppliers to ensure the timely delivery of raw
materials and components. Building strong relationships with suppliers can hep mitigate
6. Health and Safety Compliance potential supply chain disruptions.
9. Budget Management: Managing the production budget, inchuding labor costs, materials,
equipment maintenance, and other related expenses. Ensuring that production stays within
Equipment Maintenance budgetary constraints.
10. Team Leadership: Leading and supervising production teams, inchuding hiring, training, and
evaluating employees. Motivating and guiding the team to achieve production goals and
Supplier Coordination maintain a positive work environment.

9 Budget Management DECISIONS OF PRODUCTION MANAGEMENT

10. Team Leadership
The specific responsibilities ofa Production Manager can vary
based on the industry and
company, but here are some common responsibilities:
Production Planning and Scheduling: Developing production
customer demand while optimizing resources, capacity, andschedules and plans to meel
coordinating with other departments to ensure timely availability ofefficiency. This involves
materials and resources
Production management involves making a wide range of decisions to ensure efficient and
effective production processes. These decisions span various aspects of operations and have a
significant impact on a company's overall performance. The key decisions in production
management:
1. Production Planning
a Determining production schedules and priorities to meet customer demand.
b) Selecting appropriate production methods and technologies.
c) Allocating resources like labor, materials, and equipment to different production tasis.
 b)
Scheduling
a) 10. b) a)
9. b) a) 8. b) a) 7. b) a) 6.
Employee Equipment Supplier Improvement
) Process
a) 5.
cidingCreating Production
expenses.
MalkingAnalyzing Identifying
Deciding Deciding goals.
Evaluating Deciding
Selecting efñciency.
improve a) b) a)
Choosing
Identifying nmining Oulity 4, Mngement
Inventory 3.
Deciding DecidinSetg ting Capecity
Planntng
a) 2.
and
on decisions
production onTrainingwhether on and appropriate and Control EvaustingDeciding
Cost training
the and
Vendor areas on inwhenventory
shift production workforce
Technology evaluating inspection
Analysis selecting frequency for
quality nd whether theon
edules, to and to and
schedules reduce needs invest Management methodologiesprocess Asurnce how levels
costs, Management
size, suppliers
st
and andards opttoimal
production tor expand
for in Investment and much
vertime, costs optimization testng raw production
that productionautomation,
including hiring, quantity and to
a capacity
materials,
reorder
optimize while based benchmarks
training, such Procedures
and equipment capacity
maintaining of on to or
direct employees. robotics, as and work-in-progress,
holidayresource ordersfactors Lean, outsource
and waste to for maintain demand.meetto
materials,perfomance and
from like Six ensure
roduction or reduction. products.
utilization quality. Sigma, productioncurrent
othertechnology suppliers.quality,
products balanced
labor, advanced or and futureand
plans. and evaluation. reliability, Total to
that meet inventory.finished third
minimize overhead,
technologies. align Quality
specifcations. parties.
and goods.
and with cost. Management
downtime.
operational production
to
8 7 5 4 3 1 Management Considerations
b) a) 13. b) a) 12. b) a)Introduction
Crisis15. Environmental
a) 14. 11.
importanceThe 6 2. a)
Maintenance New
Supply Deciding
DecidingDetermining
DecidingDetermining
management.
EnhancementProper
cash To
Proper
Improvised To To
machines. To disasters, processes.Making Evaluating
Making production
the
this WhatTowards Produet
have utilize have improve
group Chain
utlization
proper decisions decisions on on how to
Customers:
mater its less or options Production
of of sourcing maintenance
when and thIntroduetion
e
plant
material defects/noOBJECTIVES the supply Decisions to
operation of feasibility
people. goesIMPORTANCE integrate
Production control of and productivity to to for to Repairs
Productionhandling chain strategies, repair
These
on address adopt
transportation,
on machinerydefects. schedules and
management
to interruptions. or and new
call are raw sustainable Operations
staff equipments. by replacecost-effectivenessproducts
materials, space. unexpected such
the the OF better OF
most with effectively and
five OPERATIONcan OPERATION warehousing, as equipment
respect utilization practices local strategies into Management
operationsobvious be semifinished disruptions
and or existing
summarised to
people efficiently. gdobai to of
their of and nd ensure producing
performance resources production
MANAGEMENT salary,
wagesetc. goods MANAGEMENT ike reducedistribution.
suppliers.
who as equipnent
wifollows:
l equipment new
and like the processes.
objectives be finished environmental products.
affected men, relablrty.
breakdowns,
natural
apply goods. material,
by
primarily any impact
business. methods,

to of
 TondsSpiers: Operations can haye a major impact on suppliers, both on how th
Introduction to Production and Operations Management 21
on how effective they are at supplying the
themselves, and operation.
prosper
Shaeholders Better e operation
the is at Proces selectlon and planning: Selection of process involves taking decisions about
producing goods and services,
) Tonnds
whole business is to prosper andshareholders will be one of the major the mon technology, machines and equipment. Process planing, detailing the stages of the process,
likely the
of this.
Similarly,
beneficiari gives the idea of optimum automation and mechanization.
ii) Location facilities: It is the most important facility. As it looks for a long term decision, a
b) Tonds Eploees: are moreemployecs will be generally better off if the Wrong decision can makes it pay a lot. To select that particular location where distribution
prosperous; if only they ikely to be employed in the future.
However company i
cost and production cost is less and it is possible only with the help of operations
responsibilities to employecs go far beyond this. It
includes the operation
general working condition management.
which are determined by the way the operation has been designed. iy) Layout and material handing facilities: Layout means positioning of machinery. The
Trwrds Society: Although often having no direct economic connection with the machines should be so arranged that the flow of production remains smooth. There should be
individuals and groups in society at large can be inpacted by the way its Company, a proper choice of material handling equipments.
operation managen
behave. The most obvious ezample is in the environmental responsibility exhibited by oneni ) Capaciy plansing: Capacity refers to aleveil of output of the comversion proces over a
ManagcIs. period of time. Process industry creates challenging problems in capacity planning, requiring
in the long run, expansion and contraction of major facilities in the conversion process. Some
SCOPE OF OPERATION MANAGEMENT tools that help in capacity planning are marginal costing, linear programing etc.

FUNCTION OF OPERATIONS MANAGEMENT

Scope of Operation Management
The functions of operations management:
1. Process Design and Improvement
Product selection and design
Operations managers are responsible or designing and improving the processes that
transform inputs (such as raw materials, labor, and capital) into outputs (goods or services).
n Process selection and planning They aim to streamline and optimize these processes to enhance efhciency, reduce waste, and
improve quality.
2. Capacity Planning
Location facilities the
Operations managers assess the organization's production capacity and plan for
demand. This involves
appropriate level of resources needed to meet current and future
determining the right balance between overcapacity and undercapacity to avoid production
iv) Layout and material handling facilities
inefficiencies.

3. Supply Chain Management

v) Capacity planning materials, information, and
Managing the supply chain involves coordinating the flow of
to the organization and then to customers. Operations managers work to
services from suppliers
The scope of operations management can be summarised as follows: ensure a seamless and eficient supply chain to minimize delays
and disruptions.
efficient or ineficien
Product selection and design: The product selection makes our system 4. Inventory Management
product keeping the mission and overall objectives
So it is very important to select right non-competitive and Operations managers must strike a balance between
maintaining enough inventory to meet
mind. Design is the most important thing as it makes competitive or demand while minimizing carying costs. Effective inventory
management helps avoid stockouts
fulfil the requiremeit
is used operation in management to find suitable design to and overstock situations.
controlled cost.
 Production andOPeruOs Maageme

Tntroduetlon to Production and Operations Management

supplierS, both on how
Operations can have a major impact on
Towards Sppliers: supplying the operation. ) Proces selection and planning: Selection of process involves taking decisions about
themselves, and on how effective they are at services, the mo
prosper and technology. machines and equipment. Process planning, detailing the stages of the process,
operation is at producing goods
) Towards Shareholders: Better the shareholders will be one of the major beneficiari gives the idea of optimum automation and mechanization.
prosper and
likely the whole business is to ii) Location fucilities: It is the most inportant facility. As it looks for a long term decision, a
of this. is wrong decision can makes it pay a lot. To select that particular location where distribution
generally better off if the company
Towands Employees: Similarly, empioyees will be future. However operation cost and production cost is less and it is possibie only with the heip of operations
ty) likey to be employed in the
prosperous; if only they are more It includes the general working conditions
management.
go far beyond this.
responsibilities to employees iy) Layout and material handling faciities: Layout means positioning of machinery. The
operation has been designed.
which are determined by the way the the company
machines should be so arranged that the flow of production remains smooth. There should be
no direct economic connection with
Towands Society: Although often having way its operation managers a proper choice of naterial handling equipments.
be impacted by the
individuals and groups in society at large can responsibility exhibited by operation ) Capacity planning: Capacity refers to a level of output of the conversion process over a
environmental
behave. The most obvious example is in the period of time. Process industry creates challenging problems in capacity planning, requiring
Managers. in the long run, expansion and contraction of major facilities in the conversion process. Some
tools that help in capacity planing are marginal costing, linear programming etc.
SCOPE OF OPERATION MANAGEMENT
FUNCTION OF OPERATIONS MANAGEMENT
Scope of Operation Management The functions of operations management:
1. Process Design and Improvement
Product selection and design
Operations managers are responsible for designing and improving the processes that
transform inputs (such as raw materials, labor, and capital) into outputs (goods or services).
Process selection and planning They aim to streamline and optimize these processes to enhance efficiency, reduce waste, and
n
improve quality.
2. Capacity Planning
i) Location facilities
Operations managers assess the organization's production capacity and plan for the
invoBves
appropriate level of resources needed to meet current and future demand. This
iv) Layout and material handling facilities determining the right balance between overcapacity and undercapacity to avoid production
inefficiencies.

3. Supply Chain Management

V Capacity planning and
Managing the supply chain involves coordinating the flow of materials, information,
and then to customers. Operations managers work to
The scope ofoperations management can be sumnarised as follows: services from suppliers to the organization
ensure a seamless and efficient supply chain to minimize delays and disruptions.
Product selection and design: The product selection makes our systerm efficient or inefficient
So it is very important to select right product keeping the mission and overall objectives 4. Inventory Management
enough inventory to meet
mind. Design is the most important thing as it makes competitive or non-competitive and Operations managers must strike a balance between maintaining
management helps avoid stockouts
is uscd opcration in management to find suitable design to fulfil the requirement w demand while minimizing carying costs. Effective inventory
controlled cost. and overstock situations.
 Production and Operations
Managemen Tntroduetion to Produetion and Operations Management 29

Management
Function of Operations 8. Lean and Six Sigma Implementstion
Operations management oftern involves applying principles from Lean and Six Sigma
methodologies to identify and eliminate process inefficiencies, reduce defects, and improve overall
Process Design and Improvement process performance.

ADVANTAGES OF OPERATIONS MANAGEMENT

2. Capacity Planning
The advantages of operations manogement are given below:
Smooth operadon: Operations management focuses on the tools md techmiques a
3. SupplyChain Management manufacturing firm uses to ensure a smooth, effective production process. If the company
provides services, operations administration indicates to top leadership the factors that can
prop up customer loyalty and sales.
4.Inyentory Managenment Better proftabiliyy managemeNnt: Sound operations management causes corporate leadership
to challenge conventional wisdom or enployees' sense of what's operationally correct. n
Quality Oontrol and Assurance fhct, companies with experienced, competent operation managers e generaly adapt at
monitoring their revenues and expenses.
iti) Competitive Advantage: Businesses adequately manage their operations to get a handle on key
6.Resource Allocation internal and external fact¡rs. Internal factors inclode operating policies, intellectual capital and
the average attrition rate. This reflects the number of employees leaving as a result of
resignations, retirements and deaths. Forced workforce reductions, such as terminations, do
7.Scheduling and Production Planning not count as attrition-rate components. Intellectual capital represents various abilities, expertise
and knowledge that a fim has gathered over time. Extemal factors that operations managers
heed inchude the state of the economy and rivals' strategies. By heiping a firm understand its
Leanand Six Signa Implementation
internal and external conditions, operations management improves the company's competitive
standing. This is because the business gets a better understanding of its operating environment
5.Quality Control and Asurance and can adapt its tactics more effectively to changing conditions. Marketing specialists use the
Ensuring the quality of products or services is a critical function of operations management. SWOT concept strengths, weaknesses, and opportunities, threstso describe this analytical process.
This involves implementing quality control measures, continuous improvement practices, and i) Manufacturing Edge: Operations management allows a manufacturing fim to change or
adberence to industry standards to deliver consistent and reliable outcomes. improve the way it produces goods, as well as how it stores items such as raw materials,
6. Resource Allocation work-in process merchandise and completely finished products. This important benefit helps
the manufacturer prevent deterioration in debt affordability, which may happen if the firm
Operations managers allocate resources such as labor, equipment, and materials to different incurs losses and cannot repay its existing liabilities. Manufacturing tools used in operations
projects or tasks based on priorities, demand, and availability. Eticient resource allocation is key management incude computer-aided production software, defect-tracking programs,
to optimizing productivity and cost-effectiveness. warehouse management software and process re- engineering applications.
7. Scheduling and Production
Planning Regulatory Compliance: By studiously analyzing operating activities, corporate management
waves good-bye to the days of hefty government fiñes and adverse regulatory decisions.
Developing production schedules and plans is essential to ensure timely delivery of Department heads and segment chiefs set adequate internal controls to make sure rank-and-file
or serviccs.Operations managers create schedules that consider capacity, resource producs
and demand fluctuations. availabi personnel perform tasks in accordance with the law.
 2 Right Quantity: The manufacturing organization
The disadvantages of operations management are given below: If they are produced in excess of
should produce the products in right number.
Operations management depends on Many different components within the organizati demand the capital will block up in the form of
and if the quantity is produced in short of inventory
working together to achieve success. demand, leads to shortage of products.
3. Right TIme: Timeliness of delivery is one of the
) Operations management implerments an effective plan, if operation management does not cary important parameter to judge the
effectiveness of production department. So, the production department has to make the
out the plan properly, the plan will most likely fail. optimal utilization of input resources to achieve its
Within an organization, mistakes often occur during the chain of events from manufacturing to sale objective.
4. Right Manufacturing Cost: Manufacturing costs are established before
the
manufactured. Hence, all attempts should be made to produce the productsproduct
iv) Operation management requires the coordination of operation functions, marketing, finance is actually
accounting, engineering, information systems and human resources to have success within the at pre-established
cost, so as to reduce the variation between actual and the standard cost.
organization,
v) Operation management will have limited success within the organization. OBJECTIVES OF PRODUCTION AND OPERATIONS MANAGEMENT
Objectives ofproduction and operation management are as follows:
DEFINITION OF PRODUCTIONAND OPERATION MANAGEMENT To attain maximum output with given set of
According to Professor S. N. Chay, Production and operation management" as "one
resources.
To- produce maximum with lowest cost.
which concerns itself with the conversion of inputs into outputs, using the physical resources, so
ii) To control pollution and wastage.
as to provide the desired utility or utilities of forums, place, possession or state ora combination
these off to the customer while meeting the other organisational goals of effectiveness efficiency iv) To ensure optimum capacity utilization.
and adaptability. It distinguishes itself from other functions such as personel, marketing etc., by v) To exercise inventory control.
its primary concern for conversion by using physical resources". vi) To control and reduce cost of operation.
Production and Operation Managenment concerns with conversion of inputs into outputs by using vii) To ensure optimum utilization of resources.
physical resources to meet the organizational objectives ie. (effectiveness, efficiency &adaptability) vii) To ensure timely delivery of output.
Production and Operation Management is about the transformation of production and ix) To ensure quality of products.
operational inputs into "outputs" that, when distributed, meet the needs of customers.
X) To suggest changes in machinery and equipment.
MEANING OF PRODUCTION AND OPERATION MANAGEMENT
ELEMENTS OF PRODUCTION AND OPERATIONS MANAGEMENT
Production and operation management refers to the management of the conversion
which converts land, labour, capital and management inputs into process The several elements of production and operations management can be summarised as follows:
services.
desired outputs of goods and Planning: Activities that establishes a course of action and guide future decision-making is
planning. The operation manager defines the objectives for the operations subsystem of the
NEED FOR PRODUCTION AND OPERATION organization, and the policies, and procedures for achieving the objectives. This stage includes
The need for production and operation
MANAGEMENT clarifying the role and focus of operations in the organization's overall strategy.t also involves
management is to produce goods of right product planning, facility designing and using the conversion process.
quantity at the right time and right quality ano
1.
manufacturing cost'. ii) Organizing: Activities that establishes a structure of tasks and authority. Operation managers
Produce right quality of product: The quality of product is establish a structure of roles and the flow of information within the operations subsystem.
customer's needs. The right quality is not necessarily best established based upon h They determine the activities required to achieve the goals and assign authority and
of the product and the quality. It is determined by the cos responsibility for carrying them out.
technical characteristics as suited to the
specific requirerments.
 y) i) ti)
etc.
problemcomputer models in
usilnikge Models:
encounter
short-term, decision-making behaviour. Behviour:
ccontrol
an functions
here.operations
planned
performance.
Controlling:
affect
of affect
simulation
facility MAny As operations
break operation management' s Operation manager
problerns human Activities
To
expansion, aggregste
for even ensure Models Behaviour
V iV)
behaviour. management must
capacityanalysis managers and managers Controling Organizing Planning Ekments
simple planning must planing, exercise that that
theassure of
utlization, to make plan,
median They are
identifymodels organizingconcenedControllingcontrol plans Production
organize, also the
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 Operations
Production and
process of
Manageme Tntroduetion to Produetion and Operations Management

prefdetormefarulmcilaiinttinee
refers to the
maNagement: Maintenance manapement tme-schedule and wt) Anatyst: Standard analysis functions in a production and operations department inchude
Maitennce with planned quality, eritical path analysis, stock controi analysis, utilization analysis, capacity analysis, and just-in
measures to stay in track and the proper
Ventilation
the corective should be properly cleaned shift of work, the time analysis of inputs, quality metrics analysis and break-even analysis.
space
cost scheules. The floor
should ensure inside the
factory. After completion of
machines and put
each
ubricating oi.
maintenane MULTIPLECHOICE QUESTION (MCO)
department should check all the operating or controlling a prodbe
refers to the technique of 1. What is the primary goal of Production Management?
10. Antomation: Autormation reducing human intervention to the minimum.
and
process by electronic devices [a] Maximizing profits
OPERATIONS MANAGEMENT [b] Minimizing production
FUNCTIONOF PRODUCTION AND [c] Maximizing production eficiency and effectiveness
take inpu
operations department in a company is to
The function of the production and Inputs can be concrete physical objects, dat (d] Minimizing customer satisfaction
customer use.
and fashion them into outputs for for consumer use or for
business use 2. What are the key differences between Production and Operations Management?
driven. The outouts c&n be intended
driven, or service most economic and
is to create an end product in the [a] There are no differences; the terms are interchangeable
The goal of production and operations
eficient way possibl. [b] Production dcals with goods, while operations deal with services
and operations department
Creation of goods or services: The foundation of every production assembly
[c] Operations are concerned with goods, while production deals with services
production inchuded the physical
is the creation of goods or services. Traditionally, [d] Production and operations are synonyms
production can also include data-based goods such as websites, analysis
of goods, but 3 What is the role of a Production Manager in managing resources?
services and order processing services.
operations department contains the
[a] Only managing financial resources b]Only managing human resources
i) Cstomer Service: In many companies,the production and
customer-facing customer service department that addresses the needs of the customer after [c] Only managing technology resources [a]Efficiently managing all resources
phone
the purchase of goods or services. The support function usually is served through Which type of production involves producing a unique product or providing a specialized
online or mail based support service for individual custormers?
iti) Profit: The main function of the production and operations departnent is to produce a [a] Mass Production [b] Batch Production
product or service that creates profit and revenue for the company. Actualization of profit [c] Job Production [d] Continuous Production
requires close monitoring of expenses, production methodology and cost of inputs. 5. What is the significance of a "Production System"?
i) Enluation: Every production and operations department must function as self-evaluating
a) It focuses on customer service only
entity that monitors the quality, quantity, and cost of goods produced. Analysis usually takes
the form of statistical meters, production evaluation and routine reporting. b] It is limited to a single process
Tasks: Comnon task functions in a production and operation department include forecasting [c] It converts inputs into outputs through manufacturing
scheduling, purchasing, design, maintenance, people management, flow analysis, reporting [d] It doesn't involve any processes
aSsembly and testing. 6 Which of the following best defines "Production System"?
vi) Fufillnent: Production and operations departments typicaly function as a
fulfillment entity [a] A system to produce unlimited quantities of goods
that ensures the timey delivery of the output from production to
customers.
fulfillment is shipping and mailing based function, but can be electronically basedTraditionaly
in a data
[b] A system that focuses only on customer service
driven product. [c] A system of converting inputs into outputs through processes
[d A system that manages financial transactions
 Tntroduetion to Produetion and Operations Management
production?
following is NOT a type of b]Continuous Production
7. Which of the 15. What is a key responsibility of Operations Management?
[a]Mas Production [a] Service Production [a] Ignoring customer feedback
c] Batch Production [b]Avoiding innovation
Management?
efective Production
8 What isa key benefit of quality [c] Improving efficiency and effectiveness
b] Decreased product
(a] Increased production costs eficiency [aj Increasing waste in production
customer satisfaction [a] Improved operational 16. What are the key decisions involved in Production Management?
[c] Reuced
Manager? [a] Only financial decisions
9. What is the role of a Production
activities [b] Only marketing decisions
[a] Handling marketing and sales
transactions [c] Design, location, and layout decisions, arnong others
b] Managing financial
and resources [d] Only human resources decisions
[c] Overseeing production processes
[a Providing customer service
17. What does "Process Optimization" refer to in Operations Management?
involves managing the physical location of facilitie [a] Ignoring customer needs
10. Which funcion in Operations Management
production and distribution? b] Maximizing waste in production
to optimize
bl Human resources management [c] Increasing inefficiencies
[a] Quality control
[c] Layout planning [d Financial management [d] Improving processes for maximum efficiency and efectiveness
11. What is the primary focus of Operations Management? 18. What is the primary objective of Operations Management in relation to customer deMand?
[b]Minimizing customer satisfaction
[e] Maximizing production [a] To ignore customer demand
[d Eficiently managing processes to produ b] To increase customer dissatisfaction
[c] Minimizing efficiency
12. What does "Operations Management" encompass? [c] To match supply with customer demand efficiently
[a] Only production activities [a] To decrease product variety
b] Only marketing activities Answer:
[c] All activities related to producing and delivering goods and services 1. [cl 2. b] 3. [d] 4. [c
[djOnly financial activities 6. [c] 9. f 10. [cl
13. Which function is NOT typically associated with Operations Managenent? 11. [d 12. [Cl 13. [c] 14. C] 15. fc)
e] Process optimization b] Quality control 16. [c] 17. [d] 18. [c]
[c] Customer relationship management (] Employee training
14. What is the main focus of Operations Management with regard to
innovation?
[a] Avoiding innovation altogether
b] Focusing on obsolete technology
[c] Encouraging innovation to improve
processes and products
[d] Minimizing waste