The Critical Desicions-

Continued
LAYOUT DESIGN
HOW SHOULD WE HOW LARGE A
ARRANGE THE FACILITY IS
FACILITY ? REQUIRED?
1. Flow of movement 1. Materials Handling
2. Space Utilization 2. Output Needs
3. Safety 3. Shipping and Receiving
HUMAN RESOURCES AND JOB
DESIGN
HOW DO WE PROVIDE HOW MUCH CAN WE
REASONABLE WORK EXPECT OUR EMPLOYEES
ENVIRONMENT? TO PRODUCE?

 TRAININGS THEY
 GOOD LIGHTNING NEEDED
 GOOD WORKPLACE  BENEFITS
SUPPLY CHAIN
MANAGEMENT
 WHO ARE OUR GOOD
SHOULD WE MAKE OR
SUPPLIERS AND HOW
BUY THIS ITEM?
MANY SHOULD WE HAVE?

 MAKE > BUY  Supplier with long

DECISION : BUY term relationship
 MAKE < BUY in the company.
DECISION : MAKE
INVENTORY MATERIAL
REQUIREMENTS
PLANNING
HOW MUCH
INVENTORY OF EACH
WHEN DO WE REORDER?
ITEM SHOULD WE
HAVE?
 THERE MUST BE A  AN ACTION TO
BALANCE SCORE CARD
REPLENISH THAT
FOR THE MONITORING OF
ALL THE INVENTORIES
PARTICULAR INVENTORY
USED AND UNUSED. STOCK.
INTERMEDIATE, SHORT 
TERM, AND PROJECT 
SCHEDULING
•Is subcontracting production a good idea?

•Are we better off keeping people on the payroll 
during slowdowns?
 

MAINTENANCE
•Who is responsible for maintenance?

•When do we do maintenance?

 
IS SUBCONTRACTING PRODUCTION A GOOD IDEA?

 Subcontracting – a legal agreement by which you 
hire another person or company to do part of a job 
you have been hired to do.

These  are  some  of  the  reasons  why  subcontracting 

is a good idea.

1. Subs can help with large projects
2. It is cost efficient and risk adverse
3. Subs provide expertise
4. Increased productivity
5. Subs have specialized knowledge
ARE WE BETTER OFF KEEPING PEOPLE ON THE PAYROLL 
DURING SLOWDOWNS?

 Here are some strategies you can use to work through a 
business slowdown

1. Market more concertedly
2. Relax
3. Get ahead
4. Invest in additional training/learning
5. Follow up with old/existing customers
6. Offer free samples or giveaways
7. Plan
8. Relate
9.Netwrok/Socialize
10. Upgrade equipment or processes
WHO IS RESPONSIBLE FOR MAINTENANCE?

 Top Management with its managers and 
supervisors

WHEN DO WE DO MAINTENANCE?

 From time to time whenever there is a defect and 
malfunction in the machineries  and equipment 
detected during inspection.
SIGNIFICANT EVENTS IN POM
 Scientific Management (Frederick Taylor 1865­1915)

 The Principles of Scientific Management, 1911

 Match employees to jobs

 Provide the proper training

 Provide the proper methods and tools

 Establish legitimate incentives
SCIENTIFIC MANAGEMENT
 Is  a  theory  of  management  that  analyzes  and  synthesizes 
workflows.  Its  main  objective  is  improving  economic  efficiency, 
especially labor productivity.

 Scientific  Management  is  sometimes  known  as  “Taylorism”  after 

its founder, Frederick Winslow Taylor.
 Managing  the  resources  needed  to  produce  goods  and  services  is 
called Production/Operations Management.

 Frederick Taylor “Father of Scientific Management”

He  said  that  management  is  knowing  exactly  what  you  want 
men  to  do  and  then  seeing  to  it  that  they  do  it  in  the  best  and 
cheapest  way.
SCIENTIFIC MANAGEMENT

 Its main objective is improving economic efficiency, especially labour

productivity

Secure maximum prosperity

for employer and employee

Development of every To develop each man to a

branch of the business maximum efficiency