Organization

Quality Management
Production
Business
 Production and Operations Management
 It is a process which combines and transforms various resources
used in production/operations subsystem of the organization into
value added product/services in a controlled manner as per the
policies of the organization.
 Production Management is the planning, controlling and decision
making for carrying out the production processes to obtain the
objectives.
 Production is the process by which goods and services are created.It
transforms inputs into outputs.
 Basic Elements:
1. Production design
2. Process design
3. Material flow
 Production System
 It is the specific combination of productive resources (capital, labor
and materials) used to produce the desired product or service.
 Production effectiveness is achieved by production management
while production efficiency is achieved through production system.
 Two (2) subsystems:
1. Physical system=acts in the transformation of inputs to outputs.
2. Information system= coordinates and controls the action of the
physical system.
Characters of Production System:
 Material transportation/transformation process
 Degree of repetitiveness
 Information system
 A material flow process
 Production System
 Kinds:
1. Series type= two (2) systems are considered as part of one large
system.
Ex. Finished goods are shipped from the plant or factory to a
warehouse, they are leaving the factory system only to arrive at a
second productive system called warehouse.
2. Parallel= when number of factories produce similar products to
supply several market areas.
3. Continuous or intermittent flow= those were the facilities must be
flexible enough to handle a wide variety of products and sizes.
Ex. Production and assembly lines, large-scale office operations
Purpose of Operations Management:
1. To study how people organize themselves for productive enterprise
2. To know how goods and services are produced
3. To understand what operations manager do
4. To improve its profitability and lessen the costs or expenses
 Ten (10) OM Strategy decisions

1. Design of goods and services

2. Managing quality
3. Process strategy
4. Location strategy
5. Layout strategy
6. Human resources
7. Supply chain management
8. Inventory management
9. Scheduling
10. Maintenance
 Other field or functions:
 Supply chain Management= From purchase of raw materials to
delivery of goods or its distribution, Supply Chain manager negotiate
contracts and establish long term relationship with the suppliers.He
will also be in charge in purchasing system, invoices and product
returns or pull out items. He uses feedbacks in master scheduling
and suppliers.
 Materials Management= It refers to the approach that seeks
efficiency of operations through integration of all material acquisition,
movement and storage activities in the firm.
 Inventory Control= process of establishing and maintaining
appropriate levels of reserve stock of goods.
 Work Flow Layout= process of determining the physical
arrangement of the production system.
 Finance= activities related to securing resources at favorable prices
and allocating those resources in the organization.
Other field or functions
 Purchasing= procurement of materials, supplies and
equipments.It is also in charge in receiving and
inspecting purchased good