NATURE OF

PRODUCTION/OPERATIONS
• (i) Production/operations as a system,
• (ii) Production/operations as an organisational function,
• (iii) Production/operations as a conversion or transformation process and
• (iv) Production/operations as a means of creating utility
PRODUCTION FUNCTION

• Production function may be defined as the creation of useful products for sale with the
help of inputs such as materials, machines, labour, land, capital and management. The
production function represents basically a physical relationship between inputs and
outputs. It may be represented as Q = (a, b, c, d...) where ‘Q’ is the quantity of output
and a, b, c, d, etc., represent the quantities of various inputs such as material, machine
hours, labour hours, energy, etc.,
PRODUCTIVITY

• It is an index that measures outputs (goods and services) relative to the inputs (materials,
energy and other resources). It is usually expressed as, Productivity = Output Input
Productivity is also known as productive efficiency or the efficiency of the production
process.
OBJECTIVES OF PRODUCTION/OPERATIONS
MANAGEMENT
•
(i) Maximum customer satisfaction through quality, reliability, cost and delivery time.
• (ii) Minimum scrap/rework resulting in better product quality.
• (iii) Minimum possible inventory levels (i.e.,optimum inventory levels).
• (iv) Maximum utilisation of all kinds of resources needed
• . (v) Minimum cash outflow.
• (vi) Maximum employee satisfaction.
• (vii) Maximum possible production (i.e., outputs).
• (viii) Higher operating efficiency.
• (ix) Minimum production cycle time.
• (x) Maximum possible profit or return on investment.
• (xi) Concern for protection of environment.
• (xii) Maximum possible productivity.
RESPONSIBILITIES OF
PRODUCTION/OPERATIONS MANAGERS
• i) Meeting requirements of quality demanded by customers.
• (ii) Establishing realistic delivery or completion dates.
• (iii) Producing the required volume of products to meet the demand. (iv) Selection and
application of most economic methods or processes.
• (v) Controlling the cost of inp
VIDEO

• Raw material procurement

• Quality checking
• Layout of factory
• Arrangement of machines
• Position of workers
• Movement of materials
• Packaging
• Storing