Management control of production and operations


Production and operations are tightly knitted activities which influence an organization’s performance. For manufacturing units, the conversion of inputs to outputs is viewed as the production activity For example, milk is the raw material used to produce curd, milk powder , and butter milk.

The various activities involved in the production process like heating, cooling, and freezing are called production operations. The non production operations included the procurement of milk and transportation of curd , milk powder , and butter to the customers.

When production and operations are combined and synchronized, they Are classified as supply chain management . The goal of supply chain Management is to ensure that the organization produces those products which are being demanded by the market by the right quantities.

Control of production and operations -

For example , in the case of Frito lays , potatoes are the raw material and the spices and oil used in the production process are the consumables. Land is used to house the factory where the production process is carried out . Various machine are used for cleaning and peeling the potatoes, and cutting them into different shapes and sizes.

Control of production and operations

The employees supervise the production process and are the human resources involved in the production process. A variety of information like the recipe for each type of potato chip and automated settings on the plant which control the production process are examples of information in the production process.

Control of production and operations

The objective of controlling the production activities or operations is to ensure optimal utilization of production capacities, minimize wastages and reduce down time of machines

Control of production and operations

Take for incidence , hospital, here, the two important control parameters would be To ensure that there is a doctor available as and when the patience come in for Treatment and the wait time is low. And another control parameter would be to Synchronize the mix of doctors available with the time of the day when they are needed

Control of production and operations For example, those belonging to the out patience category generally coming during Morning hours and evening hours. Therefore there are more doctors and specialist Available like eye specialist, gynecologist , and skin specialist during the out patience Hours. The control parameters should also address the question of which patience Should get priority

Production controls
The production controls dependent on two broad variables. The nature of the Production process and the degree of mechanization involved in the production Process. Process production of carbonated drinks like sprite or Fanta, the controls would be With respect to the quantity of water to be channelize in the production process, the Quantum of the soft drinks concentrate to be added and the machine settings with Reference to the capping of the bottles and the carbonation process

Production controls
Discreet production , to make a ceiling fan the blades, the metallic rod , the motor ,The central hub in which the motor rests, the plastic molding in the form of a cup Are all produced or procured, and electrical wires are integrated into the product. All these raw materials and components are assembled together to form a fan.

Measuring production performance

Productivity is a measure of the organizations efficiency in terms of ratio of Out puts to inputs. The higher the numeral value of this ratio, the grater the Efficiency. It is an important tool for mangers because it helps them track Progress in terms of the efficient use of resources in producing goods and Services

Measuring production performance Labor productivity= goods produced/ man-hours spent Material productivity = goods produced/ material used Total productivity = goods produced / labor+ capital+ energy+ technology+ materials

Production control reports
Decision making in production control often depends on the appropriate use of quantitative inputs in a timely manner. For example the queuing theory model can be used to find out the probability of machines breaking down on a given day using various inputs like the number of machines, their average breakdown rate, and the replacement time required.

Production control reports Some of the input parameters that are used in this model are : number of machines that can be used for backup, number of workers who can repair the machines, the mean time between failures (MTBF) , the mean repair time, cost of workers who can repair the machines, and cost in terms of production that has been lost due to the breakdown.

Production control reports
For effective production control, management requires regular reports on Various production-related parameters and activities like Production efficiency report Production planning report Daily production report Downtime analysis report Shift handover report

Operations controls
The purchase operations comprise activities like identification of vendors comparing vendors, placing orders with vendors, and scheduling and monitoring deliveries from the vendors. The objective of the purchase operations is to ensure timely supply of various Materials required to conduct business, whether it is raw material or packaging material. It also aims at procuring the materials at optimal cost and quality

Quality controls
In an air conditioner, the speed and direction of air flow reflects the circulation capability of the air conditioner, the tike it takes to cool a room of a given dimension reflects the quality of the compressor , the power which it consumes in an hour reflects the quality of the electrical design and compressor design, and the space which it occupies reflects the quality of the physical design

Inventory control
The objective of inventory control is to maintain stocks of material at various stages of production in the desired quantities so that production can continue uninterrupted by shortages, while at the same time , keeping the overall cost of production to the minimum.

Purchasing control
These controls will track the costs of material being procured, the effectiveness of the vendors in terms of the quality and timeliness of supplies, and rejection rates. A centralized purchasing systems allows pooling of all the requirements so that The benefits of bulk purchasing can be realized in a decentralized purchase in systems, the procurement mangers of different departments purchase the needed material according to their specific requirements. This methods gives each department the flexibility to alter its purchasing policy based on its specific requirements.

Supply chain management
The main goal of supply chain management is to completely synchronize every supply chain cycle with the customer's final demands. It aims at controlling and monitoring the supply chains of the vendors as well. Take for instance, a car manufacturing company called Indus.

Supply chain management
It procures seats from a vendor V, who , in turn, buys foam from X, the wheels and bearings used in seats from Y, and the fabric used in the seats from Z. if the demand fro Indus cars go up, its ability to meet the demand will depend on its Ability to procure the seats in an adequate number from V, which in turn, will depend On the abilities of X,Y and Z to fulfill the requirements of V. hence it is important to monitor the supply chins of the vendors also.

Performance assessment of the Supply chain management
• Inventory turnover cycle time customer order promised cycle time customer order actual cycle time cash to cash cycle time supply chain cycle time defects per million opportunities

Information systems in production and operations management Operations information systems are now designed to automatically initiate, plan, and execute the logistics of stock movement from the warehouse to the braches or the customer locations. Third party transportation companies like DHL also facilitate the Tracking of the exact location of the shipment at any given point of time, en route to the destination

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