Introduction

to
Production and Operation
Management

(BBA- 303)
BBA-V semester

Dr. Shuchi Mehra

 Outline
• Definition of POM
• Objectives
• Scope and functions of POM
• Types of Production Systems

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 Learning Outcome
• Learner will be able to understand about
production and operation management and
related elementary concepts.

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 What is Production and Operation
Management?
Production : The action of making or manufacturing from components or raw
materials, or the process of being so manufactured.
+
Operations: the action of functioning; an active process

Production and Operations management: It is defined as the process which transforms

the inputs/resources of an organization into final goods (or services) through a set of
defined, controlled and repeatable policies.

Source: https://theintactone.com/2019/06/16/pom-u1-topic-1-definition-objectives-scope-and-functions-of-production-operation-management/
https://www.mbacrystalball.com/blog/operations-management/

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 Objectives of POM
Objectives can be broken down into:
• right quality,
• right quantity,
• right time and
• right cost
“to produce goods and services of the right quality,
in the right quantities, according to the time
schedule and a minimum cost”.Q2TC
Source: https://theintactone.com/2019/06/16/pom-u1-topic-1-definition-objectives-scope-and-functions-of-production-operation-management/
https://www.mbacrystalball.com/blog/operations-management/

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 Scope and Functions of Production and
Operation Management

• Location of facilities
• Plant layouts and material handling
• Product design
• Process design
• Production and planning control
• Quality control
• Materials management
• Maintenance management.*2[LDCM]
Source:https://theintactone.com/2018/02/21/om-u1-topic-1-nature-and-scope-of-production-and-operation-management/

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 Functions of POM
• Location of facilities: It deals with the questions such as
‘where our main operations should be based?’. It is an
important strategic level decision-making for an organization.

• Plant Layout and material handling: Plant layout refers to the

physical arrangement of facilities. It is also defined as the ‘art
and science of moving, packing and storing of products in
any form’.

• Product design: deals with conversion of ideas into reality.

Every business organization have to design, develop and
introduce new products as a survival and growth strategy.
Source:https://theintactone.com/2018/02/21/om-u1-topic-1-nature-and-scope-of-production-and-operation-management/

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 Functions of POM contd..
• Process design: It is a macroscopic decision-
making of an overall process route for converting
the raw material into finished goods.

• Production and Planning control: The process of

planning the production in advance, setting the
exact route of each item, fixing the starting and
finishing dates for each item, to give production
orders to shops and to follow up the progress of
products according to orders.
Source:https://theintactone.com/2018/02/21/om-u1-topic-1-nature-and-scope-of-production-and-operation-management/

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 Functions of POM contd..
• Quality Control: It is defined as a system that is
used to maintain a desired level of quality in a
product or service. It is a systematic control of
various factors that affect the quality of the product.

• Materials Management: It is primarily concerned

with the acquisition, control and use of materials
needed and flow of goods and services connected
with the production process having some
predetermined objectives in view.
Source:https://theintactone.com/2018/02/21/om-u1-topic-1-nature-and-scope-of-production-and-operation-management/

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 Functions of POM contd..
• Maintenance Management: It involves keeping
track of assets and parts. The purpose is to ensure
that production proceeds efficiently and the
minimum amount of resources are wasted. 

Source:https://theintactone.com/2018/02/21/om-u1-topic-1-nature-and-scope-of-production-and-operation-management/

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 Types of Production System
Three common types of basic production systems:
• Batch system
• Continuous system and
• Project system or One-shot system. 

Source: https://www.britannica.com/technology/production-system/Important-considerations

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 Types of
Production System contd..
Batch System:
• General-purpose equipment and methods are used to
produce small quantities of output (goods or services) with
specifications that vary greatly from one batch to the next. 
• Examples include systems for producing specialized
machine tools or heavy-duty construction equipment,
specialty chemicals, and processed food products, or, in the
service sector, the system for processing claims in a large
insurance company.
Note: These are often referred to as job shops.
Source: https://www.britannica.com/technology/production-system/Important-considerations

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 Types of
Production System contd..
Continuous System:
• Items to be processed flow through a series of steps, or operations, that are
common to most other products being processed.
• Large volumes of throughput are expected therefore specially designed
equipment and methods are often used so that lower production costs can be
achieved.
• Frequently the tasks handled by workers are divided into relatively small
segments that can be quickly mastered and efficiently performed.
• Examples include systems for assembling automobile engines and automobiles
themselves, as well as other consumer products such as televisions, washing
machines, and personal computers. 
Note: often referred to as assembly systems or assembly line systems and are
common in mass production operations.
Source: https://www.britannica.com/technology/production-system/Important-considerations

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 Types of
Production System contd..
Project System:
• For a single or one-kind of product.
• For example, a building, a ship, or the prototype of a
product such as an airplane or a large computer,
resources are brought together only once.
• Because of the singular nature of project systems,
special methods of management have been developed to
contain the costs of production within reasonable levels.

Source: https://www.britannica.com/technology/production-system/Important-considerations

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 Summary
• Production is the process by which the goods and
services are created.
• Production function is the basic function of an
industrial enterprise around which all other
activities of an organization revolve.
• Operation management is an extension of
Production Management.
• Different types of production system includes
Batch, continuous, and Project system.
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