Product Vs Service Concept of Production Scope of POM Transformation Process Product Design & Product Process History of POM Issues in POM Product Design / Process

1. Prepared By,
Mr. Nishant Agrawal
Production and Operations
Management

2. Session Outline
 Product Vs Service
 Concept of Production
 Scope of POM
 Transformation Process
 Product Design & Product Process
 History of POM
 Issues in POM

4. “the step-by-step conversion of one form of material into another form
through chemical or mechanical process to create or enhance the utility of the
product to the user.”
• Thus production is a value addition process.
• At each stage of processing, there will be value addition.
• Edwood Buffa defines production as ‘a process by which goods and services are
created’.

5. Operations Management
 Operations management is an area
of management concerned with designing, and
controlling the process of production and
redesigning business operations in the production
of goods or services.

6. Scope of POM
• POM concern with the conversion of inputs into outputs, using physical resources, so
as to provide the desired utilities to the customer while meeting the other organizational
objectives of effectiveness, efficiency and adoptability.
• Following are the activities which are listed under production and operations
management functions:
1. Location of facilities
2. Plant layouts and material handling
3. Product design
4. Process design
5. Production and planning control
6. Quality control
7. Materials management

7. Operations as a
Transformation Process
INPUT
•Material
•Machines
•Labor
•Management
•Capital
TRANSFORMATION
PROCESS
OUTPUT
•Goods
•Services
Feedback
1-9
Quality of
inputs monitored
Quality of
outputs monitored
Random Disturbance

8. Transformation Process
 For getting desired output , quality of inputs has to be monitored.
 The quality of actual output obtained also has continually compared with
the desired output.
 Feedback mechanisms are required to monitor the performance of the
transformation process.
 Random disturbance are unexpected and sometimes not planned for.
They are mostly due to external environment.

9. Transformation Process of Service Industry (MBA
Institute)

10. Transformation Process of Manufacturing
Company

11. Transformation Process of Restaurant

12. Historical Summary of Operational
Management
Date Contribution Contributor
1776 Specialization of labour in manufacturing Adam Smith
1799 Interchangeable parts, cost accounting Eli Whitney and others
1832 Division of labour by skill; assignment of jobs
by skill; basics of time study
Charles Babbage
1900 Scientific management time study and work
study developed; dividing planning and doing
of work
Frederick W. Taylor
1900 Motion of study of jobs Frank B. Gilbreth
1901 Scheduling techniques for employees,
machines jobs in manufacturing
Henry L. Gantt
1915 Economic lot sizes for inventory control F. W. Harris

13. Date Contribution Contributor
1927 Human relations; the Hawthorne studies Elton Mayo
1931 Statistical inference applied to product
quality: quality control charts
W. A. Shewart
1935 Statistical sampling applied to quality
control: inspection sampling plans
H. F. Dodge and
H. G. Roming
1940 Operations research applications in World
War II
P. M. Blacker and
Others.
1946 Digital Computer John Mauchlly and
J. P. Eckert
1947 Linear Programming G. B. Dantzig, William
& others.
1950 Mathematical programming, on-linear and
stochastic processes
A. Charnes, W. W.
Cooper & others
1951 Commercial digital computer: large-scale
computations available.
Sperry Univac

14. Date Contribution Contributor
1960 Organizational behaviour: continued study
of people at work
L. Cummings, L. Porter
1970 Integrating operations into overall strategy
and policy, Computer applications to
manufacturing, Scheduling and control,
Material requirement planning (MRP)
W. Skinner J. Orlicky
and G. Wright
1980 Quality and productivity applications from
Japan: robotics, CAD-CAM
W. E. Deming and
J. Juran

15. Steps in the production process from point of
view of Entrepreneur

16. Product Design

17. Reverse Engineering
 It is process of carefully dismantling an existing product step by step in
order to understand the unique concept. It helps in designing new
products, which are better than competitors.
Manufacturability
 It implies designing a product in such a way that its manufacturing can be
done easily. While designing a new product, the manufacturing
capabilities of the organization have to be kept in mind.
Standardization
 It refer less variety in design of product. It has benefit such as lower
resulted cost due to use of existing parts and easy availability of
components for replacement.

18. Robust Design
 It means designing a product that is operational in varying environmental
conditions. Ex. Compare Car with Jeep
Concurrent Engineering
 It is product design approach in which design team includes personnel from
the marketing department , engineering , production, material, finance etc. It
saves a lot of time and effort.
Computer aided design (CAD)
 It is software which helps the designer to make 3 D design of product on
computer.

19. Product Design / Process

20. Production systems can be classified as Job Shop, Batch, Mass and Continuous
Production systems.
Production/OperationsVolume
Output / Product Variety
Continuous
Production
Mass Production
Batch
Production
Job-Shop
Production
Fig. 1.2 Classification of Production Systems

21. Continuous Process
 As name suggest it is continues in nature. Set up time : Long (Once it
started they continue for a long duration)
 Product produced by such process are highly standardized with almost no
variety and measure on continues basis. Ex. Urea chemical plant, steel ,
plastic, sugar, textile etc.
Semi-continuous Process
 These are assembly process, which are repetitive in nature. Produce High
volume of output with little variety. Ex. Automobile , electronics etc.
 Required highly specialized machine, semi skilled workers and result in low
cost per unit.

22. Intermittent Process
 It stop at regular intervals of time because product requires processing on
variety of machines. Product produced different variety of machines ,
thus production process slow in comparison to others process.

23. Batch Process
 As a form of manufacturing in which the job passes through the functional
departments in lots or batches and each lot may have a different routing.
 Ex. In a bakery, a batch of salted biscuits may be made in oven, followed by
batch of chocolate, followed by a batch of bread and so on.
 Equipment used is the same in all the cases with the same processing steps but
cleaning and adjustments of the equipment may be required after each
production run.
Job Shop
 It can handle larger variety of products with low volume that the batch process.
 Process may be so difficult from each other. Highly skilled operators who can
take up each job as a challenge because of uniqueness.
 Large inventory of materials, tools, parts.

24. Mass Production
• This production system is justified by very large volume of production.
• The machines are arranged in a line or product layout. Less skilled
operators are required.
• Manufacturing cost per unit is low and High investment in production
facilities.

25. Duties and Responsibility in Manufacturing
Organizations
1. Location of facilities
2. Plant layouts and material handling
3. Product design
4. Process design
5. Production and planning control
6. Quality control
7. Materials management
8. Health and Safety
9. Supply Chain Management
10. Budgeting and Capital
11. Staff selection and training

26. Major issues in Operations Management
 Competing Practices
 Sustainability
 Managing customer touch points
 Optimizing global supplier & distribution networks
 Increased co-production of goods and services
 Social Responsibility

27. Assignments
1) “Operations management is a transformation process”. Support this statement
with examples if you agree with it.
OR
 What is Transformation Process: Explain the transformation Process
OR
 Define operations management. Describe input-transformation output relationship
in an automobile factory, a restaurant, hospital, and a College
2) What do you understand by the term “operations Management”?
OR
 Define production & operations management and explain functions/Activities of
operations management
OR
 What are the major issues in OM that faced in India?

28. 3) Explain the types of manufacturing process in brief.
OR
 Explain batch production and mass production along with its advantages and
disadvantages.
OR
 Discuss the types of processes. What are the merits and demerits of each? Give an
example of each.
OR
 Suggest suitable method of production for below categories and why
 Automobile & Computers