Beruflich Dokumente
Kultur Dokumente
Products
– Television, Soap, Car , Garments
Services
– Medical treatment, consultancy, Education, Transport
Some of the characteristic differences between product and Service (there are exceptions!)
Product Service
1
• Organizations can be manufacturing or Service organizations
• No organisation is pure product oriented or pure service oriented
(Car manufacturers have components like servicing, handling warranty complaints.
Hospitals have components like drugs, diagnosis reports etc)
• Classification is based on whether product orientation is dominant or service
Transformation process
Feedbacks /
Improvements
Complaints
2
Definition of Production and Operations Management
Production and operation management is defined as the design, operation and improvement
of the transformation process which converts the various inputs into the desired outputs of
products and services
The term “operations management” is widely used now which includes manufacturing and
service organizations.
3
6. Pressure on operating cost reduction ( raising input costs with product prices declining)
Good production management can offer competitive advantage to a firm by:
Types of production
• Continuous production
– very few verities
– very long production runs
– Eg. Cement , Steel, Plastic
• Semi-continuous production
– Few varieties
– Long production runs
– High volume of output
– Repetitive in nature
– Eg. Automobiles, electronic items, Soaps, White goods
• Intermittent production
– Batch production
• Many verities
• Short production runs
• low volume of output
• Repetitive in nature
• Eg. Standard tools, products to customer specifications, earth moving
machinery
– Job shop
• Few numbers
• Specials
• Not repetitive
• Eg. Specials Tools, custom built cars,
Competitiveness means :
1. Existing demand for products
2. Value for money
3. No threat from competitors
4. No threat of obsolescence
5. Continuous additions to product features insuring future acceptance and demand
6. Quality, pricing meets customer expectations and competitors at a distance
7. High customer satisfaction
4
Productivity
Productivity ensures competitive edge
1. Labour productivity
2. Inventory Turn over
3. Return on Investment (ROI)
4. Quick product Design & development
5. Less time to Market
6. Marketing efficiency
7. Supplier rationalization
8. Total Productive Maintenance (TPM)
Strategic management means formulations of long term goals and actions plans to accomplish
those goals. It consists of the following broad steps:
1. Analysis of opportunities and constraints in the market place
2. Formulation of strategies
3. Implementation of the strategies
4. Evaluate and control till objectives are reached
5
6