1

PRODUCTION
This refers to the transformation of raw materials into
finished goods/ or creation of services in order to
satisfy the customer needs.
Production involves application of processes by which
the inputs can be transformed into desired product
(output) of potential utility while improving properties
and adding economic values through the best method
without compromising on quality.

1.
2.
3.

Different forms of productionProduction by extraction or separation

Production by modification
Production by assembly

Production System
Goods

Inputs 6Ms
Materials
Men
Adjustmen

Conversion/
Transformation

Output

Machine
Methods
Management
Money

Monitoring
(Feedback)
Comparison of
actual vs.
planned

services

Essentials of Production System

1. PRODUCTION AS A WHOLE SYSTEM
2. CONVERSION SUB SYSTEM
3. CONTROL SUB SYSTEM
RELATIONSHIP AMONG VARIOUS DEPARTMENTS

Nature
of Production
Production
as a system

1.
2.

3.
4.

Production as creating utility and

adding value
Production as a transformation process
Production as an organizational
function
Value = Satisfaction/ Cost
All organizational functions create
value in synergy.

Production Management (PM)

PM means application of all management
principles in production department.

PM means a process of effective planning,

coordinating and controlling of production.

Decisions Taken by
Production ManagersTypes of Decisions Area of involvement
Strategic Decisions

Production

processes

Technology
Layouts
Allocation

of resources
Long range capacity planning
Operating Decisions

Production

planning systems
Independent demand inventory system
Resource requirements planning systems
Shop floor planning and control
Material management

Control Decisions

Productivity

and employees
Total quality control
Control techniques
Maintenance

Comparison between Goods & Services

Comparison between PM & OM

OPERATIONS MANAGEMENT
Operations management deals with all the
processes and activities involved with
designing, producing and delivering a
product/service. It is an extension of PM.
OM is systematic direction and control of the
processes and applications.
The operations management functions
consists of five sequential steps as below-

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OPERATIONS DIAGRAM
IDENTIFICATION
CUSTOMER NEEDS

FORECAST

ANALYSING
RESOURCE
AND INTEGRATING
PLAN
FACILITY

SUPPLY ING
FACILITY

PRODUCTION INPUTS

Unsatisfied

Satisfied

CUSTOMER

DISTRIBUTION
FACILITY

O/P

CONVERSION
FACILITY

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1.

2.

3.

4.

5.

Identification of customer needs and translation

them into a statement of clear forecast
Analysis of forecast and integration of facility
for a statement of resource plan
Execution of resource plans by the suppliers
either external or internal and generation of the
inputs
Movement of inputs into conversion facility that
produces the output (physical or service)
Delivering goods/services to customers upto
their satisfaction with distribution facility

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Characteristics of OM
1.

2.

3.
4.
5.

Basic business function to satisfy

customer
Responsibility to produce and deliver
on time
Real value addition function
Competitive edge to business
Decision making is a core function

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Components of Operations Management

1.
2.
3.

1.
2.
3.

4.

Product Development
Process design and management
Supply chain
Significance of POM in Business
Line functional area, 70% of total resources
Supports corporate strategy
Exchanging critical information with different
departments
Important role in satisfying customers.

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Manufacturing Operations/Processes
Manufacturing processes convert inputs (6 Ms) into tangible
products. They can be classified as followsForming Processes- change the physical shape and size of
the jobs without any removal of material.
1.
Casting- pouring the molten material into a moulded
cavity and is allowed sufficient time to retain the shape
of cavity.
2.
Forging- Metal is heated and placed in a die and a
compressive force is applied to the metal and finally
metal takes the shape of the die. Hot and cold forging.
3.
Moulding- Material is fed into heated barrel, mixed and
forced into mould cavity where it cools and hardens to
the configuration of the mould cavity.

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Manufacturing Operations/Processes
4.

5.

6.

7.

Extrusion- it is a process of creating objects of cross

sectional profile. Material is pushed through a die, barrel
or mandrel of the desired cross section.
Stamping- Cold working process. A force is applied to
acquire the desired size and shape with the help of die
and punch.
Embossing-Metal is expanded and pulled and the
diameter/ thickness is reduced with the help of applied
force.
Spinning- It is shaping the metal against a mandrel
rotating on high speed lathe.

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Manufacturing Operations/Processes
Machining Processes In this, usually metal is removed from
the job. This metal removal operation is performed with the
help of machine and a tool that changes the shape of the raw
material, provides the required surface finish and converts
into needed dimensions.
1.
Turning- metal is cut using lathe machine
2.
Drilling- drilling bit is used to drill
3.
Boring- A hole diameter is enlarged using boring bit
4.
Etching- also known as chemical milling. Under control
chemical reactions, metal is removed from surface
5.
Electro-chemical machining- in this electrodes and
chemicals are used to remove the metal
6.
Laser machining- electric beam is used to remove the
metal

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Manufacturing Operations/Processes
Assembly Processes In this, various components are joined
using various mechanisms as follows1.

2.

3.

4.

5.

6.

Welding- Two pieces of metals are joined using heat or electrical

energy with pressure
Soldering- it is a metal joining process with the help of soldering alloy
at a lower temp
Brazing- It is a metal joining process in which base metal is filled up
between the joints by capillary action and solidifies upon cooling
Fastening- Screws, nuts and bolts are tightened to join the
parts/components. Here, disassembly is also possible
Adhesives- various adhesives are used to join similar or dissimilar
materials
Riveting- A metal bolt or pin having a head on one end, inserted
through aligned holes in the pieces to be joined and then hammered
on the plain end so as to form a second head.

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Manufacturing Operations/Processes
Treatment Processes Various treatments are as followsHeat Treatment- The alloys are subjected to heat treatment to
obtain desired mechanical properties like toughness,
hardness, or even softness.
1.
Annealing- It is a metal softening process in which
internal stress are removed by slow cooling the job in the
furnace itself to make machining easy.
2.
Normalizing- Modified form of annealing but cooled at
room temp outside the furnace.
3.
Tempering Metal is reheated to critical point and kept for
a particular time at the same temp, then cooled slowly in
air to reduce the brittleness and ductility of the metal.

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Manufacturing Operations/Processes
Surface TreatmentThis treatment is applicable to the metals and alloys for the
use of industrial and domestic uses to remove the
deficiencies of tarnishing and corrosion if exposed to
atmosphere. First cleaning of surface with acids, alkaline,
electrolyte etc and then finishing using coating, electroplating,
powder coating, galvanizing, phosphating etc.
Chemical Processes- It is metal removing or metal addition
process. It is usually applied in combination with electrical
process.
Testing Process- used to produce the products as per the
specifications and required quality. Destructive and nondestructive testing processes

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Service Operations/Processes
Service operations are required to offer a service to end users.
1.
2.

Standard Operations/processes
Custom services- according to degree of standardization

Mail services, whole sale & retail distribution, Transporters.

Logistics
Health care, travel agents, legal advisors, marriage
consultants

Recent Trends in POM

1.
2.
3.

4.
5.
6.
7.

8.

Change of focus from seller to customer

Globalization
Production systems- new aspects were introduced by
Japanese. Mainly three principlesa) Quality comes first
b) Continual improvement of product and processes
c) Elimination of wastage
Quality Management System (QMS)
Supply Chain Management
Environmental and Social Issues
New Technologies- robotics, CCM, biotechnology, Nano
technology, global positing system etc
Flexible Manufacturing System (FMS)- latest trend,
capacity flexibility, increased productivity, quick shift
from one product to another product.

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Current Issues in OM

Coordinate the relationships between

mutually supportive but separate
organizations.

Optimizing global supplier, production,

and distribution networks.

Increased co-production of goods and

services

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Current Issues in OM (contd)

Managing the customers

experience during the service
encounter

Raising the awareness of

operations as a significant
competitive weapon