According

to Jae K Shim and Joel G. Siegel, Production and operation management is the management of all activities directly related to the production of goods and services. It involve a set of activities performed to manage the available resources in an efficient manner in order to convert inputs into desired outputs.

 The

conversion of an input into output can be done in one of the following ways: 1. Alteration. 2. Transportation. 3. Storage. 4. Inspection.

 Common

objectives that an effective POM is expected to achieve are: 1. Customer satisfaction. 2. Profitability. 3. Timeliness.

 The

various factors that led to customer satisfaction are: 1. Utility of the in accordance with the acceptable standards. 2. Competitive product cost. 3. Easy maintenance and reliability of the product. 4. Product is in compliance with all functional specifications.

 To

achieve customer satisfaction the pricing of the product should be competitive. Any organization is into the business with the aim of providing products or services for growth and profitability. Therefore, the management should focus on reducing the costs in order to increase sales or maintain high profitability with the existing sales.

 The

product produced or a service rendered has to be qualitative and cost competitive. Further, even though if all the above criteria are met with and the product or the service does not reach the consumer when required, the whole purpose is lost. Therefore, to enable the successful sale for a product or service, it should be timely delivered.

 The

functions that the production management perform can be broadly categorized into three categories: 1. Planning. 2. Organizing 3. Controlling.

1.
2. 3. 4. 5. 6.

Product design and development. Production process selection. Planning facility location. Planning facility layout. Capacity planning. Production planning.

1.
2. 3.

Work study. Material management. Purchasing management.

1.
2. 3. 4. 5.

Stores management. Value Analysis. Quality control. Maintenance management. Inventory management.

 Product

design is a term that refers to transforming an idea of how a product should be and the specification, which are required for producing that product. These specifications are created keeping in mind the constraints of the production process, feasibility to produce and meeting the customer expectation without sacrificing the quality.

 It

refers to the process of creating new products or modifying the existing ones. The needs or requirements of consumers keep on changing over the period of time. Therefore, to meet these needs successfully, new products need to be introduced in the market. It as a process targets to create or modify the products within the predetermined time frame, at the targeted cost price while achieving the preset quality requirements, thereby providing the organization both growth and profitability.

 Product

design and development is required to achieve the following goals for any organization: 1. Introduction of new products. 2. Modify the existing products.

1.
2. 3. 4.

5.

Addressing the changes required by the customers. Growth in the market share. Attracting the customers that are sensitive to changing fashions. Filling in the missing products in the product range. Breaking the monotony in the designs.

1.
2. 3. 4. 5. 6.

Improving the life cycle of the product in the market. Providing economics. Providing satisfaction to the consumers. Keeping the advantage of already established product. Utilizing the production resources effectively. Increasing market share with economical pricing.

1.
2. 3. 4. 5. 6. 7.

Functionality. Reliability. Productivity. Quality. Standardization. Maintainability. Cost effective.

 Product

development life cycle is a pattern of demand of a product throughout the life of a product. The stages of product development can be understood as follows: 1. Introduction. 2. Growth. 3. Maturity. 4. Decline. 5. Withdrawal.

 At

this stage, the product is launched in the market and there is no pressure to earn immediate profit. The main aim of this stage is to create awareness about the products among the customers.

 At

this stage, the product enters into the growth stage. Product becomes more profitable and organizations enter into joint ventures. More competitors come into the market that offer similar quality at cheap prices.

 At

this stage, the sales of the product stabilizes and grow at a decreasing rate. Producers try to differentiate the products from the competitors product. At this point market reaches a saturation point and price wars and intense competition occur in the market.

 At

this stage, there is downfall in the market. Many producers have withdrawn from the market and there is intense price cutting by the producers in the market.

 Conception

stage. Acceptance stage. Execution stage. Evaluation stage. Translation stage. Pre production stage. Product use and support.

 The

first step from where the development process starts is to conceive the idea of the product and document it as per the specifications or requirements that the product is expected to meet. The marketing department and design department prepares specification for the product from its feedback and documents it as a draft. This draft forms the very basis for designing the product.

 In

this stage, the confirmation on the estimated cost for the product and also if it is practical to produce, is also achieved. Based on this feedback, the product may be given a go ahead for the next stage or referred to for further discussions. If the feedback is extremely negative, then the decision to drop the product may also be taken.

 In

this stage, a proto type of the product is produced or in certain cases, even a mock sample production is also carried out. Proto type is a model of the product made in the laboratory conditions.

 After

the execution stage, the design is offered for further evaluation. At this stage, other departments of the management also get involved. These other concerned departments evaluate the design with the prime objective to achieve the most feasible way to produce.

 At

this stage, the design of the product is translated into blue prints, detailed drawings with dimensions and tolerances specified, work instructions, process sheets and quality assurance plan. This enables the design of the product to take be ready for production.

 This

is the final stage in the development process and once all the specifications, drawings and plans are ready, a pre production trial run is carried out. The small batch that is produced in the pre production stage can further be forwarded to the market to check upon the acceptability for the product with the customers.

 This

is the final stage of product development process, it involves educating the consumers about the use of the product. This stage involves the post production activities, such as repairs etc.

 Various

product development techniques that can be used in order to develop a product are as follows: 1. Standardization. 2. Simplification. 3. Specialization. 4. Diversification.

 It

is product development technique in which a company establishes standards, such as product dimensions etc. and quality for its product to maintain consistency.

 It

is a product development technique that involves decrease in the number and variety of product of a company. It is an economical process that helps minimize the product items to restrict the production of unbeneficial products.

 It

is a technique that involves concentration of efforts upon a limited field of endeavor. The activities are divided and sub divided and allocated to the employees concerned. Every industry uses services of different engineers having specialized knowledge in different fields, such as production, mechanical and electrical.

 It

is the technique that involves introducing new products and new models of the old products. This technique also involves introducing new markets, new technologies and new product line in the company.

 It

can be defined as a set of activities performed to modify and add value to the input and convert it into the desired output. The process design is interrelated to the product design. A process design requires effective combination of various sub activities working together in coordination with each other.

 The

production process can be defined as a set of activities that are performed to modify and add value to the input and convert it into the desired output. The value addition can be in terms of changing the shape or characteristics of the input or even when we change the location of the goods to a place where it is more required, is adding value to it.

1.
2. 3. 4. 5.

Process production. Mass and Flow production. Batch production. Jobbing production. Project production.

1.
2. 3. 4.

Infrastructure. Cost and quality. Manpower. Management role.

1.
2. 3. 4.

Infrastructure. Cost and quality. Manpower. Management role.

1.
2. 3. 4.

Infrastructure. Cost and quality. Manpower. Management role.

1.
2. 3. 4.

Infrastructure. Cost and quality. Manpower. Management role.

1.
2. 3. 4.

Infrastructure. Cost and quality. Manpower. Management role.

 One

of the components of marketing mix is product process mix, which helps the manufacturer in understanding how and why they should change their production process. The change in equipments, process, procedures and human resources. If process change are not carried out to accommodate process life cycles, products and processes will become incompatible, result in competitive disadvantage.

1.
2. 3. 4.

Batch size. Product variety. Capital requirements. Economic analysis.

1.

2. 3.

4.

All specifications for the product are met while maintaining a desirable quality standard. The cost of production is feasible to produce the product. The process is sustainable; it is dependable to produce for the estimated duration. All environmental and government regulations are followed.

 It

is the process of identifying the best geographic location for a service or production facility. Facility location plays an important role while setting up a manufacturing assembly unit such as fertilizer plant, steel plant etc. or a service organization. While deciding about the location of a plant, you need to consider the long term consequences.

1.
2. 3. 4. 5. 6. 7. 8. 9. 10.

Location of market. Location of raw material sources. Infrastructure. Transportation cost. Availabilities of labour. Government policies. Climate factors. Community attitude. Safety measures. Social infrastructure.

 Plant

layout is the repositioning of machineries and equipments of a plant for economic and better quality productions. It begins with the selection of work site for the facilities required in production and then arranging all the machineries so that there is a flow of production operations. In addition, plant layout includes arrangement of workmen, materials available, storage space and all other supporting services.

1.
2. 3. 4.

5.
6.

Economic handling of materials and finished goods. Better supervision for faster and good quality production. Better utilization of available space. Flexibility in change of plant design and workspace expansion. Improvement in working condition. Unidirectional flow of production operation.

1.
2. 3. 4. 5.

Better work conditions for workmen. Minimization in material handling. Minimization in damage and spoilage of materials. Minimization in congestion of materials, machinery and workmen. Flexibility in changing working conditions.

1.
2. 3.

Process or functional. Product or line. Project or fixed position.

 Capacity

of a production unit refers to the ability of a company to produce goods that are required by the customers. Capacity is the maximum limit of the load that a production unit of an organization can handle. Capacity planning is a process that helps identify the capacity of a production unit that is required for meeting the current and future customer demands. Capacity planning is required when you start a new manufacturing unit and introduce new products in the manufacturing unit.

1.
2. 3. 4. 5. 6.

Product and services factors. Process. Availability of facilities. Human factors. Supply factors. External factors.

1.
2. 3. 4. 5.

Assessment of existing capacity. Forecast of future capacity requirements. Identification of alternative ways to modify capacity. Evaluation of short term and long term capacity requirements. Selection of the most suitable alternative to meet the future demand.

 Production

planning and control forms the two important components of the management process. Planning includes the consideration of all input variables so that the pre determined output goals can be achieved. On the other hand, control means to take a remedial action to prevent the variation of actual output from the desired ones.

1.
2. 3. 4. 5. 6. 7. 8.

Effectiveness. Maximizing output. Quality control. Minimizing throughput time. Capacity utilization. Minimizing cost. Flexibility. Better coordination.

1.
2. 3. 4. 5. 6. 7. 8. 9. 10.

Higher quality. Better utilization of resources. Reduced inventories. Reduced manufacturing cycle time. Faster delivery. Better customer services. Lower production costs. Lower capital investment. Improve sales turnover. Flexibility.

 Work

study is a collection of techniques required to perform the organized analysis of all the factors that affect the efficiency and effectiveness of methods being used. The main objective of a work study is to improve the productivity and quality of a product economically. The two techniques involved in a work study are method study and work measurement.

 Method

study is a means of recording and examining the existing and proposed way of working to improve the efficiency of system. It also provides a means to develop and apply effective methods in an easier formats that helps reduce the cost of production.

1.
2. 3.

4.
5. 6.

To improve the processes and procedures involved in the production. To identify the proper sequence of production operations. To reduce the idle time of the operator to optimize the utilization of human resources. To optimize the utilization of the machineries. To improve the working environment. To allocate the human effort economically.

1.
2. 3. 4. 5. 6.

Selection of jobs. Recording of facts. Critical examination. Development and selection. Installation. Maintenance.

 The

process of determining the time taken by an employee to complete a particular task is known as the work management. Various methods that help measure the work performed by the employees include time study, work sampling, synthetic data and pre determined motion and time study.

1.

2.

3.

4.
5.

To uncover various reasons responsible for wastage of labor and machine time through study. To compare the efficiency of all possible alternatives methods and determine the best alternatives. To equally distribute the workload amongst various employees of the company. To determine the number of machines that an employee can run. To maintain standard time for completing a manufacturing task.

1.
2. 3. 4. 5. 6.

Manning. Planning. Estimating production cost. Cost reduction and cost control. Improving methods. Determining incentives.

 Productivity

can be defined as the ratio of financial output in a particular interval of time to the financial input in the same time interval. In other words, we can say that productivity defines the quantitative relationship between the output produced and inputs used. Productivity index is used to compare the productivity of a company in a particular time interval with the productivity during the base period.

1.
2. 3. 4. 5. 6.

Nature and quality of raw materials. Utilization of natural resources. Efficiency of plant and equipment used. Volume of production. Continuity of production. Consistency of production.

1.
2. 3. 4. 5. 6. 7.

Clearly understand the objectives of the company. Clearly understand the requirements of the users. Appoint right people for the right jobs. Reduce the complexity of product design. Make the company as flexible as possible. Use high quality production equipments. Improve the process of production.

 According

to Bethel, Material management is a term used to connote controlling the kind, amount, location, movement and timing of the various commodities used in and produced by the industrial enterprise.

1.
2. 3. 4. 5. 6. 7. 8.

Materials planning. Make or buy decisions. Purchasing. Receiving and inspection. Storage. Inventory control. Transportation. Waste management.

Maintenance of records.

Preservation of materials.

OBJECTIVES

Consistent flow of materials.

Reduction in wastage of materials.

Purchasing

Material planning.

Functions

Store keeping.

Transportation

 Purchasing

is a process of obtaining the materials, tools and supplies that are required for manufacturing of a product. Purchase management is the process that includes various responsibilities, such as buying quality goods in the right quantity, from the appropriate place, at the right time and of the right price.

1.
2. 3. 4. 5. 6.

To obtain the required materials, tools and services at a competitive price. To ensure that the supply of material is according to the production requirement. To guarantee the production of better quality goods at a competitive price. To suggest better alternatives materials for production. To encourage standardization. To maintain the goodwill of the company.

1.
2. 3. 4. 5. 6.

It provides source for the supply of goods. It studies the market. It supports engineering and user departments. It conducts discussions and releases purchase orders. It sanctions suppliers statement for payment. It disposes excess, outdated and leftover materials.

1.
2. 3. 4. 5. 6. 7. 8. 9. 10.

Hand to mouth purchasing. Scheduled purchasing. Market purchasing. Speculative purchasing. Contract purchasing. Blanket order purchasing. Tender purchasing. Seasonal purchasing. Group purchasing. Sub contract purchasing.

 Maintenance

is defined as the combination of tasks that are required to manage a machine or part of a machine in the desirable condition. It can also be defined as a method used to rectify the damaged and deteriorated part of the machines to the functional level. Maintenance management is all about managing the maintenance activities.

1.
2. 3. 4.

5.

Continuous and regular increase in the production. Eliminating any risk of accidents in the plant. Proper maintenance of the machines and their parts. Thorough examination of the machines. Delivery on time and customer satisfaction.

Unplanned maintenance

Planned maintenance

Types

 TQC

is a Japanese approach to quality control stressing continuous improvement through attention to manufacturing detail rather than attainment to a fixed quantitative quality standard. In production function, quality control is a function of ensuring conformity of product as per the design parameters and giving full defect analysis. After the product is sold, it is necessary to monitor the performance in the field and get feedback for improvement.

 Quality

is profitable. Poor quality is penalized. Quality distinguishes. Quality is expectation. Quality renews. Quality unites and inspires. Quality delivers. Quality has self interest.

 High

employees morale. More efficient process. Higher productivity. Increased market share. Lower costs. Enhanced customer satisfaction. Higher profits.

 Total

quality may be defined as the mobilization of the whole organization to achieve consistent quality. According to Atkinson (1993), total quality is a strategic approach to producing the best product/service possible through constant innovation. It includes full attention not only to the production but also to the service.

 Total

customers satisfaction. Totality of functions. Total range of products and services offered by the organization. Addressing all aspects and dimensions of quality. Satisfying all customers: internal and external. Involving everyone in the organization in the attainment of the set objectives. Demanding total commitment from all in the organization.

 Development

of product specification. Interaction with product, design. Reliability and development testing. Process capability studies. Quality planning.

PLANNED MS
Preventive Corrective