ethics in production/operation management
DESCRIPTION
What is Ethics?What is Operation/Production Management?Role Of Operation/Production Manager?Labor Laws Related To Operation/Production ManagementLive case studies- ethical and unethical practice of opertion/production case studiesTRANSCRIPT
Ethical issues in Production and Operation department
Presented by
Names Roll No.
Neha Gupta 73
Durgesh Pandey 97
Syuog Pitale 99
Darshan Pujari 100
Kanchan Rajput 101
Krishna Rana 102
The basic concepts and fundamental principles of right human
conduct.
It includes study of universal values such as the:
Essential equality of all men and women,
Human or natural rights,
Obedience to the law of land,
Concern for health and safety and,
Increasingly, also for the natural environment.
What is ethics ?
We live in an era of cut throat competition and competition breeds
enmity
This enmity reflects in business operations, code of conduct
Business houses with deeper pockets crush small operators and
markets are monopolized
In such a scenario certain standards are required to govern how
organizations go about their business operations, these standards
are called ethics
All of us want businesses to be fair, clean and beneficial to the
society
For that to happen, organizations need to abide by ethics or rule of
law, engage themselves in fair practices and competition; all of
which will benefit the consumer, the society and organization
It is the individual, the consumer, the employee or the human social
unit of the society who benefits from ethics
These ethics are meant to analyze problems that come up in day to
day course of business operations.
Satisfying Basic Human Needs
Creating Credibility
Long Term Gains
Improving Decision Making
Securing the Society
Importance of Ethics
Uniting People and Leadership
To retain the public image of the business
To take business operations seriously and direct towards missions
To reduce decision making dilemmas
To inculcate the fundamental and moral change
Production Department
Production is the functional area responsible for turning inputs into
finished outputs through a series of production processes.
Five production sub-functions:-
1. Production and planning department
2. Purchasing department
3. Stores department
4. Design and technical support department
5. Works department
Receiving raw materials
Storing materials at safe place
Supervising the movement of material in the whole plant
Ensuring that the employees produce the right quality
Ensuring proper health and safety for the workers
Motivate the staff and set high work performance.
Role of production manager
Systematic direction, control, and evaluation of the entire range of
processes that transform inputs into finished goods or services.
It deals with design and management of products, processes,
services and supply chains
Inputs-HR, capital, materials, land, energy, information, customer
Transformations-convert inputs into outputs
Outputs-goods or services, and waste
Operations Management
Make efficient use of materials, capacity, and knowledge to
achieve output
Has to follow certain specified codes to achieve the desired output
levels
Management of human, technology and system resources
He also does planning, organizing, directing, staffing, and
controlling
Role of the Operation Manager
Worker safety
Product safety
Quality
Hiring and firing workers
Workers’ rights
Ethical issues for operations manager
Ethics in production• Ethically produced goods are defined as goods produced under
conditions of progressive stakeholder relations, advanced
environmental practices and respect for human rights
• An ethical business has to be concerned with the behaviour of all
businesses that operate in the supply chain – i.e.
- Suppliers
- Contractors
- Distributors
- Sales agents
Ethics in production
Ethics in production is a subset of business ethic
Cost efficiency is sometimes achieved at the cost of quality
Poor processes and technology is used to keep the cost down, this
is especially true for small players who cannot afford economies of
scale
All the production functions are governed by production ethics but
there are certain that are severely harmful or deleterious which need
to be monitored continuously. The following are worth mentioning:
Less problems are more of dilemmas (advanced technology)
Defective services and products or products those are innately
deleterious
Animal testing and their rights or use of economically or socially
deprived people for testing or experimentation is another area of
production ethics
Ethics of transactions between the organization and the
environment
In certain products the danger is greater i.e. a slight error can
reduce the quality and increase the danger associated with
consumption or usage of the same exponentially
Eg. Johnson & Johnson
Social perceptions also create an impasse sometimes. Eg. Coco
cola.
Dilemma of Ethics in Production
Maintenance of standard procedure with supplier
Consistency in training process
Helps in auditing
Helps in increased brand value & trust of customer
ADVANTAGES OF ETHICAL PRACTICES IN PRODUCTIONS
Loss of customer
Loss of confidence
High rate of rejection
Stock-out, if unethical code of conduct
Problems in certification
DISADVANTAGES OF UNETHICAL PRACTICES IN PRODUCTIONS
LABOUR LAWS
Sections 11 to 20 of the Act deal with the provisions of health of workers in factory. These are: Sec 11 – Cleanliness Sec 12 – Disposal of wastes and effluents Sec 13 – Ventilation and Temperature Sec 14 – Dust and Fumes Sec 15 – Artificial humidification Sec 16 – Over crowding Sec 17 – Lighting Sec 18 – Drinking Water Sec 19 – Latrines and urinals Sec 20 – Spittoons
PROVISIONS OF HEALTH OF WORKERS
Sections 21 to 41
Sec 21 – Fencing of machinery
Sec 22 – Work on or near machinery in motion
Sec 23 – Employment of young children on dangerous machines
Sec 24 – Striking gear and devices for cutting off power
Sec 25 – Self acting machines
Sec 26 – Casing of new machines
PROVISIONS OF SAFETY TO THE WORKERS
Sec 27 – Prohibition of employment of women and children near
cotton openers
Sec 28 – Hoists and lifts
Sec 29 – Lifting machines, chains, ropes and lifting tackles
Sec 30 – Revolving machinery
Sec 31 – Pressure plant
Sec 32 – Floors, stairs and means of access
Sec 33 – Pits, sumps, openings in floors
Sec 34 - Excessive weights
Sec 35 – Protection to eyes
Sec 36 – Precautions against dangerous fumes, gases etc and use
of portable electric light
Sec 37– Precautions against explosives or inflammable dust, gas
etc.
Sec 38 – Precautions in case of fire
Sec 39 – Power to require specifications of defective parts or
tests of ability
Sec 40 – Safety of buildings and machinery/(A &B) SAFETY
OFFICERS -1000 workers
Sec 41 – Power to make rules to supplement the provisions.
Six factors are involved in ethical decision making:
1. Magnitude of consequence
2. Probability of the effect
3. Social Agreement
4. Time Interval
5. Proximity
6. Concentration of Effect
Analytical Framework for ethical issues in Operations Management
Case study
ETHICAL CASES
1. ENVIRONMENTALLY PC
2. SANYO RECALLING ITS
BATTERIES FOR
REPLACEMENT
3. JOHNSON AND JOHNSON TYLENOL CONROVERSY
UNETHICAL ISSUES
1. MC Donald's Beef Fries Controversy
2. OIL FUND FACES ETHICAL PROBE
THANK YOU