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Production Management

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WHY STUDY OPERATIONS MANAGEMENT?

Business Education

Systematic Approach to Org. Processes

Career Opportunities

Cross-Functional Applications

OperationsManagement

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Production Management Production Management is concerned

(PM-transformation of raw materials to output)with those processes which converts the inputs into outputs.

Inputs includes raw materials ,men machines methods etc and outputs are goods and services

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Operations management (OM-management of process) is defined as the design, operation, and improvement of the systems that create and deliver the firm’s primary products and services

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Operations Management

includes:

Forecasting Capacity planning Scheduling Managing inventories Assuring quality Motivating employees

6Objectives of Production Management1.Develop products which can function as expected;

ie; Product with correct quality.2.Produce products in correct quantity

3.Deliver products in time to the right place

4.Perform functions at right price

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Can be achieved through:

1.Optimal use of resources (men, machines and materials)

2.Ensuring quality of goods at minimal cost through use of Statistical Quality control Techniques

4.Contributing towards all round productivity through decision

5.Making and Quantitative Techniques/OR Techniques

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PRODUCTION SYSTEM

The production system transforms inputs into desired goods and services.

OUTPUTSINPUTS PROCESS

EXTERNALFACTORS

FEEDBACKMaterial flowInformation Flow

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FACTORS AFFECTING PRODUCTION

Internal Factors Engineering- Design Research & Development- Product Development Quality- Quality Control & Quality Assurance

External Factors Government Competition Technology Economic Condition

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Responsibilities of Operations Management

Products & services

Planning– Capacity– Location–– Make or buy– Layout– Projects– Scheduling Controlling– Inventory– Quality

Organizing– Degree of centralization– Subcontracting Staffing– Hiring/laying off– Use of Overtime Directing– Incentive plans– Issuance of work orders– Job assignments

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Types of OperationsOperations Examples

Goods Producing Farming, mining, construction,manufacturing, power generation

Storage/Transportation

Warehousing, trucking, mailservice, moving, taxis, buses,hotels, airlines

Exchange Retailing, wholesaling, banking,renting, leasing, library, loans

Entertainment Films, radio and television,concerts, recording

Communication Newspapers, radio and televisionnewscasts, telephone, satellites

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Hospital ProcessInputs Processing Outputs

Doctors, nurses ExaminationHealthy patientsHospital Surgery

Medical Supplies Monitoring

Equipment Medication

Laboratories Therapy