2. Project and Production
Project:
Concrete entity
Idea Facory
Design Building
Plan Highway
Prototype
Products
Services
3. PROJECTS PRODUCTION
Automobile factory Produce automobiles
Build a house Operate house holds
Construct hospital Treat Patients
Conceive new product Manufacture
Develop prototype Produce multiples
DONE ONCE DONE REPETITIVELY
4. MIX OF PROJECTS AND
PRODUCTION
Projects and production are intimately interwoven in
real life.
Projects
Starts production and solve problems relating to
-operation, maintenance, house keeping
-Marketing, Distribution, quality
5. ISSUES FOR DISCUSSION
Pervasiveness of projects and production
Growing organizational complexity
Products vs services
Value addition in operations
Generalized model of production
Productivity and other performance indicators
Kinds of production system
Key decisions in the life cycle of a production system
6. AIM OF PRODUCTION
To provide goods and services for mankind
-in the right quantity
-at the appropriate place
-at the desired time
-with the required quality
-at a reasonable cost
8. Nature of production
Inputs Output
men Desirable
machines Undesirable
materials
money
information
energy
------
Transformation
9. Nature of production
Inputs Output
men Desirable
machines Undesirable
materials feedback
money
information
energy
------
Transformation
10. Nature of production
Inputs Output
men Desirable
machines Undesirable
materials feedback
money
information Environment
energy social
------ economic
political
Transformation
11. VALUE ADDITION THROUGH
TRANSFORMATIONS
Operations is the process of changing inputs into
outputs and thereby adding value to some entity. This
constitutes the primary function of virtually every
organization.
12. HOW VALUE ADDITION TAKES
PLACE?
ALTER
-physical
-sensual
-psychological
• TRANSPORT
• STORE
• INSPECT
13. KINDS OF TRANSFORMATIONS
Physical as in manufacturing
Location as in transpotation
Exchange as in retailing
Storage as in warehousing
Physiological as in hoapital
Attitudinal as in reading
Informational as in entertainment
14. GROSS MEASURES OF
PRODUCTION
PRODUCTION=OUTPUT/TIME
PRODUCTIVITY=OUTPUT/INPUT(in a given time)
EFFICIENCY= ACTUAL/TARGET
EFFECTIVENESS= CAPACITY TO ACHIEVE DESIRED
GOAL
FLEXIBILITY=CAPACITY TO RESPOND TO
CHANGES (internal and external)
15. ECONOMIC MEASURES OF
PERFORMANCE
Investment(initial and phased)
Profit(gross and net after taxes)
Revenue
Turn over
Net present value
Benefit/cost value
Internal rate of return
Payback period
16. NEW CHALLENGES IN
PRODUCTION
COMPETITION
•More producers
•Demanding customers
price quality
Reduced
Lead time
Greater
variety
Customer
satisfactio
n
17. PRODUCTION AS PART OF
THE SUPPLY CHAIN
TRANSFORMATION
PROCESS
VEN
DO
RS
WAREH
OUSES
RET
AIL
18. FEATURES OF SERVICE
ORGANIZATIONS
Customer participation
Services not inventoried
Service capacity time perishable
Customer governs location
Generally labour intensive
Intangible nature of service
19. OPERATIONS MANAGEMENT
The performance of managerial activities in
Selecting
Designing
Operating
Controlling and
Updating
Productive systems