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Semelhante a Introduction to production and operations management
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Introduction to production and operations management
- 1. Production and operations management Presenter: Tayyaba Latif
- 2. Introduction to Production and Operations Management Topic
- 3. Management Management is the scientific study concerning the different activities in order to maximize profit, minimizing cost and to optimize productivity What is Management?
- 4. Operations ‘Operations’ consists of activities related to the production of goods and services. ‘Goods Oriented Operations’ consists of manufacturing and assembly operations ‘Service Oriented Operations’ consists of, health care, transportation, Education, retailing etc. What is ‘Operations’?
- 5. Operations as core function ‘Operations’ function is the core of most business organizations Inputs are converted to Valuable outputs after transformation process
- 6. Value-Added The difference between the cost of inputs and the value or price of outputs. Inputs Land Labor Capital Transformation/ Conversion process Outputs Goods Services Control Feedback FeedbackFeedback Value added
- 7. Food Processor Inputs Processing Outputs Raw Vegetables Cleaning Canned vegetablesMetal Sheets Making cans Water Cutting Energy Cooking Labor Packing Building Labeling Equipment
- 8. Hospital Process Inputs Processing Outputs Doctors, nurses Examination Healthy patientsHospital Surgery Medical Supplies Monitoring Equipment Medication Laboratories Therapy
- 10. Why Organizations need Operations Manager • An operations Manager controls the processes by which value is added from conversion of inputs to outputs.
- 11. Production and Operations Management Production is the creation of goods and services Operations management (OM) is the set of activities that creates value in the form of goods and services by transforming inputs into outputs
- 12. What Is Operations Management? Organization Finance Operations Marketing The management of systems or processes that create goods and/or provide services
- 13. Organizing to Produce Goods and Services Essential functions: Finance/accounting – allocation of resources, investment decisions, tracks how well the organization is doing, pays bills, collects the money Marketing – Front line activity, generates demand Production/operations – creates the product
- 15. What Is Operations Management? Operations management (OM) is the area of management which is concerned with administration of business practices especially overseeing, designing and controlling the process of production set of activities that creates value in the form of goods and services by transforming inputs into outputs with maximum level of efficiency ensuring profitability for the organization
- 16. Nomenclature • Production Management • Production and Operations Management (POMA) • Operations Management • Operations Research (Interdisciplinary Subject)
- 17. Operations Research Operations research is the development and collection of techniques based on mathematics and other scientific approaches that finds solutions to your problems.
- 18. Difference between Operations Management and Research 1. OR relies on mathematical modeling and OM relies on practical scenarios/industrial cases. 2. OR is domain and tool of Engineers while OM is considered to be one of the critical tools of Managers.
- 19. Why Study OM? OM is one of three major functions (marketing, finance, and operations) of any organization We want (and need) to know how goods and services are produced We want to understand what operations managers do OM is such a costly part of an organization
- 20. What Operations Managers Do Planning Organizing Staffing Leading Controlling Basic Management Functions
- 21. 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
- 22. The Critical Decisions Design of goods and services What good or service should we offer? How should we design these products and services? Managing quality How do we define quality? Who is responsible for quality? Table 1.2 (cont.)
- 23. The Critical Decisions Process and capacity design What process and what capacity will these products require? What equipment and technology is necessary for these processes? Location strategy Where should we put the facility? On what criteria should we base the location decision? Table 1.2 (cont.)
- 24. The Critical Decisions Layout strategy How should we arrange the facility? How large must the facility be to meet our plan? Human resources and job design How do we provide a reasonable work environment? How much can we expect our employees to produce? Table 1.2 (cont.)
- 25. The Critical Decisions Supply chain management Should we make or buy this component? Who are our suppliers and who can integrate into our e-commerce program? Inventory, material requirements planning, and JIT How much inventory of each item should we have? When do we re-order? Table 1.2 (cont.)
- 26. The Critical Decisions Intermediate and short–term scheduling Are we better of keeping people on the payroll during slowdowns? Which jobs do we perform next? Maintenance Who is responsible for maintenance? When do we do maintenance? Table 1.2 (cont.)
- 27. • DESIGN OF GOODS AND SERVICES • PROCESS STRATEGY • MANAGING QUALITY • LOCATION STRATGY • LAYOUT STRATEGY • HUMAN RESOURCE • SUPPLY CHAIN MANAGEMENT • INVENTORY MANAGEMENT (MRP,ERP,JIT) • SCHEDULING • MAINTENANCE TEN OM STRATEGY DECISION
- 28. New Challenges in OM Global focus Just-in-time Supply chain partnering Rapid product development, alliances Mass customization Empowered employees, teams ToFrom Local or national focus Batch shipments Low bid purchasing Lengthy product development Standard products Job specialization
- 29. Characteristics of Goods Tangible product Consistent product definition Production usually separate from consumption Can be inventoried Low customer interaction
- 30. Service Definitions • Services are deeds, processes or performances. OR • A service is a time-perishable, intangible experience performed for a customer acting in the role of a co- producer
- 31. Characteristics of Service Intangible product Produced and consumed at same time Often unique High customer interaction Inconsistent product definition Often knowledge-based Frequently dispersed
- 32. Steel production Automobile fabrication House building Road construction Dressmaking Farming Auto Repair Appliance repair Maid Service Manual car wash Teaching Lawn mowing Low service content High goods content High service content Low goods content Increasing goods content Increasing service content Goods-service continuum
- 33. Ethics and Social Responsibility Challenges facing operations managers: Developing and producing safe, quality products Maintaining a clean environment Providing a safe workplace Honouring community commitments
- 34. Thank you