This document provides an introduction to production and operations management. It defines production/operations management as the process that transforms resources into value-added products/services according to organizational policies. The key difference between production management and operations management is whether the focus is on manufacturing or both manufacturing and services. Components of production and operations management (POM) include efficiency, effectiveness, and value addition. Reasons to study POM include its systematic approach, increasing competitive levels, cross-functional applications, and business/career opportunities.

1. UNIT –1
INTRODUCTION OF PRODUCTION
AND OPERATION MANAGEMENT
PROF. ANKIT WALIA

2. INTRODUCTION
• Production/operations management is the
process, which combines and transforms various
resources used in the production/operations
subsystem of the organization into value added
product/services in a controlled manner as per
the policies of the organization.
• It is that part of an organization, which is
concerned with the transformation of a range of
inputs into the required (products/services)
having the requisite quality level.

3. • The set of interrelated management activities,
which are involved in manufacturing certain
products, is called as production
management.
• If the same concept is extended to services
management, then the corresponding set of
management activities is called as operations
management.

4. DIFFERENCE BETWEEN PM AND OM
PRODUCTION MANAGEMENT OPERATIONS MANAGEMENT
Related with manufacturing Related with both manufacturing and
services
Tangible output Both tangible and intangible output
Less labor, more equipment More labor , less equipment
No customer participation Frequent customer participation

5. COMPONENETSOF POM
• EFFICIENCY - Doing something at the lowest
possible cost
• EFFECTIVENESS - Doing the right things to
create the most value for the organization
• VALUE ADDITION - Quality divided by price

6. WHY TO STUDY POM?
SYSTEMATIC
APPROACH FOR
ORGANISATIONS
PROCESSES
INCREASE
COMPETITIVE
LEVEL
CROSS
FUNCTIONAL
APPLICATIONS
BUSINESS
EDUCATION AND
CAREER
OPPERTUNITIES
SURVIVAL OF
BUSINESS

7. CONCEPT OF PRODUCTION
• Production is defined as- “the step-by-step
conversion of one form of material into
another form through chemical or
mechanical process to create or enhance the
utility of the product to the user.”
• Production is a value addition process. At
each stage of processing, there will be value
addition.

8. PRODUCTION SYSTEM
• The production system of an organization is
that part, which produces products of an
organization. It is that activity whereby
resources, flowing within a defined system,
are combined and transformed in a controlled
manner to add value in accordance with the
policies communicated by management.

9. CHARACTERSTICS OF PRODUCTION
SYSTEM
• Production is an organized activity, so every
production system has an objective.
• The system transforms the various inputs to
useful outputs.
• It does not operate in isolation from the other
organization system.
• There exists a feedback about the activities,
which is essential to control and improve
system performance.

10. MARKET PLACE
CORPORATE
STRATEGY
MARKETING
STRATEGY
OPERATIONS
STRATEGY
FINANCE STRATEGY
OPERATIONS
MANAGEMENT
TRANSFORMATION PROCESSES (PRODUCT
DESIGN,PROCESS PLANNING,
PRODUCTION CONTROL AND
MAINTENANCE)
OUTPUT
(PRODUCT
AND
SERVICES)
INPUT (MEN,
MACHINE,
MATERIAL,
INFORMATIO
N AND
CAPITAL
DECISION MAKING AND TRANSFORMATION SYSTEM

11. POM TRANSFORMATION PROCESS

12. EXAMPLES OF PRODUCTION SYSTEMS
System Inputs Conversion Output
(desired)
Hospital Patients
MDs, Nurses
Medical Supplies
Equipment
Health Care Healthy
Individuals
Restaurant Hungry Customers
Food, Chef
Servers
Atmosphere
Prepare Food
Serve Food
Satisfied
Customers
Automobile
Plant
Sheet Steel
Engine Parts
Tools, Equipment
Workers
Fabrication
and Assembly
of Cars
High Quality
Automobiles
University High School Grads
Teachers, Books
Classroom
Transferring
of Knowledge
and Skills
Educated
Individuals

14. TYPES