NATURE & SCOPE OF PRODUCTION

AND OPERATION MANAGEMENT

CONVERSION OF INPUT INTO OUTPUTS,USING

PHYSICAL RESOURCES,SO AS TO PROVIDE THE
DESIRED UTILITY OF FORM,PLACE,POSSESSION
OR STATE OR A COMBINATION THEREOF-TO THE
CUSTOMER WHILE MEETING THE OTHER
ORGANISATIONAL OBJECTIVE OF
EFFECTIVENESS, EFFICIENCY AND
ADAPTABILITY.
 CLASSIFICATION UNDER PRODUCTION AND
OPERATION MANAGEMENT(EXAMPLES)
1) PHYSICAL DISTRIBUTION OF ITEMS TO THE
CUSTOMERS.
2) ARRANGEMENT OF COLLECTION OF MARKETING
INFORMATION.

3) THE ACTUAL SELECTION AND RECRUITMENT

PROCESS.

4) THE PAPER FLOW AND CONVERSION OF THE

ACCOUNTING INFORMATION IN AN ACCOUNTS
OFFICE.

IN CASE 1 AND 2 -CONVERSION OF “PLACE” AND

POSSESION” AND IN 3 AND 4 -CONVERSION OF STATE
CHARECTERSTICS.
PERFORMANCE CRITERIA FOR PRODUCTION
AND OPERATION MANAGEMENT
THREE CRITERIA OF PERFORMANCE FOR POM
a) Customer satisfaction
b) Effectiveness
c) Efficiency
CUSTOMER SATISFACTION–Has to be ‘profitable’ and
‘efficient', and necessarily satisfy customer, because
the modern system has to be self –sufficient to serve
the target customers within geographic boundaries
and beyond.
EFFECTIVENESS–Involves an optimality in the
fulfillment of multiple objectives, with a possible
prioritisation within the objectives.
EFFICIENCY– a desired objective be it private or public
sector
 CLASSIFICATION OF DECISION AREAS
PRODUCTION AND OPERATION MANAGEMENT
FUNCTION CAN BE DIVIDED IN FOUR AREAS

1) TECHNOLOGY SELECTION AND MANAGEMENT

2) CAPACITY MANAGEMENT

3) SCHEDULING/TIMING/TIME ALLOCATION

4) SYSTEM MAINTAINENCE
TECHNOLOGY SELECTION AND MANAGEMENT
IMPORTANCE ON 3M’S OF THE MANAGEMNT
i.e. MANPOWER,
MACHINERY AND MATERIALS CAPACITY OF
THE OPERATIONS SYSTEM AND TYPE OF
DISTURBANCES IT CAN CREATE
i) Undesirable effects of deterioration
ii) Potentially harmful waste by-products
iii) Potential risk, to the users and non-users alike, due to
variety of reasons

IT IS NOT CONNECTED WITH DAY-TO-DAY

SHORT-TERM DECISION IN THE PLANT,IT IS
AN IMPORTANT PROBLEM TO BE ADDRESSED
SO THAT ORGANISATION CAN MAKE SPECIFIC
CHOICE TO SUITS ITS OBJECTIVE
 CAPACITY MANAGEMENT
 MATCHING OF AVAILABLE CAPACITY TO
DEMAND
 ORGANISATIONAL OBJECTIVES OF
EFFICIENCY
 CUSTOMER SERVICE AND OVERALL
EFFECTIVENESS
 LOWER THAN CAPACITY-- NON-FULFILLMENT
OF CUSTOMER SERVICE
 HIGHER THAN CAPACITY--- LOWER
UTILISATION OF RESOURCE
 DEGREE OF FLEXIBILTY DEPENDS ON
CUSTOMER DEMAND FLUCTUATION
 SCHEDULING

 DEALS WITH TIMING OF VARIOUS ACTIVITIES

 TIME PHASING OF THE FILLING OF DEMANDS
 TIME PHASING OF CAPACITIES TO MEET DEMANDS
AS IT KEEPS FLUCTUATING
 IMPORTANCE OF SCHEDULING IS MIX OF
EFFECTIVENESS & EFFICIENCY

IN PHYSICAL OUTPUT TYPE SYSTEMS THE

SCHEDULING DECISION IS IMPORTANT TO
DETERMINE CUSTOMER DELIVERY AND
PRODUCTIVE USE OF MACHINERY AND LABOUR
 SYSTEM MAINTAINENCE

 CONCERNED WITH SAFEGUARDS

 DESIRED OUTPUT WILL BE PRODUCED IN
NORMAL CONDITION
 VIGILANCE MAINTAINED FOR NON-NEGATION
OF CAPACITY CREATION AND SCHEDULING
 REGULAR CHECKS ON SYSTEM PERFORMANCE
AND CORRECTIVE ACTIONS
 ENHANCE THE CHANCE OF HAVING DESIRED
OUTPUT UNDILUTED BY POLLUTANTS
 HISTORICAL DEVELOPMENT
INDIVIDUAL EFFICIENCY

CONCEPT TOOL ORIGINATOR

PRINCIPLE OF SCIENTIFIC TIME-STUDY FREDRIC TAYLOR
MANAGEMENT

(THE SIMPLE OUTPUT-TO-TIME RELATIONSHIP FOR

MANUAL LABOUR SUCH AS BRICK-LAYING WHICH
RESULTED IN “TIME-STUDY” CONCEPT)

INDUSTRIAL MOTION-STUDY FRANK GILBRET

PSYCHOLOGY

(EXAMINED THE LIMBS MOTION OF WORKER AND TRIED

STANDARDISE THEM IN CATEGORIES FOR MOTION
 COLLECTIVE EFFICIENCY
CONCEPT TOOL ORIGINATOR
MOVING ASSEMBLY ACTIVITY SCHEDULING GANTT & FORD
LINE
(COLLECTIVE EFFICIENCY CAME INTO EXPRESSED BY
EFFORTS OF GANTT AND FORD--- SCHEDULING OF THE
OPERATION)

ECONOMIC EOQ TO INVENTORY F.W HARRIS

LOT SIZE CONTROL

(EFFICIENCY IN THE USE OF RAW MATERIAL WHERE FOCUS

WAS MADE ON THE CONTRIBUTION OF EACH PERIPHERALS
OF PRODUCTION)
 QUALITY
CONCEPT TOOL ORIGINATOR
QUALITY SAMPLING INSPECTION& DODGE&ROMIG
CONTROL STATISTICS TABLE FOR
QUALITY CONTROL
 QUALITY RECOGNISED FOR SCIENTIFIC ANALYSIS
 SHEWART THEORY FOR CONTROL CHART FOR
QUALITY KNOWN AS PROCESS CONTROL
 ANALYSIS OF PRODUCTIVE SYSTEMS INCLUDED
EFFECTIVENESS AS CRITERIA OF QUALITY
 STATISTICAL PRINCIPLES FOR
ACCEPTANCE/REJECTION OF CONSIGNMENT BY
SUPPLIERS TO EXERCISE QUALITY
EFFECTIVENESS AS FUNCTION ON INTERNAL
CLIMATE
CONCEPT TOOL ORIGINATOR
HAWTHORNE ACTIVITY SAMPLING FOR MAYO&TIPET
WORKER MOTIVATION WORK ANALYSIS

(HAWTHORNE EXPERIMENTS SHOWED CHANGE IN THE

EFFICIENCY OF THE WORKER AS AND WHEN THE
ILLUMINATION WAS GRADUALLY INCREASE EVEN IF
DECREASED DIDN’T HAD ANY IMPACT)
 ADVENT OF OPERATION RESEARCH
TECHNIQUE
CONCEPT TOOL ORIGINATOR
MULTIDISCIPLINARY SIMPLEX METHOD DANTZIG
APPROACH
 ALLIED FORCES TOOK HELP OF SCIENTIST AND
ENGINEERS TO ANALYSE STRATEGICAL QUESTION.
 STUDIES ABOUT MILLITARY OPERATION WAS TERMED AS
OPERATION RESEARCH
 LINEAR PROGRAMMING,GAME THEORY,QUEING THEORY
HELPED IN MANAGEMENT DECISION MAKING.
 COMPUTER ERA

 IBM DEVELOPED DIGITAL COMPUTERS

 MADE POSSIBLE COMPLEX AND REPEATED

COMPUTATIONS

 HELPED TO SPREAD THE MANAGEMENT SCIENCE

CONCEPT AND TECHNIQUE IN DECISION MAKING
 SERVICE AND RELATIONSHIP ERA

 SERVICE AN IMPORTANT FACTOR IN CUSTOMER

SATISFACTION

 SERVICE INCORPORATED IN PRODUCTION

MANAGEMENT TO ACHIEVE EFFICIENCY AND
EFFECTIVENESS

 POM IS INCREASINGLY GETTING RELATIONSHIP

ORIENTED

 RELATION BETWEEN COMPANY,ITS CUSTOMER

AND ITS BUSINESS ASSOCIATE