Production Management: Definition, Function and Scope

Production Management, also called operations management, refers to the application of management principles to the production function in a factory. In other words, it involves application of planning, organizing, directing and controlling the production process. Its techniques are employed in service as well as in manufacturing industries. It is a responsibility similar in level

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Historical Evolution of Production and Operations Management

For over two centuries operations and production management has been recognised as an important factor in a country’s economic growth. The traditional view of manufacturing management began in eighteenth century when Adam Smith recognised the economic benefits of specialisation of labour. He recommended breaking of jobs down into subtasks and recognises workers to specialised

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Concept of Production

Production function is that part of an organization, which is concerned with the transformation of a range of inputs into the required outputs (products) having the requisite quality level. 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

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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. A simplified production system is shown above. The production

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Production Management

Production management is a process of planning, organizing, directing and controlling the activities of the production function. It combines and transforms various resources used in the production subsystem of the organization into value added product in a controlled manner as per the policies of the organization. E.S. Buffa defines production management as, “Production management

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Operating System

Operating system converts inputs in order to provide outputs which are required by a customer. It converts physical resources into outputs, the function of which is to satisfy customer wants i.e., to provide some utility for the customer. In some of the organization the product is a physical good (hotels) while in others it

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Operations Management: Framework and Objectives

1. A Framework for Managing Operations Managing operations can be enclosed in a frame of general management function as shown in Fig. 1.3. Operation managers are concerned with planning, organizing, and controlling the activities which affect human behaviour through models. 1.1. Planning Activities that establishes a course of action and guide future decision-making is

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Managing Global Operations

The term ‘globalization’ describes businesses’ deployment of facilities and operations around the world. Globalization can be defined as a process in which geographic distance becomes a factor of diminishing importance in the establishment and maintenance of cross border economic, political and socio-cultural relations. It can also be defined as worldwide drive toward a globalized

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Scope of Production and Operations Management

Production and operations management concern with the conversion of inputs into outputs, using physical resources, so as to provide the desired utilities to the customer while meeting the other organizational objectives of effectiveness, efficiency and adoptability. It distinguishes itself from other functions such as personnel, marketing, finance, etc., by its primary concern for ‘conversion

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Need for Selecting a Suitable Location

The need for selecting a suitable location arises because of three situations. PLAN LOCATION AND LAYOUT When starting a new organisation, e., location choice for the first time. In case of existing organisation. In case of Global Location. 1. In Case of Location Choice for the First Time or New Organisations Cost economies are

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Factors Influencing Plant Location/Facility Location

Facility location is the process of determining a geographic site for a firm’s operations. Managers of both service and manufacturing organizations must weigh many factors when assessing the desirability of a particular site, including proximity to customers and suppliers, labour costs, and transportation costs. Location conditions are complex and each comprises a different Characteristic

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Location Theories of Production and Operation Management

Alfred Weber’s Theory of the Location of Industries Alfred Weber (1868-1958), with the publication of Theory of the Location of Industries in 1909, put forth the first developed general theory of industrial location. His model took into account several spatial factors for finding the optimal location and minimal cost for manufacturing plants. The point

Location Models of Production and Operation Management

Various models are available which help to identify the ideal location. Some of the popular models are: Factor rating method Weighted factor rating method Load-distance method Centre of gravity method Break even analysis 1. Factor Rating Method The process of selecting a new facility location involves a series of following steps: Identify the important

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Locational Economics of Production and Operation Management

An ideal location is one which results in lowest production cost and least distribution cost per unit. These costs are influenced by a number of factors as discussed earlier. The various costs which decide locational economy are those of land, building, equipment, labour, material, etc. Other factors like community attitude, community facilities and housing

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Plant Layout in Production and Operation Management

Plant layout refers to the physical arrangement of production facilities. It is the configuration of departments, work centres and equipment in the conversion process. It is a floor plan of the physical facilities, which are used in production. According to Moore “Plant layout is a plan of an optimum arrangement of facilities including personnel,

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Classification of Plant Layout in Production and Operation Management

Layouts can be classified into the following five categories: Process layout Product layout Combination layout Fixed position layout Group layout 1. Process Layout Process layout is recommended for batch production. All machines performing similar type of operations are grouped at one location in the process layout e.g., all lathes, milling machines, etc. are grouped

Design of Product Layout in Production and Operation Management

1. DESIGN OF PRODUCT LAYOUT In product layout, equipment or departments are dedicated to a particular product line, duplicate equipment is employed to avoid backtracking, and a straight-line flow of material movement is achievable. Adopting a product layout makes sense when the batch size of a given product or part is large relative to

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Service Layout in Production and Operation Management

The major factors considered for service providers, is an impact of location on sales and customer satisfaction. Customers usually look about how close a service facility is, particularly if the process requires considerable customer contact. Hence, service facility layouts should provide for easy entrance to these facilities from the freeways. Well-organized packing areas, easily

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Organisation of Physical Facilities in Production and Operation Management

The following are the most important physical facilities to be organised: Factory building Lighting Claimatic conditions Ventilation Work-related welfare facilities 1. FACTORY BUILDING Factory building is a factor which is the most important consideration for every industrial enterprise. A modem factory building is required to provide protection for men, machines, materials, products or even

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Objectives of Material Handling in Production and Operation Management

Following are the objectives of material handling: Minimise cost of material handling. Minimise delays and interruptions by making available the materials at the point of use at right quantity and at right time. Increase the productive capacity of the production facilities by effective utilisation of capacity and enhancing productivity. Safety in material handling through