Mb0044 unit-01

C o n f i d e n t i a l1

Program : MBA

Semester : II

Subject Code : MB0044

Subject Name : Production and Operations Management

Unit number : 1

Unit Title : Production Management

Lecture Number : 1

Lecture Title : POM

HOME NEXT

C o n f i d e n t i a l

2

POM

Objectives :

• Define production management

• Describe production planning & production control

• Describe Material control & Material handling

• Define Productivity

• Understand types of Productivity

• Describe Quality circles

• Understand the need for training

HOME NEXT PREVIOUS

Unit-1 Production Management

C o n f i d e n t i a l

3

Lecture Outline

• Introduction – Production Management

• Production Planning & Production Control

• Material Control & Material Handling

• Productivity

• Types of Productivity

• Quality Circles

• Training

• Summary

• Check Your Learning

HOME NEXT PREVIOUS

Unit-1 Production Management

C o n f i d e n t i a l

4

Introduction Production Management

Production Management encompasses all activities that go into conversion of a set

of inputs into outputs which are useful to meet human needs.

HOME NEXT PREVIOUS

Unit-1 Production Management

Prod.Prod.Mgnt.Mgnt.

MarketingMarketing

MISMISEngineeringEngineering

HRMHRM

QAQA

AccountingAccounting

SalesSalesFinanceFinance

Production Management typically starts with Aggregate Planning

C o n f i d e n t i a l

5

HOME NEXT PREVIOUS

Unit-1 Production Management

Production Planning

• Estimating

• Routing

• Scheduling

Production Control

• Dispatching

• Expediting

C o n f i d e n t i a l

6

Material control & Material handling:

• Material control is a management function whereby procurement,

storage, and issuance of the storage material for purposes of

manufacturing the products or consumption are conducted

• Material handling refers movement of materials.

HOME NEXT PREVIOUS

Unit-1 Production Management

C o n f i d e n t i a l

7

Productivity

Productivity is generally expressed as the ratio of outputs to inputs. It is a

measure of the efficiency of the system and looks at the economies

achieved during the processes.

Capital Productivity

Labour Productivity

Personnel Productivity

HOME NEXT PREVIOUS

Unit-1 Production Management

C o n f i d e n t i a l

8

Types of Productivity

Capital Productivity

• takes account of inputs of machines or land.

• Strategies needed to maximize the utilization of funds allotted

towards are:

Outsourcing strategies

Methods improvement

Balancing of workstations

Quality circles

Rationalisation of packaging methods

HOME NEXT PREVIOUS

Unit-2 The Marketing Process

C o n f i d e n t i a l

9

Labour Productivity:

• It takes account of inputs of employee hours worked

• It is measured by calculating the number of products per hour for an

individual.

Measurement of time required for any task is measured using

Motion Study and Work Measurement methods.

HOME NEXT PREVIOUS

Unit-1 Production Management

Types of Productivity

C o n f i d e n t i a l

10

HOME NEXT PREVIOUS

Unit-1 Production Management

Types of Productivity

Personnel Productivity:

Personnel are the ones who:

• Facilitates the operations

• Coordinates between various operations in identifying the jobs that

have to be done

• Checks the set ups

• Verifies that proper jigs and fixtures are provided

• Inspects allocated machines

C o n f i d e n t i a l

11

Quality Circles

Quality Circles:

• Kaoru Ishikawa is the originator of the concept of Quality Circles.

• Uses the principle of fish bone diagram

HOME NEXT PREVIOUS

Unit-1 Production Management

C o n f i d e n t i a l

12

Training

• Jobs need to be performed efficiently.

• For efficient job completion, person should be evaluated for

Knowledge level, skill level and behavioral aspect.

• Any shortfall in the above is corrected by the process of training.

HOME NEXT PREVIOUS

Unit-1 Production Management

C o n f i d e n t i a l

13

Summary

• Production operations involve conversion of materials into saleable

products.

• Getting maximum productivity depends on the utilization of machines

most efficiently with well trained and motivated workforce.

• Transferring of materials inside the operations area also has to be

optimized for efficiency.

• Job descriptions are important to select, train and deploy personnel.

HOME NEXT PREVIOUS

Unit-1 Production Management

C o n f i d e n t i a l

14

Check Your Learning

1. What are the functions of Production Planning?

Ans. Estimating, Routing, Scheduling

2. Mention the types of Productivity.

Ans. Capital, Labour and Personnel

3. Who is the originator of Quality Circles?

Ans. Kaoru Ishikawa

HOME NEXT PREVIOUS

Unit-1 Production Management