Decision making in POM

The decision which production/operations manager make may be classified into three general categories Strategic decisions: decisions about products,
processes and facilities. These decisions are strategically important and have long-term significance for the organisation

Operating decisions: production to meet demand

decisions about planning

Control decisions: decisions about controlling

operations concerned with day-to-day activities of the workers, quality of products and services, production costs and maintenance of plant and equipment

Type of decisions
1.Strategic decisions (planning products, processes and facilities)

Area of involvement
I. Manufacturing processes and technology design ii. Plant location and plant layout iii. Long range capacity planning (equipment and labour capacity)

Nature of activities
i. Product design Process design ii. Choice of production technology iii. Choosing the best location Iv deciding the installed capacity or the plant v. Deciding about the type of plant layout and shop layout

2.Operating decisions (matching production with demand)

i. ii. iii. iv. v.

Production planning Inventory planning Resources requirement planning Production scheduling Procurement planning

i.

3,control decisions

i. Labour productivity Ii .Quality Iii .Projects Iv maintenance

Preparing the master production schedule ii. Planning inventory level iii. Planning for requirements of materials and capacities iv. Detailed scheduling and machine loading charts v. Vendor selection i. Controlling labour output through establishment of performance standards ii. Controlling quality of incoming materials, semi finished goods and finished goods iii. Controlling projects Iv .Controlling machine down time and repair time by good maintenance practices