Understanding production and operations management

Production and operations management talks about applying business organization and management concepts in creation of goods and services.

Importance of Production Function and Production Management:

Production comes under the category of line function which directly affects customer experience.
Aim of production function is to add value to product or service which will create a strong and long lasting customer relationship or association.
Production management and operations management both are very essential in meeting objective of an organization.

Production is a scientific process which involves transformation of Operations management

raw material into desired product or service by adding economic
value.

Identify the Engage internal and

Production Production by Production by customer needs and Based on product external vendors to
through modification or assembly: convert that into a requirement do create supply chain for
separation: improvement: Car production specific product or back-ward raw material and
A classic example Annealing process and computer service. working to finished goods between
is Oil into various (heating at high are example. identify raw vendor → production
fuel products. temperatures and material facility → customers.
then cooling), is requirements.
example.

Production Management v/s Operations Management

Output: Customer Contact:

Production management deals with
manufacturing of products while
operations management cover both
products and services.
Classification of work:
Usage of Output: There is no participation of
To produce products more of
Products are utilized over a customer during production
capital equipment and less labour
period whereas services need whereas for services a constant
are required while services require
to be consumed immediately. contact with customer is required.
more labour and lesser capital
equipment.
 Is manufacturing where work-in-process smoothly flows through production with
Continuous flow
minimal (or no) buffers between steps of the manufacturing process.

Just-In-Time (JIT) Is pulling parts through production based on customer demand instead of pushing
parts through production based on projected demand.

Kaizen Is a strategy where employees work together proactively to achieve regular, incremental
(Continuous improvements in the manufacturing process.
Improvement)
Lean
manufacturing
terms and Kanban Is a method of regulating the flow of goods both within the factory and with outside suppliers
(Pull
definitions System)
and customers.

Standardized Documented procedures for manufacturing that capture best practices. It must be
Work “living” documentation that is easy to change.

Toyota Production Manufacturing strategy focuses on the complete elimination of waste from the
System (TPS) manufacturing process and is the progenitor of lean manufacturing.

Total Productive Is a holistic approach to maintenance that focuses on proactive and preventative
Maintenance (TPM) maintenance to maximize the operational time of equipment. Strong emphasis on
Bibliographic references:
empowering operators to help maintain their equipment.
www.leanproduction.com