Management of production systems 4, | be Nh ire ise Ores, My - robuatind sy, Le wages Prrcloction be ojbmadion assedWhat is production? * Traditionally- production refers to machine shops, manufacture of real goods. ¢ Producing refers to conversion of inputs into outputs using physical resources so as to provide the desired products or services.What is management? Dictionary: Control and organization(of a business , etc.) — Ex: The management is closing the factory. The business is under new management / control. In operations management: Includes designing, performing all activities necessary to operate the system including directing personnel, acquiring materials and equipment, In broad sense; Getting things/ jobs done aWhat are operations? + All jobs involved with value addition by improving, enhancing or rearranging the inputs are referred to as operations in an industrial environment. {Operations also called as production functions. } + An operating system: consists of the processes and activities necessary to transform various inputs into goods and services.How is it different from other departments? + In this there is conversion of physical resources. + Incase of other departments there may be conversion but is of subtle nature and is not a direct conversion of physical goods. There may be conversion of place, possession characteristics.Who are stake holders? Every one who gets affected by the organization are called the stake holders. Owners / promoters Other share holders Employees Customers Vendors Government ‘ced to enhanceWhat is efficiency? + Efficiency of operating systems refers to” Doing things-right’. "28. ela + It refers to productive utilization of resources. ¢ =output / input aWhat is productivity? + In reference to operations: * Use fewer inputs to produce the desired output. * Note: * Focusing excessively on cost reduction can lead to poor decisions and can also lead to quality lossWhat is effectiveness? Effectiveness refers to ‘ Do right things’ - Right operations Right quality Right quantity Right vendor Right time Right place — do not go to a wrong department for queries. Right price- do not charge more nor less.G € Dimensions in which we can measure the effectiveness & Efficiency of the operating * Cost system. * Quality * Dependability & Reliability * FlexibilityWhat factors influence an organizations competitiveness? * Cost * Quality * Dependability & Reliability * Flexibility — can it accept change.e e Primary function of every organization. * The primary function is given by the organization in it's Vision and mission statements. * Mission: why the organization is there. ~ Expectations of the stake holders * Vision.: The aspirations of the organization ~ Desired future state after say 10 years.What do you mean by Strategy? Long term direction / what to do ? - to achieve the mission. Ex.: Say mission is be healthy and fit. And vision is to run the Great Himalayan Marathon. Strategy: Join running club Exercise regularly Compete in marathons Stick to appropriate diet While developing the Strategy - Keep in mind how it's implementation will be measured.Aim of strategy + Help the organization co-ordinate its organizational components and provide direction so that all actions contribute to the goals.Difference between productio goods and services Goods: The systems rely heavily on raw material inputs. The goods can be stored for later use and transported over space before use Users do not have direct involvement with the production process Services: Systems have to rely on people. Services cannot be stored. There is direct involvement of process of service production / production process. Ex.: Health care service Consultant : Design advice, Financing ~ You have to talk to the customer. Teaching: Interaction with the Teacher- Feedback is important. Have students understood the concept, Has their Knowledge increased, Has their thought process improved?Responsibilities of an operation manager. Design and planning: Product design Capacity planning Process design and choice of technology Facility Location Facility design and layout Job design Product quality assurance Operations and control: Long term and short term plan Materials management Maintenance Scheduling personnel, equipment, jobs Distribution and logistics - how to organize the distribution.