INTRODUCTION TO PRODUCTION

1 AND OPERATION MANAGEMENT

INTENDED LEARNING OUTCOMES

By the end of the learning experience, students must be able to:

1. Understand the meaning of production and operations management;
2. Describe the historical evolution of operations management;
3. Explain the interrelationship of operations management with different functions;
4. Discuss the objectives of production and operations management;
5. Understand the scope of production and operations management;
6. Explain the production concept, production system and its classifications;
7. Discuss the objectives of operations management; and
8. Understand the recent trends in operations management.

A. DEFINING PRODUCTION AND OPERATIONS MANAGEMENT

Production/operations management is the process, which combines and transforms

various resources used in the production/operations subsystem of the organization into value
added product/services in a controlled manner as per the policies of the organization. Therefore,
it is that part of an organization, which is concerned with the transformation of a range of inputs
into the required (products/services) having the requisite quality level.
The set of interrelated management activities, which are involved in manufacturing
certain products, is called as production management. If the same concept is extended to
services management, then the corresponding set of management activities is called as
operations management. In the process of managing various subsystems of the organization
executives at different levels of the organization need to track several management decisions. The
management decisions are strategic, tactical and operational.

Strategic Tactical Operational

(Top Level) (Middle Level) (Bottom Level)

Defining goals Plant location Effective and

efficient
Making policies New product utilization of
Establishment resources

Monitoring
budgets

Figure 1.1. Schematic Management Process

B. HISTORICAL EVOLUTION IN OPERATIONS MANAGEMENT

The Industrial Revolution

• The industrial revolution developed in England in the 1700s.

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 • The steam engine invented by James Watt in 1764, largely replaced human and water
power for factories.
• Adam Smith’s The Wealth of Nations in 1776 touted the economic benefits of the
specialization of labor.
• Thus, the late 1700s factories had not only machine power but also ways of planning
and controlling the tasks of workers.
• In 1790, an American, Eli Whitney, developed the concept of interchangeable parts.
• The first great industry in the US was the textile industry.
• In the 1800s, the development of the gasoline engine and electricity further advanced
the revolution.
• By the mid-1800s, the old cottage system of production had been replaced by the
factory system.
Post-Civil War Period
• During the Post-Civil War period, great expansion of production capacity occurred.
• Post-Civil War the following developments set the stage for the great production
explosion of the 20th century.
• Increased capital and production capacity
• The expanded urban workforce
• New Western US markets
• An effective national transportation system
Scientific Management
Frederick Taylor is known as the father of scientific management. His shop system
employed the following steps:
1. Each worker’s skill, strength, and learning ability have to be determined.
2. Stopwatch studies have to be conducted to precisely set standard output per worker.
3. Material specifications, work methods, and routing sequences used to organize shop.
4. Supervisors have to be carefully selected and trained.
5. Incentive pay system has to be initiated.
Human Relations and Behaviorism
• Between 1927 to 1932, researchers in the Hawthorne Studies realized that human
factors were affecting production.
• Researchers and managers alike were recognizing that psychological and
sociological factors affected production.
• From the work of behavior lists, came a gradual change in the way managers thought
about and treated workers.
Operations Research
• During World War II, enormous quantities of resources (personnel, supplies,
equipment,) had to be deployed
• Military Operations Research (OR) teams were formed to deal with the complexity of
the deployment
• After the war, operations researchers found their way back to universities, industry,
government, and consulting firms
• Operations Research helps operations managers make decisions when problems are
complex and wrong decisions are costly.
Service Revolution
• The creation of services organizations accelerated sharply after World War II
• Today, more than two-thirds of the US workforce is employed in services
• About two-thirds of the US GDP is from services
• There is a huge trade surplus in services

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 • Investment per office worker now exceeds the investment per factory worker
• Thus there is a growing need for service operations management
The Computer Revolution
• Explosive growth of computer and communication technologies
• Easy access to information and the availability of more information
• Advances in software applications such as Enterprise Resource Planning
(ERP)software
• Widespread use of email
• More and more firms becoming involved in E-Business using the Internet
• Result: Faster, better decisions over greater distances

C. INTERFACE OF OPERATIONS MANAGEMENT WITH OTHER FUNCTIONS

Well-designed manufacturing and service operations exploit a company’s distinctive
competencies – the strengths unique to that company – to meet these needs. Such strengths
might be a particularly skilled or creative workforce, strong distribution networks, or the ability to
rapidly develop new products or quickly change production-output rates.
A good operations manager will interface with other functions in order to exploit the
competencies of the organization. Some of the interfaces with other functional areas in the
organization are described below:
1. Operations Management-Marketing Interface. Marketing is responsible for
understanding customer needs, generating and maintaining demand for the firm’s
products, ensuring customer satisfaction, and developing new markets and product
potential. The firm’s strategic positioning and its market segmentation decisions to a
large extent determine the manufacturing and operations strategy. In addition,
marketing is the key information gatekeeper between operations and the product
markets. Marketing determines the kind of product customer’s value. This starts prior
to product development, positioning, pricing, forecasting and promotions both
before and after product launch. Interdisciplinary co-operation involving operations
and marketing decisions go back over many decades.
2. Operations Management-Finance Interface. Capital equipment, cost-control
policies, price- volume decisions and inventories constitute the interface with
financial decision making. As acquisition and management of assets is an important
part of decision making, finance and operations need to work together to understand
the nature of technology used in operations and the practice-performance gap in their
organization. Tracking performance requires that the organization develops
common, objective platforms for performance evaluation. Finance provides data on
product and service costs that help managers evaluate operational performance.
Operations managers should have knowledge of financial procedures, limits, and
capabilities. The effectiveness of operational planning and budgeting is often driven
by the level of co-operation between these two areas.
3. Operations Management-Design Interface. Shrinking product lifecycles have been
adding to the demands on the product development process. This is especially true
for industries that have a high clock-speed. Launching more new products faster
requires tight integration between the design and Operations Management
functions. Initiatives such as simultaneous engineering and early supplier involvement
in the product design process not only add to the role of operations but also improve
the perception of value provided in the product and service concept design process.
4. Operations Management-Human Resource Interface. No plant manager anywhere
would ignore the role of good people management in running an efficient operation.
The human resource function includes operation’s approaches such as continuous

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 improvement and total quality that rely mainly on human inputs. Decisions about
people and the organization of the operations function interact significantly with both
structural and infrastructural decisions. Such issues are not unique to the operations
function, however; they impact other functions and are dealt with more effectively
through the human resource management function.
5. Operations Management-Information Systems. Information systems provide,
analyze, and co-ordinate the information needs of operations. The distributed
processing environment and the growth and evolution of Enterprise Resource
Planning (ERP) systems for the organization have a direct impact on operations. It
allows organizations to generate relevant information and make appropriate
information available when needed. The operational plans become the driver of all
business planning including recruiting, cash flows, and marketing promotions. With
Computer Integrated Manufacturing (CIM) systems IT plays a very important role.

D. OBJECTIVES OF OPERATIONS MANAGEMENT

The objective of the production management is ‘to produce goods services of right quality
and quantity at the right time and right manufacturing cost’.
1. Right Quality: The quality of product is established based upon the customer’s needs. It is
determined by the cost of the product and the technical characteristics as suited to the
specific requirements.
2. Right Quantity: The manufacturing organization should produce the products in right
number. If they are produced in excess of demand the capital will block up in the form of
inventory and if the quantity is produced in short of demand, leads to shortage of products.
3. Right Time: Timeliness of delivery is one of the important parameter to judge the
effectiveness of production department. So, the production department has to make the
optimal utilization of input resources to achieve its objective
4. Right Manufacturing Cost: Manufacturing costs are established before the product is
actually manufactured. Hence, all attempts should be made to produce the products at pre-
established cost, so as to reduce the variation between actual and the standard (pre-
established) cost.

E. SCOPE OF PRODUCTION AND OPERATIONS MANAGEMENT

Production and operations management concerns 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 by using physical resources.’ Following are the activities which
are listed under production and operations management functions:
1. Location of Facilities: Location of facilities for operations is a long-term capacity decision
which involves a long term commitment about the geographically static factors that
affect a business organization. It deals with the questions such as ‘where our main
operations should be based?’ The selection of location is a key-decision as large
investment is made in building plant and machinery. An improper location of plant may
lead to waste of all the investments made in plant and machinery equipment. The purpose
of the location study is to find the optimal locations that will results in the greatest
advantage to the organization.
2. Plant Layouts and Material Handling: Plant layout refers to the physical arrangement of
facilities. It is the configuration of departments, work centers and equipment in the
conversion process. The overall objective of the plant layout is to design a physical
arrangement that meets the required output quality and quantity most economically.

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 According to James Moore, “Plant layout is a plan of an optimum arrangement of
facilities including personnel, operating equipment, storage space, material
handling equipment and all other supporting services along with the design of best
structure to contain all these facilities”. ‘Material Handling’ refers to the ‘moving of
materials from the store room to the machine and from one machine to the next during
the process of manufacture’. Material handling devices increases the output, improves
quality, speeds up the deliveries and decreases the cost of production. Hence, material
handling is a prime consideration in the designing new plant and several existing plants.
3. Product Design: Product design deals with conversion of ideas into reality. Every business
organization has to design, develop and introduce new products as a survival and growth
strategy. The entire process of need identification to physical manufactures of product
involves three functions: marketing, product development, and manufacturing. Product
development translates the needs of customers given by marketing into technical
specifications and designing the various features into the product to these specifications.
Product design and development provides link between marketing, customer needs and
expectations and the activities required to manufacture the product.
4. Process Design: Process design is a macroscopic decision-making of an overall process
route for converting the raw material into finished goods. These decisions encompass
the selection of a process, choice of technology, process flow analysis and layout of the
facilities. Hence, the important decisions in process design are to analyze the workflow
for converting raw material into finished product and to select the work station for each
included in the workflow.
5. Production and Planning Control: Production planning and control can be defined as
the process of planning the production in advance, setting the exact route of each item,
fixing the starting and finishing dates for each item, to give production orders to shops
and to follow up the progress of products according to orders. The principle of production
planning and control lies in the statement ‘First Plan Your Work and then Work on Your
Plan’. Main functions of production planning and control includes planning, routing,
scheduling, dispatching and follow-up.
• Planning: Is deciding in advance what to do, how to do it, when to do it and who
is to do it. Planning bridges the gap from where we are, to where we want to go.
It makes it possible for things to occur which would not otherwise happen.
• Routing: May be defined as the selection of path which each part of the product
will follow, which being transformed from raw material to finished products.
Routing determines the most advantageous path to be followed from department
to department and machine to machine till raw material gets its final shape.
• Scheduling: Determines the program of the operations. Scheduling may be
defined as ‘the fixation of time and date for each operation’ as well as it
determines the sequence of operations to be followed.
• Dispatching: Is concerned with the starting the processes. It gives necessary
authority so as to start a particular work, which has already been planned under
‘Routing’ and ‘Scheduling’. Therefore, dispatching is ‘release of orders and
instruction for the starting of production for any item in acceptance with the route
sheet and schedule charts’.
6. Quality Control: Quality Control (QC) may be defined as ‘a system that is used to
maintain a desired level of quality in a product or service’. It is a systematic control of
various factors that affect the quality of the product. Quality control aims at prevention of
defects at the source, relies on effective feedback system and corrective action
procedure. Quality control can also be defined as ‘that industrial management technique by

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 means of which product of uniform acceptable quality is manufactured’. It is the entire
collection of activities which ensures that the operation will produce the optimum quality
products at minimum cost. The main objectives of quality control are:
• To improve the companies’ income by making the production more acceptable
to the customers i.e., by providing long life, greater usefulness, maintain
ability,etc.
• To reduce companies cost through reduction of losses due to defects.
• To achieve inter change ability of manufacture in large scale production.
• To produce optimal quality at reduced price.
• To ensure satisfaction of customers with productions or services or high quality
level, to build customer good will, confidence and reputation of manufacturer.
• To make inspection prompt to ensure quality control.
• To check the variation during manufacturing.
7. Materials Management: Materials management is that aspect of management function
which is primarily concerned with the acquisition, control and use of materials needed
and flow of goods and services connected with the production process having some
predetermined objectives in view. The main objectives of materials management are:
• To minimize material cost.
• To purchase, receive, transport and store materials efficiently and to reduce the
related cost.
• To cut down costs through simplification, standardization, value analysis, import
substitution.
• To trace new sources of supply and to develop cordial relations with them in order
to ensure continuous supply at reasonable rates.
• To reduce investment tied in the inventories for use in other productive purposes
and to develop high inventory turnover ratios.
8. Maintenance Management: In modern industry, equipment and machinery are a very
important part of the total productive effort. Therefore, their idleness or downtime
becomes are very expensive. Hence, it is very important that the plant machinery should
be properly maintained. The main objectives of maintenance management are:
• To achieve minimum breakdown and to keep the plant in good working condition
at the lowest possible cost.

Figure 1.2. Scope of production and operations management

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 • To keep the machines and other facilities in such a condition that permits them
to be used at their optimal capacity without interruption.
• To ensure the availability of the machines, buildings and services required by
other sections of the factory for the performance of their functions at optimal
return

E. CONCEPT OF PRODUCTION AND PRODUCTION SYSTEM

Production function is that part of an organization, which is concerned with the

transformation of arrange 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 utility of the
product to the user.” Thus production is a value addition process.
Edwood Buffa defines production as ‘a process by which goods and services are created’.
Some examples of production are: manufacturing custom-made products like, boilers with a
specific capacity, constructing flats, some structural fabrication works for selected customers,
etc., and manufacturing standardized products like, car, bus, motor cycle, radio, television, etc.
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 system has the following characteristics:
1. Production is an organized activity, so every production system has an objective.
2. The system transforms the various inputs to useful outputs.
3. It does not operate in isolation from the other organization system.
4. There exists a feedback about the activities, which is essential to control and improve
system performance.

Figure 1.3. Schematic production system

Classification of Production System

1. Job Shop Production: Job shop productions are characterized by manufacturing of one
or few quantity of products designed and produced as per the specification of customers
within prefixed time and cost. A job shop comprises of general purpose machines
arranged into different departments. Each job demands unique technological
requirements, demands processing on machines in a certain sequence.

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 Characteristics
The Job-shop production system is followed when there is:
• High variety of products and low volume.
• Use of general purpose machines and facilities.
• Highly skilled operators who can take up each job as a challenge because of
uniqueness.
• Large inventory of materials, tools, parts.
• Detailed planning is essential for sequencing the requirements of each product,
capacities for each work center and order priorities.
Advantages
Following are the advantages of job shop production:
• Because of general purpose machines and facilities variety of products can be
produced.
• Operators will become more skilled and competent.
• Full potential of operators can be utilized.
• Opportunity exists for creative methods and innovative ideas.
Limitations
Following are the limitations of job shop production:
• Higher cost due to frequent setup changes.
• Higher level of inventory at all levels and hence higher inventory cost.
• Production planning is complicated.
• Larger space requirements.

2. Batch Production: Batch production is defined by American Production and Inventory

Control Society (APICS) “as a form of manufacturing in which the job passes through the
functional departments in lots or batches and each lot may have a different routing.” It is
characterized by the manufacture of limited number of products produced at regular
intervals and stocked awaiting sales.
Characteristics
Batch production system is used under the following circumstances:
• When there are shorter production runs.
• When plant and machinery are flexible.
• When plant and machinery set up is used for the production of item in a batch and
change of setup is required for processing the next batch.
• Whenmanufacturingleadtimeandcostarelowerascomparedtojoborderproduction.

Advantages
Following are the advantages of batch production:
• Better utilization of plant and machinery.
• Promotes functional specialization.
• Cost per unit is lower as compared to job order production.
• Lower investment in plant and machinery.
• Flexibility to accommodate and process number of products.
• Job satisfaction exists for operators.
Limitations
Following are the limitations of batch production:
• Material handling is complex because of irregular and longer flows.
• Production planning and control is complex.
• Work in process inventory is higher compared to continuous production.
• Higher setup costs due to frequent changes in setup.

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 3. Mass Production: Manufacture of discrete parts or assemblies using a continuous process
are called mass production. This production system is justified by very large volume of
production. The machines are arranged in a line or product layout. Product and process
standardization exists and all outputs follow the same path.
Characteristics
Mass production is used under the following circumstances:
• Standardization of product and process sequence.
• Dedicated special purpose machines having higher production capacities and output
rates.
• Large volume of products.
• Shorter cycle time of production.
• Lower in process inventory.
• Perfectly balanced production lines.
• Flow of materials, components and parts is continuous and without any backtracking.
• Production planning and control is easy.
• Material handling can be completely automatic.
Advantages
Following are the advantages of mass production:
• Higher rate of production with reduced cycle time.
• Higher capacity utilization due to line balancing.
• Less skilled operators are required.
• Low process inventory.
• Manufacturing cost per unit is low.
Limitations
Following are the limitations of mass production:
• Break down of one machine will stop an entire production line.
• Line layout needs major change with the changes in the product design.
• High investment in production facilities.
• The cycle time is determined by the slowest operation.

4. Continuous Production: Production facilities are arranged as per the sequence of

production operations from the first operations to the finished product. The items are
made to flow through the sequence of operations through material handling devices such
as conveyors, transfer devices, etc.
Characteristics
Continuous production is used under the following circumstances:
• Dedicated plant and equipment with zero flexibility.
• Material handling is fully automated.
• Process follows a predetermined sequence of operations.
• Component materials cannot be readily identified with final product.
• Planning and scheduling is a routine action.
Advantages
Following are the advantages of continuous production:
• Standardization of product and process sequence.
• Higher rate of production with reduced cycle time.
• Higher capacity utilization due to line balancing.
• Manpower is not required for material handling as it is completely automatic.
• Person with limited skills can be used on the production line.
• Unit cost is lower due to high volume of production.

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 Limitations
Following are the limitations of continuous production:
• Flexibility to accommodate and process number of products does not exist.
• Very high investment for setting flow lines.
• Product differentiation is limited.

Figure 1.4. Classification of Production Systems

F. RECENT TRENDS IN OPERATIONS MANAGEMENT

Many recent trends in production/operations management relate to global competition

impacting manufacturing firms: Some of the recent trends are:
1. Global Market Place: Globalization of business has compelled many manufacturing firms
to have operations in many countries where they have certain economic advantage. This
has resulted in a steep increase in the level of competition among manufacturing firms
throughout the world.
2. Operations Strategy: More and more firms are recognizing the importance of operations
strategy for the overall success of their business and the necessity for relating it to their
overall business strategy.
3. Total Quality Management: TQM approach has been adopted by many firms to achieve
customer satisfaction by a never ending quest for improving the quality of goods and
services.
4. Flexibility: The ability to adapt quickly to changes on volume of demand, in the product mix
demanded, and in product design or in delivery schedules, has become a major competitive
strategy and a competitive advantage to the firms. This is sometimes called Agile
Manufacturing.
5. Time Reduction: Reduction in manufacturing cycle time and speed to market for a new
product provides products at the same price and quality. Quicker delivery provides one
firm competitive edge over the other.
6. Technology: Automation, computerization, information and communication
technologies have revolutionized the way companies operate. Technological changes in
products and processes can have great impact on competitiveness and quality, if the
advanced technology is carefully integrated into the existing system.
7. Worker Involvement: The recent trend is to assign responsibility for decision making and
problem solving to the lower levels in the organization. This is known employee
involvement and empowerment.
8. Re-Engineering: This involves drastic measures or break-through improvements to

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 improve the performance of a firm. It involves the concept of clean-slate approach or
starting from scratch in redesigning the business processes. i.e. BPR Business Process Re-
engineering.
9. Environmental Issues: Today’s production managers are concerned more and more with
pollution control and waste disposal which are key issues in protection of environment
and social responsibility. There is increasing emphasis on reducing waste, using less toxic
chemicals and using biodegradable materials for packaging.
10. Corporate Downsizing: Downsizing or right sizing has been forced on firms to shed their
obesity. This has become necessary due to competition, lowering cost, productivity, need
for improved profit and for higher dividend payment to shareholders.
11. Supply Chain Management: Management of supply chain, form suppliers to final
customers reduces the cost of transportation, warehousing and distribution throughout
the supply chain.
12. Lean Production: Production system has become lean production system which uses
minimal amounts of resources to produce a high volume of high quality goods with
workforce to have advantages of both mass production and job production.

References

Anil Kumar, S and N. Suresh. 2009. Operations Management. New Age International (P) Ltd.,
Publishers. New Delhi. Retrieved from
http://182.160.97.198:8080/xmlui/bitstream/handle/123456789/436/Operations_Management
%20-%20Kumar%20A%20A%20and%20Suresh%20N.pdf?sequence=1

Lovely Professional University. (2012). Production and Operations Management. Retrieved from
http://ebooks.lpude.in/management/mba/term_3/DMGT501_OPERATIONS_MANAGEMENT.pdf

Slack, N., Brandon-Jones, A. and Johnston, R.2013. Operations Management. 7 th Edition. Pearson
Education Limited. Retrieved at
https://colbournecollege.weebly.com/uploads/2/3/7/9/23793496/operations_management_by_
slack_nigel_7th.pdf

Stevenson, W. J.2012. Operations Management. 11th Edition. McGraw-Hill/Irwin. New York.

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 ASSESSMENT

1. Frederick Taylor is known as father of _______________ management.

a. Operations
b. Production
c. Scientific
d. Resource

2. ______________ Management is the conversion of inputs into outputs.

a. Processing
b. Materials
c. Logistics
d. Operations

3. Production management and Operations management are differentiated on the basis of

tangibility of ________________.
a. Raw material
b. Finished goods
c. Processed goods
d. Unprocessed (stock)

4. ____________ involves drastic measures or break-through improvements to improve the

performance of a firm.
a. Downsizing
b. Re-engineering
c. Technology
d. Networking

5. Inputs of an operations management include .

a. Machinery
b. Storage service
c. Transpiration services
d. Industrial waste

6. The ability of an organization to accept the changes quickly and continue with the new
adaptations with the demands on Productivity, design, lead time, work structure in particular
delivery schedule is known as.
a. Total quality management
b. Lean manufacturing
c. Total production management
d. Agile manufacturing

7. Using minimal amounts of resources to produce a high volume of high quality goods with
workforce to have advantages of both, mass production and job production is known as ________.
a. Quality improvement
b. Lean manufacturing
c. Total quality management
d. Just-In-Time

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8. _____________is a plan of an optimum arrangement of facilities including personnel,
operating equipment, storage space, material handling equipment and all other supporting
services along with the design of best structure to contain all these facilities.
a. Plant lay-out
b. Product design
c. Material handling
d. Material management

9. This production system is characterized by manufacturing of one or few quantity of products

designed and produced as per the specification of customers within prefixed time and cost.
a. Job shop
b. Mass production
c. Continuous production
d. Batch production

10. Which of the following is NOT a characteristic of production system?

a. Production is an organized activity
b. The system transforms the various inputs to useful outputs.
c. It operates in isolation from the other organization system.
d. There exists a feedback about the activities, which is essential to control and improve
system performance

CASELET
Sheena had worked for the same Fortune 500 Company for most 15 years. Although the
company had gone through some tough times, things were starting to turn around. Customer
orders were up, and quality and productivity had improved dramatically from what they had been
only a few years earlier due company-wide quality improvement program. So, it comes as a real
shock to Sheena and about 400 of her co-workers when they were suddenly terminated following
the new CEO’s decision to down size the company. After recovering from the initial shock, Sheena
tried to find employment elsewhere.
Despite her efforts, after eight months of searching she was no closer to finding a job than
the day she started. Her funds were being depleted and she was getting more discouraged. There
was one bright spot, though: She was able to bring in a little money by mowing lawns for her
neighbors. She got involved quite by chance when she heard one neighbor remark that now that
his children were on their own, nobody was around to cut the grass. Almost jokingly, Sheena asked
him how much he’d be willing to pay. Soon Sheena was mowing the lawns of five neighbors. Other
neighbors wanted her to work on their lawns, but she didn’t feel that she could spare any more
time from her job search.
However, as the rejection letters began to pile up, Sheena knew she had to make an
important decision in her life. On a rainy Tuesday morning, she decided to go into business for
herself taking care of neighborhood lawns. She was relieved to give up the stress of job hunting,
and she was excited about the prospects of being her own boss. But she was also fearful of being
completely on her own. Nevertheless, Sheena was determined to make a go fit.
At first, business was a little slow, but once people realized Sheena was available, many
asked her to take care of their lawns. Some people were simply glad to turn - the work over to her;
others switched from professional lawn care services. By the end of her first year in business,
Sheena knew she could earn a living this way. She also performed other services such as fertilizing
lawns, weeding gardens, and trimming shrubbery. Business became so good that Sheena hired

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two part-time workers to assist her and, even then, she believed she could expand further if she
wanted to.

QUESTIONS
1. In what ways are Sheena’s customers most likely to judge the quality of her lawn care
services?
2. Sheena is the operations manager of her business. Among her responsibilities are
forecasting, inventory management, scheduling, quality assurance, and maintenance.
(a) What kinds of things would likely require forecasts?
(b) What inventory items does Sheena probably have? Name one inventory decision she
has to make periodically.
(c) What scheduling must she do? What things might occur to disrupt schedules and
cause Sheena to reschedule?
(d) How important is quality assurance to Sheena’s business? Explain.
(e) What kinds of maintenance must be performed?
3. What are some of the trade-offs that Sheena probably considered relative to:
(a) Working for a company instead of for herself?
(b) Expanding the business?
4. The town is considering an ordinance that would prohibit putting grass clippings at the
curb for pickup because local landfills cannot handle the volume. What options might
Sheena consider if the ordinance is passed? Name two advantages and two drawbacks
of each option.
[Source: Production/Operations Management by William J.Stevenson, Irwin/McGraw-Hill

EXPERIENTIAL EXERCISE

Visit an agribusiness manufacturing firm or fast food restaurant nearest to you and get the
information for the following questions.
1. Illustrate the production system and identify the type of production system followed.
2. Check how production system is managed.
3. Find out utilization of the resources namely manpower, capacity and material.
4. How the customer services being rendered? Is feedback systems exist or not?
5. Discuss how operations management affects the organizational activities.

Learning Module in Productions and Operations Management 14 | P a g e