Production and Operations

Management Overview
Learning Objectives

• Define and Explain Production Management

• Explain the Concept of Production
• Understand the Production System
• Recall the different classification of Production
system
• Know and understand the objectives of
Production Management
What is Production?
 t i o n
Pro duc
• Production: Application of resources such
as people and machinery to convert
materials into finished goods and
services.
• It is 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.
 st em
n Sy
uct i o
Pr o d
• Production System – it is the activity
whereby resources, flowing within a
defined system, are combined and
transformed in a controllable manner to
add value in accordance with the policies
communicated by management.
 m s
s te
Sy
i on
ct
d u
Pr o
 eri sti cs o f
Charact
tio n S ys t em
Produc
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 exist a feedback about the activities,
which is essential to control and improve
system performance.
 ic ati on o f
Classif
ti o n S y st e m
Produc
Continuous
Production volume

Production
Mass
Production
Batch
Production Job-Shop
Production

Output/Product Variety
 CLASSIFICATION OF PRODUCTION
SYSTEMS
• JOB SHOP PRODUCTION
Job shop production 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.
The distinguishing feature of
this is low volume and high
variety of products.
• 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.
 CLASSIFICATION OF PRODUCTION
SYSTEMS
• MASS PRODUCTION
Mass 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.
• 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.
 m po r ta n ce of
Str ate g ic I
t io n F u n c tio n
the P r od u c
• A vital function is necessary for generating
money to pay employees, lenders, and
stockholders.
• Effective production and operations management can:
– lower a firm’s costs of production.
– boost the quality of its goods and services.
– allow it to respond dependably to customer
demands.
– enable it to renew itself by providing new
products.
 o gy a n d T h e
Technol s
t io n P r o ce s
Produc

• Robots – reprogrammable machines capable of performing routine jobs

and manipulating material
• Computer-Aided Design and Manufacturing – enables engineers to
design parts and buildings on computer screens faster and with fewer
mistakes.
• Flexible Manufacturing Systems – a production facility that workers can
quickly modify to manufacture different products.
• Computer-Integrated Manufacturing – integrates robots, computers and
other technologies to help workers design products, control machines,
handle materials, and control the production function.
Activity #1

• Think of something that you had made before or

a process that you had been through.
• Complete the “conversion process” by listing the
necessary things/resources in each process.