OPERATION

MANAGEMENT
MBA 2 SEM
ND
LECTURE 2-

UNIT 1

BY

D R . A S H O K S E N G U P TA
INTRODUCTION
Production and Operations Management (POM) is a critical
function within organizations that involves managing the
transformation process of inputs into outputs, with the aim
of creating value for customers. It encompasses the
planning, coordination, and control of all activities involved
in the creation of goods and services.
Meaning:

Production and Operations Management refers to the systematic planning,

organizing, directing, and controlling of the processes that transform inputs
(such as raw materials, labor, and capital) into finished goods and services. It
involves optimizing resources, processes, and systems to achieve efficiency,
quality, and customer satisfaction.
Nature
1. Systematic Approach: POM adopts a systematic approach to managing production
processes, focusing on improving efficiency, productivity, and quality.
2. Interdisciplinary: It integrates concepts and techniques from various disciplines such as
engineering, management, economics, and technology.
3. Continuous Process: POM involves continuous improvement and optimization of production
processes to adapt to changing market demands and technological advancements.
4. Customer-Centric: It emphasizes meeting customer needs and expectations by delivering
high-quality products and services in a timely manner.
5. Global Perspective: With globalization, POM has expanded to address challenges related to
international operations, supply chain management, and global competition.
6. Innovation and Technology: POM leverages innovation and technology to enhance
productivity, streamline processes, and improve product quality.
 Scope:
1. Product Design and Development: Involves conceptualizing, designing, and developing new products or
improving existing ones to meet customer needs and market trends.
2. Capacity Planning: Entails determining the production capacity needed to meet demand forecasts, balancing
capacity utilization, and optimizing resource allocation.
3. Process Planning and Management: Involves designing and managing production processes to ensure
efficiency, quality, and cost-effectiveness.
4. Inventory Management: Encompasses the planning, control, and optimization of inventory levels to
minimize costs while ensuring adequate stock availability.
5. Quality Management: Focuses on ensuring product and service quality through quality control measures,
process improvements, and adherence to quality standards.
6. Supply Chain Management: Involves managing the flow of materials, information, and resources across the
supply chain, from raw material suppliers to end customers.
7. Facility Location and Layout: Entails selecting suitable locations for production facilities and designing
optimal layouts to maximize efficiency and minimize costs.
8. Maintenance Management: Involves planning and executing maintenance activities to ensure the reliability,
availability, and longevity of production equipment and facilities.