Operation Management
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§ 2
Answer#.1 Importance of POM in business Operations management is an area of business concerned with the production of goods and services, and involves the responsibility of ensuring that business operations are efficient in terms of using as little resource as needed, and effective in terms of meeting customer requirements. It is concerned with managing the process that converts inputs (in the forms of materials, labor and energy) into outputs (in the form of goods and services). In fact, we apply Principles of Management; and functions of Management in our dayto-day life. We all know, from morning till night, we plan our activities; we coordinate available resources and control our activities to achieve certain goals. So also any organization must follow the Principles of Management for its survival and growth. The same is applicable to production Management also. The Production Management consists of Planning, selection of materials, planning of Processes, Routing, Scheduling and controlling the activities etc Production management refers to the planning, implementation, and control of the production processes to ensure smooth and efficient operation. Production management techniques are used in both manufacturing and service industries. Production management responsibilities include the traditional "five M's": manpower, machines, methods, materials, and money. It is very important, to keep the business going. POM is an extremely important management area. Issues such as the location of production facilities, labor and transportation costs, and Production Forecasting are extremely important considerations. Operations Management is an important field in business which comprises all the aspects of production, efficiency and production related processes. The practices and theories involved in Production and Operations Management equally apply to service sector as well. The important part of Operations Management include forecasting, identifying bottlenecks in operations, increasing efficiency of business by using various tools such as PERT/CPM, statistical analysis such as moving averages, exponential smoothing method, Mean Absolute Deviation (MAD) etc. Material Resource Planning
[email protected] 0323-4708813
§ 2
(MRP) is an important part of Operations Management for creating bill of materials and identifying the needs for units of production. Inventory management, time management, production plans, layout strategies are important aspects which lead to higher efficiency and cost effectiveness. Operations management is an area of business concerned with the production of goods and services, and involves the responsibility of ensuring that business operations are efficient in terms of using as little resource as needed, and effective in terms of meeting customer requirements. It is concerned with managing the process that converts inputs (in the forms of materials, labor and energy) into outputs (in the form of goods and services). Operations traditionally refer to the production of goods and services separately, although the distinction between these two main types of operations is increasingly difficult to make as manufacturers tend to merge product and service offerings. More generally, Operations Management aims to increase the content of value-added activities in any given process. Fundamentally, these value-adding creative activities should be aligned with market opportunity (see Marketing) for optimal enterprise performance.
Answer#.2 POM approaches The quantitative approach involves the use of quantitative techniques to improve decision making. This approach is also called operations research or management science. There is three main approaches use in production operation management; 1. Quantitative Approaches 2. Analysis of Trade-Offs 3. A Systems Approach
[email protected] 0323-4708813
§ 2
1.
Quantitative Approach Mathematical programming is one quantitative technique that can be used for strategic and strategic natural resources planning. It has been extensively used both at private and public forest planning levels. Nevertheless, most applications concentrate on modeling of systems involving timber harvesting. Quantitative approach to problem solving often symbolize an attempt to obtain mathematically optimum solutions to managerial problems. Although quantitative techniques have traditionally been associated with production and operations management, it was not until World War II that major efforts were made to develop these techniques. In order to handle complex military logistics problems, interdisciplinary teams were assembled to combine efforts in search of workable solutions.
2.
Analysis of Trade-Offs Operation managers stumble upon decision that can be described as trade-off decisions. For example, in deciding on the amount of inventory to stock, the manager must take into account the trade-off between the increased level of customer service that the additional inventory would yield and the increased costs required to stock that inventory. In selecting a piece of equipment, a manager must evaluate the merits of extra features relatives to the cost of those extra features. And in the scheduling of overtime to increase output, the manager must consider the value of the increased output against the higher costs of overtime, e.g., higher labor costs, lower productivity, lower quality, and greater risk of accidents.
3.
A System Approach
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§ 2
A systems viewpoint is almost always beneficial in decision making. A system can be defined as a set of interrelated parts that must work together. In a business organization, the organization can be thought of as a system composed of subsystems, which in turn are composed of lower subsystems. The system approach emphasizes interrelationships among subsystems, but its means theme is that the whole is greater than the sum of its individual parts. Hence, from a system viewpoint, the output and objectives of the organization as a whole take precedence over those of any one subsystem. An alternative approach is to concentrate on efficiency within subsystems and thereby achieve overall efficiency. But that approach overlooks the fact that organizations must operate in an environment of scarce resources and that subsystems are often in direct competition for those scarce resources, so that an orderly approach to the allocation of resources is called for. A system approach is essential whenever something is being designed, redesigned, implemented, improved, or otherwise changed. It is important to take into account the impact on all parts of the system.
Answer # 3 Role of production and operation manager Production is the center of all activities of an organization. This is to say all the activities of an organization, such as: Finance, Personnel, Marketing...etc., is exists in an organization because of production activity. The position of Production Management in an organization is very important. Whether it should be a line function or Staff functions, more or less depends upon the corporate management policy. In small organization, Production Management is whole and sole of it. In large industries, generally it is advisable to have Production as line function, because, the decision taken by the line manager and the advices given by the Staff personnel
[email protected] 0323-4708813
§ 2
will be based on the Production activities. The Production Manager, directly report to General Manager, who in turn report to the Board. The main role of Production Manager depends upon the size of the firm. In small firms the production Manager may have to look after production planning and control along with Personnel, Marketing, Finance and Purchase functions. In medium sized firms, there may be separate managers for Personnel, marketing and Finance functions. But the production planning and control and Purchase and stores may be under the control of Production management department The operations manager is the key figure in the system. The manger has the ultimate responsibility for the creation of goods or provision of cervices. The main roll of production and operation manager is produce the products and services in the quantities needed, available when needed and at a controlled cost and quality. The deal with forecasting and scheduling systems and a variety of controls to ensure that the systems are continuing to function properly, Decisions seem to seek balance must try to see relationships and integrate the results.
Functions and responsibilities Product selection and design Process selection and planning Facilities location Capacity planning Production planning Productions controls Quality control Method analysis Proper inventory controls Plant layout and material handling Work measurement
[email protected] 0323-4708813
§ 2 Maintenance and replacement Cost reduction and cost control Engineering, economics, stores and warehouse mgt. Maximizing labor efficiency, Price analysis - wage, incentives to workers and
Standardization and storage
The End
[email protected] 0323-4708813
Answer#.1 Importance of POM in business Operations management is an area of business concerned with the production of goods and services, and involves the responsibility of ensuring that business operations are efficient in terms of using as little resource as needed, and effective in terms of meeting customer requirements. It is concerned with managing the process that converts inputs (in the forms of materials, labor and energy) into outputs (in the form of goods and services). In fact, we apply Principles of Management; and functions of Management in our dayto-day life. We all know, from morning till night, we plan our activities; we coordinate available resources and control our activities to achieve certain goals. So also any organization must follow the Principles of Management for its survival and growth. The same is applicable to production Management also. The Production Management consists of Planning, selection of materials, planning of Processes, Routing, Scheduling and controlling the activities etc Production management refers to the planning, implementation, and control of the production processes to ensure smooth and efficient operation. Production management techniques are used in both manufacturing and service industries. Production management responsibilities include the traditional "five M's": manpower, machines, methods, materials, and money. It is very important, to keep the business going. POM is an extremely important management area. Issues such as the location of production facilities, labor and transportation costs, and Production Forecasting are extremely important considerations. Operations Management is an important field in business which comprises all the aspects of production, efficiency and production related processes. The practices and theories involved in Production and Operations Management equally apply to service sector as well. The important part of Operations Management include forecasting, identifying bottlenecks in operations, increasing efficiency of business by using various tools such as PERT/CPM, statistical analysis such as moving averages, exponential smoothing method, Mean Absolute Deviation (MAD) etc. Material Resource Planning
[email protected] 0323-4708813
§ 2
(MRP) is an important part of Operations Management for creating bill of materials and identifying the needs for units of production. Inventory management, time management, production plans, layout strategies are important aspects which lead to higher efficiency and cost effectiveness. Operations management is an area of business concerned with the production of goods and services, and involves the responsibility of ensuring that business operations are efficient in terms of using as little resource as needed, and effective in terms of meeting customer requirements. It is concerned with managing the process that converts inputs (in the forms of materials, labor and energy) into outputs (in the form of goods and services). Operations traditionally refer to the production of goods and services separately, although the distinction between these two main types of operations is increasingly difficult to make as manufacturers tend to merge product and service offerings. More generally, Operations Management aims to increase the content of value-added activities in any given process. Fundamentally, these value-adding creative activities should be aligned with market opportunity (see Marketing) for optimal enterprise performance.
Answer#.2 POM approaches The quantitative approach involves the use of quantitative techniques to improve decision making. This approach is also called operations research or management science. There is three main approaches use in production operation management; 1. Quantitative Approaches 2. Analysis of Trade-Offs 3. A Systems Approach
[email protected] 0323-4708813
§ 2
1.
Quantitative Approach Mathematical programming is one quantitative technique that can be used for strategic and strategic natural resources planning. It has been extensively used both at private and public forest planning levels. Nevertheless, most applications concentrate on modeling of systems involving timber harvesting. Quantitative approach to problem solving often symbolize an attempt to obtain mathematically optimum solutions to managerial problems. Although quantitative techniques have traditionally been associated with production and operations management, it was not until World War II that major efforts were made to develop these techniques. In order to handle complex military logistics problems, interdisciplinary teams were assembled to combine efforts in search of workable solutions.
2.
Analysis of Trade-Offs Operation managers stumble upon decision that can be described as trade-off decisions. For example, in deciding on the amount of inventory to stock, the manager must take into account the trade-off between the increased level of customer service that the additional inventory would yield and the increased costs required to stock that inventory. In selecting a piece of equipment, a manager must evaluate the merits of extra features relatives to the cost of those extra features. And in the scheduling of overtime to increase output, the manager must consider the value of the increased output against the higher costs of overtime, e.g., higher labor costs, lower productivity, lower quality, and greater risk of accidents.
3.
A System Approach
[email protected] 0323-4708813
§ 2
A systems viewpoint is almost always beneficial in decision making. A system can be defined as a set of interrelated parts that must work together. In a business organization, the organization can be thought of as a system composed of subsystems, which in turn are composed of lower subsystems. The system approach emphasizes interrelationships among subsystems, but its means theme is that the whole is greater than the sum of its individual parts. Hence, from a system viewpoint, the output and objectives of the organization as a whole take precedence over those of any one subsystem. An alternative approach is to concentrate on efficiency within subsystems and thereby achieve overall efficiency. But that approach overlooks the fact that organizations must operate in an environment of scarce resources and that subsystems are often in direct competition for those scarce resources, so that an orderly approach to the allocation of resources is called for. A system approach is essential whenever something is being designed, redesigned, implemented, improved, or otherwise changed. It is important to take into account the impact on all parts of the system.
Answer # 3 Role of production and operation manager Production is the center of all activities of an organization. This is to say all the activities of an organization, such as: Finance, Personnel, Marketing...etc., is exists in an organization because of production activity. The position of Production Management in an organization is very important. Whether it should be a line function or Staff functions, more or less depends upon the corporate management policy. In small organization, Production Management is whole and sole of it. In large industries, generally it is advisable to have Production as line function, because, the decision taken by the line manager and the advices given by the Staff personnel
[email protected] 0323-4708813
§ 2
will be based on the Production activities. The Production Manager, directly report to General Manager, who in turn report to the Board. The main role of Production Manager depends upon the size of the firm. In small firms the production Manager may have to look after production planning and control along with Personnel, Marketing, Finance and Purchase functions. In medium sized firms, there may be separate managers for Personnel, marketing and Finance functions. But the production planning and control and Purchase and stores may be under the control of Production management department The operations manager is the key figure in the system. The manger has the ultimate responsibility for the creation of goods or provision of cervices. The main roll of production and operation manager is produce the products and services in the quantities needed, available when needed and at a controlled cost and quality. The deal with forecasting and scheduling systems and a variety of controls to ensure that the systems are continuing to function properly, Decisions seem to seek balance must try to see relationships and integrate the results.
Functions and responsibilities Product selection and design Process selection and planning Facilities location Capacity planning Production planning Productions controls Quality control Method analysis Proper inventory controls Plant layout and material handling Work measurement
[email protected] 0323-4708813
§ 2 Maintenance and replacement Cost reduction and cost control Engineering, economics, stores and warehouse mgt. Maximizing labor efficiency, Price analysis - wage, incentives to workers and
Standardization and storage
The End
[email protected] 0323-4708813
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