Transcript Definition and Operations Management Function

Production and Operations
Management Function
Production and operations management
(POM) concerns itself with the conversion of
inputs into outputs using physical resources so
as to meet its criteria of performance.

Criteria
of Performance
 Customer satisfaction
Effectiveness
Efficiency
Inputs = Transformation = Outputs
INPUTS
PROCESS
OUTPUTS
PERFORMANCE
MANAGEMENT
Short & long
Term costs
Order
Loser
value
Delivered
Performance
The value seesaw
Feedback
Inputs:
suppliers
Materials
Capital
Equipment
People
Power
Information
Processes
Output
customers
Goods
Or
Services
Operation
management
Determine needs
Determine functional requirements and constraints
specifications
Identify essential problems , propose functional structure, evaluate technical
and economic criteria
Concept
Develop preliminary configurations , introductory analysis , select best preliminary
Design refine tech. and economic criterion
Preliminary design
Refine complete configuration, conduct detail analysis ,review cost, prepare
drawings
Definite design
Finalize details , conduct final analysis
Documentations
Prototype
Test and evaluate
Solutions

Continuous flow

Mass production

Batch production

Job-shop production
8

People-centric:
• HR (Employees)
• Supply (Associates)
• Timing (Customer)
• Spatial (all)

Product-centric:
• Technology
• Capacity
• Scheduling
• System maintenance
9

Individual efficiency
 Work study

Collective efficiency
 Production control, Assembly line

Quality and materials
 Statistical quality control, Inventory control



Operations Research
Computer era
Service & Relationships era
10

The basic effort, historically speaking, has been
to ensure:
 Swift and even flow of materials achieved
through
 Reducing variability within the system
 output, flows, quality, supplies and delivery

Market variability is handled by further
reducing systemic variability
11

Past trend has been:
 Product  Services
 Techniques  Relationships

What will the future be?
†
†
†
†

More services
New services
Softer services
Psychological services
POM will have to meet its criteria of
performance in the new/unforeseen services
12