Elements Of Production And Operations Management Management Essay

With a position to bring forthing goods and services of right quality in right measure at right clip and at minimal cost, the Production and Operation Managers may hold one or more of the undermentioned aims for bordering their managing scheme and policies: –

Efficiency to maximise the end product for given input.

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Productivity to maximise the production in relation to stipulate resources whether computed singly or in combination of such resources. For illustration, Labour Productivity may be maximized either by increasing production with the same labor or keeping the same degree of production with decreased labor.

Cost Decrease to cut down the cost of production which is straight related to the competitory strength of the company in market.

Quality to be a typical characteristic of a merchandise for its singularity or general purpose use with added dependability.

Quality to be a typical characteristic of a merchandise for its singularity or general purpose use with added dependability.

Decrease in Processing Time to cut down the throughput clip for processing or the lead clip between arrangement of order by a client and existent bringing of goods or services.

Elementss of Production and Operations Management

The concern of transition procedure may be divided into three outstanding stages viz. be aftering, forming and commanding. These stages are non compartmentalised but are overlapping onto each other. Each of these stages involves several actions which are depicted in the theoretical account at Fig.1.1 and discussed in changing item in subsequent chapters.

The managerial activities in any concern unit are normally termed as planning, forming, staffing, determination devising, motivation, taking, directing, organizing, pass oning, commanding and so on. Several writers and direction minds have grouped these activities is different ways and produced different set of lists. Harold Koontz and squad detailed these as planning, forming, staffing, taking and commanding. Some argued that forming and staffing cold be merely one map. Others feel directing is more appropriate a term than taking in concern state of affairss and the former should include the latter. Another school thinks organizing and pass oning should be considered as different maps. Indeed these groupings may be varied harmonizing the predomination of activities in different types of organisations.

Planing in any concern is the most important activity. When it is related to productions and operations of goods and services, it has to be luxuriant and in great inside informations. It should be based on best planning premises and all possible tolls and techniques should be applied to work out the best program. All facets of production and operations must be covered in the planning. When planning is carried out meticulously, the execution or behavior of operations and control of activities becomes easier. Therefore assorted related facets of planning are organized in different chapters.


Planing involves committedness of resources. Once committed the resources loose the flexibleness of their redisposition and the navigational direction becomes restricted. If be aftering based on wrong premises or unequal informations has been followed up with development of substructure, procurance and installing of machinery catching for services to construct up the production system for proposed goods and services, there may be really few options to undo those committednesss. The endeavor may run into a serious job.

Objective of Planing

Planing should ensue into the followers: –

Designation of Product to be offered its design and typical characteristics from the merchandises already bing in the market.

Choice of the Process and Technology to be used for production.

Location and Layout of Plant and installations where goods and services should be produced.

Material Handling Equipment ( MHE ) to be used.

Capacity of the Plan to be installed.

Prediction of demand or gross revenues.

Production planning to include procurance of stuff, sequencing of machine operations, programming of activities and outline organization/control systems.

Logisticss Detailss along with repositing and distribution system.

Basic Phase of Planing

The enterpriser programs to accomplish the aims of be aftering through two distinguishable phases:

Strategic Planning to place the intent of concern, merchandise and procedure design, choice of works and its layout.

Detailed Planning for the usage of the transition procedure.

Strategic Planning

Strategic planning is believing thorough the current mission of the organisation and environmental conditions confronting it and so puting forth a usher for future determinations and consequences. The strategic planning involves systematic appraisal of environment, mission, and place of the proposed endeavor, which should ensue into several strategic options. Assorted factors to be considered during the strategic planning are shown in Fig.1.2 Strategic Planning for Operations.

After several feasible options have been identified, their critical analysis should be carried out to place the best strategic program which will organize the footing for issue of policy for farther elaborate planning.

An analytical theoretical account of the corporate planning procedure is shown in Fig.1.3. as this program is reiterative, its sequences or rhythms are to be repeated several times till a concluding feasible program is identified.

The strategic planning will ensue into designation of merchandises or merchandise groups, treating engineerings, capacity, locations and layouts of installations and creative activity of substructure.

Detailed Planning for Operationss

Planing for operations involves traveling into more inside informations. These will include prediction of demand, fiting the demand with the capacity available, placing extra capacity or running bing capacity to the extent it is required to run into the demand. An aggregative planning for production over following one to two old ages is besides carried out. That helps in be aftering for procurance of natural stuff or industrial goods, inside informations of organisations to be raised and scheduling and sequencing of activities which will ensue into the concluding merchandise.

Entire quality control ( TQC )

The implicit in rule of TQC is to bring forth high quality goods in the first topographic point instead than rejecting faulty merchandises subsequently in the review. It involves following:

Top direction engagement.

Quality Control Training for everyone.

Robust product/service for everyone.

High quality natural stuffs from providers.

Control in production.

Quality Control is distribution, installing and usage.

Deming ‘s 14 Points

W. Edwards Deming ( Father of Quality Control in Japan ) emphasized that high quality agencies lower costs and professed the undermentioned points to directors.

1. Create consistence and continuity of intent.

2. Refuse to let normally recognized degrees of hold for errors, faulty stuff and faulty craft.

3. Extinguish the demand for and dependence upon mass review.

4. Reduce the figure of providers. Buy on statistical grounds, non monetary value.

5. Search continually for jobs in the system and seek ways to better it.

6. Institute modern methods of preparation, utilizing statistics.

7. Focus supervising on assisting people to make a better occupation. Supply the tools and techniques for people to hold pride of craft.

8. Extinguish fright, Encourage bipartisan communications.

9. Interrupt down barriers between sections. Promote job work outing through squad work.

10. Extinguish the usage of numerical ends, mottos, and postings for the work force.

11. Use statistical methods for go oning betterment of quality and productiveness and extinguish all criterions ordering numerical quotas.

12. Remove barriers to plume of craft.

13. Institute a vigorous plan of instruction and preparation to maintain people abreast of new developments in stuffs, methods and engineerings.

14. Clearly define direction ‘s lasting committedness to quality and productiveness.

Quality Movement

Post industrialisation epoch marked with two universe wars, witnessed a stage of heavy demand of goods and over production of points which the station 2nd universe war markets could non easy absorb. In malice of greatest attention taken for quality control through assorted statistical methods a demand was felt for greater concern for client demands and control of production to run into their qualitative and quantitative necessities. The Japanese rose to the juncture and with aid of international direction specializers initiated a figure of thoughts which have become a doctrine for working and agencies for Quality production at the same clip film editing costs.

Quality and Cost Economicss

One obvious manner of producting good quality merchandises is their robust design and higher processing engineering which should bring forth the least figure of defectives. However, that involves really high costs.

Philip Crosby corporate VP and Director Quality at ITT one time said, “ Quality is free. It is non a gift, but it is free. What costs money is the unquality things all the actions that involve non making occupations right the first clip. Quality is non merely free. It is an, honest to everything, net income shaper. Every penny you do n’t pass on making things incorrectly, over, or alternatively becomes half a penny right at the bottom line. ”

Nipponese Industrial Philosophy

For about two centuries, the country of production and operations direction was dominated by scientific direction thought modulated by societal and behavioral scientific disciplines. The societal and behavioral experience was based chiefly on Hesperian civilization. The rise of Nipponese industry built on those really scientific rules but a different civilization of the East came as a large surprise to the West where the original rules were formulated. This Nipponese civilization made the difference in the mode of peoples ‘ committednesss to their work and trueness to the organisations they served. In add-on the Japanese Ministry of International Trade and Industry ( MITI ) was supportive to the concerns of their industries instead than being simply regulative. The Japanese increased their market portion alarmingly. Their rare larning behavior attracted specializers from all over and helped them in their growing so much so that they have now become leaders in direction though in countries of forming, production, quality and cost fight. Their direction constructs have come to be known as Theory Z which embraces all managerial maps with a pronounced difference. And yet the Nipponeses say they owe it all to the West.

Merely in Time ( JIT ) Inventory System

Merely in Time Manufacturing System is a doctrine towards client service orientation. JIT Inventory and Production system is the effect of this concern doctrine. It forces the system to bring forth by units ordered. There is no production even of parts. Sellers are besides developed to provide points required merely in clip. The doctrine covers even the sellers to guarantee that there are no defectives points supplied. Adequate powers are delegated to workers to halt the production line when there is any job or defective coming up. Little or no supervising or counsel is required. At the nucleus of this doctrine is highly high motive and concern for human dealingss.

Comparison between MRP and JIT

Both MRP and JIT stress on the inquiry “ When is the stuff required ” . However the two attacks come to the solution with a difference. A comparative survey between MRP and JIT is shown in the Table 6.2.





Suitable for dynamic state of affairs when demand could alter significantly in the hereafter.

Incapable of taking big and sudden fluctuations. Suitable for insistent fabrication system.


It involves Lost size of production at all phases of the merchandise, with a range to maintain militias.

It is stiffly individual unit production without any range for maintaining any militias.

Human Orientation and Motivation

There is no specific human orientation. The system works with all conventional beliefs about attacks to people without much focal point on seller dealingss.

Human orientation is a requirement for execution of this system both within and outside the organisation with much focal point on seller dealingss.

Inventory Level

Intends to maintain low stock lists

Attempts to do the ideal of ‘no stock lists ‘ come true.

Concern for Quality

Not really stiff and caters for rejection of certain points below specifications.

Entire concern for quality with nothing defects.

Need for Planing

Every intermediate merchandise and procedure demands to be meticulously planned.

Planning is simple. It is merely smoothed production of finished goods.


Inventory is an sum of those points of touchable belongings, which are held for sale in the ordinary class of concern, goods, which are in procedure of production for such gross revenues and besides stuffs presently being consumed in the production of goods and services. It includes natural stuffs, work in advancement ( WIP ) , finished goods and trim parts for the care of equipment.

Inventory Control

Inventory Control is a managerial map which involves activities that maintain stocks of points at coveted degree.

Aims of Inventory Control

Aim of Inventory Control is to guarantee proviso of right stuff in right measure at the right topographic point and clip.

Ensure handiness of stuff at all times.

Minimize wastage.

Offer better service for clients.

Promote fabrication efficiency.

Control production degree.

Conserve on buying.

Optimization of investing and efficient usage of capital.


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