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Production and Operations Management Function

CHAPTER 1. Production and Operations Management Function. Definition and Criteria. 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

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Production and Operations Management Function

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  1. CHAPTER 1 Production and Operations Management Function

  2. Definition and Criteria 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

  3. OM as Transformation process Inputs = Transformation = Outputs INPUTS PROCESS OUTPUTS PERFORMANCE MANAGEMENT

  4. The Value Model Short & long Term costs Order Loser value Delivered Performance The value seesaw

  5. The Operation Manager’s Role Feedback Inputs: Materials Capital Equipment People Power Information Output Goods Or Services Processes customers suppliers Operation management

  6. New product development 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

  7. 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

  8. POM Systems • Continuous flow • Mass production • Batch production • Job-shop production

  9. Decision Areas • People-centric: • HR (Employees) • Supply (Associates) • Timing (Customer) • Spatial (all) • Product-centric: • Technology • Capacity • Scheduling • System maintenance

  10. History of POM: Milestones • 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

  11. Basic Effort in Production Management • 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

  12. Future of POM • 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

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