Operations management

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Operations management

Operations management is the design, operation, and improvement of production systems that produce the core goods or services of a company. Such as marketing and finance. Operations Management is a functional business field with distinct line management responsibilities. This difference is critical because operations management is commonly mistaken with operations research and management science (OR/MS). OR/MS is the application of quantitative approaches to decision-making in all areas, whereas IE is an engineering subject.

Production Management 

The application of management concepts to the production operations of a factory is referred to as production management. That is to say. Production management entails the use of a planning organization to direct and control the manufacturing process.

The distinction between Production Management and Operation Management is as follows:

In the literature on the subject, operations management is frequently used in conjunction with production management. As a result, understanding the nature of operations management is beneficial. Operations management is defined as the process of converting resources or inputs into more useful products. A second reading of the phrases indicates no distinction between the terms production management and operations management.

First, the term production management is used more for systems that produce tangible goods. In the case of transforming various inputs into intangible services, operations management is used more frequently. From this perspective, operations management will encompass service organizations such as banks, airlines, utilities, pollution control agencies, and supermarkets. Manufacturing company.

The second difference is related to the evolution of disciplines. Operations management is the term used today. In the historical development of this discipline, production management precedes operation management.

Despite the two differences, the words production management and operations management are used interchangeably. In this book, we also allow the same method.

Operations and production management scope:

This operation and production management scope is really wide. Starting from site selection, production management includes activities such as land acquisition, building construction, machine purchase and installation, purchase and storage of legal materials, and conversion of them into saleable products.

The above are other related topics such as quality management, maintenance management, production planning and control, method improvement and wok simplification, and other related fields. As shown on the following pages of this book, all of these topics have been discussed in detail.

Operations Management Functions and Responsibilities

  1. Production Planning
  2. Production Control
  3. Quality Control
  4. Method  Analysis
  5. Inventory Control
  6. Plant Layout and Materials Handling
  7. Work measurement
  8. Other Functions

Problems of Operations Management and Production Management

  • The problem of the location of the plant
  • The problem of Plant layout
  • The problem of product designing
  • The problem of inventory and production control
  • The problem of quality control
  • Problem of labor control
  • Problems of cost control and improvement

Product Design

Design is the transformation of information and requirements into a form that is usable and acceptable for manufacturing. It has been noticed that the organization’s resource inputs result in correctly designed products and services known as outputs that fulfil the customer’s demand.

According to C.S. Deverell, “Design in its broadest sense, includes the whole development of the product through all the preliminary stages until actual manufacturing begins.”

Factors Determining the Design of  a Product

  • Customer’s Requirements and Psychological effects
  • Facility to operators
  • Functionality
  • Material Requirement
  • Work methods and equipment

Concepts in Product Designing

  • Research and Development
  • Reverse Engineering
  • Manufacturability
  • Standardization
  • Robust Design
  • Concurrent Engineering
  • Computer-aided Design
  • Concurrent Engineering
  • Computer-aided Design

Production Process

Besides inputs, there are so many factors, which affect the conversion process as:

  1. Types of production.
  2. Plant location and layout.
  3. Management skill,
  4. Safety and maintenance requirements.
  5. Available capacity, and
  6. Government restrictions etc.

Detailed Content on Study Material

Introduction to Operation Management – Meaning, Production Management, Difference between Production Management & Operational Management, Scope of Operations and Production Management, Function and Responsibilities

Product Design: Factors Determining the Design of a Product, Concepts in Product Design, Production Process, Types of Production Processes, Intermittent Production: Nature/Characteristics of Intermittent Production,

Job Production: Characteristics, Batch Production, Continuous Batch Production, Suitability, Merits-Demerits Types of Batch Production,

Plant Location: Location Strategy, Factors Responsible for Plant Location Choice, Location Models/Methods,

Plant Building: Meaning, Factors in the Design of Plant or Facilities

Layout: Criteria for a Good Layout, Importance of Layout, Types Of Layout

Process Layout: Meaning, Advantage, and Disadvantages of Process Layout

Product Layout: Advantage and Disadvantages of Product Layout

Comparison Between Product And Process Layout

Selection Criteria- Product And Process Layout


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