Prod_Oper Management-Complete - Production / Operations...

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Production / Operations Management—Page 1 ASSIGNMENT Q.1) What is “Operations Management”? What are the objectives of Operations Management? Enlist key elements of Operations Management. Answer.1) An operation may be defined “as the process of changing inputs into outputs thereby adding value to some entity”.Right quality, right quantity, right time and right price are the four basic requirements of the customers and as such they determine the extent of customer satisfaction. And if these can be provided at a minimum cost, then the value of goods produced or services rendered increases. Thus the objectives of production management are “to produce goods and services of the right quality, in the right quantities, according to the time schedule and a minimum cost”. Objectives of production management may be amplified as under: Producing the right kind of goods and services that satisfy customers’ needs (effectiveness objective). Maximizing output of goods and services with minimum resource inputs (efficiency objective). Ensuring that goods and services produced conform to pre-set quality specifications (quality objective). Minimizing throughput-time- the time that elapses in the conversion process- by reducing delays, waiting time and idle time (lead time objective). Maximizing utilization of manpower, machines, etc. (Capacity utilization objective). Minimizing cost of producing goods or rendering a service (Cost objective). Key elements of Operations Management 1. Product selection and design The right kind of products and good designs of the products are crucial for the success of an organizing. A wrong selection of the product and/or poor design of the products can render the company’s operation ineffective and non-competitive. Products/services, therefore, must be chosen after detailed evaluation of the product/services alternatives in conformity with the organization’s objectives. Techniques like value engineering may be employed in creating alternate designs, which are free from unnecessary features and meet the intended functions at the lowest cost. 2. Process selection and planning Selection of the optimal “conversion system” is as important as choice of products/services and their design. Process selection decisions include decisions concerning choice of technology,
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Production / Operations Management—Page 2 Equipment, machines, material handling systems, mechanization and automation. Process planning involves detailing of processes if resource conversion required and their sequence. 3 Facilities (Plant) location Plant location decisions are strategic decisions and once plant is set up at a location, it is comparatively immobile and can be shifted later only at a considerable cost and interruption of production. Although problem of location choice does not fall within preview the production function and it occurs infrequently, yet it is of crucial importance because of its major effect on the performance of every department including production.
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This note was uploaded on 06/12/2011 for the course FINANCE PGP0810 taught by Professor Rc during the Spring '10 term at Symbiosis International University.

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Prod_Oper Management-Complete - Production / Operations...

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