Right Quality:. Production and management is concerned not only with the production of goods and services but also to all the activities connected with production. (x) Maximum possible profit or return on investment. (xi) Concern for protection of environment. ‘Material Handling’ refers to the ‘moving of materials from the store room to the machine and from one machine to the next during the process of manufacture’. Quality control aims at prevention of defects at the source, relies on effective feed back system and corrective action procedure. The objective of the production management is ‘to produce goods services of right quality and quantity at the right time and right manufacturing cost’. (iv) Maximum utilisation of all kinds of resources needed. It combines and transforms various resources used in the production subsystem of the organization into value added product in a controlled manner as per the policies of the organization’. Production Management deals with the creation of goods and services through the application of the business concept. Production / Operations Management is defined as the process which transforms the inputs/resources of an organization into final goods (or services) through a set of defined, controlled and repeatable policies. Product design deals with conversion of ideas into reality. Process design is a macroscopic decision-making of an overall process route for converting the raw material into finished goods. Production has a primary objective, which is to employ the company’s resources to produce goods and services to fit the market. 1. Routing may be defined as the selection of path which each part of the product will follow, which being transformed from raw material to finished products. Production and operations management are more similar than different: if manufacturing products is a prime concern then it is called production management, whereas management of services is somewhat broader in scope and called operations management (because manufacturing services sounds absurd, right?). Objectives of Production Management: The objective of the production management is stated as: To produce goods services of right quality and quantity at the predetermined time and pre established cost. It is also defined as the ‘art and science of moving, packing and storing of products in any form’. To achieve interchange ability of manufacture in large scale production. It is also called "Production Function." Fill in your details below or click an icon to log in: You are commenting using your WordPress.com account. Production management must select the right production capacity to match the demand for the product. The line between products-based and services-based organizations is blurring rapidly as well— car manufactures need to service their cars and the retailers manufacture their own brand labels. 6. To ensure satisfaction of customers with productions or services or high quality level, to build customer goodwill, confidence and reputation of manufacturer. It distinguishes itself from other functions such as personnel, marketing, finance, etc., by its primary concern for ‘conversion by using physical resources.’ Following are the activities which are listed under production and operations management functions: Location of facilities for operations is a long-term capacity decision which involves a long term commitment about the geographically static factors that affect a business organization. The most functions of the POM is decision making concerned with the production function. Resource utilization is equally imperative: the process of obtaining the output from input through the path of least resistance, i.e. Customer satisfaction is a barometer of things moving in the right direction. Post was not sent - check your email addresses! Almost all the things in operation management converge towards a single focal point: the customer. To cut down costs through simplification, standardization, value analysis, import substitution, etc. There are some pre-defined objectives of production management, which can be broken down into: Production management can essentially be seen as an optimization problem: the goal is to make the process as predictable as possible (as all of us do not share the same enthusiasm for surprises). In other words, production management involves application of planning, organizing, directing and controlling the production process. E.S. Quality Control (QC) may be defined as ‘a system that is used to maintain a desired level of quality in a product or service’. It is the configuration of departments, work centers and equipment in the conversion process. It is determined by the cost of the product and the technical characteristics as suited to the specific requirements. We will be referring to them jointly as POM from here on in this article, for the benefit and convenience of all the parties involved. 4. Every business organization have to design, develop and introduce new products as a survival and growth strategy. (iii) Minimum possible inventory levels (i.e.,optimum inventory levels). When we talk about ‘production’, it brings in the things in mind like factories, machines, tools, equipments, assembly lines. To make inspection prompt to ensure quality control. Developing the new products and launching them in the market is the biggest challenge faced by the organizations. The value added can be in different dimensions, but the industrial set-up is mostly concerned with the duo of quality and throughput. Objectives of Production/Operations Management: Production Management v/s Operations Management. (vii) Maximum possible production (i.e., outputs). ▪ Production Management is the process of effective planning and regulating the operations of that section of an enterprise which is responsible for the actual transformation of materials into finished products. The decisions arising from a POM perspective often decide the core priorities of an organization: What makes us better than the competitors? Hence, all attempts should be made to produce the products at pre-established cost, so as to reduce the variation between actual and the standard (pre-established) cost. ( Log Out / There are a few decision areas which are of utmost importance in POM, such as design, quality, location selection, human resource allocation, supply chain management and maintenance. Enter your email address to follow this blog and receive notifications of new posts by email. Planning bridges the gap from where we are, to where we want to go. Definition: The objective function is a mathematical equation that describes the production output target that corresponds to the maximization of profits with respect to production. To ensure availability of the means of carrying out the orders — the materials, machines, tools, equipment and manpower — in the required quality at the required time.3. Sorry, your blog cannot share posts by email. If they are produced in excess of demand the capital will block up in the form of inventory and if the quantity is produced in short of demand, leads to shortage of products. Academia.edu is a platform for academics to share research papers. Will we compete on cost, quality, delivery time, design/form factor, ease of use, or something else? Quality control can also be defined as ‘that industrial management technique by means of which product of uniform acceptable quality is manufactured’. Planning is deciding in advance what to do, how to do it, when to do it and who is to do it. It combines and transforms various resources used in the production subsystem of the organization into value added product in a controlled manner as per the policies of the organization’. Production management must select the right production process. Objective of Production Management. ( Log Out / Materials management is that aspect of management function which is primarily concerned with the acquisition, control and use of materials needed and flow of goods and services connected with the production process having some predetermined objectives in view. Functions of POM Being the component of the organization, POM is concerned with the organizational goal.
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