Production is defined as the step-by-step conversion of one form
of material into another form through chemical or mechanical
process to create or enhance the utility of the product to the
user. Thus production is a value addition process. At each stage of
processing, there will be value addition
Introduction to Production & Operations ManagementLecture
OutlineProduction Production FunctionProduction and Operations
ManagementClassification of Production
SystemProductivityProductivity MeasurementProductionProduction is
defined as the step-by-step conversion of one form of material into
another form through chemical or mechanical process to create or
enhance the utility of the product to the user.
Thus, production is a value addition process. At each stage of
processing, there will be value addition
Example of a Production SystemAutomobile factory
Input Outputsteel, plastic Carglass, painttools
Transformationequipment processmachinespersonnel,
buildingsutilities, etc7Production FunctionProduction function is
the functional relationship between inputs and output.
Production Function
9-7Production function: the relationship that describes how
inputs like capital and labor are transformed into output.
Mathematically,Q = F (K, L)K = CapitalL = LaborEvolving state of
technology7
Production and Operations ManagementProduction management is a
process of planning, organizing, directing and controlling the
activities of the production function.
Operations management is the process of obtaining and utilizing
resources to produce useful goods and services
Operations Management QuestionsHow many items will be demanded
next month?How many items should be produced next month?How many
workers are needed to satisfy the proposed production level?If a
plant is built, how should the activities be scheduled so that the
project is completed on time, within budget, and with acceptable
quality?How is the quality of the output measured and how is it
improved?
9Classification of Production System
ProductivityProductivityis an average measure of the efficiency
ofproduction.
It can be expressed as the ratio of output to inputs used in the
production process, i.e. output per unit of input.Measures of
Productivity
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