TOPIC : IMPORTANCE OF PRODUCTION & OPERATION MANAGEMENT(POM)

Made By :

Bhavyesh Ashar (13014)Bindi Shah (13015)Disha Shah (13020)Harsh Shah (13028)Imad Sirkhot (13032)Jay Loliyania (13035)

• PRODUCTION:

Is conversion/transformation of inputs into desired outputs.

One of the important activity of economy Social Activity Value Added Activity Narrow Concept

THE PRODUCTION PROCESS :

INPUTS(Resources, Raw

Materials)

CONVERSION PROCE

SS(Add

Value)

OUTPUT

(Goods &

Services)

• OPERATION:

Process in which desired output is distinguished as tangible or intangible

Includes services During & After Sale Also known as Execution / Implementation

Process Wide Concept

THE OPERATION PROCESS :

INPUTS

CONVERSION DESIRED OUTPUTS

TANGIBLE PRODUCTS

INTANGIBLE PRODUCTS

PRODUCTION & OPERATION MANAGEMENT

Production – Application of Management functions to the production function in a factory

Operation – Resources / Inputs converted into more useful products

Production Management & Operation Management differentiated on the bases of tangibilities of goods / services

CHARACTERISTICS OF POM

Manufacturing as Competitive Advantage

Services Orientation

Disappearance of Smokestacks

Small has Become Beautiful

IMPORTANCE OF POM TO A BUSINESS FIRM

• Accomplishment of firm's objectives

• Reputation, Goodwill and Image

• Helps to introduce new products

• Supports other functional areas

(...continued)

• Helps to face competition

• Optimum utilisation of resources

• Minimises cost of production

• Expansion of the firm

(...continued)

• More inventory turns

• Higher Quality

• Greater Flexibility

• Better Customer Services

• Shorter Manufacturing Lead Time

IMPORTANCE OF POM TO ITS CUSTOMER & SOCIETY

• Higher standard of living

• Generates employment

• Improves quality and reduces cost

(...continued)

• Spread effect

• Creates utility

• Boosts economy

STRATEGIC IMPORTANCE OF POM

• It is a vital function is necessary for generating money to pay employees, lenders, and stockholders.

• Effective production operations management can:– lower a firm’s costs of production.– boost the quality of its goods and services.– allow it to respond dependably to customer demands.– enable it to renew itself by providing new products.

EMERGING ROLE OF PRODUCTION & OPERATION MANAGER

Strategic Decision Making

Implementation & use of Enterprise Resource Planning

Automate Process as per the requirements of the company

Enhance R&D (using new technology)

(...continued)

Reduce lag in implementation of Process

Protect environment

Act as a member of Concurrent Engineering Teams

Develop long-term strategic relationship with suppliers

(...continued)

More attention to technology management

Be an Internal Quality Auditor in Quality Certification Programming – ISO 9000 series and ISO 14000

o Global Market Placeo Production/Operation

Strategyo Total Quality

Management (TQM)o Flexibilityo Time Reductiono Technology

o Worker Involvemento Re-engineering o Environmental Issueso Corporate Downsizing o Supply Chain

Managemento Lean Production

RECENT TRENDS & CHALLENGES IN POM

CONCLUSION

• It is very essential in meeting objective of an organization.

• It talks about applying business organization and management concepts in creation of goods and services.

• It is managing people and machinery in converting materials and resources into finished goods and services.

• Hence, POM plays a very important role in today’s business world.

THANK YOU