TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Affiliated to Institution of G.G.S.IP.U, Delhi

BBA (V SEMESTER)

PRODUCTION & OPERATIONS MANAGEMENT

(17305)

Dr. Shaily SaxenaAssociate Professor

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Understanding Management

MANAGEMENT is the

ART of getting

THINGS done through and with

PEOPLE in formally ORGANISED

groups.

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

An organisation fulfills the needs of its customers.

An organisation provides products and services.

What does an Organisation do?

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Organizing to Produce Goods and Services

MARKETING(creates demand)

PRODUCTION/OPERATIONS

(creates the product)

FINANCE(arranges money,

capital)

FINANCE(arranges money,

capital)

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Production Process

Fig:1

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Production (Vs) Operation

• “The transformation process of inputs into the

form of output, thereby adding value to some

entity”.

• Output may be a product or service. If it is a

product centric that is known as production, If

it is a service centric then that is known as

operation.

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Production Systems

Fig:2

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Job of Production Managers

Oversee the work of people and machinery to convert inputs

(materials and resources) into finished goods and services.

Fig:3

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Strategic Importance of the Production Function

• A vital function is necessary for generating money to pay employees, lenders,

and stockholders.

• Effective production and 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.

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Relationship with other Disciplines

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Decision Making in OM

• Strategic Decisions

• Operating Decisions

• Control Decisions

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Strategic Decisions

• These decisions are of strategic importance and

have long-term significance for the organization.

• Examples include deciding:

– whether to launch a new product

Demand forecasting

– the design for a new product’s production process

Transformation Process

– where to locate a new factory

Plant location & layout

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Operating Decisions

• These decisions are necessary if the ongoing

production of goods and services is to satisfy

market demands and provide profits.

• Examples include deciding:

– Inventory levels

Inventory Management

– To avoid delays and stoppages in production time

Waiting Line Management

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Control Decisions

• These decisions concern the day-to-day

activities of workers, quality of products and

services, production and overhead costs, and

machine maintenance.

• Examples include deciding:

– Defining quality

– frequency of preventive maintenance

– new quality control acceptance criteria