مقدمة في إدارة الإنتاج والعمليات

• Course: Production and Operations Management.
• Lecture: First lecture.
• Professor: Dr. Ashraf Sultan.
• Department: Business Administration.
• Faculty: Business - Alexandria University.

Course syllabus

• Chapter 1: Introduction to Production and Operations Management.
• Chapter 2: Forecasting in Production and Operations.
• Chapter 3: Location Selection.
• Chapter 4: Transportation Methods.
• Chapter 5: Layout(Internal planning) of production facilities.
• Chapter 6: Design of production operations.
• Chapter 7: Detailed production scheduling.
• Chapter 8: Quality control fundamentals.
• Chapter 9: Production and operations strategy.

First part of the first chapter topics

• Basic concepts of Production and Operations Management:
• Definition of operation.
• Definition of production.
• Definition of manufacturing.
• Definition of Production and Operations Management.
• Definition of Operations Management.
• The difference between a goods production system and a service delivery system.
• The concept of the production system: its elements and forms.
• Objectives of Production and Operations Management.

Second part of the first chapter topics

• difference between the term "production" and the term "productivity".
• productivity.
• exercises for training.

Basic concepts of Production and Operations Management

• Definition of operation: An operation can be defined as "a set of interrelated activities that transform inputs (with added value) into high-value outputs for the customer."
• Another definition: "The logical organization of individuals, materials, energy, equipment, and procedures in work activities designed to produce a specific product."

Characteristics of the operation

• An operation is characterized by a set of features:
• An operation is a set of interrelated activities.
• The customer (internal or external) is fundamental to the operation.
• Value is added to the inputs of the operation.

Definition of Production

• Production means creating goods, services, or tangible/intangible items using labor, machinery, equipment, and raw materials. Production is a series of sequential stages to produce a product.

Definition of Manufacturing

• Manufacturing means a process of changing the form of raw materials and transforming it into another form. This means the produced goods are different from the raw material inputs.

Differences between Production and Manufacturing

• Manufacturing focuses on tangible manufactured goods, using raw materials and machinery, to produce tangible goods with specific specifications.
• Production is broader and more general, covering all activities related to producing goods or services.
• Manufacturing is a type of productive activity, but not all productive activities.
• Transportation and storage are productive activities, but not manufacturing.

Definition of Production and Operations Management

• Production and Operations Management is responsible for the design, operation, and control of production systems.
• This definition includes three fundamental dimensions that reflect Production and Operations Management functions.

Elements of Production and Operations Management

• Design: It's a set of strategic and tactical decisions related to how inputs are transformed into specific outputs, as well as innovating on the methods used in the transformation process itself.
• Key decisions include: designing the production process, choosing suitable technology, designing jobs, factory location selection, and designing the product and its components.
• Operations: It's a set of decisions that give the transformation process its dynamic form, and It mainly focuses on the planning process with its various time dimensions.
• Important Operations decisions: scheduling operations, setting a time frame for implementing each, and planning production capacity.
• Quality control: the function aims to ensure that actual operations are carried out according to the set plan, including decisions like inventory control, quality control, measuring operations, and setting performance standards.

Definition of operations management

• Operations management is responsible for planning and managing the activities necessary to achieve a high level of flow for the processes needed to produce goods and services, identify opportunities for quality improvement, and achieve customer satisfaction.

Differences between a goods production system and a service delivery system

• A Goods Production System produces tangible goods with precise specifications.
• Service Delivery System produces intangible services with less precise.
• Goods Production System relies more on technology and materials in its production. Services depend more on the efficiency of the service provider .
• Goods can be stored and transported, services cannot be stored or transported.
• There is no direct contact between the product and the customer in Goods Production Systems. There is direct contact with service delivery systems.
• Goods may be produced on a large scale basis, while services are difficult to standardize because It depends more on the skill and judgment of the person providing it.
• The location of production for goods is near the source of raw materials, while service locations are near the customers.
• Tangible goods are easy to verify for quality, intangible services are difficult to check for quality.
• It is easy to plan production capacity for goods but difficult for services.
• Goods Systems are more capital-intensive, Services are more labor-intensive.
• Long term supply times for goods, short term supply times for services.

Concept of the production system

• The production system is defined as "the system whose functions are to convert a set of inputs into a set of outputs.
• The production system can be viewed as a subsystem of a larger system that is the organization as a whole.
• The purpose of the production system is to achieve added value for the organization, which equals the value of outputs after deducting the cost of inputs.

The components of the production system

• Inputs, Transformation Processes, Outputs, Feedback Information. ###Inputs
• The inputs divided to: Primary resources, environmental inputs, and marketing inputs
• Primary resources: raw materials, parts, fuel, supplies, machinery, personnel
• Environmental inputs: providing production managers with the necessary information that includes expected change that affect the production system: such as legal, political, social, and economic changes.
• Marketing inputs: it contains information related to competitors and their plans, client preferences, product design, and market trends.

Transformation Processes

• It is the basis of the production system and transfers inputs to produce different forms/types of products or services.

Output

• Refers to the end of the production system that companies name to its outputs: The System has two outputs, direct and indirect:
• Direct output: Products and services.
• Indirect: Wages and salaries, taxes, social impact, effects on workers.

Feedback Information

• Information used to judge the levels of production, finding the errors, and performing the adjustment, in the inputs, outputs, and transformation operations.

Types of Production

• Tangible Physical Production Systems: creation of physical products such as weaving, electronics, mining, chemical.
• Spatial Production Systems: concern the movement or transfer, such as rail transport, road, sea and air transport.
• Exchange Production Systems: exchange of goods and services such as wholesale and retail trade.
• Storage Production Systems: providing storage services such as storing for individuals or companies, governmental warehouses.
• Service Production Systems which is divided to: Transformation systems, Psychological conversion systems.
• Transformation Systems: medical institutions and colleges.
• Psychological conversion systems: facilities for entertainment, psychological procedures, life insurance agencies, social security.

Goals of Production and Operations Management

• Those goals are increased productivity, customer satisfaction, increased efficiency, improved competitive priorities
• Competitive Priorities: cost, quality, flexibility, On-time delivery.