Production and Operations Management Overview

Study Notes

Production and operations management (POM) encompasses the activities of transforming inputs into valuable outputs.
POM emphasizes control over production processes, aligning with the organization's policies.

Production management focuses on tangible goods manufacturing.
Operations management extends the concept to service management, including intangible outputs.

Location of facilities: determining the physical location of operations for long-term capacity decisions.
Plant layouts and material handling: optimizing the physical arrangement of facilities and managing material movement efficiently.
Product design: developing and introducing new products for growth and survival.
Process design: making macroscopic decisions about production processes for converting raw materials into finished goods.
Production and planning control: planning, scheduling, and controlling the production process.
Quality control: maintaining a desired level of quality in products or services.
Materials management: acquiring, controlling, and utilizing materials for production.
Maintenance management: maintaining plant machinery for optimal performance.

Scheduling: planning and coordinating activities to achieve desired outcomes.
Aggregate planning: balancing long-term capacity with forecasted demand.
Inventory: managing the levels and flow of materials and finished goods.
Forecasting: predicting future demand to guide production decisions.
Strategy: defining and implementing operational strategies for achieving organizational goals.
Quality: ensuring the quality of products and services aligns with customer expectations.
Quality tools: utilizing different techniques to improve quality and reduce defects.
Flows and waiting line: managing the movement of units through processes and minimizing waiting times.

Value proposition: defining the organization's operational strategy and priorities such as cost, quality, delivery, flexibility, innovation, and service.
System design: covering product or service design, process selection, total quality management (TQM), facility location, layout, and just-in-time (JIT) production.
Planning & Control: involves aggregate planning, inventory systems, project management, scheduling, materials requirement planning (MRP), and statistical process control (SPC).

Produce goods and services of right quality, quantity, at the right time, and at the right cost.

Industrial Revolution: introduced large-scale production and mechanization.
Scientific Management: focused on optimizing work processes for efficiency.
Human Relations Movement: emphasized employee motivations and satisfaction.
Operations Research: introduced quantitative models and methods for decision making.
Computers and Advanced Production Technology: facilitated automation and increased efficiency.
Service Revolution: increasing demand for service-oriented operations.

Design of Goods and Services: focused on product quality and human resource considerations.
Quality: ensuring product quality throughout the manufacturing process.
Design Process and Capacity: related to quality, human resources, inventory, scheduling, and maintenance.
Site Selection: choosing the location for operations based on supply chain management factors.
Design Layout: optimizing the physical layout of facilities after design and capacity decisions.
Human Resources (HR): including safety, health, job description, work environment, and wages.
Supply Chain Management: influenced by site selection and product quality.
Inventory: influenced by design processes, capacity, human resources, and layout.
Scheduling: influenced by design processes, capacity, layout, and HR.
Maintenance: focused on maintaining product quality.

A manufacturing system transforms raw materials into marketable goods.
Layouts involve configuring the physical space, including buildings, facilities, work areas, and aisles.

Land: natural resources used for production.
Labor: human capital and skills.
Capital: financial resources, equipment, and investment returns.
Entrepreneurship: organizing, innovating, and managing production operations.