The Domain of Production and Operations Management PDF

OPERAM+ THE DOMAIN OF PRODUCTION AND OPERATIONS MANAGEMENT GROUP 1 INTRODUCTION PRODUCTION AND OPERATIONS MANAGER carry on their work in a social and economic environment. Their jobs require managing the organization’s resources, people, money, physical prope...

OPERAM+ THE DOMAIN OF PRODUCTION AND OPERATIONS MANAGEMENT GROUP 1 INTRODUCTION PRODUCTION AND OPERATIONS MANAGER carry on their work in a social and economic environment. Their jobs require managing the organization’s resources, people, money, physical property, and the production of products and services. INTRODUCTION PRODUCTION the process of converting or transforming resources—materials, machines, employees, time—into goods or services. INTRODUCTION Goods and Services might be automobiles, computers, healthcare, or financial transactions. INTRODUCTION PRODUCTION MANUFACTURING is the process of converts inputs or transforming raw intermediates to a final materials into finished output or services, goods, by deploying which may or may not various sequential use machinery processes, labour, and machinery. INTRODUCTION OPERATIONS broadly describe the set of activities associated with the production of goods and services TRANSPORTATION whereby the location of something or someone is changed SUPPLY whereby the ownership or possession of goods is changed SERVICE the principal characteristic of which is the treatment or accommodation of those activities of something or someone. INTRODUCTION The basic tasks of preparing, cooking, and packaging pizzas are essentially production functions. Delivering pizzas to customers' homes involves transportation, supply, and service. Providing food for pickup or dining-in involves both supply and service. INTRODUCTION Therefore: a. Production is the intentional act of creating something useful according to quantity demanded, quality specifications, and delivery schedule. It is the process of converting or transforming resources into products. b. Operations is a set of activities associated with the production of a product. THE PRODUCTION SYSTEM A system is a dynamic arrangement of elements, each designed to interact harmoniously with the others. The elements of the production system consist of a physical network of men, materials, machines and processes, and an information network so planned and built as to interact harmoniously. Two subsystems within the production system are easily identified: the physical system which acts in the transformation of inputs to product outputs and the information system which coordinates and controls the action of the physical system. The production system is characterized by: 1. A material transformation process 2. A degree of repetitiveness 3. An information system superimposed on the physical system 4. A material process flows. Managing the resources needed to produce goods and services is called production/operations management (P/OM), or simply operations management. Frederick Taylor, often called the “Father of Scientific Management" said that management is knowing exactly what you want men to do and then seeing to it that they do it in the best and cheapest way. This reflects Taylor's dominant interest in efficiency. Management is often described as consisting of: a. Planning and establishing goals or objectives. It is the process of establishing guidelines and actions should be pursued and when they should be completed in order to meet the goals of the organization. b. Organizing input resources and staffing. It is the process of bringing together all the resources necessary to complete a task. c. Directing or motivating people to perform to attain those goals. It is the process of turning plans into realities by assigning specific responsibilities to employees. d. Controlling the performance or comparing actual progress with planned performance. It is the process of monitoring and evaluating performances and correcting any problems as necessary. SCOPE OF PRODUCTION/ OPERATIONS MANAGEMENT Production and operations management activities are not confined to the manufacturing of products. It is true that the production activities carried on in manufacturing companies form the backbone of our consumer society through the production of a broad array of products. But people also perform production activities in organizations which provide services. Service Organizations such as banks, hotels, restaurants, and transportation and insurance companies, produce services much as manufacturing companies produce automobiles, furniture, and microcomputers. Production and Operations Management deals with the supply side of the work of organizations, and marketing deals with the demand side. Other functional areas of responsibility include finance, which is concerned with supplying enough equity and debt capital at the right time to pay for labor, materials, and facilities. The production manager's aim is to create the end product in the market in the right quantity, of the right quality, at the right time, and economically. To achieve this objective, he must involve himself in product planning, process planning, production planning and control, and quality control. To meet the economic objective, the manager is concerned with such things as methods improvement and work measurement, physical facilities management, materials management, and personnel management.  Product Planning This is often a top management work involving all sectors of the firm, that is, the finance, marketing, production and technical departments. Production performs a stellar role in the development of the product. STEPS OF PRODUCT PLANNING 1. Understand the purpose of the product. 2. Know your target customers. 3. To develop customer-centric plans. 4. Learn from customer feedback and develop your product accordingly. 5. To focus on the output/result.  Process Planning This naturally comes after product design. It involves determining required machines, tools, men, and methods. The determination of the general flow of work, materials, specific work content and methods are essential to process planning. STEPS OF PROCESS PLANNING 1. Identify Inputs and Outputs of Your Manufacturing Process 2. Map Out Your Workflows 3. Create Documentation for Production Operators 4. Train Your Employees PHYSICAL FACILITIES MANAGEMENT The production manager must consider the heavy investment on manufacturing facilities. Aside from the fact that the cost of plant facilities can considerably deplete the firm's financial reserves, the arrangement of these facilities in a manner that will result in the most efficient handling of materials directly affects the final cost of the product. Plant location, engineering economics, plant layout, plant engineering, and materials handling comprise this area of activity. Production Planning and Control Production planning involves forecasting the demand for the company's product and converting the forecast in terms of the need for the various factors of production. Sometimes this process is referred to as loading or routing.  The aspect of the production managers work referred to as production control includes: 1. Scheduling the required work. 2. Giving the go signal to start and providing the necessarily instructions to the different manufacturing sectors (dispatching). 3. Checking on the progress and initiating connective measures to ensure the effective and efficient use of the various factors of production and the delivery of the product on the stipulated date. QUALITY CONTROL Is responsible for provision of the correct product quality to the consumer; consistent with the minimum resources used. This includes the determination and specification of quality standards as well as maintenance. EXAMPLE Setting standards Implementing measures Monitoring and improvement METHODS IMPROVEMENT Is a systematic approach to identifying and eliminating waste or inefficiency in processes. In the tourism and hospitality industry, this means constantly seeking better ways to deliver services and experiences to guests. Examples of methods improvement in tourism and hospitality: Streamlining check-in and check-out processes Optimizing housekeeping procedures Implementing technology solutions Improving staff training and development Revamping menu offerings Personnel Management Interrelationships Production and operation managers have a great variety of activities. In order to do this, they assemble appropriate resources and direct the use of these resources be they people machines, or processes in transforming materials and labor into products or services. They direct the inputs so that they produce outputs. Personnel Management Interrelationships Successful organizations also have reporting systems which provide current feedback information so that the managers can see whether or not they are meeting customers' demand. If they are not, then, at least in the private sector, they will lose customers. Personnel Management Interrelationships Consequently, in order to survive, they must redesign their products and services. Such changes are likely, in turn, to necessitate changes in internal operations and in the way resources are used.  3. Accountants and controllers need to learn about the capabilities of modern computer-based production WHY STUDY P/OM? and inventory control systems. These systems can provide accounting information, capacity utilization ratios, inventory valuation, cost of goods sold and other 1. P/OM deals with the supply information for internal control, auditing, and financial reporting. side of organizations. All organizations exist to meet demand through 4. Personnel managers can also gain an appreciation for the complexities of job design. This understanding their production functions. With a basic can aid in the design of training programs, compensation understanding of what it takes to build and systems, and in recruiting and selection functions. operate production system: 5. Computer and information systems specialists 1. Marketing managers can better serve their will be charged with developing, implementing, or markets and manage their sales forces if they operating such P/OM-related systems as inventory understand the capabilities and limitations of their control, job scheduling and order control, customer order demand- supply system. entry, automated bills of materials, and labor cost reporting. 2. Financial managers can better plan 6. Engineers will learn to appreciate the difficulty of for capacity expansion and will better be translating their designs into production and the able understand the purposes of inventories complexity of the coordination of materials, labor, and before they demand their wholesale reduction. machine capacity to finished output. WHY STUDY P/OM? 4. Understanding of P/OM and strategic business decision making is necessary since the 2. Asset concentration is product and the service strategies have a large controlled by P/OM. impact on the design of the production process. Approximately 70% of the assets in manufacturing and processing organizations are in inventories, There are six basic strategies which have to be plant and equipment which are directly or indirectly addressed for the manufacturing company to under the control of production or operations determine it is on the right track. managers, materials managers, maintenance managers and production supervisors, all members A. Positioning of the production system. The of the P/OM organization. production system must be flexible in such a way that it can adapt to changing customer's demands, tastes, 3. Career opportunities in P/OM and fads. purchasing are excellent for creative B. Capacity and location factors. individuals. People well educated and experienced in C. Product and process technology. The technology purchasing procedures, contract negotiation, legal should be based on applicability, appropriateness, aspects of purchasing, value and make-or-buy producibility and low cost. analysis, international trade, and inventory control, D. Workforce and job design. as well as purchasing's interfaces with production, E. Strategic implications of operating decisions to marketing, engineering, and finance will find that reduce costs and control quality. they are in high demand by business and public organizations. F. Strategies regarding supplies. WHY STUDY P/OM? 6. P/OM and our "Productivity 5. P/OM and social responsibility Crisis" High level production and operations Productivity is a measure of the effectiveness with managers are in a dual position. They try to which an organization uses its resources in serve their employers, who are a company's transforming inputs to outputs; in other words, the stockholders or legislative bodies. At the same ratio of the output of a production system to the time, they operate in a social system and have input. certain obligations to society. Many of these obligations to society are written into laws, but others in the production area, such as trying to maintain stable employment, to pay fair wages, produce quality and safe products. Major factors affecting productivity: Government Policy Resource Endowment 1. Integrated Planning and 1. Natural Resources Infrastructure 2. Human Resources 2. Price Stability 3. Financial Resources 3. Tax Base 4. Cultural/Social Values and Institutions 4. Licensing 5. Attitudes of People 5. Small Scale Industries Promotion 6. Local Social Values 6. Import Substitution  Product Safety and Consumer Protection Cost of complying with the regulations. Prices of automobiles increased because of all the extras required by emission and safety regulations. Electric companies spend many millions of money for "scrubbers" to keep smoke out of the air. All of these costs are, of course, passed on to consumers, and increase the cost of living.  Product Safety and Consumer Protection Increase in lawsuits claiming damages from injuries from products and services which are claimed to be faulty. These have multiplied in recent years, and juries and judges have been awarding large claims which were not awarded before the consumer protection wave. People don’t get their brakes fixed and then have accidents from faulty brakes; they drive their cars too fast or after drinking too much alcohol; they smoke in bed; they leave open bottles of aspirin around children; they go away and leave electric irons turned on; people ski in unsafe ways; people misuse a product, or use it for purposes for which it was never intended, and then if it fails or injures them, they blame the manufacturer or the server.  Environmental Considerations The 1970s developed into a decade of concern over the impact of our industrialized nation upon our environment. The 1970s also produced more widespread support for ecological and environmental protective measures than in earlier years. These concerns also continue in the 1980s. Everything comes at a cost, and sometimes two or more desirable goals conflict with each other. For example, automobile engines which minimize harmful air pollutants use gasoline wastefully at a time when we are trying to reduce gasoline consumption. "Scrubbers" on smokestacks to reduce air pollution are costing electric utility companies (and subsequently their customers, the public) many millions of money. Filtering equipment for cleaning liquid wastes is also costly. Cities, as well as companies, have to spend large amounts of money to meet new regulations. Furthermore, much of this extra activity requires extra energy.  REFERENCES Food Service and Management (2nd ed.). (2015). Dr. Jake C. Viana. Studocu. (n.d.-b). MODULE 1: THE DOMAIN OF PRODUCTION AND OPERATIONS MANAGEMENT - MO DULE 1: THE DO MA IN O F PRO DUC - StudoCu. https://www.studocu.com/ph/document/university-of-northeastern-philippines/bachelor-of-science-in- social-work/module-1-the-domain-of-production-and-operations-management/21135628 Schwartz, B. (2024, April 15). Process planning: steps, types & benefits. ProjectManager. https://www.projectmanager.com/blog/manufacturing-process-planning-steps UNext Editorial Team. (2023, March. What is product Planning: process, objectives, and significance | UNext | UNEXT. UNext. https://u-next.com/blogs/product-management/what-is-product-planning-process-objectives-and- significance/? fbclid=IwZXh0bgNhZW0CMTEAAR3TmTpb0CRWlcKMxTKNYaxH_t5XuTCZju6PNLRKLURwHzDrkzGds bQFRrY_aem_E8zXZCEkQ6e2oeE0QZkJzA