A
Report On
“Production and Operation Management”
Under the subject
‘Management [22509]’
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Submitted by
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Sr. No Enrollment No Name of the student
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1 1700100271 Miss. Shinde Mohini Anandrao
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2 1700100276 Miss. Jagtap Sakshi Krushna
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Under the guidance of
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Mrs. Amrutkar B. R
Department of Computer Engineering
Government Polytechnic, Karad
1.0 Rationale
Production / Operations Management is defined as the process which transforms the
inputs/resources of an organization into final goods (or services) through a set of defined,
controlled and repeatable policies.
By policies, we refer to the rules that add value to the final output. The value added can
be in different dimensions, but the industrial set-up is mostly concerned with the duo
of quality and throughput.
This project includes Historical Evaluation of production and operation management,
concept of production and operation management, objectives of production and operation
management, scope of production and operation management.
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2.0 Aim of the project
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a) To understand the concept of Management.
b) To understand Production and Operation Management.
c) To produce goods and services of the right quality, right quantity at the right time and at
minimum cost.
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d) To improve the efficiency of product by understanding the scope of production and
operation management.
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3.0 Course Outcomes Achieved
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a) Use basic Management Principles to execute daily activities.
b) Use principles of planning and organizing for accomplishment of tasks.
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c) Apply principles of Safety Management in all activities.
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4.0 Literature Review
Author (Publication) Abstract Conclusion
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Jose M. Merigo, Claudio This article analyzes the This paper gave us a more
Muller performance of universities in general approach that can
(ResearchGate) POM research and clearly represent the field of
development Production and Operation
Management
Wiley This paper covers all the We used this paper to
(ResearchGate) product and process design, understand the basic concept
operations, and supply chain related to product, process
management. and management.
Er. Inderjit Singh Sodhi In this paper analysis is done We used this paper to
(IJERT) on how all these trends play understand what generally is
an indispensable role in happening in the areas of
making processes more Production and Operation
efficient. Management.
Uday Apte, Costis Maglaras This research paper describes We used this as reference to
(ESSN) the special issues of know different operational
Production and Operation issues of services and how
Management focusing on there was increase in research
service operations. on service operations.
Joberto S B Martins This journal consisted of the We used this to understand
(ResearchGate) description about the how different protocols and
implementation of a set of network technologies are
primitives suitable for used in different
supporting Production organizations for providing
Management (PM) more efficient tools.
applications.
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Table 1- Literature Review
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5.0 Actual procedure followed
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Actual procedure followed during the project is mentioned in the table below with
the planned start date and completed finish date.
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Sr.no Details of activity Planned Planned Name of
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Start date Finish date responsible Team
members
1. Decide project topic 16/12/2019 23/12/2019 1. Shinde Mohini
2. Jagtap Sakshi
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2. Decide the points to be 23/12/2019 06/01/2020 1. Shinde Mohini
included in project 2. Jagtap Sakshi
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3. Prepare project proposal 06/01/2020 13/01/2020 1. Shinde Mohini
2. Jagtap Sakshi
4. Collect information relation 13/01/2020 27/01/2020 1. Shinde Mohini
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to the points decided earlier 2. Jagtap Sakshi
5. Verify the collected 27/01/2020 17/02/2020 1. Shinde Mohini
information 2. Jagtap Sakshi
6. Arrange the collected 17/02/2020 02/03/2020 1. Shinde Mohini
information in proper 2. Jagtap Sakshi
ordered sequence
7. Preparing final project 02/03/2020 16/03/2020 1. Shinde Mohini
report 2. Jagtap Sakshi
Table 2- Actual procedure followed
Introduction
The Subject of Production Management is studied under different Headings-such
Headings
as Production Planning and control, Production and Inventory control, production and
operations control and many more
more. Whatever
ever may be the title of the subject, the contents
of the subject are more or less one and the same. Before we discuss about production
management, let us discuss about product, production and management. This will give us
a rough idea about production Management and with what a production manager has to
deal with.
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Figure no. 1: Production and Operation Management
Product
(i) For a Consumer:
Consumer The product is a combination of or optimal mix of potential
utilities. This is because every consumer expects some use or uses from the product.
(ii) For a Production Manager:
Manager Product is the combination of various surfaces
and processes (or operations).
(iii) For a Financial Manager:
Manager The he product is a mix of various cost elements as
he is responsible for the profitability of the product.
(iv) For a Personnel Manager:
Manager The he product is a mix of various skills, as he is the
person who selects and trains the personnel to meet the demand of the skill to produce the
product.
Production
Production means application of processes. (Technology) to the raw material to add the
use and economic values to arrive at desired product by the best method, without
sacrificing the desired quality. We have three ways of Production, they are:
(i) Production by Disintegration: By separating the contents of Crude oil or a
mixture the desired products are produced. For example the crude oil is disintegrated into
various fuel oils. Similarly salt production is also an example for product produced by
disintegrated. We can use Mechanical or Chemical or both technologies to get the desired
product, so that it will have desired use value.
(ii) Production by Integration: In this type of Production various Components of
the products are assembled together to get the desired product. In this process, Physical
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and Chemical Properties of the materials used may change. The examples are: Assembly
of Two wheelers, Four wheelers and so on.
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(iii) Production by Service: Here the Chemical and Mechanical Properties of
materials are improved without any physical change. The example for this is Heat
Treatment of metals. In real world, a combination of above methods is used. In general
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production is the use of any process or procedure designed to transform a set of input
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elements into a set of output elements, which have use value and economic value.
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Management
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Management can be explained as an art or science, (in fact it is a combination of
art and science) of getting things done by the people, by planning, coordinating,
organizing, directing and controlling the activities to meet specified goals, with in the
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frame work of agreed policies.
Above information about product, production and management will help us to
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understand what exactly the Production Management or Production, and Operations
Management is.
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Definition of Production Management
Production Management is defined as management function which plans,
organizes, co- ordinates, directs and controls the material supply and Processing activities
of an enterprise, so that specified products are produced by specified methods to meet an
approved sales programme. These activities are being carried out in such a manner that
Labour Plant and Capital available are used to the best advantage of the organization.
Objectives of Production Management
The objective of Production Management is to produce the desired product or
specified product by specified methods so that the optimal utilization of available
resources is met with. Hence the production management is responsible to produce the
desired product, which has marketability at the cheapest price by proper planning, the
manpower, material and processes.
Production management must see that it will deliver right goods of right quantity
at right place and at right price. When the above objective is achieved, we say that we
have effective Production Management system.
Benefits derived from efficient Production Management.
The efficient Production Management will give benefits to the various sections of
the society. They are:
(i) Consumer benefits from improved industrial Productivity, increased use value
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in the product. Products are available to him at right place, at right price, at right time, in
desired quantity and of desired quality.
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(ii) Investors: They get increased security for their investments, adequate market
returns, and creditability and good image in the society.
(iii) Employee gets adequate Wages, Job security, improved working conditions
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and increased Personal and Job satisfaction.
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(iv) Suppliers: Will get confidence in management and their bills can be realized
without any delay.
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(v) Community: community enjoys Benefits from economic and social stability.
(vi) The Nation will achieve prospects and security because of increased
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Productivity and healthy industrial atmosphere.
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Functions of Production Management Department
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The functions of Production Management depend upon the size of the firm.
In small firms the production Manager may have to look after production
planning and control along with Personnel, Marketing, Finance and Purchase functions.
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In medium sized firms, there may be separate managers for Personnel, marketing
and Finance functions. But the production planning and control and Purchase and stores
may be under the control of Production management department.
In large sized firms the activities of Production Management is confined to the
management of production activities only. As such, there is no hard and fast rule or
guidelines to specify the function of Production Management, but in the academic
interest we can mention some of the functions, which are looked after by the Production
Management department. They are:
(i) Materials: The selection of materials for the product. Production manager
must have sound Knowledge of materials and their properties, so that he can select
appropriate materials for his product. Research on materials is necessary to find
alternatives to satisfy the changing needs of the design in the product and availability of
material resumes.
(ii) Methods: Finding the best method for the process, to search for the methods
to suit the available resources, identifying the sequence of process are some of the
activities of Production Management.
(iii) Machines and Equipment: Selection of suitable machinery for the process
desired, designing the maintenance policy and design of layout of machines are taken
care of by the Production Management department.
(iv) Estimating: To fix up the Production targets and delivery dates and to keep
the production costs at minimum, production management department does a thorough
estimation of Production times and production costs. In competitive situation this will
help the management to decide what should be done in arresting the costs at desired level.
(v) Loading and Scheduling: The Production Management department has to
draw the time table for various production activities, specifying when to start and when to
finish the process required. It also has to draw the timings of materials movement and
plan the activities of manpower. The scheduling is to be done keeping in mind the loads
on hand and capacities of facilities available.
(vi) Routing: This is the most important function of Production Management
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department. The Routing consists of fixing the flow lines for various raw materials,
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components etc., from the stores to the packing of finished product, so that all concerned
knows what exactly is happening on the shop floor.
(vii) Dispatching: The Production Management department has to prepare various
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documents such as Job Cards, Route sheets, Move Cards, Inspection Cards for each and
every component of the product. These are prepared in a set of five copies. These
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documents are to be released from Production Management department to give green
signal for starting the production. The activities of the shop floor will follow the
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instructions given in these documents. Activity of releasing the document is known as
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dispatching.
(viii) Expediting or Follow up: Once the documents are dispatched, the
management wants to know whether the activities are being carried out as per the plans
or not. Expediting engineers go round the production floor along with the plans, compare
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the actual with the plan and feed back the progress of the work to the management. This
will help the management to evaluate the plans.
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(ix) Inspection: Here inspection is generally concerned with the inspection
activities during production, but a separate quality control department does the quality
inspection, which is not under the control of Production Management. This is true
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because, if the quality inspection is given to production Management, then there is a
chance of qualifying the defective products also. For example Teaching and examining of
students is given to the same person, then there is a possibility of passing all the students
in the first grade. To avoid this situation an external person does correction of answer
scripts, so that the quality of answers is correctly judged.
Operations Management
Operations Management is the conversion of inputs into outputs, using physical
resources, so as to provide the desired utility/utilities of form, place, possession or state
or a combination there-of to the customer while meeting the other organizational
objectives of effectiveness, efficiency and adaptability. It distinguishes itself from other
functions such as personnel, marketing, etc. By its primary concern
for ‘conversion by using physical resources’. There should be a number of situations in
either marketing or personal or other functions, which can be classified or sub-classified
under Production and Operations Management.
For example,
(a) The physical distribution of items to the users or customers,
(b) The arrangement of collection of marketing information,
(c) The actual selection and recruitment process,
(d) The paper flow and conversion of data into information usable by the judge in
a court of law, etc.
Can all be put under the banner of production and operations management? ‘The
conversion’ here is subtle, unlike manufacturing which is obvious. While in case (a) and
(b) it is the conversion of ‘place’ and ‘possession’ characteristic of product, In (c) and (d)
it is the conversion of the ‘state’ and characteristics. And using physical resources effects
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this ‘conversion’. The input and / or output could also be non-physical such as
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‘information’, but the conversion process uses physical resources in addition to other
non-physical resources. The management of the use of physical resources in addition to
other non-physical resources for the conversion process is what distinguishes production
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and operations management from other functional disciplines.
Production and Operations Management systems are also described as providing
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physical goods or services. When we say that the Central Government provides service
and the Indian Airlines provide service these are two entirely two different classes of
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utilities and consequently the objective and criteria for reference will have to be entirely
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different for these two cases.
We may say that the actual production and operations management systems are
quite Operations Management complex involving multiple utilities to be provided to the
customer, with a mix of physical and non-physical inputs and outputs and perhaps with a
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multiplicity of customers.
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Scope of Production and Operation Management
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1. Production and Planning Control
2. Scheduling, dispatching and Rooting
3. Planning for Mass Production
4. Designing Plan Layout
5. Plant location and factors influencing location
6. Program Evolution Review Techniques
7. Total Quality Management
8. Time Study
9. Inventory Control
10. Safety Management
6.0 Actual Resources Required
The resources used during the completion of project are mentioned in the below
Sr.no Name of resources Specifications Quantity Remarks
material
1. YouTube MP4-file format, 640 x 1
360 pixels
2. Microsoft Word 2010 version 1
3. Management and Author : Veerabhadrappa, 1
entrepreneurship Havinal
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4. Laptop Dell, RAM 8 GB, Hard 1
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disk 1 TB, i3 processor
8.0 Skill Developed/ learning out of this Micro-Project
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We learnt,
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1. The concept of Management.
2. The concept of Production and Operation Management.
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3. Scope of Production and Operation Management..
4. Efficient communication skills.
5. Working as a team member for developing c program.
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6. Developing leadership qualities.
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9.0 Applications of the Project
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1. This project can be used in the implementation of production and operation principles.
2. The project can be also used to understand Production and Operation Management.
3. The project can be used in industries or organizations to carry out production and
operations more effectively and efficiently.
Subject Teacher
Mrs. Amrutkar B. R