Analysis Paper, 4 pages (950 words)

Production and operations management analysis

Subject: Others

Info

Published: January 19, 2022
Updated: January 19, 2022
Language: English
Downloads: 2

Contents

4. Decision Making in POM

Cheng Guoping Chapter 1

Introduction

Production System
Production and operations in the organization
Function and jobs of POM
Decision Making in POM
The emergence of production and operation management

1. Production

System Production and operation management (POM) is the management of an organization’s production system, which converts input into the organization ‘ s products and services.

1. 1Production system model

Inputs conversions subsystem output Feedback Feedback Figure 1 A production System Model

1. 2Common ground and differences between manufacturing and services

1. 2. 1Common Ground:

Entail customer satisfaction as a key measure of effectiveness
Require demand forecasting
Require design of both the product and the process
Involve purchase of materials, supplies, and services

• Require equipment, tools, buildings, and skills, etc.

1. 2. 2Differences:

Customer contact

Service involves a much higher degree of customer contact than manufacturing does. The performance of a service typically occurs at the point of consumption. Manufacturing allows a separation between production and consumption.

Uniformity of input

Service operations are subject to more variability of inputs than manufacturing operations are. Each patient, each lawn, each TV presents a specific problem.

Labor content of jobs

Manufacturing – capital – intensive. Service – a higher labor content.

Uniformity of output

Products–standardization, low variability, smooth, efficient Service–customization, variable, slow.

Store Goods may be stored

Services are consumed during delivery, cannot be stored.

Measurement of productivity

In manufacturing, measurement is more straightforward In service operation, measurement is more difficult due to variations in demand intensity.

2. Production and operations in the organization Figure 2 Basic management responsibilities

3. Function and jobs of POM

3. 1Functions

Manufacturing–cutting, drilling, milling, etc. Or Teaching, farming, packing, consulting, mixing, etc.
Transporting
Storing
Plant maintenance and management
Material management
Quality control, etc.

4. Decision Making in POM

4. 1Strategic Decision —-Being of strategic importance, having long-term significance

• Deciding whether to launch a new-product development project

• Deciding on the design for a production process for a new product

• Deciding what new factories are needed and where to locate them

• How to allocate scarce raw materials, utilities, capacity, personal among new and existing business opportunities

4. 2. Operation decision —- Planning production to meet demand

Deciding how much finished-goods inventory to carry for each product
Deciding what products and how much of each to include in next month’s production schedule
Deciding whether to increase production capacity next month by overtime or subcontract
Deciding the details of a plan for purchasing raw materials

4. 3. Control decision —-Planning and scheduling operations

Deciding quality control criteria
Deciding time arrangement
Day-to-day decision about workers, product quality, machinery

4. 5. The emergence of production and operation management

External Legal/political Social Economic Technological Market Competition Product Information Customer Desires Resources People Materials Energy Capital Equipment Facilities Technology Conversion Subsystem Direct Outputs Products Services Indirect Outputs Taxes Wages and salaries Technological Development Employee Impact Environment Impacts Social Impact Control Subsystem Marketing Production Finance Maintenance POM Public relations Personnel Industrial engineering Purchasing Accounting