Pom Notes-2
Pom Notes-2
Controlling
Activities that assure the actual performance in accordance with planned performance. To
Ensure that the plans for the operations subsystems are accomplished, the operations manager
Must exercise control by measuring actual outputs and comparing them to planned operations
Management. Controlling costs, quality, and schedules are the important functions here.
Behavior
Operation managers are concerned with how their efforts to plan, organize, and control affect
Human behavior. They also want to know how the behavior of subordinates can affect
Management’s planning, organizing, and controlling actions. Their interest lies in decision-
making behavior.
Customer service
The first objective of operating systems is the customer service to the satisfaction of customer
Wants. Therefore, customer service is a key objective of operations management. The operating
System must provide something to a specification which can satisfy the customer in terms of cost
And timing. Thus, primary objective can be satisfied by providing the ‘right thing at a right price
At the right time’.
Resource utilization
Another major objective of operating systems is to utilize resources for the satisfaction of
Customer wants effectively, i.e., customer service must be provided with the achievement of
Effective operations through efficient use of resources. Inefficient use of resources or inadequate
Customer service leads to commercial failure of an operating system.
Operations management is concerned essentially with the utilization of resources, i.e., obtaining
Maximum effect from resources or minimizing their loss, underutilization or waste. The extent
Of the utilization of the resources’ potential might be expressed in terms of the proportion of
Available time used or occupied, space utilization, levels of activity, etc. Each measure indicates
The extent to which the potential or capacity of such resources is utilized. This is referred as the
Objective of resource utilization.
Operations Management concern with the conversion of inputs into outputs, using physical
resources, so as to provide the desired utilities to the customer while meeting the other
organizational objectives of effectiveness, efficiency and adoptability. It distinguishes itself from
other functions such as personnel, marketing, finance, etc. by its primary concern for ‘conversion
by using physical resources’.
Operations management functions:
1. Location of facilities
2. Plant layouts and material handling
3. Product design
4. Process design
5. Production and planning control
6. Quality control
7. Materials management
8. Maintenance management.
1. Location of facilities
Location of facilities for operations is a long-term capacity decision which involves a long term
Commitment about the geographically static factors that affect a business organization. It is an
Important strategic level decision-making for an organization. It deals with the questions such as
‘Where our main operations should be based?’
The selection of location is a key-decision as large investment is made in building plant and
Machinery. An improper location of plant may lead to waste of all the investments made in plant
And machinery equipment’s. Hence, location of plant should be based on the company’s
expansion.
2. Plant layout and material handling
Plant layout refers to the physical arrangement of facilities. It is the configuration of
departments,
Work centers and equipment in the conversion process. The overall objective of the plant layout
Is to design a physical arrangement that meets the required output quality and quantity most
Economically.
3. Product design
Product design deals with conversion of ideas into reality. Every business organization have to
Design, develop and introduce new products as a survival and growth strategy. Developing the
New products and launching them in the market is the biggest challenge faced by the
organizations.
The entire process of need identification to physical manufactures of product involves three
Functions: marketing, product development, manufacturing. Product development translates the
Needs of customers given by marketing into technical specifications and designing the various
Features into the product to these specifications. Manufacturing has the responsibility of
selecting the processes by which the product can be manufactured. Product design and
development provides link between marketing, customer needs and expectations and the
activities required to manufacture the product.
4. Process design
Process design is a macroscopic decision-making of an overall process route for converting the
Raw material into finished goods. These decisions encompass the selection of a process, choice
Of technology, process flow analysis and layout of the facilities. Hence, the important decisions
In process design are to analyze the workflow for converting raw material into finished product
And to select the workstation for each included in the workflow.
5. PRODUCTION PLANNING AND CONTROL
Production planning and control can be defined as the process of planning the production in
advance, setting the exact route of each item, fixing the starting and finishing dates for each item,
to give production orders to shops and to follow up the progress of products according to orders.
The principle of production planning and control lies in the statement ‘First Plan Your Work
And then Work on Your Plan’. Main functions of production planning and control includes
Planning, routing, scheduling, dispatching and follow-up.
Planning is deciding in advance what to do, how to do it, when to do it and who is to do
It. Planning bridges the gap from where we are, to where we want to go. It makes it possible
For things to occur which would not otherwise happen.
Routing may be defined as the selection of path which each part of the product will follow,
Which being transformed from raw material to finished products. Routing determines the most
Advantageous path to be followed from department to department and machine to machine till
Raw material gets its final shape. Scheduling determines the programmed for the operations.
Scheduling may be defined as ‘the fixation of time and date for each operation’ as well as it
determines the sequence of operations to be followed.
Dispatching is concerned with the starting the processes. It gives necessary authority so
As to start a particular work, which has already been planned under ‘Routing’ and ‘Scheduling’.
Therefore, dispatching is ‘release of orders and instruction for the starting of production for any
Item in acceptance with the route sheet and schedule charts’.
The function of follow-up is to report daily the progress of work in each shop in a prescribed
Preform and to investigate the causes of deviations from the planned performance.
6. QUALITY CONTROL
Quality Control (QC) may be defined as ‘a system that is used to maintain a desired level of
Quality in a product or service’. It is a systematic control of various factors that affect the quality
Of the product. Quality control aims at prevention of defects at the source, relies on effective
Feedback system and corrective action procedure.
Quality control can also be defined as ‘that industrial management technique by means of which
Product of uniform acceptable quality is manufactured’. It is the entire collection of activities
which ensures that the operation will produce the optimum quality products at minimum cost.