Production Operations Management

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Production Operations Management

• Introduction to POM
• U. Akinc

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POM

• Productivity
• What is it to POM?
• What is it to a Company?
• What does it Mean to You?
• Production/ Operations Management
• What?
• Who?
• Business Strategy and Operations Management

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Productivity

• Definition
• Economic output per unit of input
• Productivity Output/Input (resource)

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US. Productivity Trends

• 600 since 1900
• 2.6 between 1945 - 1973
• 1.2 between 1973 - 1980
• 1.0 between 1980 1990
• 2.5 after 1990

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Recent US Productivity Changes
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Productivity Trends
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International Comparisons
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International Comparisons
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Pressures on Productivity

• Why Does Productivity Have to Grow?
• Aging Population

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Pressures on Productivity

• Why Does Productivity Have to Grow?
• Aging Population
• Environmental Demands

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Pressures on Productivity

• Why Does Productivity Have to Grow?
• Aging Population
• Environmental Demands
• Global Competition

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Pressures on Productivity

• Why Does Productivity Have to Grow?
• Aging Population
• Environmental Demands
• Global Competition
• Social Pressures

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Sources of productivity?

• Where does productivity come from?
• Capital
• Technology
• Better Management of Resources
• Specialization
• Macro (Organizational)
• Micro

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Organizational Goals

• Why do organizations exist?
• An alliance of at least
• Labor
• Management
• Stockholders
• Organizational Goals
• Productive use of resources

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Operations

• Activities that organizations perform to achieve
  their goals.
• Definition
• Activities aimed at bringing about goal oriented
  changes by designing and using processes.

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Processes

• Any set of activities that use resources,
  transform and add value to deliver one or more
  outputs to its customers.
• Processes can be nested.. A process may include
  one or more sub processes

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Porters Value Chain
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Domain of POM (WHAT?)

• Determining the Desired Outputs
• Determining the Necessary Inputs
• Determining the Technology Necessary
• Planning and Controlling the
• quality
• availability
• cost of Work Processes and Their Results
• Delivery and Distribution of the Output

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POM Decisions
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The Professionals (WHO?)
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WHAT? Design

• Many of the design functions are strategic
• Facilities design
• Locations
• Sizes
• Layouts
• Equipment
• Transportation means
• Product/Product Line
• Management Systems

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WHAT? Planning

• Determining the ways in which the productive
  facility will be used
• Demand Forecasting
• Production Planning
• Material Requirements Planning
• Inventory Planning
• Staffing Needs
• Equipment Needs

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WHAT? Scheduling

• Determining the time and the resources with which
  the tasks will be performed.
• Examples
• Assignment of specific customer orders to
  individual machines or individuals
• Assignment of workers to work centers
• Sequencing of work
• Vehicle Dispatching

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WHAT? Control

• Determining the degree of match between actual
  and planned outcomes
• Examples
• Quality Control
• Conformance
• Design
• Materials Control (Inventory Control)
• Equipment Control (Maintenance)
• Cost Control (Variance Analysis)