09-10-2012, 05:56 PM
PRODUCTION AND OPERATION MANAGEMENT.
PRODUCTION AND OPERATION.pptx (Size: 206.46 KB / Downloads: 53)
CONCEPT.
According to Jae K Shim and Joel G. Siegel, “Production and operation management is the management of all activities directly related to the production of goods and services”.
It involve a set of activities performed to manage the available resources in an efficient manner in order to convert inputs into desired outputs.
CONVERSION OF INPUT INTO OUTPUT
The conversion of an input into output can be done in one of the following ways:
Alteration.
Transportation.
Storage.
Inspection.
CUSTOMER SATISFACTION.
The various factors that led to customer satisfaction are:
Utility of the in accordance with the acceptable standards.
Competitive product cost.
Easy maintenance and reliability of the product.
Product is in compliance with all functional specifications.
PROFITABILITY.
To achieve customer satisfaction the pricing of the product should be competitive. Any organization is into the business with the aim of providing products or services for growth and profitability. Therefore, the management should focus on reducing the costs in order to increase sales or maintain high profitability with the existing sales.
TIMELINESS.
The product produced or a service rendered has to be qualitative and cost competitive. Further, even though if all the above criteria are met with and the product or the service does not reach the consumer when required, the whole purpose is lost. Therefore, to enable the successful sale for a product or service, it should be timely delivered.
PRODUCT DESIGN.
Product design is a term that refers to transforming an idea of how a product should be and the specification, which are required for producing that product. These specifications are created keeping in mind the constraints of the production process, feasibility to produce and meeting the customer expectation without sacrificing the quality.
PRODUCT DEVELOPMENT.
It refers to the process of creating new products or modifying the existing ones. The needs or requirements of consumers keep on changing over the period of time. Therefore, to meet these needs successfully, new products need to be introduced in the market.
It as a process targets to create or modify the products within the predetermined time frame, at the targeted cost price while achieving the preset quality requirements, thereby providing the organization both growth and profitability.
THE CONCEPTION STAGE.
The first step from where the development process starts is to conceive the idea of the product and document it as per the specifications or requirements that the product is expected to meet. The marketing department and design department prepares specification for the product from its feedback and documents it as a draft. This draft forms the very basis for designing the product.