Production and operations management: A present scenario A new management specialization has Joined hands with the fields like Financial management, Supply chain management, Business management, Insurance management and that field has really a influence on the working of present organizations and that management field is “Production and Operations Management”. Although , the concepts introduced with POM , as it is commonly referred as, are not a new one for example time study , motion study, and scheduling techniques.
These concepts came intro picture around 19th century. The modern day ocus on POM has largely developed out of the work of Frederick W. Taylor, Operations management is the function that is uniquely associated with the design and management of the transformation processes. and the study of production and operations management has introduced various concepts in this regard and they provide a base for the actual working of the organization.
Following are the concepts related to “Production and Operations Management” which are used in present scenario: Total quality management: TQM can be defined as managing the entire organization so that it excels in all dimensions of products and services that are mportant to customer. Six sigma : It has become a new mantra in quality management . It refers to a approach for eliminating defects in any process whether it relates to product or service. In Six Sigma , on a along term basis , not more than 3. defects per million is permitted. It is basically aimed at having zero defect in manufacturing of any product or service. Capacity planning: Plan about the capacity of organization keeping in mind the demand of the particular product or service. It is (in)directly related with plant location. Aggregate planning : Aggregate planning is a ig picture approach to planning for the intermediate term. Productivity: Productivity is the conversion ratio by which a input is been converted in output .
The base for production and operations management lies with this only. Forecasting techniques: Forecasting is Judging in advance the outcome. Be it in regard to demand or in regard to any other thing. POM describes forecasting techniques as: Moving average method Exponential smoothing Regression analysis Correlation analysis Delphi technique Location analysis: It is concerned with selecting the best location out of the various options available. Selecting a plant site plays a important role for the success of the plant.
Various techniques like Dimensional analysis Brown and Gibson model Factor rating method Break even analysis Operation strategy: Operation strategy is concerned with setting up broad policies and plans for using the resources of the firm to best support the firm’s long term competitive strategy. Product design and development: Various product development and design techniques have been introduced . Standardization, simplification, specialization and diversification named as few. And Inventory anagement: Management of inventory of the organization is inventory management.