Page 11 - DMGT501_OPERATIONS_MANAGEMENT

Unit 1: Introduction to Operations Management

4. The selection of the overall plans; Notes
5. Location plans;
6. Plant layouts;
7. Materials handling systems, etc.

Besides, the human factor problems and research and development are also considered.

1.3.3 Activities relating to Analysis and Control of Production

The major ones are:
1. Production Planning: It includes preparation of short term production schedules, plan for
maintaining the records of raw material and finished and semi-finished stock; specifying
how the production resources of the concern are to be employed over some future time in
response to the predicted demand for products and services.

2. Production Control: After planning, the next managerial production function is to control
the production plans because the production plans cannot be activated unless they are
properly guided and controlled. For this purpose, production manager has to regulate
work assignment, service work progress and check and remove discrepancies, if any, in
the actual and planned performances. A production manager has to look after the production
control activity through:
(a) Control on inventory such as raw materials, purchased parts, finished goods etc.

(b) Control on work in progress through production control.
(c) Control of quality through process control.

1.4 Relating Production Management with other
Management Functions

Well-designed manufacturing and service production exploit a company's distinctive
competencies – the strengths unique to that company – to meet these needs. Such strengths
might be a particularly skilled or creative workforce, strong distribution networks, or the
ability to rapidly develop new products or quickly change production-output rates. A good
production manager will interface with other functions in order to exploit the competencies of
the organization.

We can analyze the interface requirements from another angle also – from the point of view of
Production Management's processes. Generally, processes involve combinations of people,
machines, tools, techniques, and materials in a systematic series of steps or actions.

The overall value chain extends from suppliers to customers. Inputs consist of the sources
related to materials like capital, equipment, personnel, information, and energy used to produce
the desired outputs. Inputs typically are selected by the production function in association with
other functions. Outputs are the final product whether of tangible goods or intangible services.
Some of the interfaces with other functional areas in the organization are described below:

1. Production Management – Marketing Interface: Marketing is responsible for understanding
customer needs, generating and maintaining demand for the firm's products, ensuring
customer satisfaction, and developing new markets and product potential. The firm's
strategic positioning and its market segmentation decisions to a large extent determine
the manufacturing and production strategy.

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