DBA 1651                           PRODUCTION  MANAGEMENT
                      UNIT - I                 NOTES
        INTRODUCTION TO PRODUCTION AND
              OPERATION MANAGEMENT
      1.1 Introduction
      1.2 Learning objectives
      1.3 System
         1.3.1 Business System
         1.3.2 Production System
         1.3.3 Production and Operations Managements
      1.4 History of operations Management
      1.5 Types of operation system
         1.5.1 Flow Shop
            1.5.1.1Continuous Production
            1.5.1.2Mass Production
            1.5.1.3Batch Production
         1.5.2 Job Shop
         1.5.3 Project Production
      1.6 Production activities and communication link
      1.7 Computer Integrated Manufacture ring (CIM)
         1.7.1 CIM sub systems
         1.7.2 Functional Areas of CIM
            1.7.2.1 Computer aided production planning
            1.7.2.2 Computer aided process planning
         1.7.3 Conceptual frame work of CIM
         1.7.4 Group Technology
            1.7.4.1 Definition
            1.7.4.2 History of GT
            1.7.4.3 Advantages of GT
            1.7.4.4 Organizational Suitability for GT
            1.7.4.5 Group technology in CIM
      1.8 Global Supply Chain
         1.8.1 Global Complexities
         1.8.2 How to transform into Global Supply Chain
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      DBA 1651                             PRODUCTION  MANAGEMENT
       NOTES                     UNIT - I
                   INTRODUCTION TO PRODUCTION AND
                        OPERATION MANAGEMENT
                 1.1 INTRODUCTION
                    This unit starts with a definition of a  system.  In this unit production system and
                 its objectives are explained along with the components of a system. The history of
                 operations management is portrayed. The various functions of production system and
                 their interlinking are explained through a flow chart. The components of computer,
                 integrated manufacturing and their purpose are dealt.  Finally, the recent trend in the
                 operations, namely, Global Supply Chain is introduced in this unit.
                 1.2 LEARNING OBJECTIVES
                   · To know the importance of the production system in an organization.
                   · To understand the link between  various activities of the production system.
                   · To comprehend the history of operations management.
                   · To understand the components of computer integrated manufacturing
                 1.3 SYSTEM
                     It consists of elements or components. The elements or components are
                 interlinked together to achieve the objective for which it exists. Eg: human body,
                 educational institutions, business organizations.
                 Components of a system:
                    The input, processing, output and control of a system are called the components
                 of a system.
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            DBA 1651                                                          PRODUCTION  MANAGEMENT
                               Figure 1.1 - Components of a system                       NOTES
                         Input                                           Output 
                                   
                                              Processing 
                                            Feedback 
                                            Control 
            Control:
                   There are two types of control, namely Proactive Control and Reactive
            Control.
            Proactive Control:
                   When an operation is carried out on a product in a workstation, the quality
            inspector goes to the workstation and inspects the product. When the samples that he
            has taken for the inspection are not confirming to the quality, he stops the machine and
            identifies the reason for the deviation and corrects the problem, so that the produced
            product thereafter conform to the specifications. This type of control prevents any
            major quality setback after the production. This is an example for proactive control.
            Reactive Control:
                    In a planning period, usually the quality target is fixed. Suppose, an organization
            feels to fix 5% defective is safe in the targeted production quantity and assumes that at
            the end of the planning period it finds that the defective output exceeds the targeted
            defective products. Then, it has to find out the reason for the deviations, namely, whether
            the problem is due to the method of doing the work or the resources used in the process.
            Then the planner uses this knowledge to prevent any problem in the future. Thus a
            Reactive Control is a post morterm case.
            1.3.1 Business System:
                   The business organization is classified into different subsystems based on the
            functions like marketing, production/operation, finance and human resource etc.
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             DBA 1651                                                                  PRODUCTION  MANAGEMENT
              NOTES                                        Figure 1.2 – Business System
                                                                     
                                               Marketing                             Finance 
                                                                                 
                                                 Human Resource                   Production/Operation 
                                  Each subsystem will have more sub subsystems.
                                  1.3.2 Production / Operation System
                                                    Figure 1.3 – Production / Operation System
                                        Input         Transformation   Output                        Objectives 
                                                       Process                    
                                                                                 1. To produce the required quantity.  
                                      Capital                                         
                                     Man Power                       Goods       2. To achieve the required quantity. 
                                     Material                                     
                                     Information                     Services    3. To meet the delivery time. 
                                                                                  
                                                                                 4. Economical way of doing 
                                                                                  
                                                                                   
                                                              Operations Management
                                         Operation system is either manufacturing sector or service sector. The input
                                  requirements are shown in figure1.3 The transformation process, in which part of the
                                  value addition takes place to get the required quantity of the product or services with
                                  the targeted quality within the specified time period, is carried out in a most economical
                                  way. Operation Management Plan coordinates and controls all the activities in the
                                  operation system to achieve the stated objectives.
                                         Thus (the activities listed in the diagram) the Operations Management activities,
                                  ensure the objective of quantity, quality, delivery time and economical way of doing
                                  work. The communication link between the various activities are shown in the figure1.3.
                                         Each activity is dealt in detail in different sections of this material. This figure
                                  (figure1.3) will be very much appreciated after getting a clear understanding of all the
                                  activities.
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