Production and Operations Management Notes
Subject Overview
Production and Operations Management covers how goods and services actually get made — from product design through to quality control. You'll cover operations management concepts and production system types, facility location and layout with capacity planning, modern productivity techniques (JIT, Kanban, Six Sigma) and purchasing management, and close with inventory management (EOQ, ABC analysis) and quality management. This is a 6-credit General Elective paper across 4 units, essential for students heading into operations or manufacturing management roles.
Subject at a glance
4
Units
27
Topics
6
Credits
4
Infographics
Unit-wise Syllabus
4 units — open any unit for detailed topic-wise notes, diagrams and important exam questions
- Concept and functions of operations management
- product design and development process
- process selection — project
- job
- batch
- mass and process production systems
Project
One unique output
Building a bridge
Job
Very low, made to order
Custom furniture
Batch
Moderate, in lots
Bakery, medicines
Mass
High, standardised
Cars, mobile phones
Process (continuous)
Very high, non-stop flow
Oil refinery, cement
Study guide
This unit explains how goods and services are produced: the concept and functions of operations management, the product design and development process and process selection across project, job, batch, mass and continuous production systems. Match each production system with an example product.
- Importance and factors in location analysis
- location analysis techniques
- facility layout objectives and basic types
- capacity planning concepts and factors
- production planning and control concepts
Process layout
Similar machines grouped together
Job and batch production
Product layout
Machines in the sequence of operations
Mass production
Fixed-position layout
Product stays, resources move
Ships, aircraft, buildings
Cellular layout
Cells of machines for product families
Group technology
Study guide
You study location analysis and its techniques, facility layout types and objectives, capacity planning and production planning and control. Compare process, product and fixed-position layouts.
- Just-in-time and the Kanban system
- Total Quality Management and Six Sigma
- functions and methods of purchasing management
- value analysis
- stock control systems
- the virtual factory concept
- Just-in-time
- Produce and receive only what is needed, when needed
- Kanban
- Card system that signals when to produce
- TQM
- Everyone responsible for quality, continuously
- Six Sigma
- Fewer than 3.4 defects per million (DMAIC)
- Value analysis
- Same function at lower cost
Study guide
This unit covers modern techniques: just-in-time and the Kanban system, TQM and Six Sigma, purchasing management, value analysis, stock control systems and the virtual factory concept. Learn what Six Sigma means in simple terms.
- Classification and objectives of inventory management
- factors affecting inventory control policy
- inventory costs
- basic EOQ model
- re-order level
- ABC analysis
- quality concepts
- inspections vs. quality control vs. quality assurance
- control charts
- acceptance sampling
Economic Order Quantity
EOQ = √(2DS / H)
D demand, S ordering cost, H holding cost
Reorder level
Lead time × daily usage + safety stock
ABC analysis
A: ~10% items, ~70% value
C: ~70% items, ~10% value
Control charts
Mean ± 3σ limits
Study guide
You study inventory classification and objectives, factors affecting inventory policy and inventory costs, the EOQ model, re-order level, ABC analysis, quality concepts, inspection versus quality control versus quality assurance, control charts and acceptance sampling. Practise EOQ and ABC analysis problems.
Why Production and Operations Management Matters
Operations decide cost, quality and delivery, so they matter in every business, from factories to hospitals. The subject leads to careers in supply chain, logistics and operations management.
How to Prepare for Production and Operations Management
- Practise EOQ and ABC analysis numericals.
- Learn the differences between quality control, assurance and inspection.
- Study a real production system, such as an assembly line, to apply the ideas.
Production and Operations Management: Frequently Asked Questions
What is EOQ?
The Economic Order Quantity is the order size that minimises the total of ordering and holding costs.
What is JIT?
Just-in-time is a system in which materials arrive exactly when needed in production, minimising inventory.