Production & Operations Management Notes
Subject Overview
Production & Operations Management covers operations fundamentals, facility location and product design, facility layout and production planning/
Subject at a glance
4
Units
32
Topics
4
Credits
4
Infographics
Unit-wise Syllabus
4 units — open any unit for detailed topic-wise notes, diagrams and important exam questions
- Operations management concept
- transformation process model
- classification of operations
- contributions of Ford
- Deming
- Crosby
- Taguchi
- facility location factors and analysis techniques
- product design and development process
- process selection (project/job/batch/mass/process types)
- 1Inputs
Materials, labour, capital, information
- 2Transformation
Manufacturing or service process
- 3Outputs
Goods and services
- 4Feedback and control
Quality, cost, time
Study guide
This unit covers the operations concept, the transformation model, types of operation, contributions of Ford, Deming, Crosby and Taguchi, facility location, product design and process selection. Match each production system with an example.
- Facility layout objectives and types
- production planning and control concepts and functions
- work study — method study and work measurement
- capacity planning concepts and decisions
Method study
Find the best way to do a job: SREDIM
Work measurement
Set standard time
Time study
Stopwatch observations
Work sampling
Random observations
Study guide
You study layouts, production planning and control, method study, work measurement and capacity planning. Practise a simple line balancing example.
- Quality characteristics of goods and services
- Juran's Quality Trilogy
- Deming's 14 principles
- statistical process control
- TQM and Six Sigma
- acceptance sampling — single/double/multiple sample plans
- control charts for variables and defectives
- 1Quality planning
Design processes to meet needs
- 2Quality control
Measure and correct during operation
- 3Quality improvement
Raise performance to new levels
Study guide
You study quality: Juran's trilogy, Deming's 14 points, SPC, TQM, Six Sigma, acceptance sampling and control charts. Draw a control chart from sample data.
- JIT approach and implementation requirements
- Kanban system
- inventory concepts
- classification
- objectives
- EOQ model
- re-order level
- ABC analysis
- logistics and franchising
- purchasing management objectives and procedures
- value analysis
EOQ
√(2DS / H)
Reorder point
Daily demand × lead time + safety stock
Number of orders
D / EOQ
Total inventory cost
(D / Q) S + (Q / 2) H
Study guide
You study JIT, Kanban, inventory, EOQ, re-order level, ABC analysis, logistics, franchising, purchasing and value analysis. Practise EOQ and ABC problems.
Why Production & Operations Management Matters
Operations decide cost, quality and delivery, and supply chain and operations roles are among the most employable for MBA graduates.
How to Prepare for Production & Operations Management
- Practise EOQ, ABC and control chart problems.
- Study operations of a real company.
- Learn the quality gurus and their ideas.
Production & Operations Management: Frequently Asked Questions
What is Six Sigma?
Six Sigma is a data-driven approach to reducing defects and variation in processes to near-zero levels.