Chapter1 Production and Operation Management.docVIP

Production and Operation Management Cheng Guoping Chapter 1 Introduction 1. Production System 2. Production and operations in the organization 3. Function and jobs of POM 4. Decision Making in POM 5. The emergence of production and operation management Production System Production and operation management (POM) is the management of an organizations production system, which converts input into the organization s products and services. 1.1 Production system model Inputs conversions subsystem output Feedback Feedback Figure 1 A production System Model Common ground and differences between manufacturing and services 1.2.1 Common Ground: Entail customer satisfaction as a key measure of effectiveness Require demand forecasting Require design of both the product and the process Involve purchase of materials, supplies, and services Require equipment, tools, buildings, and skills, etc. 1.2.2 Differences: Customer contact Service involves a much higher degree of customer contact than manufacturing does. The performance of a service typically occurs at the point of consumption. Manufacturing allows a separation between production and consumption. Uniformity of input Service operations are subject to more variability of inputs than manufacturing operations are. Each patient, each lawn, each TV presents a specific problem. Labor content of jobs Manufacturing ---capital -intensive Service ---a higher labor content. Uniformity of output Products--standardization, low variability, smooth, efficient Service--customization, variable, slow. Store Goods may be stored Servi