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Meeting Customer Expectations Of Real-Time Responsiveness And Quality

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Production and Operation Management

It is an important strategic level decision-making for an organization. Plant layout refers to the physical arrangement of facilities. It is the configuration of departments, work centers and equipment in the conversion process. The overall objective of the plant layout is to design a physical arrangement that meets the required output quality and quantity most economically. Product design deals with conversion of ideas into reality.

Every business organization have to design, develop and introduce new products as a survival and growth strategy. Developing the new products and launching them in the market is the biggest challenge faced by the organizations. Process design is a macroscopic decision-making of an overall process route for converting the raw material into finished goods.

OM/U1 Topic 1 Nature And Scope of Production And Operation Management

These decisions encompass the selection of a process, choice of technology, process flow analysis and layout of the facilities. Production planning and control can be defined as the process of planning the production in advance, setting the exact route of each item, fixing the starting and finishing dates for each item, to give production orders to shops and to follow up the progress of products according to orders.

Planning is deciding in advance what to do, how to do it, when to do it and who is to do it. Planning bridges the gap from where we are, to where we want to go.


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Routing may be defined as the selection of path which each part of the product will follow, which being transformed from raw material to finished products. Scheduling determines the programmer for the operations. Dispatching is concerned with the starting the processes. It is a systematic control of various factors that affect the quality of the product.

Quality control aims at prevention of defects at the source, relies on effective feed back system and corrective action procedure. It is the entire collection of activities which ensures that the operation will produce the optimum quality products at minimum cost. The main objectives of quality control are: To improve the companies income by making the production more acceptable to the customers i. To reduce companies cost through reduction of losses due to defects.

What does operations management involve?

To achieve interchange ability of manufacture in large scale production. To produce optimal quality at reduced price. To ensure satisfaction of customers with productions or services or high quality level, to build customer goodwill, confidence and reputation of manufacturer. To make inspection prompt to ensure quality control.