Chapter 1
Production and Operations Management (POM): An Introduction

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Overview
• • • • • Introduction Historical Milestones in POM Factors Affecting POM Today Different Ways of Studying POM Wrap-Up: What World-Class Producers Do

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Introduction
• Production and operations management (POM) is the management of an organization’s production system. • A production system takes inputs and converts them into outputs. • The conversion process is the predominant activity of a production system. • The primary concern of an operations manager is the activities of the conversion process.
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Organizational Model
Finance Sales HRM

POM Marketing
QA

Engineering

MIS

Accounting
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Organization Chart-Major Elements
Manufacturing Organization
Operations Finance/Accounting Disbursements & Credits Funds Management Capital Requirements Marketing Sales Promotion Advertising Sales Market Research

Facilities Production & Inventory ontrol Quality Assurance & Control Procurement Engineering Design Industrial Engineering Process Engineering

Entry-Level Jobs in POM
• Purchasing planner/buyer • Production (or operations) supervisor • Production (or operations) scheduler/controller • Production (or operations) analyst • Inventory analyst • Quality specialist
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Historical Milestones in POM
• • • • • • The Industrial Revolution Post-Civil War Period Scientific Management Human Relations and Behaviorism Operations Research The Service Revolution
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The Industrial Revolution
• The industrial revolution developed in England in the 1700s. • The steam engine, invented by James Watt in 1764, largely replaced human and water power for factories. • Adam Smith’s The Wealth of Nations in 1776 touted the economic benefits of the specialization of labor. • Thus the late-1700s factories had not only machine power but also ways of planning 7 and