...Production and Operations Management –MGT613 INTRODUCTION TO PRODUCTION AND OPERATIONS MANAGEMENT VU Lesson 01 POMA Previously called Production Management Then Production and Operations Management Often called Operations Management Should not be confused with Operations Research or Production Management which are the domain of Mechanical and Industrial Engineering. THE COURSE CONTENT Tentative Course Content Units of Learning wise Unit I ( Introduction and Productivity, Strategy and Competitiveness) Unit II ( Forecasting) Unit III ( Design of Production Systems) Unit III ( Quality) Unit V ( Operating and Controlling the System) Tentative Course Content Lecture wise Unit I ( 5 Lectures) Unit II (3 Lectures) Unit III ( 12 Lectures) Unit III ( 10 Lectures) Unit V ( 15 Lectures) History of Management Frederick Taylor and Gilbreths (Lillian and Frank Gilbreth) are pioneers of transforming management to scientific domain. Borrows a lot of information from Engineering and Management to give an overall bigger picture of operating and managing any organization. Difference between Operations Management and Research OR relies on mathematical modeling and OM relies on practical scenarios/industrial cases. OR domain and tool of Engineers while OM is considered to be one of the critical tools of Managers. OR considered more powerful to improve the whole system where as OM can be applied to a part of the system. OR relies on mathematical modeling while OM relies on practical scenarios/industrial...
Words: 35376 - Pages: 142
...Competiveness, Strategy & Productivity Nicholas Deters Professor Ardy Management of Productions and Operations BSAB 420 11 December 2012 Abstract In our current society technological advancements, competitiveness, strategy and production are paramount in business relationships since technology advancements continue to gain momentum every day. Competition is what continues to enhance business strategy and production as companies strive to produce the latest technologically advanced product on the market while providing the best service for customer satisfaction at the lowest cost at with a high production rate. In the past few decades computer technology has been responsible for improved customer satisfaction and enhanced business production, spiking the level customer needs and competition between many businesses such as Ford vs. General Motors, Macintosh vs. Microsoft, UPS vs. FedEx, Import vs. Export as the list goes on forever. Whether the competition lie between an automotive industry or the computer industry, any company with a competitive advantage gains the ability to outperform its rivals, providing the ability for company growth and increased revenue. In the business aspect, competition continues to drive the market primarily by producing high quality products at a high output rate by using productivity and strategic road maps to aim for high goals and provide for further organizational achievements. Competitiveness, Strategy, & Productivity ...
Words: 2663 - Pages: 11
...Using Teams in Production and Operations Management Marquita Jackson Dr. Laura Pogue Contemporary Business BUS 508 November 13, 2011 “Production and operations managers oversee the work of people and machinery to convert inputs into finished goods and services” (Boone 357). They must consider many factors such as taxes, employee needs, labor force skills and size, and economical transportations for materials and supplies, and the amount of energy services. These managers are responsible for planning the production process, selecting the most appropriate layout, implementing the production plan, and controlling the production process. Managers are also responsible for maintaining quality control and ensuring that goods or services that they provide meet the customers expectations (Boone 2011). General Electric is a major household brand that revamped and reformed their production and operations management. In 1890, Thomas Edison established the Edison General Electric Company to be able to bring together his various businesses. During that same period, a competitor company, Thomson-Houston Company, became a dominant innovation company. As both businesses expanded and grew it became more difficult for both companies to produce complete electrical installations relying solely on their own patents and technologies. In 1892, the two companies merged together and created a new organization called the General Electric Company. The first General Electric Appliance was an electric fan...
Words: 1794 - Pages: 8
...Production and Operations Management The Business Enterprise-BUS508 Dr. John Woodard Tammy English Strayer University August 11, 2011 Marathon is an integrated international energy company engaged in exploration and production; oil sand mining; integrated gas; and refining, marketing, and transportation operation. Marathon is among the top five crude oil refineries in the United States, so surely there is a way to reduce the time involved in the production process. The major crude oil refineries in the United States are located in the hurricane region of the gulf coast. One possible option that Marathon could take to reduce the time involved in the production process would be to create new petroleum refineries in different regions allowing operators to shift process and production responsibilities in the event of a natural disaster or scheduled outage. There may be one feasible alternative as to why Marathon would want to reduce the time in the production of the petroleum products. In order to produce gasoline, the crude oil must go through the refinery and transportation processes. In those processes sometime could be saved either by increasing the speed of separation in the crude oil refinery process or by increasing the speed in the transportation process. Crude Oil, like any other product, is traded on the world market. In recent times, crude oil prices have been rocketing, driven by rising global demand and political instability in several oil...
Words: 1013 - Pages: 5
...Production and Operations Management Introduction Improving the operations of a company that will enhance productivity and product quality may not only certainly benefit a company’s bottom line, but can also benefit national interests. Marathon Oil, for example, is the United States’ “fifth largest transportation fuel refining company and the largest in the Midwest” (“Corporate Profile”). This Findlay, Ohio based company’s operations “include a six-plant refining network, a comprehensive terminal and transportation system, and extensive wholesale and retail marketing operations” (“Corporate Profile”). Marathon’s six refineries have a total refining capacity of 1.142 billion barrels per day and provide the United States with approximately seven percent of its total capacity (“About MPC”). Marathon sells 4.1 billion gallons of gasoline each year that are then distributed to over five thousand independently owned and operated Marathon locations (“About MPC”). Marathon owns Speedway, the fourth largest convenience store chain in the U.S. Speedway not only sells gasoline but also sells food and beverages and a variety of other products in one of its 1350 locations scattered throughout the Midwest (“About MPC ”). To be sure, examining Marathon’s overall product process and identifying those phases which might be improved could result in more efficient refining and distribution of the United States’ life blood: transportation fuels. Efficiency improvements to Marathon’s...
Words: 2695 - Pages: 11
...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 1. Production System Production and operation management (POM) is the management of an organization's 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 2. 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...
Words: 846 - Pages: 4
...Optimization in Production Operations Optimal “Lean Operations” in Manufacturing By Carlos W. Moreno © 2005-06 Ultramax Corporation Oct. 5, 2006 Introduction This essay deals with production / manufacturing operations: with their economic impact (or other metrics) while making product with the existing process, usually driven to satisfy: • market demand (delivered: volume, quality) • • economics (incurred: cost savings, resource utilization); and safety (safeguarding equipment, personnel and environment) These drivers represent the main impact of production on company profits, with short-term and long-term effects on the P&L Statement. The bottom line is that most production processes are underutilized; and the use of mature, accessible mathematical technology unlocks that latent capacity, which is of significant value. The best possible performance is “Optimal Operations.” In the process industry it is called “Process Optimization.” In manufacturing it is the extreme of Lean Operations, one of the components of “Lean Manufacturing” success. Other components that qualify for “lean” in the sense of avoiding waste (non-value-added), and not missing opportunities for improvements are: “Lean Design” (the most common emphasis today), “Lean Logistics – and Supply Chain,” “Lean Maintenance,” “Lean Scheduling,” “Lean Safety,” and “Lean Scheduling.” Some share interests with Six Sigma as well (quality and costs). All these solutions are also part of the classical field of Industrial...
Words: 3433 - Pages: 14
...CHAPTER 2 OPERATION STRATEGIES IN A GLOBAL ECONOMY INTRODUCTION In order for today’s companies to survive in the global economy condition, the companies have to set the strategies in their daily operations. TODAY’S GLOBAL BUSINESS CONDITION There are six factors that affect today’s global business condition and therefore had major impacts on the Operation Management: 1. Reality of global competition 2. Quality, customer service and cost challenges 3. Rapid expansion of advanced technologies 4. Continued growth of the service sector 5. Scarcity of operation resources 6. Social-responsibility issues REALITY OF GLOBAL COMPETITION Changing Nature of World Business Mostly every country in this world today is not only doing the internal domestic trading, but the scope of business has expanded to overseas. One particular country can export their products to overseas, and it can also import the products from other countries. International Companies Many of the international companies, whose operations span the globe as they buy, produce and sell in world markets. Strategic Alliances and Production Sharing Strategic Alliances are joint cooperations among international companies to exploit global business opportunities. Ex: General Motors Corp has created a strategic alliance with KIA Motor in order for them to sell their cars in South Korea. Production sharing, means that a product may be designed and financed by one country, raw materials...
Words: 2162 - Pages: 9
...PRODUCTION AND OPERATIONS MANAGEMENT Key Performance Indicators or Measurement provides an objective basis for making decisions. Good measures provide a “scorecard” of performance, help identify performance gaps, and make accomplishments visible to the work force and the management. The following are the major categories of performance measures used at the organizational and operational levels of a business. Discuss the contribution of production and operations management in each aspect: Financial Market Share Safety Quality Innovations Answer: Performance Measure gives information on (1) How well the organization operates, (2) If the organization meet their goals or targets, (3) If procedures of the organization are in statistical control, (4) If their customers are satisfied, and (5) If there are required improvements on the organization itself. Financial - Financial Aspect measures the increasing of funds of an organization from its different sources, it also includes the reductions of cost and risks, and enhanced use of assets. It means that the organization has an effective and efficient Production and Operating Systems when scorecard reflects good performance. Market Share - Customer Perspective / Market Share contributes a great success in an organizational goal. To determine what customers want and then directing efforts toward meeting and exceeding customer’s expectations will be a good impact to KPI of an organization. Operations...
Words: 333 - Pages: 2
...Brief History of the Production and operations Management function by V S Rama Rao on January 24, 2009 At the turn of the 20th century, the economic structure in most of the developed countries of today was fast changing from a feudalistic economy to that of an industrial or capitalistic economy. The nature of the industrial workers was changing and methods of exercising control over the workers, to get the desired output, had also to be changed. This changed economic climate produced the new techniques and concepts. Individual Efficiency: Fredric W Taylor studied the simple output to time relationship for manual labor such as brick-laying. This formed the precursor of the present day ‘time study’. Around the same time, Frank Gilberth and his leaned wife Lillian Gilberth examined the motions of the limbs of the workers (such as the hands, legs, eyes etc) in performing the jobs and tried to standardize these motions into certain categories and utilize the classification to arrive at standards for time required to perform a given job. This was the precursor to the present day ‘motion study’. Although to this day Gilberth’s classification of movements is used extensively, there have been various modifications and newer classifications. Collective Efficiency: So far focus was on controlling the work output of the manual laborer or the machine operator. The primary objective of production management was that of efficiency – efficiency of the individual operator. The aspects...
Words: 745 - Pages: 3
...Production and Operations Management Marathon Oil Corporation (Marathon Oil) is an integrated international energy company. It is engaged in the exploration and production of crude oil and natural gas, as well as in the domestic refining, marketing and transporting of petroleum products, integrated gas business and oil sands mining. The company’s principal operating subsidiaries include Marathon Oil Company (exploration and production) and Marathon Petroleum Company LLC (refining, marketing and transportation). Its principal operating locations include the US, Equatorial Guinea, Libya, the North Sea, Angola, Indonesia and Canada. The company headquarter is in Houston (Texas), the United States of America. The first part of this assignment will thoroughly discuss the Deepwater Droshky Project implemented by Marathon Oil. The next paragraphs will discuss how the prices of crude oil and retail gasoline relate to each other, as well as the nature of this relationship. Afterwards, the assignment will discuss the methods Marathon uses to keep its pump price in equilibrium, even when crude price rises. This assignment ends with a discussion on President’ Obama’s deepwater drilling moratorium, and how oil companies can overcome the prohibition of deepwater drilling and stay competitive. Marathon Oil - Deepwater Droshky Project Marathon Oil Corporation (2010) had announced its Droshky development in the deepwater Gulf of Mexico to have begun operations on time and under budget...
Words: 1233 - Pages: 5
...Enterprise: 508 Strayer University Assignment # 3 Production and Operation Management Presented to Dr. Terry Dowdy By Calvin J. Gaiter August 7, 2011 Explain one possible option that Marathon could take to reduce the time involved in the production process. One likely option that Marathon could take to reduce the time involved in the production process is to restructure how the production and operations managers manage the every day work of the people and machinery. Marathon uses an analytic production system, which reduces raw material to its component parts in order to come up with one or more marketable products (Boone & Kurtz, 2010). Petroleum refining breaks down crude oil into a number of profitable products that includes gasoline, heating oil, and aviation fuel. Marathon delivers more than 111 million gallons of crude oil and petroleum products each day through its pipelines. The company already uses high-speed computers, continuously evolving technology and satellite communications allow the company to supervise and manage its many pipelines throughout the U.S. from a centralized control center (http://www.marathonpetroleum.com). However, as a result of computerizing other aspects of its operations they could get better operations by standardizing and automating other tasks, which will make the process quicker and more efficient. This is computer-integrated manufacturing, or CIM, production technologies in which computers aid workers design...
Words: 1095 - Pages: 5
...LETTER OF TRANSMISSION July 19, 2012 Moon Senior Lecturer School of Business, UIU Sub: Submission of the Report on “Supply Chain Management of a Retail Business” Dear Madam, We are very much glad to present the “Report” as a requirement for the course named Production Operation Management. We have given our sincere effort to complete the Report and we want to declare that this Report is wholly & attentively prepared by us. We will be always available to answer any question if needed regarding this Report. So, we will be highly obliged if you kindly accept our Report and help with your opinions and suggestions for its further progress and enrichment in the future. With best regards, B.M.Sun On behalf of the group ACKNOWLEDGMENT We would like to give my first thanks to our instructor, Mimnun Sultana, Senior lecturer of United International University. Our special thanks to Mr. Rashedul Hoque (Manager) of Anjan’s prepared this work with our best effort and we think this work will be very helpful in our future working life. We think it will help us to be a good supply chain agent. At last we are willing to give thanks to Mr. Md. Shaheen Ahmed (Director) of Anjan’s who gave us best support to prepare this report. We gratefully acknowledge the inspiration, encouragement and valuable suggestion received from the well wishers during the preparation of this report. We also gratefully acknowledge the inspiration, encouragement and valuable suggestion received...
Words: 2747 - Pages: 11
...“PRODUCTION AND OPERATIONS MANAGEMENT” Chris Connell June 10, 2012 ABSTRACT In this paper, I will analyze Marathon’s product processes; I will determine which part of those processes is open to the greatest number of efficiency improvements, and I will explain further. In addition, I will discuss the relationship between the retail price of gasoline and the world demand for crude oil. I will try to discuss how Marathon could keep the price at the pump the same without losing any profits – even if global crude production has decreased by 10%. Finally, I will discuss President Obama’s June 2010 deep-water drilling moratorium. It was originally for six months; I will try to determine the impact of a continued moratorium on deep-water drilling for retail gas prices in the U.S. WHICH OF MARATHON’S PROCESSES CAN BE IMPROVED THE MOST? A business needs to be at least as efficient as its main competitors, in order to be able to compete and survive in the long-term. A more efficient business will produce goods at a lower cost than competitors can supply. A more efficient business can generate more profit, possibly at lower prices. (Tutu2u.net) In analyzing Marathon’s product processes, there are areas that are open to a large number of efficiency improvements. Particularly, the world will run out of oil sometime in the distant or near future. Both Marathon as a company (and the United States in general) has to explore and find oil more efficiently so that the use of oil as...
Words: 2262 - Pages: 10
...‘A CEO should stay clear of operational problems in the company. Otherwise he becomes part of the problem’. Please elaborate on what this statement means to you. Operations of an Organisation deal with the overall functioning of business effectively so as to obtain determined results within a specific period. Operations is mostly related to production/manufacturing where it helps to oversee, design, decide and implement actions accordingly. It is the same for the non-manufacturing based industries too. Operational problems may lead to disturbance in stability of business and may affect the growth of business. The operations of a Company are monitored not only by the designated team and the operations manager but also by the higher level employees of an organisation who overlook the entire scenario, anticipate the threats and opportunities and implement the same for progress of business. The operations of any business run on certain principles which form the reason of its existence, performance and growth. These may be termed as the pillars of the business operations and they are: 1. Vision and mission of the Company 2. Policies, structure and system 3. Investment, infrastructure and resources 4. Management and strategies Operational problems for example can be like wastage of resources, non-fulfilment of services within stipulated time, sudden breakdown of machinery in a manufacturing unit, lack of modern business strategies and ignorant management. An example of...
Words: 1247 - Pages: 5
