Capacity is usually expressed as volume of output per period of time. Excess capacity results in low resource productivity while inadequate capacity leads to poor customer service. Journal of Operations Management, 9 2 , 168-84. This has been achieved by means of having a continuous flow of manufacturing operations, less processing time, and efficient pull system. High investment in production facilities. Unit cost is lower due to high volume of production. This has been seen in its continuous introduction of new brands, creation of customized brands, and subsequent withdrawal of obsolete ones from the market.
The management believes that for it to excel, then the time spent on inventories as well as the entire production process has to be significantly reduced. Hence, all attempts should be made to produce the products at pre-established cost, so as to reduce the variation between actual and the standard pre-established cost. Major facilities will not be changed. Because of general purpose machines and facilities variety of products can be produced. Customers have flexibility in requesting bundled products and services with good discount, they also have flexibility in choosing the shipment date whether to be delayed or flagged as urgent.
Two essential part of productivity are labor and capital. Marketing environmental assessment and implementing the long-term capacity plans in a systematic manner are the major responsibilities of management. To ensure that the plans for the operations subsystems are accomplished, the operations manager must exercise control by measuring actual outputs and comparing them to planned operations management. Objectives of Production Control The success of an enterprise greatly depends on the performance of its production control department. Info on Objectives and : Plant layout refers to the physical arrangement of production facilities. The degree to which the performance of an activity should be decentralized depends upon the scope of operations and convenience of their locations. It should be noted that the output resulting out of the inputs is measured in terms of the cost, quality and time which relate to the prescription of aforesaid ultimate objectives.
Even the drastic changes in patterns of social behaviour resulting from new communication technologies and changed male-female relationships can improve the productivity. It is a process of planning, scheduling, supervising and controlling the activities involved in the production of goods and services, i. Thus intermediate objectives are supporting to the primary objectives. Manufacturing cost per unit is low. The Toyota Company has a fully automated system which focuses on time reduction as a key component of production. Morale may be considerably improved.
Speed Speed as an operations objective reflects how fast the firm can respond to customer requests. Planning and scheduling is a routine action. Pre established cost Manufacturing cost 1. This helps the firm to achieve its cost reduction and efficiency objective. Consumerism has been on steep rise. Although problem of location choice does not fall within preview the production function and it occurs infrequently, yet it is of crucial importance because of its major effect on the performance of every department including production. So, consumer prices also reduce.
For instance, most clients like ordering for custom-made vehicles, which they may want delivered within a specific period. Production Production is a scientific process which involves transformation of raw material input into desired product or service output by adding economic value. This is an effective way of capitalizing on technological breakthrough. In order to build strategy management process a sequential process as below is followed Competition Analysis: In this step company evaluates and studies current competition in the market and practices that are followed in the industry for operations and production vis-à-vis company policies Goal Setting: Next step involves narrowing down the objective towards which the organization wants to move towards. Productivity of company is dependent on industry and environmental conditions in which it is operating.
The main objective of routing is to find out the best and most economical sequence of operations to be followed in the manufacturing process. It includes the general working conditions which are determined by the way the operation has been designed. They determine the activities required to achieve the goals and assign authority and responsibility for carrying them out. In any case, any variation between the actual costs and the standard pre established should be kept at minimum. To satisfy this demand of consumers, the production manager must continuously improve the quality of his products.
However, it is recommended that focusing on all the objectives at a time may not make economic sense, since possible trade-offs between them may arise. The company strategy, as is discussed in the advanced sections of this paper, has evolved over time, to achieve the most efficient, customer friendly, and affordable products of all time. Right Quantity: The manufacturing organisation should produce the products at the right number. Determine the arrangement of facilities and services in the plant 2. An improvement in one will often give rise to deterioration in the other. Unlike project management, which has defined completion to a task; operations management deals with processes, resource allocation, and quality to run the business day to day in an efficient and effective manner. So, the production department has to make the optimal utilization of input resources to achieve its objective.
Process planning involves detailing of processes if resource conversion required and their sequence. Material handling devices increases the output, improves quality, speeds up the deliveries and decreases the cost of production. The right quality is not necessarily best quality. So the manufacturing department should organize its activities in such a way that the products will be manufactured as per schedule. Production and operations, the main responsible on operations function is to produce goods and services and deliver to customers on time. Shorter cycle time of production.
Product development translates the needs of customers given by marketing into technical specifications and designing the various features into the product to these specifications. Wastivity is reciprocal of productivity. Determines the type of handling systems and machine utilization. Sale will not be happened if they do not understand what operations can produce or what due date can meet or cannot and what type of operations to deliver. Marketing to the healthcare industry, reaching the doctors and other healthcare decision makers is often an impossibletask. It's quite easy to see why this type of managing makes sense - when the parts work in unison the whole works smoothly too.