POM:
Production operation management is the study of the conversion of the inputs into outputs in any organization. It deals with manufactured goods and services.
WHY STUDY POM?
1. to develop a level of expertise in operations management graduates, since the success of all types of organizations depends on the knowledge and talent of its managers.
2. production is where the action is in most business firms. therefore, it is more exciting to share the work process and to see that real work to be done.
3. it relates to the demand and supply. any graduate from POM has more opportunity to receive job at higher salaries than any of their peers.
4. knowledge of the POM enhances the effectiveness of the accountant, the marketing manager, the financial analyst, the doctors, the engineers, and the personnel specialist.
THE PRODUCTION FUNCTION:
Every organization has a production function, just as it has any other functions like finance, accounting, marketing etc.
the production function performs the conversion of final products and services from the raw materials by using machines, capitals, technology and labor's etc.
THE PRODUCTION FUNCTION CONSISTS OF FOUR STEPS:
1. Input
2. Conversion
3. Outputs
4. Environment
Input: any product or service that is created requires some combination of materials, machine, and people. The list of inputs is almost endless for any product.
Conversion: The conversion process is the merging of time and place and the transformation of inputs to make them more usable and accessible to customers. Usually this text will discuss the methodology of transformation.
Output: The ultimate finished product. For Physical products it is easy to recognize, but for services, such as repairs, delivery, set up, and financing are not so easy to detect.
Environment: The surroundings or the atmosphere that businesses operate, in which government laws, economic condition, social responsibilities are present.
Function of POM
The process of converting inputs into outputs requires certain functions to be performed. design function and control function are the two main areas where POM continuously performed for successful operation in an organization.
* Product Design and Development: Business organizations research laboratories and independent inventors are continuously developing new products. So innovation, research developments departments (R & D) are working in any organization to fulfill their mission.
* Facilities Location: The proper location for the organizations facilities can be one time decision when the business is formed, or it may be a frequently recurring question. the location decision may be critical to some firms and inconsequential to others. such as virgin cola. why this company has situated in gazipur?
* Capital Equipment: This work includes the determining the capital equipment needed, acquiring it at a reasonable cost installing it, providing for both routine maintenance and emergency repair, and eventually replacing it.
* Facilities layout: The layout of physical facilities has an important influence on the efficiency of a firm. layout for a manufacturing plant should follow a logical sequence so that the materials can flow smoothly through the process with minima handling.
* Work Design and measurement: Individual tasks within the production process must be designed to achieve goals of efficiency and cost. the higher the volume, the more critical the design.
* production forecast: Forecasting is necessary if a business firm is to anticipate the demand for its products. This can be based on analysis of past data consideration of current events, and educated guesses about future developments. to do this simple and complex statistical techniques are available. such as egression analysis. breakeven, economic indicators etc.
*Purchasing materials management: Materials are needed for any organization. the material input may account for as much as 80 percent of the value of the output. the purchasing function includes researching, analyzing and selecting vendors.
* Inventory Management: Once material is obtained.it must be stored before it is processed, an intermediate stages in the process, and at the end of the process. These inventories are known as raw materials. Work in process and finished goods represents a sizable portion of a firms assets.
* Quality Control: No amount of inspection can make a bad product a good one. Quality must be designed and produced into the product.
Goals of POM:
* Effectiveness
* Efficiency
* Unit Cost
* Contribution to Profit
* Contribution to Profit
* Productivity
* Total Productivity= total of all outputs/total of all inputs
* Responsiveness
* Environmental Responsibility
Production operation management is the study of the conversion of the inputs into outputs in any organization. It deals with manufactured goods and services.
WHY STUDY POM?
1. to develop a level of expertise in operations management graduates, since the success of all types of organizations depends on the knowledge and talent of its managers.
2. production is where the action is in most business firms. therefore, it is more exciting to share the work process and to see that real work to be done.
3. it relates to the demand and supply. any graduate from POM has more opportunity to receive job at higher salaries than any of their peers.
4. knowledge of the POM enhances the effectiveness of the accountant, the marketing manager, the financial analyst, the doctors, the engineers, and the personnel specialist.
THE PRODUCTION FUNCTION:
Every organization has a production function, just as it has any other functions like finance, accounting, marketing etc.
the production function performs the conversion of final products and services from the raw materials by using machines, capitals, technology and labor's etc.
THE PRODUCTION FUNCTION CONSISTS OF FOUR STEPS:
1. Input
2. Conversion
3. Outputs
4. Environment
Input: any product or service that is created requires some combination of materials, machine, and people. The list of inputs is almost endless for any product.
Conversion: The conversion process is the merging of time and place and the transformation of inputs to make them more usable and accessible to customers. Usually this text will discuss the methodology of transformation.
Output: The ultimate finished product. For Physical products it is easy to recognize, but for services, such as repairs, delivery, set up, and financing are not so easy to detect.
Environment: The surroundings or the atmosphere that businesses operate, in which government laws, economic condition, social responsibilities are present.
Function of POM
The process of converting inputs into outputs requires certain functions to be performed. design function and control function are the two main areas where POM continuously performed for successful operation in an organization.
* Product Design and Development: Business organizations research laboratories and independent inventors are continuously developing new products. So innovation, research developments departments (R & D) are working in any organization to fulfill their mission.
* Facilities Location: The proper location for the organizations facilities can be one time decision when the business is formed, or it may be a frequently recurring question. the location decision may be critical to some firms and inconsequential to others. such as virgin cola. why this company has situated in gazipur?
* Capital Equipment: This work includes the determining the capital equipment needed, acquiring it at a reasonable cost installing it, providing for both routine maintenance and emergency repair, and eventually replacing it.
* Facilities layout: The layout of physical facilities has an important influence on the efficiency of a firm. layout for a manufacturing plant should follow a logical sequence so that the materials can flow smoothly through the process with minima handling.
* Work Design and measurement: Individual tasks within the production process must be designed to achieve goals of efficiency and cost. the higher the volume, the more critical the design.
* production forecast: Forecasting is necessary if a business firm is to anticipate the demand for its products. This can be based on analysis of past data consideration of current events, and educated guesses about future developments. to do this simple and complex statistical techniques are available. such as egression analysis. breakeven, economic indicators etc.
*Purchasing materials management: Materials are needed for any organization. the material input may account for as much as 80 percent of the value of the output. the purchasing function includes researching, analyzing and selecting vendors.
* Inventory Management: Once material is obtained.it must be stored before it is processed, an intermediate stages in the process, and at the end of the process. These inventories are known as raw materials. Work in process and finished goods represents a sizable portion of a firms assets.
* Quality Control: No amount of inspection can make a bad product a good one. Quality must be designed and produced into the product.
Goals of POM:
* Effectiveness
* Efficiency
* Unit Cost
* Contribution to Profit
* Contribution to Profit
* Productivity
* Total Productivity= total of all outputs/total of all inputs
* Responsiveness
* Environmental Responsibility
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