Productivity and operation management

Overview of productivity and scope,nature and objective of operation management. types,factors and ways to improve productivity

1. PRODUCTIVITY AND OPERATION MANAGEMENT

2. INTRODUCTION PRODUCTION MANAGEMENT

3. DEFINITION According to E.F.L. BRECH, “ Production management then becomes the process of effectively planning and regulating the operation of that part of an enterprise which is responsible for actual transformation of materials into finished products”. PRODUCTION AND OPERATION MANAGEMENT

4. OPERATION MANAGEMENT

5. NATURE OF PRODUCTION AND OPERATION MANAGEMENT Transformational Process Results into Value A ddition System Itself Exists for Certain O bjective Carried-Out in Part of Organization Interrelationship among the System Stratum Formation Specialization of Function Increase in Entropy Increase in Productivity

6. SCOPE OF PRODUCTION AND OPERATION MANAGEMENT

7. OBJECTIVE OF PRODUCTION AND OPERATION MANAGEMENT ULTIMATE OBJECTIVE Right Quality Right Quantity Right Time Pre-established Cost Objective Of POM Ultimate Objective Intermediate Objective

8. INTERMEDIATE OBJECTIVE Machinery and Equipment Materials Manpower Manufacturing Services

9. PRODUCTIVITY INTRODUCTION Productivity is the output of any production process, per unit of input. To increase productivity means to produce more with less. In factories and corporates, productivity is a measure of the ability to create goods and services from the given amount of human resource, capital, land, knowledge, time or any combination of these above.

10. DEFINITION According to International Labor Organization(ILO) , “ The ratio between the volumes of output is measure by production indices and the corresponding volumes of labor input is measured by the employment indices. The productivity is a measure of how much input is required to achieve a given output. To increase productivity, the ratio of outputs to inputs is made as large as practical.

11. Example In case A, 10 products are produced spending 1000 rupees and in case B, 15 products are produced by spending 2000 rupees. Productivity in case A=10/1000 Productivity in case B=15/2000 In case B, it’s a clear indication that the productivity has reduced.

12. TYPES OF PRODUCTIVITY

13. PARTIAL PRODUCTIVITY The resources of productivity when measured separately are called as Partial Productivity. A measure of partial productivity plays a very important role in improving the productivity. LABOUR PRODUCTIVITY OUTPUT LABOUR INPUT CAPITAL PRODUCTIVITY MATERIAL PRODUCTIVITY OUTPUT OUTPUT CAPITAL INPUT MATERIAL INPUT

14. TOTAL FACTOR PRODUCTIVITY In any production process, many of the resources inputs are available within the organization, while a few others are purchased from outside. TOTAL FACTOR PRODUCTIVITY NET OUTPUT (LABOUR+CAPITAL)INPUTS

15. TOTAL PRODUCTIVITY The method of calculating productivity considering all the resources is called Total Productivity. It is systematic and qualitative to approach to complete the products considering the quality, price and time. Total productivity provides a systematic framework and structure to an organization and increase profitability. TOTAL PRODUCTIVITY TOTAL TANGIBLE OUTPUT TOTAL TANGIBLE INPUT

16. FACTORS AFFECTING PRODUCTIVITY

17. WAYS TO IMPROVE PRODUCTIVITY PRODUCT DEVELOPMENT SPECIALISATION AND STANDARDISATION MARKET, CONSUMER AND PRODUCT RESEARCH VALUE ANALYSIS PROCESS PLANNING AND RESEARCH METHOD STUDY SAFETY OPERATOR TRAINING PRODUCTION PLANNING AND CONTROL MATERIAL CONTROL

18. IMPORTANCE OF PRODUCTIVITY Productiveness increases the overall efficiency of an organization . Increased production due to efficient utilization of organizational resources leads to a lower cost production resulting in better sales and profits . Concept of productivity can be viewed from the following points: To Beat the Competition Guide the Management Indicator of Progress Maximum Utilization of Scarce Resources Key to National Prosperity

19. IMPORTANCE AND PROBLEMS OF OPERATION AND MANAGEMENT IMPORTANCE Consumers Investors Employee Suppliers Community Nation PROBLEMS Location of the Plant Plant Layout Product Designing Inventory and Production Control Quality and Labor Control

20. THANK YOU BY SHREYAS.M