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Production and Operations

Management (POM):

An Introduction

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Introduction

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Production and operations management (POM) is the

management of an organizations production system.A production system takes inputs and converts them

into outputs.

The conversion process is the predominant

(important,influent)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

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POM

Marketing

MISEngineering

HRM

QA

Accounting

SalesFinance

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Entry-Level Jobs in POM

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Purchasing planner/buyer

Production (or operations) supervisor

Production (or operations) scheduler/controller

Production (or operations) analyst Inventory analyst

Quality specialist

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Different Ways to Study POM

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Production as a System

Production as an Organization Function

Decision Making in POM

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Production as a System

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Inputs Outputs

Conversion

Subsystem

Production System

Control

Subsystem

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Inputs of a Production System

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External Legal, Economic, Social, Technological

Market

Competition, Customer Desires, Product Info.

Primary Resources

Materials, Personnel, Capital, Utilities

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Conversion Subsystem

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Physical (Manufacturing)

Locational Services (Transportation)

Exchange Services (Retailing)

Storage Services (Warehousing)

Other Private Services (Insurance)

Government Services ( State, Local)

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Production as an Organization

Function

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U.S. companies cannot compete using marketing,finance, accounting, and engineering alone.

We focus on POM as we think of global

competitiveness, because that is where the vast

majority of a firms workers, capital assets, andexpenses reside.

To succeed, a firm must have a strong operations

function teaming with the other organization functions.

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Decision Making in POM

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Strategic Decisions

Operating Decisions

Control Decisions

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Strategic Decisions

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These decisions are of strategic importance andhave long-term significance for the organization.

Examples include deciding:

the design for a new products production process

where to locate a new factory

whether to launch a new-product development plan

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Control Decisions

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These decisions concern the day-to-day activitiesof workers, quality of products and services,

production and overhead costs(ongoing expense

in operating business), and machine

maintenance.

Examples include deciding:

labor cost standards for a new product

frequency of preventive maintenance

new quality control acceptance criteria

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