Monday, November 26, 2007

Decision making in production

Operations managers are required to make a series of
decisions in the production function They plan, organize, staff, direct and
control all the activities in the process of converting all the inputs into
finished products. At each level, operating managers are expected to make
decisions and implement them too.

The decisions made by operations managers about the
activities of production systems tend to fall into three general categories
viz.,

  • Strategic decisions relating to products ,processes and manufacturing facilities. These decisions are major ones, having strategic importance and long-term significance for the organization.
  • Operating decisions relating to planning production to meet demand. These decisions are necessary in order to ensure that ,the ongoing production of goods and services meets the market demand and provides reasonable profits for the organization.
  • Control decisions relating to planning and controlling operations. These decisions concern the day to day activities of workers ,quality of products and services ,production and overhead costs and maintenance of machines.

The table given below shows the type of decisions and the
areas of their involvement-




















Type of decisions




Area of Involvement




Nature of Activities



I. Strategic Decisions


(Planning
Products,


Processes and



Facilities)



1.Production Processes


2.Production Technology



3.Facility Layout



4.Allocating Resources


to Strategic
Alternatives


5.Long Range Capacity


Planning and
Facility


Location




Developing long range production plans


Including process design


Selecting and managing production


Technology.


Planning the arrangement of facilities



Planning for the optimal distribution of


Scare resources among product lines or


Business units.


Answering the hoe much and where questions about long
range production capacity..



II. Operating Decisions


(Planning
Production


to Meet
Demand)




1.Production
Planning Systems


2.Independent
Demand


Inventory
Demand


3.Resource
requirements


Planning
Systems



4.Shop Floor Planning


and Control



5.Materials Management




Aggregate planning and master


Production scheduling


Planning and controlling finished goods


Inventories.


Planning materials and capacity


Requirements.



Short range decisions about what to produce and when to
produce at each


Work centre.


Managing all facts of materials system.




III Control Decisions


(Planning and


Controlling
Operations)



1.Productivity and



Employees


2.Total Quality Control



3.Project Planning and


Control
Techniques



4.Maintenance Management


and Reliability



Planning for the effective and efficient


Use of human resources in operations.


Planning and controlling the quality of products and services.


Planning and controlling projects.

Planning for maintaining the machines


and facilities of production.


The above decision making chart elaborates various
considerations how the decision(s) are made for Production and accordingly the Manager proceeds for Planning as next stage.

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