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 | |
I. Strategic Decisions (Planning Processes and Facilities) | 1.Production Processes 2.Production Technology 3.Facility Layout 4.Allocating Resources to Strategic 5.Long Range Capacity Planning and 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 |
II. Operating Decisions (Planning to Meet | 1.Production 2.Independent Inventory 3.Resource Planning 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 Work centre. Managing all facts of materials system. |
III Control Decisions (Planning and Controlling | 1.Productivity and Employees 2.Total Quality Control
3.Project Planning and Control 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.
Labels: Marketing
posted by Paresh @ 10:35 PM
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