Capacity Planning – Meaning, Classification and its Goals
February 12, 2025
In the 21st century, marketplaces have become more competitive. This is because the availability of information has become the norm. Consumers can now choose amongst competing products and make an informed choice. As a result, getting customers has become increasingly difficult. This has given rise to price wars on several occasions. Since companies find it […]
Converting Data to Information: The goal of a six sigma project is not to produce an overwhelming amount of data that ends up intimidating the concerned people. The goal is to find out as much data as possible and convert it into meaningful information that can be used by the concerned personnel to make meaningful […]
The rapid advancements in technology have changed the fundamentals of many industries. The increase in connectivity, as well as digitalization, is also affecting the automobile industry. Just like other industries, car customers also want to be spoiled for choice. This is the reason that the industry is being forced to rethink its traditional business models. […]
China has surprised the global gaming community by starting a full-fledged crackdown on the gaming industry. The Chinese government has not been the first one to try and restrict online gaming. For instance, in 2011, the government of Korea created a regulation which prohibited minors under the age of 16 from playing online games between […]
All products and services fail! Even the processes which have already achieved six sigma precision fail. However considering the possible sources of failures, the effects that they are likely to have and how prioritizing failure modes makes the product, service, process plan more robust. Considering possible failure modes and integrating them into the design goes […]
The very essence of any business is to cater needs of customer by providing services and goods, and in process create value for customers and solve their problems. Production and operations management talks about applying business organization and management concepts in creation of goods and services.
Production is a scientific process which involves transformation of raw material (input) into desired product or service (output) by adding economic value. Production can broadly categorize into following based on technique:
Production through separation: It involves desired output is achieved through separation or extraction from raw materials. A classic example of separation or extraction is Oil into various fuel products.
Production by modification or improvement: It involves change in chemical and mechanical parameters of the raw material without altering physical attributes of the raw material. Annealing process (heating at high temperatures and then cooling), is example of production by modification or improvement.
Production by assembly: Car production and computer are example of production by assembly.
Successful organizations have well defined and efficient line function and support function. Production comes under the category of line function which directly affects customer experience and there by future of organization itself.
Aim of production function is to add value to product or service which will create a strong and long lasting customer relationship or association. And this can be achieved by healthy and productive association between Marketing and Production people. Marketing function people are frontline representative of the company and provide insights to real product needs of customers.
An effective planning and control on production parameters to achieve or create value for customers is called production management.
As to deliver value for customers in products and services, it is essential for the company to do the following:
Operations management captures above identified 3 points.
A high level comparison which distinct production and operations management can be done on following characteristics:
Production management and operations management both are very essential in meeting objective of an organization.
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