Production and Operation Management
Cheng Guoping

Chapter 1 Introduction
1. Production System
2. Production and operations in the organization
3. Function and jobs of POM
4. Decision Making in POM
5. The emergence of production and operation management

1. Production System
Production and operation management (POM) is the management of an organization's production system, which converts input into the organization 's products and services.
1.1 Production system model
Inputs conversions subsystem output

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Figure 1 A production System Model
2. Common ground and differences between manufacturing and services

1.2.1 Common Ground: • Entail customer satisfaction as a key measure of effectiveness • Require demand forecasting • Require design of both the product and the process • Involve purchase of materials, supplies, and services • Require equipment, tools, buildings, and skills, etc.

1.2.2 Differences: • Customer contact
Service involves a much higher degree of customer contact than manufacturing does.
The performance of a service typically occurs at the point of consumption.
Manufacturing allows a separation between production and consumption. • Uniformity of input
Service operations are subject to more variability of inputs than manufacturing operations are. Each patient, each lawn, each TV presents a specific problem. • Labor content of jobs
Manufacturing ---capital -intensive
Service ---a higher labor content. • Uniformity of output
Products--standardization, low variability, smooth, efficient
Service--customization, variable, slow. • Store
Goods may be stored
Services are consumed during delivery, cannot be stored. • Measurement of productivity
In manufacturing, measurement is more straightforward
In service operation, measurement is more difficult