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
decisions relating to products ,processes and manufacturing facilities. These decisions are major ones, having strategic importance and long-term significance for the organization.
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
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
5.Long Range Capacity
Developing long range production plans
Including process design
Selecting and managing production
Planning the arrangement of facilities
Planning for the optimal distribution of
Scare resources among product lines or
Answering the hoe much and where questions about long
II. Operating Decisions
4.Shop Floor Planning
Aggregate planning and master
Planning and controlling finished goods
Planning materials and capacity
Short range decisions about what to produce and when to
Managing all facts of materials system.
III Control Decisions
2.Total Quality Control
3.Project Planning and
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.