Decision making in production

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.

  • Prabhatmaurya21

    i m satisfy with ur answer….