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o Expansion o Modernisation o Relacement b. Tactical decisions – taken at middle level management o Establishing parameters for measuring operational efficiency and productivity o Making plan to imporve utilisation of existing resources o Acquisition of resources o Preparaton equipment and manpower planning o Preparation of work plans for process-redesign, methods improvement and jon design o Preparation for skill development plans o Planning for medernisation of teh facilities and automation o Make or buy decision o New products establishment c. Operational decisions – taken at bottom level management o Comparison of actual performance to production schedule o Job loading, scheduling and sequencing o Highlighting the bottleneck areas o Quality specifications and inspection and test details o Effective and efficient utilisation of faciities and resources OPERATION STRATEGY IN POM

Continous production

Production volume

Mass production

Flexibility

Capacity

Batch production Job production

Output / Product Variety --->

RECENT TRENDS IN PRODUCTION AND OPERATIONS MANAGEMENT Long Time Horizon Product Design Quality Policy Technology to be employed  Process Selection   

Intermediate Time Horizon  Product variations  Methods selections  Quality implementation, inspection and control  Machinery and Plant

Short Time Horizon Production scheduling Materials allocation and handling  Scheduling of manpower  Breakdown maintenance  

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unit 1  

production