Production and Operations Management - Omoseye Alebiosu - 09-20-2025
Below is a very long, detailed treatment of Production and Operations Management (POM) as per the NOUN MBA syllabus (MBA 801), combined with generally accepted theory and practice. You can use this both for exam preparation and for assignments. If you like, I can also send you a condensed summary or key‐points sheet afterwards.
Production & Operations Management — NOUN MBA 801 Detailed Article
Introduction
Production and Operations Management (POM) is the branch of management which deals with designing, overseeing, controlling, and improving the process of production of goods and services. In the NOUN MBA “MBA 801 POM” syllabus, the emphasis is on understanding both theory (concepts, strategies, models) and quantitative methods, as well as applying these to operations decisions. (Scribd)
Why POM matters:- Operations is a core activity: transforming inputs (labour, materials, capital, technology) into outputs (goods or services). If this transformation is inefficient, the organization suffers in cost, quality, delivery time, competitiveness.
- Every organization—manufacturing or service—has operations. Even in service organizations, production here refers to service production: e.g. hospitals, banks, education.
- POM links closely with strategy: operations decisions are strategic in nature (location, capacity, quality, supply chain). They affect competitive priorities: cost, quality, flexibility, delivery, innovation.
- POM employs quantitative tools (forecasting, linear programming, inventory models, project scheduling) so MBA students must be capable of both conceptual and analytical thinking.
NOUN MBA 801 Syllabus Overview
From the NOUN Course Guide MBA 801, these are the main topics (study units), grouped into four modules: (Scribd)
Module
Units / TopicsModule 1: POM – Introduction & Overview
1. POM — An Introduction 2. Operations Strategy 3. Forecasting in POM 4. Process Management
Module 2: Design of Production Systems
5. Job Design 6. Management of Technology 7. Site Selection
Module 3: Operating Decisions
8. Supply‐Chain Management 9. Inventory Management 10. Aggregate Planning 11. Linear Programming 12. Materials Requirements Planning (MRP) 13. Just-In-Time Systems 14. Project Management
Module 4: Control Decisions
15. Productivity 16. Work Methods 17. Work Measurement 18. Learning Curves 19. Total Quality Management 20. Maintenance and Reliability
Each unit has specific learning objectives. For example, after the full course, a student should be able to:- Describe the nature and scope of POM and how it relates to other parts of the organization. (Scribd)
- Understand how operations contributes to organizational goals.
- Appreciate quality importance.
- Discuss product/service design.
- Explain technology management.
- Formulate linear programming models; understand aggregate planning; apply inventory models; understand MRP and JIT; understand project management techniques. (Scribd)
- Evaluate location alternatives. Forecasting. Work measurement. Learning curves. Etc.
Key Topics, Theories & Tools (Detailed)
Below, each major topic is explored in depth: definitions, purpose, theoretical underpinnings, example tools and applications, and issues/challenges.
Module 1: Introduction & Overview
- POM — An Introduction
- Definition: POM is the process of planning, organising, directing and controlling all the activities which transform inputs into goods & services. It encompasses design, operations, control, improvement.
- Manufacturing vs Service Operations: Service operations often have the characteristics of perishability, customer participation, heterogeneity, intangibility. Manufacturing is more tangible, can hold inventory, more predictable in many cases.
- Operations Strategy: alignment between operations decisions and overall business strategy. Competitive priorities typically include cost, quality, speed/delivery, flexibility, and sometimes innovation. Strategy determines trade‐offs.
- Operations environment & competitive advantage: how external factors (market demand, competition, technology, globalization, supply chain, regulation) shape operational needs.
- Operations Strategy
- Translating corporate/business strategy into operations‐level decisions: capacity, technology, location, layout, supply chain, quality.
- Competitive priorities: e.g. low cost vs differentiation; consistent quality vs speedy service; volume vs flexibility (manufacturing & services).
- Order winners vs qualifiers: what you must have to even be considered (qualifiers), vs what wins you the customer (order winners).
- Strategic decisions about make vs buy; degree of vertical integration; level of automation.
- Forecasting in POM
- Purpose: anticipate demand (sales, service demand) to make decisions about capacity, inventory, workforce, scheduling, purchasing.
- Types: qualitative (Delphi, market research, customer surveys), quantitative (time series, causal models, moving averages, exponential smoothing, trend analysis).
- Measures of forecast accuracy: Mean Absolute Deviation (MAD), Mean Squared Error (MSE), Mean Absolute Percentage Error (MAPE).
- Forecasting horizon issues: short‐term vs long‐term forecasts; aggregation/disaggregation.
- Process Management
- Process types: job processes, batch, assembly line, continuous/flow processes; differentiating by volume, variety, customization, lead times.
- Process design decisions: process mapping, process‐flow analysis, capacity utilization; balancing line, reduction of bottlenecks.
- Process improvements: process reengineering, lean thinking, reducing waste, improving flow.
Module 2: Design of Production Systems
- Job Design
- How work is structured: division of labour, specialization vs job enlargement, job rotation, job enrichment.
- Human factors: ergonomics, fatigue, motivation, quality. Impacts on productivity and quality.
- Management of Technology
- Deciding what technologies to adopt: automation, robotics, digital technologies, ICT, Industry 4.0, AI etc.
- Technology life cycle; technology as enabler of cost reduction, quality improvement, flexibility.
- Challenges: cost, training, obsolescence, maintaining technology.
- Site (Location) Selection
- Importance: location affects costs (transportation, logistics, utilities, labour), access to markets, suppliers, infrastructure, government policy, environment.
- Factors: proximity to markets vs suppliers; labour cost and skills; land; infrastructure; government policy & incentives; environmental issues; community factors.
- Methods for evaluating alternatives: factor rating, centre‐of‐gravity, cost‐volume profit analysis, transportation models.
Module 3: Operating Decisions
- Supply Chain Management (SCM)
- Definition: managing the network of upstream suppliers, internal operations, and downstream distribution to deliver product/service to customers.
- Key issues: coordination, information sharing, lead times, supplier reliability, risk, responsiveness vs efficiency, inventory across the supply chain.
- Concepts: Bullwhip effect, supply chain integration, vendor managed inventory, outsourcing, reverse logistics.
- Inventory Management
- Roles of inventory: buffer against uncertainties in demand/supply; allow economies of scale; support decoupling of processes; permit seasonal/forecasted demand.
- Costs of inventory: holding cost, ordering/setup cost, stockout cost.
- Inventory models: Economic Order Quantity (EOQ), quantity discounts, reorder point, safety stock, ABC classification, periodic vs continuous review systems.
- Aggregate Planning
- Purpose: intermediate‐term planning (e.g. 3‐18 months) to match supply (capacity, workforce, inventory) to forecasted demand in a cost‐effective way.
- Strategies: level strategy, chase strategy, hybrid. Using subcontracting, inventory buildup, workforce changes, overtime.
- Cost trade‐offs: cost of holding inventory vs cost of changing workforce vs cost of overtime/subcontracting.
- Linear Programming
- Used to optimise resource use subject to constraints (e.g. maximize profit, minimize cost) subject to resource capacities, demands.
- Components: decision variables, objective function, constraints.
- Methods: simplex method, duality, sensitivity analysis.
- Materials Requirements Planning (MRP)
- Purpose: for manufacturing environments, to schedule material arrivals so inputs are available for production when needed, avoid shortages, minimize inventory.
- Components: master production schedule (MPS), bill of materials (BOM), inventory status, lead times.
- Issues: requires reliable data; lot sizing; impact of forecast errors.
- Just-In-Time (JIT) Systems
- Philosophy: produce what is needed, when needed, in the amount needed – reduce inventory, reduce waste, lead times.
- Techniques: pull systems, Kanban, small lot sizes, tight supplier relationships.
- Benefits vs Risks: better quality, lower inventory costs, but sensitive to disruptions, requires discipline, stable demand, reliable supply chain.
- Project Management
- Projects are unique, non‐routine operations with defined start and finish.
- Tools: Work Breakdown Structure (WBS), Network planning: PERT (Program Evaluation Review Technique), CPM (Critical Path Method), Gantt Charts.
- Network analysis: identifying critical path, slack, float; resource allocation; crashing; cost/time trade‐offs.
Module 4: Control Decisions
- Productivity
- Definition: ratio of outputs to inputs. Can be labour productivity, machine productivity, total factor productivity.
- Ways to improve: process improvement, technology, training, layout, elimination of waste.
- Work Methods
- Systematic study of ways of doing work. Includes process flow, sequence of operations, motion study, methods improvement.
- Work Measurement
- Determining how long it should take to do a task: time study, work sampling, predetermined motion time systems, standard times.
- Used for capacity planning, job design, incentive systems.
- Learning Curves
- Concept: as a task is repeated, the time required per unit tends to decrease at a predictable rate (learning effect).
- Uses: forecasting labour/time costs, setting performance benchmarks.
- Total Quality Management (TQM)
- Philosophy of continuous improvement; everyone in organization participates in improving processes, products, and services.
- Tools: Statistical Process Control (SPC), control charts, cause & effect diagrams, Pareto analysis, Six Sigma, benchmarking, quality circles.
- Dimensions of quality: performance, reliability, durability, features, conformance, serviceability, aesthetics.
- Maintenance and Reliability
- Maintenance types: preventive, predictive, corrective.
- Reliability: probability a system or component performs its required functions under stated conditions for a given period.
- Measures: MTBF (Mean Time Between Failures), MTTR (Mean Time to Repair), availability.
- Importance: minimizing downtime, maintaining consistent quality, reducing costs of breakdowns.
Integration: How the Topics Fit Together
Understanding POM is not just about knowing isolated topics; it's about integration and trade‐offs.- Forecasting feeds into capacity planning, aggregate planning, inventory and MRP decisions.
- Location and layout decisions made early have long‐term impacts on cost, flexibility, quality.
- Decisions to adopt technology or automation affect job design, work methods, measurement, reliability, and cost structures.
- Quality management (TQM, SPC etc.) requires alignment with process design, supplier management, inventory (raw material quality), maintenance.
- Lean/JIT philosophy overlaps with SCM, inventory, process flow, technology and quality.
- Control decisions (measurement, quality, reliability) help ensure that plans (aggregate, scheduling etc.) are executed well.
Key Quantitative Tools & Techniques
Many of the units require numerical or mathematical work. Here are some important tools, with explanation and how they are used.
Tool / Technique
Use in POM
Key Concepts / StepsLinear Programming
To solve allocation problems: e.g. maximize profit, minimize cost, subject to resource constraints (labour, machine hours, materials etc.). Also for transportation/allocation problems.
Identification of decision variables, formulating objective function, constraints; solving with simplex; interpreting dual; sensitivity analysis.
Forecasting Models
Predicting demand helps in planning production, inventory, workforce.
Time series: moving average, weighted moving average, exponential smoothing; trend and seasonality; error measures.
Inventory Models
Determining when and how much inventory to order/produce.
EOQ formula, reorder point including safety stock, ABC classification, periodic vs continuous review, quantity discounts, lot‐sizing.
Aggregate Planning Models
To decide on production rates, workforce levels, inventory over intermediate term.
Options like level strategy, chase strategy; linear programming or heuristic methods; cost comparison.
Project Scheduling
Managing complex projects (construction, development, engineering) with multiple activities, dependencies.
Drawing network diagrams; computing earliest/latest start and finish; slack; critical path; resource leveling; crashing.
Work Measurement & Learning Curves
Estimating labour/machine time; planning capacity; setting standards.
Time study, work sampling; plotting learning curve, estimating cumulative average time or unit time as volume increases.
Quality Control Tools
Monitoring process performance, ensuring consistent output.
Control charts (for variables and attributes), capability analysis, acceptance sampling, Pareto charts, fishbone diagrams.
Practical Applications, Challenges & Case Examples
Applications- Manufacturing: automobile plants, textile mills, electronics factories — decisions on layout, automation, inventory to reduce cost and improve quality.
- Service operations: banks, hospitals, airlines — service design, capacity planning (e.g. number of beds/doctors), scheduling, reliability, maintaining service quality.
- Supply chain networks: deciding supplier contracts, warehousing, transportation, distribution strategies.
- Project‐based industries: construction, IT projects — scheduling, resource allocation, managing time/cost trade‐offs.
Challenges- Uncertainty and variability: in demand, supply lead times, process times, quality issues.
- Data accuracy: MRP, forecasting, lot sizes require accurate input data; poor data leads to bad decisions.
- Integration across functions: operations must align with marketing, finance, HR. For example, marketing may push for delivery speed; operations must plan capacity etc.
- Balancing trade‐offs: cost vs quality; flexibility vs efficiency; inventory vs responsiveness.
- Technological changes, disruptions: e.g. supply chain shocks, pandemics, labour issues.
Case Illustrations- A large goods manufacturer choosing plant location: using factor rating combining costs (labour, transport), market access, infrastructure.
- An electronics assembly plant implementing JIT and Kanban to reduce WIP (work‐in‐progress) and inventory cost.
- A hospital using forecasting and process design to reduce waiting times for patients, improving service quality.
- Use of SPC (control charts) in a bottling plant to monitor consistency of fill volumes, detect early drift.
Suggested Readings and Texts
To better understand the material, NOUN suggests various textbooks and study materials. Among widely used ones:- Stevenson, W. J. — Operations Management (other editions)
- Chase, R. B., Aquilano, N. J., Jacobs, F. R. — Production and Operations Management: Manufacturing & Services
- Krajewski, Ritzman, Malhotra — Operations Management: Process and Value Chains
- Russell & Taylor — Operations Management: Quality and Competitiveness in a Global Environment
Also reading journals, case studies, and NOUN’s own course guide/study units is essential. (Scribd)
NOUN Specific Guidance: Assignments & Examination
From the NOUN syllabus: (Scribd)- The course is 2 credit units, consists of 20 study units.
- Assessment is 50% from Tutor-Marked Assignments (TMAs) and 50% from final examination. Students are expected to submit a number of TMAs (eight out of many) for grading. (Scribd)
- Final exam is 3 hours long. Questions will typically reflect self‐test, practice exercises, TMA types. So practising numerical problems (inventory, LP, project scheduling etc.) is vital.
Sample Outline of a Full Length Answer (essay type) for an Exam Question
Suppose the exam question is:
Quote:“Discuss how operations strategy contributes to competitive advantage. Illustrate with examples. What trade‐offs do operations managers face when designing a production system?”
A strong answer would include:
- Definition of operations strategy; link to competitive priorities (cost, quality, speed, flexibility etc.).
- How operations strategy converts business strategy into decisions: capacity, technology, location, layout, supply chain.
- Real/ hypothetical examples (e.g. Amazon’s operations strategy focuses on speed and delivery; Toyota’s strategy emphasizes quality and lean production).
- Discussion of trade‐offs: e.g. high quality vs low cost; flexibility vs efficiency; investing in automation vs labour costs; high inventory for responsiveness vs cost of carrying inventory.
- Conclusion: operations strategy must be aligned with market needs and other functional areas; trade‐offs must be explicitly recognized; continuous improvement is important.
Make sure to cite NOUN topics: e.g. operations strategy, process design, layout, quality etc.
Tips for Studying & Mastery- Master the quantitative tools: be able to formulate, solve, interpret linear programming, project networks, inventory (EOQ etc.), forecasting.
- Understand definitions and relationships: e.g. difference between process types; between JIT and traditional inventory systems; between job, batch, line, continuous flow.
- Use diagrams and flow charts: process flows; network diagrams; control charts; layout sketches. Visuals help for clarity.
- Case studies are useful: try to find examples from Nigerian firms or industries you’re familiar with to illustrate location decision, quality problems, etc.
- Practice TMAs (assignments) seriously—they often build up to exam style.
- Keep abreast of current practice: e.g. lean, Industry 4.0, supply chain risk, digital transformation—these may inform discussion even though not deeply in syllabus.
Conclusion
Production & Operations Management is a central discipline in the NOUN MBA programme. It combines strategic, organizational, and quantitative tools to help firms produce goods and services efficiently, with high quality, at low cost, on time, and with flexibility. The NOUN syllabus (MBA 801) covers the full range: strategy, design, operating decisions, and control decisions.
If you work through each study unit, deeply understand both the concepts and tools, and practise numerical problems, you’ll be well equipped to excel in the assignments and final examinations
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