ORGANIZATION OF PRODUCTION - BMEGT20MN02

The subject introduces students to the methods of efficient operation of production and service systems and the philosophies and methodologies related to the organizational function of managing core processes. It presents the pull implementation of material flow systems along with learning about the philosophy and tools of lean management. The effects of the random nature of value-creating processes are illustrated by the managerial application of queuing theory dealing with temporary capacity problems, customer waiting, and their investigation in service systems. In the organizational function of management, the questions of task management and follow-up, which are receiving a lot of attention these days, are given by examining the problems and solution possibilities of task and process scheduling. The goal is to understand the advantages and disadvantages of the type of production and service system, depending on the nature of the product or service, the market environment, and the economic conditions.

1. Knows the basic definitions and concepts of operations management.
2. Knows abstract mathematical modelling related to examined problems.
3. Understands of the relation between general corporate operations management.
4. Overviews the processes of the related fields and the methodology available to solve the related problems.
5. Has confident methodological knowledge to solve problems arising in various areas of production management, understands the application possibilities of theoretical models and the potential opportunities inherent in quantitative analyses.

1. Capability of integrating the theoretical background and the practical tool of operation processes, and communication skill to explain the results for all the participants of implementation coming from different professional fields.
2. Capability of the application of basic terminologies of operations and management, and a systematic and rigorous application of the technical language of the related professions.
3. An ablility to interpret, evaluate and use data related to production processes when performing planning and analysis calculations

1. An understanding and acceptance, that quantitative methods can support operation planning and improvement decisions.
2. An open-minded approach of all kinds of innovations of the related area, and a critical approach when implementation must be performed.
3. An ability to present and defend propositions, and a critical and integrative approach of comments from other professional areas.
4. An overall system oriented approach in the area of operations management.

1. An ability to solve and manage complex problems in a work organization, in accordance with the current standards and requirements.
2. An ability to perform task and report in the corporate hierarchy.
3. Independent, supportive and open-minded approach towards all kinds of inter-organizational and environmental cooperation.

Lectures, analysis of theoretical models, numerical exercises, analysis of case studies individually or in teams.

• Kalló N., Koltai T.: Termelésszervezés, oktatási segédlet
• Kalló, N., Koltai T.: Production and Operations Management, lecture notes
• Koltai T., A termelésmenedzsment alapjai II. Műegyetemi Kiadó, Budapest, 2003.
• Waters, D.: Operations Management: Producing Goods and Services, Harlow: Addison Wesley, 2003.
• Nahmias, S., Olsen, T.L.: Production and Operations Analysis. Irwin, 2015.

Assessment of the learning outcomes described under point 2.2. is based on three midterms.

The performance assessment in the subject is evaluated along three midterms. At the end of each of the 3 topics covered by the subject, a midterm (partial performance evaluation) will be written, in which the knowledge of the theoretical material of the given topic and the practical application will be checked. In order to successfully complete the subject, a result of at least 40% must be achieved on each midterm, and a total of 50% of the points that can be obtained during the semester is required.

• 1st midterm: 35
• 2nd midterm: 35
• 3rd midterm: 30
• Total: 100

Based on the Code of Studies

The subject introduces students to the organizational challenges of production and service systems and their tools. During the lectures and practices, special emphasis is placed on getting to know the philosophy and tools of lean management; examination of the characteristics, process organization, and capacity problems of service systems; the challenges of monitoring and scheduling problems of processes and tasks.