Operations Management
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Operations Management



The direction and control of the processes that transform inputs into products and services

The direction and control of the processes that transform inputs into products and services



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Operations Management Operations Management Presentation Transcript

  • Operations Management The direction and control of the processes that transform inputs into products and services
  • Process
    • Any activity or group of activities that takes one or more input(s), transforms and adds value to them, and provides one or more output(s).
    • -- input(s)
    • -- processing function
    • -- value addition
    • -- output(s)
  • Process Function
    • i. Objective function
    • ii. Decision variables
    • iii. Constraints
  • Types of customers
    • External Customer(s)
    • A customer who is either an end user or an intermediary interested in product or service offered by some one
    • Internal Customer(s)
    • An individual or a group of employees who rely on inputs from an earlier process in order to perform process(s) in the next phase.
    • Initiation of a process inside another process is known as nesting processe(s)
    • Sub-processes are back looped to main process.
    • Independent and dependent processes.
    • Each part of the orgn. Not just the operations, must design and operate processes and deal with quality, technology and staffing issues ( a burning issue of the day)
    • ii. Each part of the orgn. has its own identity and yet is connected with operation(s)
  • Short term vs long term decision(s) (depending upon the scope and contents)
    • Short term:- (Tactical)
    • structured
    • Routine
    • repetitive
    • Focused on department, teams and tasks.
    • Long term:- (Strategic)
    • less structured
  • Types of decisions:-
    • Strategic choices
    • Processes
    • Quality
    • Capacity, Location and Layout
    • Operating Decisions
    • Strategic decision:-
    • Affect company’s future direction.
    • OM helps to determine the Co’s global strategies and competitive priorities.
    • Propose the best design processes with its competitive priorities.
    • Process:-
    • Fundamental to all activities.
    • How to manage process one time project(s).
    • Technological changes to incorporate.
    • Quality:-
    • It underline all processes and work activities.
    • OMs helps to establish quality objectives and seek for improvements.
    • TQM
    • Capacity, Location & Layout:-
    • Need long terms commitments.
    • OM provides capacity, location and global operation(s).
    • Operating Decision(s):-
    • Deals with operating the facility after it has been built.
    • Internal & External Supply chain
    • Control output and staffing level/overtimes.
    • Synchronization process (suppliers and buyers)
    • Just in time techniques which leads to customer satisfaction.
    • Physical, durable product.
    • Output that can be inventoried.
    • Low customer concept
    • Long response time
    • Regional, national or international markets
    • Large facilities
    • Capital intensive
    • Quality easily measured
    • Intangible
    • Cant be inventoried.
    • High customer contact
    • Short response time
    • Local markets
    • Small facilities
    • Labor intensive
    • Quality not easily measured
    • In some sectors like restaurants customer expects good food and good service. (Package of service and product)
    • Inventory management system … for manufacturer both FGI and RMI are must while for service provider RMI is maintained.
    • Both sectors have inside and outside customers.
  • Productivity
    • It is the ratio of value of output(s) (goods or services) produced to the values of input resources ( All inputs)
  • Smart Operations Management
    • Operations Management functions:
    • Enterprise-Control System Integration,
    • coordinate the resources - people, equipment, and materials -needed through all process steps to produce the end product . 
    • It addresses industry standards and uses leading technology advancements to provide benefits which directly reduce time and cost during the documentation, implementation, testing, and verification phases of a project–delivering added value.
    • Integrated Information :-
    • Integrating plant-wide information supports collaboration and better decisions.
    • Operations Optimization :-
    • Coordinate manual and automated operational activities to improve efficiency.
    • Quality & Compliance :-
    • Effectively managing documentation reduces errors and supports regulatory compliance.
    • Resource Management :-
    • Ensure personnel have resources and training to effectively perform their jobs.