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Operations Management


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PPT. giving breif idea of Operations Managment and its importance

PPT. giving breif idea of Operations Managment and its importance

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  • 1. Aakash Presents
  • 2.  
    • Managing various operations involved in production of goods and services
    • For the production of goods and services there are various operations that are associated with them
    • Goods- IMC, Manufacturing management, PPC, QC/QA, Dispatching, Distribution etc
    • Services- Marketing, DBMS, IS, HRM etc
  • 5. OM Vs Productions management
    • Production management is the part of OM
    • Managing the operations associated with the actual manufacturing or only production process is called productions management
    • While overall management of operations taking place in a manufacturing or service industry is called OM
  • 6. Need of OM
    • Main focus of all industries is to achieve maximum possible efficiency and effectiveness in the processes taking place in the organization
    • Through OM, we try to conduct all organizational operations in most efficient and effective way
    • OM assures efficient and effective utilization of resources and it assures the proper distribution of goods & services to the customers.
  • 7. OM : Absent
    • PEPSICO , channo, Sangrur
    • Concentrate of PEPSI + FRITO LAY
    • Fully automated and well managed plant
    • “ Department of operations management”- operations mangers
    • DOM, regulates all production and distribution related activities
    • Failure of OM
  • 8. Major functions/areas of OM
    • Purchase management
    • Management control and coordinating function
    • Productions management- goods & services
    • Quality management
    • Inventory management
    • Logistics & transport management
    • Facilities management
    • Configuration management-keeping the systems of organization up-to-date
    • Dispatch & distribution
    • All operations functions work in coordinated way for establishing an efficient OM in the organization.
  • 9. Birth of OM
    • 18 th century- introduction of factory system to the world, mass production concept came into existence
    • 19 th century-Management thinkers- scientific mode of management, moving assembly lines, sophisticated the operations in organizations
    • HRM, Marketing concepts introduced
    • To resolve sophisticated operations, operations managers started using mathematical models and scientific tools to manage operations.
    • Forecasting, Gantt charts, CPM (to connect different operations), linear programming
    • Finally with the incorporation of IT I organizations, Modern OM came into existence.
  • 10. Buffering of operations
    • Do business in Turbulent market conditions
    • Ex- food processing unit, cant predict the inflow of raw food material.
    • To minimize these market uncertainties- operations managers do buffering of operations.
    • Two type of buffering methods- physical buffering & organizational buffering
  • 11. Physical Buffering
    • Operations mangers maintain the stored resources (inventories of raw materials) at a level more then optimum level of storage.
    • So that if any disruption in the supply takes place, then operations can be protected by utilizing present inventory only- Buffer stock/safety stock.
  • 12. Organizational Buffering
    • In this mode of buffering we reduce and divide the responsibilities of operations functions.
    • Recruitment processes- HRM
    • Process technology- Technology department
    • So, by reducing and dividing the responsibilities of operations management, organizations try to protect the operations functions.
  • 13. Companies
    • Manufacturing companies- Goods
    • Ex- Agriculture, mining, fishing etc.
    • Service companies- Services
    • Ex- transportation, consultancy, finance etc
    • Mixed companies- Goods as well as services
  • 14. Goods
    • Any tangible, physical, touchable entity
    • Consumer goods- those goods that satisfy needs or wants of customers, manufactured by manufacturing companies
    • Durable goods- long span of life, goods that doesn't get disposed quickly. Ex- LCD.
    • Perishable goods- less span of life, goods that get consumed very rapidly. Ex- an ice-cream
  • 15.
    • Producer goods- that are physically required to produce consumer goods i.e. raw materials-used by manufacturing companies as inputs
    • Capital goods- those goods which are required for converting producer’s goods into consumer’s goods ex- machinery
  • 16. Services
    • Intangible, non-physical in nature
    • When you pay somebody to do something for you, you are buying a service
    • Service businesses- service companies that produce services by directly interacting with the customers, ex- airlines, hospitals etc. – Facility based services and field based services
    • Customer support services- provided by both manufacturing as well as service companies
    • Internal services- provided to internal customers of organization (IS)
  • 17. Similarities
    • Both of them provide value to customers
    • Both get produced by processes involving people & technology.
    • OM is required in both
    • Both can be Standardized
  • 18. Dissimilarities
    • Goods are tangible while services are intangible
    • The demand for services is more difficult to predict than the demand for goods.
    • Services cannot be stored as physical inventory
    • Patents do not protect services
  • 19. Toyota
    • MNC, headquartered in Japan
    • Founded by Kiichiro Toyoda in 1937
    • As a manufacturing company, understands the need of efficient operations management in the company.
    • Dedicates its major portion of finance and Human power to well manage the operations in the organization
  • 20. Just in Time
    • Through JIT strategy, Toyota tries to minimize the efforts required in IMC function of OM
    • Operations managers at Toyota use various forecasting methods, mathematical models and analytical tools to get exact predictions about market demand.
    • On the basis of these analysis reports they plan the traffic of inventory in production plant
  • 21.
    • Each day material coming in plant gets consumed for production
    • And finished goods get distributed to outlets on same day
    • So there is no accumulation of inventory at all
    • This is called JIT strategy, that reduces inventory costs to a great extent
  • 22. Flexible operations Technique
    • Toyota believes in technology
    • Production lines of Toyota are highly flexible
    • Toyota produces different types and different models of vehicles
    • No two vehicles can have same technical specifications
    • So for a shift in production, different production and assembly lines need to be settled according to new product in demand
  • 23.
    • But in Toyota their production and assembly lines are extremely flexible.
    • So whenevr, there is a need of shift in production, production and assembly lines require only a few changes in linear programming to restart the production
    • For example- CNC lathe instead of gear cutting machines
    • To avoid market turbulence Toyota follows organizational buffering strategy.
  • 24.
    • Above given were only a few examples of operations management in Toyota.
    • By efficient operations magnet, Toyota became the world leader in automobile industry
    • So, operations management is quite necessary tool of effective management in organizations
  • 25. THANK YOU