Operations management iqra university


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Operations management iqra university

  1. 1.
  2. 2. Operations ManagementIn Supply Chain Management<br />Presented By :<br />Skierians<br />
  3. 3. End of this presentation we will come to know about :<br />What operation management is?<br />Business Functions . Important business functions for OM.<br />Location of Operations In Organizational Chart.<br />Difference B/w manufacturers and service organization.<br />Classification of OM<br />Transformation process.<br />Relation of SCM And OM<br />Examples For SCM And OM<br />Conclusion<br />References<br />
  4. 4. Operations Management <br />
  5. 5. what is operation Management?<br />The business function responsible for planning, coordinating, and controlling the resources needed to produce a company’s products and services.<br />
  6. 6. what is operation Management? (cont:)<br />It is a management function<br />Organization’s core function<br />Every organization has OM function<br />Service or Manufacturing<br />For profit or Not for profit<br />
  7. 7. Business functions<br />Marketing<br />Sales<br />Target market<br />Product line<br />Finance and control<br />R&D<br />Labor<br />Purchasing<br />Production<br />Distribution<br />
  8. 8. Typical Organization Chart<br />
  9. 9. Differences between Manufacturers and Service Organizations<br />Manufacturers:<br /><ul><li>Tangible product
  10. 10. Product can be inventoried
  11. 11. Low customer contact
  12. 12. Longer response time
  13. 13. Capital intensive</li></ul>Services:<br />Intangible product<br />Product cannot be inventoried<br />High customer contact<br />Short response time<br />Labor intensive<br />
  14. 14. Similarities-Service/Manufacturers<br />All use technology <br />Both have quality, productivity, & response issues<br />All must forecast demand<br />Each will have capacity, layout, and location issues<br />All have customers, suppliers, scheduling and staffing issues<br />
  15. 15. Classifications of Operation Management <br />As we know that Operation management deals with two things that is Product and services so to work with these two individually there is a separate system these are:<br />Productive System<br />Service System<br />
  16. 16. Productive System<br /> If we are talking about the goods or products then we have to discuss about productive system.<br /> And these are types of productive system.<br />Process Focused System<br />Product Focused System<br />Production to stock/order<br />
  17. 17. Process Focused System<br />
  18. 18. Product Focused System<br />
  19. 19. Production to stock/order<br />
  20. 20. Service System<br />On contrast when we talk about services there is service system and there kinds which are:<br />Stagnant personal services<br />Substitutable personal Services<br />Progressive services<br />Explosive services <br />
  21. 21. Stagnant personal services<br />
  22. 22. Substitutable personal Services<br />
  23. 23. Progressive services<br />
  24. 24. Explosive services <br />
  25. 25. Transformation Process<br />
  26. 26. OM’s Transformation Role<br />To add value<br />Increase product value at each stage<br />Value added is the net increase between output product value and input material value<br />Provide an efficient transformation<br />Efficiency – perform activities well at lowest possible cost<br />
  27. 27. What is the connection b/w scm & om<br />Go to Transformation process slide <br />
  28. 28. Cont:<br />Yes each of these elements in transformation process is connected with SCM .<br />HOW?<br />This can be explained with decision making in operation management and some of the calculations which will make all of us to understand that how SCM is Connected with OM.<br />
  29. 29. Decisions<br />All organizations are based on decisions<br />Decisions follow a similar path<br />First decisions very broad – Strategic decisions<br />Strategic Decisions – set the direction for the entire company; they are broad in scope and long-term in nature<br />Following decisions focus on specifics - Tactical decision<br />
  30. 30. Cont:<br />Tactical decisions focus on<br />Specific day-to-day issues<br />Resource needs, schedules, & quantities to produce<br />Tactical decisions are very frequent<br />Strategic decisions less frequent<br />Tactical decisions must align with strategic decisions<br />
  31. 31. Example of Raw material calculation for cookies manufacturer<br />
  32. 32. Calculation<br />Formula:<br />Forcasted Demand + ending stock percent of Amount <br />Example :<br />If the forecast demand per month is 50,000 units of cookies.<br /> If the amount of stock at the end of the month is 5% of the amount.<br />
  33. 33. The materials required for the month:<br />
  34. 34. Cost per unit calculation <br />
  35. 35. How production is Going on?<br />The productivity index (P.I) can be more or less than 1. <br /> P.I > 1 = business running efficiently<br /> P.I < 1 = business running inefficiently<br />
  36. 36. This All Calculations Decisions shows that SCM is playing a vital roll in OM because it is being used in each and every portion of Operation management<br />
  37. 37. Further Explanation<br />
  38. 38. Conclusion<br />As we know that SCM works with the whole Organization and if we say that Operations management is one which works in between the whole organization that will not wrong because ,<br /> All business functions need information from OM in order to perform their tasks<br />
  39. 39. References :<br />R. Dan Reid & Nada R. Sanders 3rd Edition © Wiley <br />Elwood S. Buffa & Rakesh K. Sarin 3rd Edition © Wiley<br />Internet<br />Sir Abdullah Alamin<br />
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