Operations Management The direction and control of the processes that transform inputs into products and services
Process <ul><li>Any activity or group of activities that takes one or more input(s), transforms and adds value to them, an...
Process Function <ul><li>i. Objective function </li></ul><ul><li>ii. Decision variables  </li></ul><ul><li>iii. Constraint...
Types of customers <ul><li>External Customer(s) </li></ul><ul><li>A customer who is either an end user or an intermediary ...
NESTED PROCESS <ul><li>Initiation of a process inside another process is known as nesting processe(s) </li></ul><ul><li>Su...
OPM PRINCIPLES <ul><li>Each part of the orgn. Not just the operations, must design and operate processes and deal with qua...
Short term vs long term decision(s) (depending upon the scope and contents)  <ul><li>Short term:- (Tactical) </li></ul><ul...
Types of decisions:- <ul><li>Strategic choices </li></ul><ul><li>Processes </li></ul><ul><li>Quality </li></ul><ul><li>Cap...
TYPES OF DECISIONS <ul><li>Strategic decision:- </li></ul><ul><li>Affect company’s future direction. </li></ul><ul><li>OM ...
<ul><li>Quality:- </li></ul><ul><li>It underline all processes and work activities. </li></ul><ul><li>OMs helps to establi...
<ul><li>Operating Decision(s):- </li></ul><ul><li>Deals with operating the facility after it has been built. </li></ul><ul...
MANUFECTURING VS SERVICES  <ul><li>PRODUCT </li></ul><ul><li>Physical, durable product. </li></ul><ul><li>Output that can ...
SIMILARTIES <ul><li>In some sectors like restaurants customer expects good food and good service. (Package of service and ...
Productivity <ul><li>It is the ratio of value of output(s) (goods or services) produced to the values of input resources (...
Smart Operations Management <ul><li>   </li></ul><ul><li>Operations Management functions: </li></ul><ul><li>Enterprise-Con...
<ul><li>Integrated Information :-  </li></ul><ul><li>Integrating plant-wide information supports collaboration and better ...
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Operations Management

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

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Operations Management

  1. 1. Operations Management The direction and control of the processes that transform inputs into products and services
  2. 2. Process <ul><li>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). </li></ul><ul><li>-- input(s) </li></ul><ul><li>-- processing function </li></ul><ul><li>-- value addition </li></ul><ul><li>-- output(s) </li></ul>
  3. 3. Process Function <ul><li>i. Objective function </li></ul><ul><li>ii. Decision variables </li></ul><ul><li>iii. Constraints </li></ul>
  4. 4. Types of customers <ul><li>External Customer(s) </li></ul><ul><li>A customer who is either an end user or an intermediary interested in product or service offered by some one </li></ul><ul><li>Internal Customer(s) </li></ul><ul><li>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. </li></ul>
  5. 5. NESTED PROCESS <ul><li>Initiation of a process inside another process is known as nesting processe(s) </li></ul><ul><li>Sub-processes are back looped to main process. </li></ul><ul><li>Independent and dependent processes. </li></ul>
  6. 6. OPM PRINCIPLES <ul><li>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) </li></ul><ul><li>ii. Each part of the orgn. has its own identity and yet is connected with operation(s) </li></ul>
  7. 7. Short term vs long term decision(s) (depending upon the scope and contents) <ul><li>Short term:- (Tactical) </li></ul><ul><li>structured </li></ul><ul><li>Routine </li></ul><ul><li>repetitive </li></ul><ul><li>Focused on department, teams and tasks. </li></ul><ul><li>Long term:- (Strategic) </li></ul><ul><li>less structured </li></ul>
  8. 8. Types of decisions:- <ul><li>Strategic choices </li></ul><ul><li>Processes </li></ul><ul><li>Quality </li></ul><ul><li>Capacity, Location and Layout </li></ul><ul><li>Operating Decisions </li></ul>
  9. 9. TYPES OF DECISIONS <ul><li>Strategic decision:- </li></ul><ul><li>Affect company’s future direction. </li></ul><ul><li>OM helps to determine the Co’s global strategies and competitive priorities. </li></ul><ul><li>Propose the best design processes with its competitive priorities. </li></ul><ul><li>Process:- </li></ul><ul><li>Fundamental to all activities. </li></ul><ul><li>How to manage process one time project(s). </li></ul><ul><li>Technological changes to incorporate. </li></ul>
  10. 10. <ul><li>Quality:- </li></ul><ul><li>It underline all processes and work activities. </li></ul><ul><li>OMs helps to establish quality objectives and seek for improvements. </li></ul><ul><li>TQM </li></ul><ul><li>Capacity, Location & Layout:- </li></ul><ul><li>Need long terms commitments. </li></ul><ul><li>OM provides capacity, location and global operation(s). </li></ul>
  11. 11. <ul><li>Operating Decision(s):- </li></ul><ul><li>Deals with operating the facility after it has been built. </li></ul><ul><li>Internal & External Supply chain </li></ul><ul><li>Control output and staffing level/overtimes. </li></ul><ul><li>Synchronization process (suppliers and buyers) </li></ul><ul><li>Just in time techniques which leads to customer satisfaction. </li></ul>
  12. 12. MANUFECTURING VS SERVICES <ul><li>PRODUCT </li></ul><ul><li>Physical, durable product. </li></ul><ul><li>Output that can be inventoried. </li></ul><ul><li>Low customer concept </li></ul><ul><li>Long response time </li></ul><ul><li>Regional, national or international markets </li></ul><ul><li>Large facilities </li></ul><ul><li>Capital intensive </li></ul><ul><li>Quality easily measured </li></ul><ul><li>SERVICE </li></ul><ul><li>Intangible </li></ul><ul><li>Cant be inventoried. </li></ul><ul><li>High customer contact </li></ul><ul><li>Short response time </li></ul><ul><li>Local markets </li></ul><ul><li>Small facilities </li></ul><ul><li>Labor intensive </li></ul><ul><li>Quality not easily measured </li></ul>
  13. 13. SIMILARTIES <ul><li>In some sectors like restaurants customer expects good food and good service. (Package of service and product) </li></ul><ul><li>Inventory management system … for manufacturer both FGI and RMI are must while for service provider RMI is maintained. </li></ul><ul><li>Both sectors have inside and outside customers. </li></ul>
  14. 14. Productivity <ul><li>It is the ratio of value of output(s) (goods or services) produced to the values of input resources ( All inputs) </li></ul>
  15. 15. Smart Operations Management <ul><li>  </li></ul><ul><li>Operations Management functions: </li></ul><ul><li>Enterprise-Control System Integration, </li></ul><ul><li>coordinate the resources - people, equipment, and materials -needed through all process steps to produce the end product .  </li></ul><ul><li>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. </li></ul>
  16. 16. <ul><li>Integrated Information :- </li></ul><ul><li>Integrating plant-wide information supports collaboration and better decisions. </li></ul><ul><li>Operations Optimization :- </li></ul><ul><li>Coordinate manual and automated operational activities to improve efficiency. </li></ul><ul><li>Quality & Compliance :- </li></ul><ul><li>Effectively managing documentation reduces errors and supports regulatory compliance. </li></ul><ul><li>Resource Management :- </li></ul><ul><li>Ensure personnel have resources and training to effectively perform their jobs. </li></ul>

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