CONCEPT,PROCESS,OBJECTIVES

1. PRESENTED BY,
Anitha Thomas
WINNERS GROUP

2. VIDEO

3. OPERATIONS MANAGEMENT
 What is operations?
 The part of a business organization that is responsible for
producing goods or services
 How can we define operations management?
 The management of systems or processes that create goods
and/or provide services

4. Goods are physical items that include raw materials, parts,
subassemblies, and final products.
•Automobile
•Computer
•Oven
•Shampoo
Services are activities that provide some combination of
time, location, form or psychological value.
•Air travel
•Education
•Haircut
•Legal counsel

5. Goods & Services
 Services
 Intangible product
 Product cannot be
inventoried
 High customer contact
 Short response time
 Labor intensive
 Manufacturing
 Tangible product
 Product can be
inventoried
 Low customer contact
 Longer response time
 Capital intensive

6.  OM Transforms inputs to outputs
 Inputs are resources such as
 People, Material, and Money
 Outputs are goods and services
What is Role of OM?

7. OM’s Transformation Process
Inputs
•Land
•Labor
•Capital
•Information
Outputs
•Goods
•Services
Transformation/
Conversion
Process
Control
Measurement
and Feedback
Measurement
and Feedback
Measurement
and Feedback
Value-Added
Feedback = measurements taken at various points in the transformation process
Control = The comparison of feedback against previously established
standards to determine if corrective action is needed.

8. Input-Transformation-Output
Relationships for Typical Systems

9. The operations function includes many interrelated
activities such as:
 Forecasting
 Capacity planning
 Facilities and layout
 Scheduling
 Managing inventories
 Assuring quality
 Motivating employees
 Deciding where to locate facilities
The scope of operations management ranges across
the organization.

10. Production Planning and Control

11. Planning
 Production planning may be defined as the technique of foreseeing every
step in a long series of separate operations, each step to be taken at the
right time and in the right place and each operation to be performed in
maximum efficiency.
 It helps entrepreneur to work out the quantity of material manpower,
machine and money requires for producing predetermined level of output in
given period of time.

12. Routing
 Under this, the operations, their path and sequence are established.
 To perform these operations the proper class of machines and personnel
required are also worked out. The main aim of routing is to determine
the best and cheapest sequence of operations and to ensure that this
sequence is strictly followed.

13. Scheduling
 It means working out of time that should be required to perform each
operation and also the time necessary to perform the entire series as
routed, making allowances for all factors concerned.
 It mainly concerns with time element and priorities of a job.
 The pattern of scheduling differs from one job to another.

14. Loading
 The next step is the execution of the schedule plan as per the route
chalked out it includes the assignment of the work to the operators at
their machines or work places.
 So loading determines who will do the work as routing determines where
and scheduling determines when it shall be done.

15. Dispatching
 Dispatching involves issue of production orders for starting the operations.
 Activity of releasing documents.
 To prepare various documents such as Job Cards, Route sheets, Move
Cards, Inspection Cards for each and every component of the product.
 These documents are to be released from Production Management
department to give green signal for starting the production.
 The activities of the shop floor will follow the instructions given in these
documents.

16. Follow up
 Once the document are dispatched, the management wants to
know whether the activity is being carried out as per the plans or
not.
 Compare the actual work with the plan.

17. Inspection
 This is mainly to ensure the quality of goods. It can be
required as effective agency of production control.

18. Corrective measures
Corrective action may involve any of those activities of
 adjusting the route,
 rescheduling of work
 changing the workloads,
 repairs and maintenance of machinery or equipment,
 control over inventories of the cause of deviation is the poor
performance of the employees.

19. Functional Areas of
Management
PRESENTED BY,
Dias John

21. Human Resource Management
 It is concerned with obtaining and maintaining of a satisfactory
and satisfied work force. It is a specialized branch of
management concerned with man management.
 It consist of recruitment, placement, induction, orientation,
training, promotion, motivation, performance appraisal, wage
and salary, etc…

22. Production Management
 It refers to planning, organization, direction, coordination and
control of the production function in such a way that desired goods
and services could be produced at the right time in right quantity
and at the right cost.

23. It involves
 Production planning and development
 Plant location, layout and maintenance
 Production systems and machines
 Management of purchase and storage of materials
 Ensuring effective production control

24. Office Management
 It can be defined as the organization of an office in order to
achieve a specified purpose and to make the best use of the
personnel by using the most appropriate machines and equipment,
the best possible methods of work and by providing the most
suitable environment
 It includes office accommodation, layout and environment,
communication, office reporting and office supervision.

25. Financial Management
 It is the study of relationship between the raising of funds and the
deployment of funds.
 It includes cost of capital, portfolio management, dividend policy,
short term and long term sources of finance. It involves 3 decisions
mainly they are,

26.  Investment Policies : it dictates associated with capital budgeting
and expenditures. All proposals to spend money are ranked and
investment decisions are taken whether to sanction money for
these proposed ventures or not.
 Method of Financing : a proper mix of short and long term
financing is ensured in order to provide necessary funds for
proposed ventures at a minimum risk to the enterprise .

27.  Dividend Decisions : This decision affects the amount
paid to shareholders and distribution of additional shares
of stock.

28. Marketing Management
 It refers to the process of “planning and executing the conception,
pricing, promotion and distribution of ideas, goods and services to
create exchange that satisfy individual and organizational
objectives”.
 It includes marketing concept, consumer behavior, marketing mix,
market segmentation, product and price decisions, international
marketing etc…

29. MANUFACTURING
VERSUS
SERVICE OPERATION
PRESENTED BY,
Pooja Antony

30. INTRODUCTION
EVERYDAY WE COME IN CONTACT WITH VARIOUS GOODS & SERVICES.
IN THE BROADEST SENSE OPERATION MANAGEMENT IS CONCERNED
WITH THE PRODUCTION OF GOODS & SERVICES. ACCORDINGLY THE FIELD
OF OPERATIONS CAN BE DIVIDED INTO  MANUFACTURING OPERATIONS
& SERVICE OPERATIONS.

31. MANUFACTURING
OPERATIONS
MANUFACTURING
OPERATIONS
FORMING
PROCESS
MACHINING
PROCESS
ASSEMBLY
PROCESS
IT CONVERTS INPUT LIKE MATERIALS,LABOUR & CAPITAL INTO SOME
TANGIBLE OUTPUTS. IT CAN BE CATEGORISED UNDER THREE HEADS :

32. FORMING PROCESS: THIS PROCESS CHANGES THE SHAPE OF THE
WORK PIECE WITHOUT NECESSARILY REMOVING OR ADDING
MATERIALS.. EX: CASTING,STAMPING,FORGING ETC.
MACHINING PROCESS: IT INVOLVES BASICALLY METAL REMOVAL.
EX: DRILLING, GRINDING, MILLING & BORING ETC.
ASSEMBLY PROCESS: IT INVOLVES JOINING OF COMPONENTS OR
PIECE-PARTS TO PRODUCE A SINGLE COMPONENT THAT HAS A
SPECIFIC FUNCTION. EX: FASTENING WITH BOLTS & NUTS, JOINING
BY ADHESIVES.
THE OBJECTIVES OF EACH PROCESS IS TO CHANGE THE
SHAPE OR PHYSICAL CHARACTERISTICS OF THE RAW-
MATERIALS OR INPUTS.

33. SERVICE OPERATIONS
NON-MANUFACTURING OR SERVICE OPERATIONS ALSO TRANSFORM A
SET OF INPUTS INTO A SET OF OUTPUTS,BUT THE OUTPUTS ARE NOT
TANGIBLE .

34. INTANGIBILITY
IT IS NOT TANGIBLE LIKE THE PHYSICAL GOODS. IT CAN NOT BE SEEN
PHYSICALLY, BUT IT CAN BE FELT.
NON-INVENTORIABILITY
AS OPPOSED TO PHYSICAL GOODS SERVICES ARE NOT INVENTORIABLE,
BECAUSE A SERVICE IS PRODUCED AND CONSUMED SIMULTANEOUSLY. IN
THIS SENSE A SERVICE DOES N’T EXIST , HOWEVER THE RESULT OF
SERVICE LAST FOR SOMETIME.

35. BESIDES THE QUALITY ASPECTS, THE INVENTORIABILITY OF SERVICES ALSO
MEANS THAT THE CUSTOMER MAY BE DIRECTLY INVOLVED IN OPERATIONS,
WHERE THE PRODUCTION AND CONSUMPTION TAKES PLACE SIMULTANEOUSLY.
SO THE SERVICE AND THE SERVICE PROVIDER BOTH ARE THERE WITH THE
CUSTOMER.
FLEXIBILITY IS A CHARACTERISTIC OF A FIRM’S OPERATIONS THAT ENABLES IT TO
REACT TO CUSTOMER NEEDS QUICKLY & EFFICIENTLY. BUT WHERE THERE IS
FLEXIBILITY THE POSSIBILITY OF CHAOTIC SITUATION CAN BE FOUND IN THE
PRODUCTION & DELIVERY SYSTEM. IN SERVICE OPERATIONS AS THERE ARE
INTANGIBLE OBJECTS , IT IS VERY MUCH CONTROLLED HERE.

36. CLASSIFICATIONS OF SERVICES
TANGIBLE ACTIONS TO PEOPLES BODIES:
EX: HAIR CUTTING,RESTAURANT,HEALTH CARE ETC.
TANGIBLE ACTIONS TO PEOPLES GOODS :
EX: LAUNDRY, REPAIRING CENTRES,TAILOR ETC.
INTANGIBLE ACTIONS DIRECTED TO PEOPLES MIND:
EX : TRAINING, INFORMATION SERVICES,BROADCASTING ETC.
INTANGIBLE ACTIONS DIRECTED TO PEOPLES INTANGIBLE ASSETS :
EX : BANKING, INSURANCE & ACCOUNTING ETC.
BASED ON TANGIBLE & INTANGIBLE NATURE OF SERVICES.

37. DIFFERENCES

38. DESPITE MANY DIFFERENCES,THERE ARE A LOT OF SIMILARITIES BETWEEN
MANUFACTURING & SERVICE OPERATIONS.THERE IS A INTERDEPENDENCY OF
PRODUCTS & SERVICES, FOR EX: CUSTOMERS WANT BOTH GOOD FOOD AS WELL
AS GOOD SERVICE AT A RESTAURANT.
AGAIN THOUGH SERVICE PROVIDERS CAN NOT INVENTORY THEIR OUTPUTS, BUT
MUST INVENTORY THEIR INPUTS,FOR EX : HOSPITALS MUST MAINTAIN AN
ADEQUATE SUPPLY OF MEDICATIONS, NURSES & DOCTORS.
WHILE BUYING A CAR WE NOT ONLY BUY A PRODUCT BUT ALSO A GURANTEE.
HOSPITAL CARE INVOLVES MEDICATION, BANDAGES & X-RAY FILMS & SO ON, SO
DESPITE A LOT OF DIFFERENCES BOTH PRODUCT & SERVICE ARE PART OF EACH
OTHER

39. OPERATION
STRATEGY
PRESENTED BY,
Della Thomas

40.  According to Slack and Lewis, operations strategy holds the
following definition:
 Operations strategy is the total pattern of decisions which
shape the long-term capabilities of any type of operations and
their contribution to the overall strategy.
 Operations strategy is the tool that helps to define the methods
of producing goods or a service offered to the customer

41. Operation strategy focuses on the questions:
 Where are we going?
 How are we going to compete?
 How are we going to meet customer needs in order to
accomplish our objectives

42. Typical steps in setting an organization's strategy:
1. Establishing Goals
2. Market and Competitive Analysis
- See the Society of Competitive Intelligence Professionals site
for information
3. Identification of Products, Markets and Competitive
Priorities
4. Establishment of Policy Guidelines and Constraints
Mission - Why are we in the business?
Vision - What do we want our organization to look like 5 years from now?
Strategic Goals- Specific intended targets that indicate how the organization
will achieve its mission and vision.

43. A short history of operation strategy
 In the period following World War II corporate strategy in the United States was usually developed by
the marketing and finance functions within a company With the high demand or consumer products that
had built up during the war years U.S. companies could sell virtually everything they made at
comparatively high prices. In addition there was very little international competition. The main industrial
competitors of the United States today Germany and Japan. lay in ruins from massive bombings. They
could not even satisfy their own markets. let alone export globally. Within the business environment that
existed that time the manufacturing or operations function was assigned the responsibility to produce
large quantities of standard products at minimum costs. regardless of the overall goals of the firm. To
accomplish this the
operations function focused on obtaining low-cost unskilled labour and installing highly automated
assembly-line-type facilities.

44.  With no global competition and continued high demand the role of
operations management (that is. to minimize costs) 1950 and early 1960 By the late 1960
however Wick Skinner of the Harvard Business School. who is often referred to as the
grandfather of operations strategy, recognized this weakness among U.S. manufacturers. He
suggested that companies develop an operations strategy that would complement the
existing marketing and finance strategies. In one of his early articles on the subject. Skinner
referred to manufacturing as the missing link in corporate strategy.” Subsequent work in this
area by researchers at the Harvard Business School. including Abernathy. Clark. Hayes. and
Wheelwright, continued to emphasize the importance of using the strengths of a firm’s
manufacturing facilities and people as a competitive weapon in the marketplace as well as
taking a longer-term view of how to deploy them

45. 2.Features of Operations Strategy
 Determined by KSF(Key Success Factor)
 Should be comprehensive and be integrated with corporate
strategy.
 Should be designed to anticipate future
needs.
 Involves a long term process that must
inevitable change.
 Involves decisions that relate to the design of the process and the
infrastructure needed to support the process.

46. 3.Factors Influencing Operations Strategy
a) Quality customers
 Customers come and stay because
 of this factor. It also includes
 cost reduction by various methods of JIT, Lean Manufacturing,
TQM,TPM etc. It enables the firm to be more agile in its manufacture

47. b) Time
 This aspect considers that deliveries be on time to meet customers’
expectations and thus seek more business.
 It means that the operations conducted have this focus and is achieved by
reducing planning time, design time, processing time and changeover
time ,delivery time and response time to customers’ complaints are
also relevant in this context.

48. c) Flexibility
To meet the changing demands of customers, to develop new
processes and materials and to make the organization more agile
in its manufacture.
d)Process design
Includes:
 Selection of appropriate technology
 Role of inventory in the process
 Locating the process

49. e) Infrastructure Decisions
includes:
 Planning and Control of Machines
 Quality assurance and Control approaches
 Payment Structures
 Organization of Operations function

50. Components
of
Operation Strategy
PRESENTED BY,
Minnu Priya

51. Operation Strategy
 Operations strategy is defined as the set of decisions that are
warranted in the operational processes in order to support the
competitive strategies of the business.
 It will give the firm competitive advantages in the products or
services that are served to the customers.

52. Elements of Operations Strategy
 Designing of the production system
 Facilities for production and services
 Product or service design and development
 Technology selection, development, and process development
 Allocation of resources
 Focus on facilities planning

53. Designing of the Production System
 The designing of the production system involves the selection of the type
of product design, processing system, inventory plan for finished goods,
etc. The product design has two varieties. They are:
 Customized product design
 Standard product design

54. Facilities for Production and Services
 Certain specialization in production allows the firm to provide the customers
with products of lower cost, faster delivery, on-time delivery, high product
Quality, and flexibility. Here, overheads will be less and the firm can
Outperform compared to the competitors .

55.  The stages followed in developing a product are:
1. Generating the idea
2. Creating the feasibility reports
3. Designing the prototype and testing
4. Preparing a production model
5. Evaluating the economies of scale for production
6. Testing the product in the market
7. Obtaining feedback
8. Creating the final design and starting the production.
Product or Service Design and Development

56. Technology Selection and Process Development
 A product selected for production will be analyzed for the process and the
Applicable technology for optimal production. There are many challenges
faced by the operations managers in this decision as the alternatives are
many. The techno-economic analysis for each alternative will help to
decide the required technology.

57. Allocation of Resources
 The production units face continuous problems of allocating the scarce resources
like capital, machines, equipments, materials, manpower, services, etc. Allocation
at the right time to the right place of production indicates the efficiency of the
production planners.

58. Facility, Capacity and Layout planning
 The location, layout, and facilities creation for the production are the key
decision areas for the operations manager .

59. Operations forecasting
PRESENTED BY,
Harikrishnan

60. Forecasting
It is a method for translating past experience into estimates
of the future.

62. importance of forecasting
a) Economic development:
The economic conditions of the country as well as global economy would
have significant effect on the operations of an organization. The
necessary elements of such forecasts include predictions relating to GNP
and GDP, currency strength, industrial expansion, job market, inflation
rate, interests rate, and balance of payments and so on.
b) Technological forecasts:
These forecasts predict the new technological developments that may
change the operations of an organization.

63. c) Competition forecasts:
It is equally necessary to predict as to what strategies your competitors would be
employing to acquire gains in the market share, perhaps at the cost of your market
share.
The competitor may be planning to employ a different market strategy for the
product or to bring out a substitute for the product which could be cheaper and
easily acceptable by consumers.
d) Social forecasts:
These forecasts involve predicting changes in the consumer tastes, demands and
attitudes. Consumers have already established a trend for convenience, comfort and
for products that are easy to use and manage. Matters of taste and preference may
change over a period of time.

64. Forecasting methods:
1.Qualitative methods
2.Quantitative methods

65. Qualitative Forecasting Methods
Using qualitative approach, a company forecasts based on judgment and
opinion. Grouped under this approach are
1. Delphi method
2. Market Research
3. Expert Judgment
4. Product Life-cycle analogy

66. Delphi method
This is a group technique in which a panel of experts is questioned individually
about their perceptions of future events
Forecast is developed by a panel of experts who answer a series of questions.
• Responses are feedback to panel members who then may change their original
responses.
• It does not require the physical presence of group members.
• The experts answer questionnaires in two or more rounds.
Advantages: This type of method is useful and quite effective for long-range
forecasting. The technique is done by questionnaire format and eliminates the
disadvantages of group think.

67. Market Research
It is any organized effort to gather information about markets or
customers.
• It is a very important component of business strategy.
• Market research provides important information to identify and analyze
the market need, market size and market need, and competition.
• It uses panels, questionnaires, test markets, surveys, etc.

68. Expert Judgment
The subjective views of executives or experts from sales, production,
finance, purchasing, and administration are averaged to generate a
forecast about future sales.
This approach is used to obtain a rapid assessment of the state of
knowledge about a particular aspect of climate change.
• It is frequently used in a panel format, aggregating opinions to cover a
broad range of issues regarding a topic.
Advantage: The forecasting is done quickly and easily, without need of
elaborate statistics.

69. Product Life-cycle analogy
Forecasts based on life-cycles of similar products, services, or processes

70. Quantitative Forecasting Methods

71.  Time series Forecasting Methods
Time series forecasting methods are based on analysis of historical data
• Analyzing past trends to predict future
• Statistical method used to analyze the sales pattern

72.  Graphical Methods:
Plotting information in a graphical form. It is relatively easy to convert a
spreadsheet into a graph that conveys the information in a visual manner. Trends
& patterns are easier to spot & extrapolation of previous demand can be used to
predict future demands.
 Econometric Modeling:
A set of equations intended to be used simultaneously to capture the way in which
dependent and independent variables are interrelated.
 Life Cycle Modeling:
“A quantitative forecasting technique based on applying past patterns of demand
data covering introduction, growth, maturity, saturation, and decline of similar
products to a new product family”.

73. THANK YOU!