Download at instashare.xyz Introduction to operation management

1. Operational Processes
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2. Manufacturing Operational Processes
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3. 3
Service Operational Processes

4. Responsibilities of Operations Management
• DIRECT RESPONSIBILITY – for the activities which produces
and delivers products and services.
• INDIRECT RESPONSIBILITY – for the activities of the other
functions of the organization.
• BROAD RESPONSIBILITY – to respond to the emerging
challenges of OM in the future.
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5. Direct responsibilities
• Understanding the strategic objective of the organization
• Developing an operations strategy for the organization
• Designing the products, services and processes for the organization
– Design, physical product, process and work place
• Management tasks for operations – Planning, controlling,
sequencing (See Slide 10)
• Improving the performance of operations – Benchmarking, TQM
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6. Vision Mission Relationship
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7. Approaches to operations strategy
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8. Sequencing
• Physical Constraint Sequencing
• Customer Priority Sequencing
• Due Date Sequencing
• Last in First out Sequencing (LIFO)
• First in First out Sequencing (FIFO)
• Longest Operating Time (LOT)
• Shortest Operating Time (SOT)
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9. Indirect responsibilities
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Business
Functions
Indirect Responsibilities of the
operation functions
Indirect Responsibilities of the
other functions
Logistics Provide logistics with the inputs
standards
Understand the input needs in
relation to the required
standards.
Financial Provide Finance Financial Analysis for
performance and decision
HR Provide Job Specifications to HR
Dept
Understand the competency of
the people
Marketing Assist marketing Dept in product
and service specification
Understand capabilities and
constraints of operations
IT Provide Operational Information
Required
Provide requirements for
systems design, planning and
improvement

10. Broader Responsibilities
• Globalization
• Environmental protection
• Social responsibility
• Technology awareness
• Knowledge management
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11. Manufacturing Vs Service
Tangible Act

12. Production of Goods vs. Delivery of Services
• Production of goods – tangible output
• Delivery of services – an act
• Service job categories
– Government
– Wholesale/retail
– Financial services
– Healthcare
– Personal services
– Business services
– Education

13. Key Differences
1. Customer contact
2. Uniformity of input
3. Labor content of jobs
4. Uniformity of output
5. Measurement of productivity

14. Key Differences…
6. Production and delivery
7. Quality assurance
8. Amount of inventory
9. Evaluation of work
10. Ability to patent design

15. Types of Service Operations
• Quasi Manufacturing
• Customer as Participant
• Customer as Product

16. Scheduling Strategies for Services
• Scheduling for Peak Demand
• Chase Demand

17. Other Possible Strategies
• Reservation Strategy
• Consumer Participation
• Adjustable Capacity
• Cross Training
• Sharing Capacity

18. Scheduling for Quasi Manufacturing Operations
• Product Focused
• Process Focused

19. Scheduling Customer as Participant Service
Operations
• Waiting lines

20. Scheduling Customer as product Service
Operations
e.g. Hair Dressing, Medical Treatment
Key Factors:
Skill, Competence, Professionalism
The Facilities
Quality of the Service
Rapport with customer
Value & Cost of Service

21. Scheduling Multiple Resources
• Hospitals
FCFS: First come, first served
Priority w.r.t. Criticality
• Banks
Cross training to employees
Part time employees w.r.t. variable capacity
• Airlines
Complex set of regulations

22. Cyclical/Rotating Schedule
• 24*7 day working
• 5 days Schedule
• Different days off

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Historical Development of OM
• Industrial revolution Late 1700s
• Scientific management Early 1900s
• Human relations movement 1930s-60s
• Management science 1940s-60s
• Computer age 1960s
• Environmental Issues 1970s
• JIT & TQM* 1980s
*JIT= Just in Time, TQM= Total Quality Management

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Historical Development con’t
• Reengineering 1990s
• Global competition 1980s
• Flexibility 1990s
• Time-Based Competition 1990s
• Supply chain Management 1990s
• Electronic Commerce 2000s
• Outsourcing & flattening of world 2000s
For long-run success, companies must place much importance on their operations