Operations Management


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The concept of Operations Management applies to all industries. Through this presentation, I\'ve tried to publish a small piece of information on this topic. Kindly go through it and let me know your inputs or suggestions.

Nilesh Bhanushali

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Operations Management

  1. 1. Operations Management By Nilesh Dilip Bhanushali Team Leader - Operations
  2. 2. Contents <ul><li>What is Operations Management? </li></ul><ul><li>Operations Management Planning Criteria </li></ul><ul><li>Operations Management Priorities </li></ul><ul><li>Operational-Based Competitive Advantage </li></ul><ul><li>Operations Management Model </li></ul><ul><li>The Transformation Model </li></ul><ul><li>Conclusion </li></ul>
  3. 3. What is Operations Management? <ul><li>Operations refers to the production of goods and services, the set of value added activities that transform inputs into many outputs. </li></ul><ul><li>Operations Management is an area of business that is concerned with the production of goods and services, and involves the responsibility of ensuring that business operations are efficient and effective. It is also the management of resources, the distribution of goods and services to customers, and the analysis of queue systems </li></ul><ul><li>Operations Management is the maintenance, control, and improvement of organizational activities that are required to produce goods or services for consumers. Its efficiency and effectiveness may be monitored by the application of ISO 9001 quality systems, or total quality management techniques </li></ul><ul><li>The Association for Operations Management defines operations management as “the field of study that focuses on the effective planning , scheduling , use , and control of a manufacturing or service organization through the study of concepts from design engineering, industrial engineering, management information systems, quality management, production management, inventory management, accounting and other functions as they affect the organization”. </li></ul>
  4. 4. What is Operations Management? <ul><li>The importance of operations management has increased dramatically in recent years. </li></ul><ul><li>Significant foreign competition , shorter product and service life-cycles , better educated and </li></ul><ul><li>quality conscious consumers , and the capabilities of new technology have placed increasing </li></ul><ul><li>pressure on the operations function to improve productivity while providing high quality services. </li></ul><ul><li>Importance of Operations Management can be explained with the help of following points:- </li></ul><ul><li>Improves Productivity :- It refers to an effective control of the conversion process of inputs into outputs (e.g. fewer defect output, less wastage of material inputs, effective allocation of staff will lead to more output per unit time) </li></ul><ul><li>Improves our ability to meet customer needs :- It enables us to provide service to our target customers better than our competitors. After all, meeting customer needs is crucial to the long term survival of the firm. </li></ul><ul><li>High Goodwill :- Operations Management plays a key role in building the brand name / reputation of the company, as a competitive weapon. </li></ul><ul><li>The operations function comprises a significant percentage of the employees and physical assets in </li></ul><ul><li>most organizations. Operations managers are concerned with each step in providing a service or </li></ul><ul><li>product. Managers are also responsible for critical activities such as quality management and control, </li></ul><ul><li>capacity planning, materials management, and scheduling. Managers in operations management play </li></ul><ul><li>a strategic, as well as a tactical role in satisfying customer needs. </li></ul>
  5. 5. <ul><li>Control by creating and maintaining a positive flow of work by utilizing what resources and facilities are available </li></ul><ul><li>Lead by developing and cascading the organizations strategy/mission statement to all staff </li></ul><ul><li>Organize resources such as facilities and employees so as to ensure effective production of goods and services </li></ul><ul><li>Plan by prioritizing customer, employee and organizational requirements </li></ul><ul><li>Maintaining and monitoring staffing, levels, Knowledge-Skill-Attitude (KSA), expectations and motivation to fulfill organizational requirements </li></ul><ul><li>Performance Measures for the measurement of performance and consideration of efficiency versus effectiveness </li></ul>Operations Management Planning Criteria
  6. 6. Operations Management Priorities <ul><li>Operations Management strategies and objectives must support business strategies and </li></ul><ul><li>objectives. It must meet customer requirements / competitive priorities, which are as </li></ul><ul><li>follows:- </li></ul><ul><li>HIGH QUALITY </li></ul><ul><li>LOW COST </li></ul><ul><li>QUICKER RESPONSE TIME </li></ul><ul><li>ADAPTABILITY / FLEXIBILITY </li></ul><ul><li>RELIABILITY OF SERVICES OFFERED i.e. LOWER VARIABILITY IN PRODUCT SPECIFICATIONS </li></ul><ul><li>HIGH SERVICE LEVELS </li></ul>
  7. 7. Operational-Based Competitive Advantage <ul><li>Competitive Advantage – A company is said to have a competitive advantage over its </li></ul><ul><li>rivals when its profitability is greater than the average profitability of all other companies </li></ul><ul><li>competing for the same set of customers. </li></ul><ul><li>Operations Management objectives must aim at an “operational-based competitive </li></ul><ul><li>advantage”, by emphasizing specific areas of operations that can enable it to meet </li></ul><ul><li>customer requirements. </li></ul><ul><li>Adaptability Advantage i.e. quicker adaptability to change </li></ul><ul><li>Reliability Advantage i.e. doing things right every time and offer error-free products or services to customer EVERY time </li></ul><ul><li>Service Delivery Advantage i.e. doing things better. All aspects of business are important in delivering quality service to the customer which is nothing but the Total Quality Management (TQM) </li></ul>
  8. 8. Operations Management Model
  9. 9. The Transformation Model <ul><li>Operations Management is a central activity in organizing things. Another way of looking at an operation, is to consider it as a transformation process. </li></ul>
  10. 10. Conclusion <ul><li>Operations Management focuses on carefully managing the processes to produce and distribute products and services. Operations management is in regard to all operations within the organization. A great deal of focus is on efficiency and effectiveness of processes. Therefore, operations management often includes substantial measurement and analysis of internal processes. Ultimately, the nature of how operations management is carried out in an organization depends very much on the nature of products or services in the organization. </li></ul>