Operations involve converting inputs into outputs through value-adding processes. This includes integrating or disintegrating materials, providing services, or combining elements. Operation management deals with designing, running, and improving these production systems to deliver the desired products and services at the right quality, quantity, time, and cost. Key decisions involve determining what to produce, when, where, and how, as well as allocating necessary resources. Responsibilities include planning capacity and processes, controlling inventory and quality, organizing the work structure, staffing roles, and directing activities like scheduling and incentives.

1. Operations
It is a process of changing inputs
into output with the creation or
adding value to some entity.

2. Operations
The step by step conversion of one form of material into
another form to create or enhance the utility of the
product/service to the users.
It is the value addition process
Conversion can be done through:
disintegration
integration
services
combination

3. Operation system
INPUT PROCESSING OUTPUT
Material
Money PRODUCT/
Manpower SERVICE
Machine
Knowledge

4. Operation Management
• It is design, operation and improvement of
production system that creates firms primary
product and services.
• It deals with the decision making related to
production process. So that the resulting
goods and services are produced as per the
desired quality, quantity at right time.

5. Objectives of operation management
• Right Quality
• Right Quantity
• Right Time
• Right Manufacturing Cost

6. Key Decisions of Operations Managers
• What
What resources/what amounts
• When
Needed/scheduled/ordered
• Where
Work to be done
• How
Designed
• Who

7. Responsibilities of Operations Management
Products & services
Planning
– Capacity
– Location
–
– Make or buy
– Layout
– Projects
– Scheduling
Controlling/Improving
– Inventory
– Quality
Organizing
– Degree of centralization
– Process selection
Staffing
– Hiring/laying off
– Use of Overtime
Directing
– Incentive plans
– Issuance of work orders
– Job assignments
– Costs
– Productivity