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Operations management refers to the
administration of business practices to
create the highest level of efficiency
possible within an organization.
Operations management is concerned
with converting materials and labor into
goods and services as efficiently as
possible to maximize the profit of an
organization.
Operations management (OM) is
defined as the design, operation, and
improvement of the systems that
create and deliver the firm’s primary
products and services
Operations management teams design
the method of conversion of inputs
(materials, labor, proprietary information,
etc.) into outputs (goods, services, value-
added products, etc.) that is most
beneficial to the organization. Operations
management teams attempt to balance
costs with revenue to achieve the highest
net operating profit possible.
Operations Management deals with the
design and management of products,
processes, services and supply chains. It
considers the acquisition, development,
and utilization of resources that firms
need to deliver the goods and services
their clients want.
The purvey of OM ranges from strategic
to tactical and operational levels.
Representative strategic issues include
determining the size and location of
manufacturing plants, deciding the
structure of service or
telecommunications networks, and
designing technology supply chains.
Tactical issues include plant layout and
structure, project management methods,
and equipment selection and
replacement. Operational issues include
production scheduling and control,
inventory management, quality control
and inspection, traffic and materials
handling, and equipment maintenance
policies.
The concept of Production and Operation
Management since its inception:
Manufacturing Management (1776-1930)
Production Management (1930-1970)
Operation Management (1970-onwards)
Manufacturing Management
(1776-1930)- During this period emphasis
was on scientific management dealing
with benefits of specialization and division
of labour.
Main Contributors:
1776: Adam Smith Division of Labor
1832: Charles Babbage Specialization by job
assignment, skills, time etc.
1900: F. W. Taylor Time & motion studies using
scientific management developing time and
motion study techniques of jobs.
Production Management
(1930-1970)- Here emphasis on technique
of economy efficiency by eliminating
wastage and using sophisticated
technique.
Main Contributors:
1930: Inventory Control (F. W. Harris), Human Relation
Movement (Elton Mayo), Statistical Quality Control
(Walter A. Shewhart)
1950: Operation Research (G. B. Dantzi) Mathematical
Application (A. Charnes)
EDI (Herbert Simon) MIS
Operation Management
(1970-onwards)- A system model
approach identifying the subsystems,
subcomponents that makes up the
organisation.
Main Contributors:
1970 to 1980: Computer application to manufacturing,
scheduling and control operations, Material Require
Planning (Joseph Orlicky) MRPII (Oliver Wight).
1980: Onwards Deming & Juran Material management,
Waste control, JIT, Quality and productivity concepts,
CAD and CAM application in Management. TQM, Total
Productive Maintenance.
By Neha Yadav
HR Personnel, MBA(HR)

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Basic of Operation Management

  • 1.
  • 2. Operations management refers to the administration of business practices to create the highest level of efficiency possible within an organization. Operations management is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization.
  • 3. Operations management (OM) is defined as the design, operation, and improvement of the systems that create and deliver the firm’s primary products and services
  • 4. Operations management teams design the method of conversion of inputs (materials, labor, proprietary information, etc.) into outputs (goods, services, value- added products, etc.) that is most beneficial to the organization. Operations management teams attempt to balance costs with revenue to achieve the highest net operating profit possible.
  • 5. Operations Management deals with the design and management of products, processes, services and supply chains. It considers the acquisition, development, and utilization of resources that firms need to deliver the goods and services their clients want.
  • 6. The purvey of OM ranges from strategic to tactical and operational levels. Representative strategic issues include determining the size and location of manufacturing plants, deciding the structure of service or telecommunications networks, and designing technology supply chains.
  • 7. Tactical issues include plant layout and structure, project management methods, and equipment selection and replacement. Operational issues include production scheduling and control, inventory management, quality control and inspection, traffic and materials handling, and equipment maintenance policies.
  • 8.
  • 9. The concept of Production and Operation Management since its inception: Manufacturing Management (1776-1930) Production Management (1930-1970) Operation Management (1970-onwards)
  • 10. Manufacturing Management (1776-1930)- During this period emphasis was on scientific management dealing with benefits of specialization and division of labour.
  • 11. Main Contributors: 1776: Adam Smith Division of Labor 1832: Charles Babbage Specialization by job assignment, skills, time etc. 1900: F. W. Taylor Time & motion studies using scientific management developing time and motion study techniques of jobs.
  • 12. Production Management (1930-1970)- Here emphasis on technique of economy efficiency by eliminating wastage and using sophisticated technique.
  • 13. Main Contributors: 1930: Inventory Control (F. W. Harris), Human Relation Movement (Elton Mayo), Statistical Quality Control (Walter A. Shewhart) 1950: Operation Research (G. B. Dantzi) Mathematical Application (A. Charnes) EDI (Herbert Simon) MIS
  • 14. Operation Management (1970-onwards)- A system model approach identifying the subsystems, subcomponents that makes up the organisation.
  • 15. Main Contributors: 1970 to 1980: Computer application to manufacturing, scheduling and control operations, Material Require Planning (Joseph Orlicky) MRPII (Oliver Wight). 1980: Onwards Deming & Juran Material management, Waste control, JIT, Quality and productivity concepts, CAD and CAM application in Management. TQM, Total Productive Maintenance.
  • 16. By Neha Yadav HR Personnel, MBA(HR)