The document provides an introduction to operations management. It defines operations management as the management of the conversion process that transforms inputs like labor, capital, land and management into outputs of goods and services. It discusses the key components of an operations system including inputs, conversion processes, outputs, feedback and random fluctuations. It also distinguishes between manufacturing and service operations and explores different aspects of operations management like planning, organizing and controlling conversion processes.

1. Introduction to Operations Management

2. Contents I. The operations system in Organizations Example: The operations system for a Department store Example : The operations system for a farm II. Manufacturing operations Versus Service operations III. Goods-service Continuum IV. Manufacturing vs Service V. Management-Process Management VI. Operations Management Defined

3. The part of an organization that produces the organization’s physical goods or services. I. The operations system in Organizations Inputs Land Labour Capital Management Conversion Process Adjustments Needed ? Random Fluctuations Comparison: Actual vs. Desired Outputs Goods Services Monitor Output

4. The process of changing inputs of labour, capital, land and management into outputs of goods and services. Conversion Process Random Fluctuations Unplanned or uncontrollable environmental influences (strikes, floods, etc.) that cause planned and actual output to differ. Feedback Information in the control process that allows management to decide whether organizational activities need adjustment Technology The level of scientific sophistication in plant, equipment, and skills in the conversion process. Contd. …The operations system in Organizations

5. Value-Added The difference between the cost of inputs and the value or price of outputs. Contd. …The operations system in Organizations Inputs Land Labor Capital Transformation/ Conversion process Outputs Goods Services Control Feedback Feedback Feedback Value added

6. Example: The operations system for a Department store Inputs Land Labour Capital Building, equipment, merchandise Store manager Conversion Process Outputs Serviced customer with desired merchandise Random Fluctuations Late deliveries Recession Labour Turnover Feedback Inventory levels Labour efficiency Labour Turnover

7. Example : The operations system for a farm Inputs Land Farmr Labour Tractors, combines, plows, etc. Buildings Management skills of farmer Conversion Process Outputs Grain Rice Milk Other products Random Fluctuations Weather Inflation Government controls Equipment breakdown Feedback Observation of crop and soil conditions Prices received

8. II. Manufacturing operations Versus Service operations A conversion process that includes manufacturing (or production) yields a tangible output: a product. In contrast, a conversion process that includes service yields an intangible output: a deed, a performance, an effort.

9. Steel production Automobile fabrication Home remodeling Retail sales Auto Repair Appliance repair Maid Service Manual car wash Teaching Lawn mowing High percentage goods Low percentage service III. Goods-service Continuum Low percentage goods High percentage service

10. IV. Manufacturing vs Service Characteristic Manufacturing Service Output Customer contact Uniformity of input Labor content Uniformity of output Measurement of productivity Opportunity to correct Tangible Low High Low High Easy High Intangible High Low High Low Difficult Low quality problems High

11. V. Management-Process Management Process Management One of several theories of classical management, emphasizing management as a continuous process of planning, organizing and controlling to influence the other’s actions. Planning Controlling Organizing

12. Management-Process Management Process Management Planning Includes all activities that establish a course of action. These activities guide future decision making. 2. Organizing includes all activities that establish a structure of tasks and authority. 3. Controlling Includes all activities that ensure that actual performance is in accordance with planned performance.

13. VI. Operations Management Defined Operations Management Management of the conversion process, which converts land, labour, capital and management inputs into desired outputs of goods and services.

14. Operations Management Model Planning (designing) conversion systems Operations strategies Forecasting Product and Process choices Operations capacity Facility location planning Layout planning Scheduling conversion systems PLANNING ORGANIZING CONTROLLING Inventory control Material requirement planning Quality control Job design Production/operations standards Project Management CONVERSION PROCESS Inputs Outputs FEEDBACK Random Fluctuations