Introduction to Operations Management

1. Operations Management

2. Meaning
Operations management is a business discipline that entails overseeing a company's day-to-
day operations to maintain project efficiency. It suggests that the department head will be
expected to execute a variety of strategic duties.

3. Functions of Operations Management
 Strategy
 Managing finance
 Design
 Forecasting
 Operations
 Managing Quality
 Supply chain configuration

4. Major Decisions in Operations Management
(i) Design of the production system and
(ii) Operation and control of the production system
(iii) Long-Run Decisions
Selection and Design of Products
Selection of Equipment and Processes
Production Design of Parts Processed
Job Design
Location of the System
Facility Layout
(iv) Short-Run Decisions
Inventory and Production Control
Maintenance and Reliability of the System
Quality Control
Labour Control
Cost Control and Improvement

5. Systems Perspective of Operations Management

6. Challenges faced by Operations Manager
 Managing multiple customers
 Understanding the service concepts
 Managing the outcome and experience
 Managing the real time
 Knowing, implementing and influencing strategy
 Continually improving operations
 Encouraging innovations

7. Recent Trend in OM
 Global Market Place
 Production/Operations Strategy
 Total Quality Management (TQM)
 Flexibility
 Time Reduction
 Technology
 Worker Involvement
 Re-engineering
 Environmental Issues
 Corporate Downsizing (or Right Sizing)
 Supply-Chain Management
 Lean Production

8. Manufacturing Trends in India
 Today many sections of the Indian manufacturing sector are extremely innovative. Among such innovative manufacturing sectors are the
automotive sector, auto- components sector, assembly lines, IT manufacturing sector, and small components manufacturing sector.
 The Indian government has aimed to increase the domestic manufacturing sectors share to 25% of GDP by 2022. This will be made possible in
some part by greater innovation in Indian industry.
 One of the growth drivers behind the success of the Indian manufacturing sector is the use of innovative technology.
 Behind the success of such innovative technology is a greater willingness on the part of Indian firms to spend on R&D.
 Over the past decade, India's expenditure in science has increased threefold and the countries share of global patents has been increasing as well.

9.  Product design is the process of deciding on the unique characteristics and features of
the company’s product.
 Process selection is the development of the process necessary to produce the
designed product.
 Product design and process selection are typically made together. Product design
must support product manufacturability (the ease with which a product can be made).
 Product design defines a product’s characteristics of; appearance, materials,
dimensions, tolerances, and performance standards
Product Design

10. Good Product Design
 Utility: The product design should make product utility as per expectation of customers and
provide steady performance through the product life.
 Aesthetics: Product aesthetics is important in success of the product. The product aesthetics is
dependent on market and end customer.
 Producible: Product design should enable effective production of product through available
production methods.
 Profitability: Product design should make economic sense as to deliver value to customer and
sustainability to the organization.
 Differentiable: A good product design should enable product to be differentiate among its
competition. This can be achieved by attractive packaging and also by providing additional

11. Factors Affecting Product Design
 Correct Team Selection: This is very essential to get the correct team in place which has expert designers who are not only aware and
comfortable with technology but also understanding of customer expectation.
 Customer Involvement: Involvement of customer in product design and testing can provide insight into the direction of the project
 Prototyping and testing: Product design is high risk concept as it involves commitment of capital and man-power; therefore, it is imperative
that extensive prototyping and testing are done with customer and market.
 Raw Material: It is essential that raw material to be used in the production meets the quality standards of the end product. Furthermore,
procurement system needs to be in place to ensure continuous, cost effective supply.
 Production method and process layout: Feasibility of production method and process layout determines future success of the product
 External Factors: Environmental and government regulations plays an important part in product design. And these norms are updated from
time to time, so product design should have the flexibility to adapt.