Operations Management Basics

1. Lesson 01
Operations Management
Operations Management: Basics
Dr. Inderdeep Singh
Department of Mechanical and Industrial Engineering
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2. Source:https://us.123rf.com/450wm/garagestock/garagestock1605/garagestock16
0502572/57464235-gears-and-operations-management-mechanism.jpg

3. Operations Management (OM)
• What are operations?
– The part of a business organization that is responsible for
producing goods or services.
– A function or system that transforms inputs into outputs
of greater value.
Student Slides

4. Operations Management
Deals with :
The design and management of;
– Products
– Processes
– Services
– Supply chains
Student Slides

5. What is Operations Management?
The business function responsible for planning, coordinating,
and controlling the resources needed to produce products and
services for a company.
“The Science and the Art of ensuring, goods and services are
created and delivered successfully to customers”
Student Slides

6. The Transformation Process
Student Slides
Inputs
• Land
• People
• Capital
• Information
• Materials
Outputs
• Goods
• Services
Transformation/
Conversion
Process
Control
Measurement
and Feedback
Measurement
and Feedback
Measurement
and Feedback
Value-Added
Feedback = Measurements
taken at various points in the
transformation process
Control = The comparison of feedback
against previously established standards to
determine if corrective action is needed.

7. Why Operations Management?
• OM is an integrative body of knowledge; whose skills are needed in
industries as diverse as health care, education, telecommunications,
lodging, food service, banking, consulting and manufacturing.
• OM is one of the three major functions of any organization, and its
integrally related to all the other business functions.
• To know how goods and services are produced.
• To understand what operations managers do.
Student Slides

8. Operations
Management
Product
Design and
Development
Sales
Forecasting
Facility
Planning and
Plant Location
Facility
Layout and
Plant Layout
Production
Planning
Project
Scheduling
(CPM, PERT)
Production
Control
(Scheduling,
Sequencing)
Quality
(TQM, TPM,
SQC, Six
Sigma)
Materials
Management
(Inventory
Control, EQQ)
Production
Models
(JIT, Kanban,
MRP, ERP )