The document outlines the Engineering Operations Management module, which focuses on various key outcomes such as organizational structure development, product design analysis, production cost optimization, and stock maintenance. It highlights the importance of operations management in converting inputs into outputs while ensuring customer satisfaction and efficient resource utilization. Additionally, it discusses modern trends in production management, including globalization, total quality management, and advancements in technology.

1. ENGINNERING OPERATIONS MANAGEMANT
Description of Module 33
Code: MEU 07404 & MEU 07428
Name: Engineering Operations Management
Number of Credits: 6
Sub enabling outcomes:
[5.4.5] Develop organisation structure of an Organisation
[5.4.6] Analyse a product design steps and production
methods during design process.
[5.4.7]Optimize production costs to raise profit of the
Organisation.
[5.4.8] Maintain stock at optimum levels for cost effective.
Prerequisite module: MEU 07303 Finance and Human
Resources Management.

2. Learning Context
 The module will be conducted through lectures, tutorials and visit to an industry
with pre-determined aims based on what will be observed and reported
thereafter.
Learning Materials:
 Chalkboard, Overhead Projectors, flip charts, Audio Visual.
Required references:
[1] Krajewski L. J. and Ritzman L. P. (2012), Operations Management: Processes
and Supply Chains, 10th Edition, Pearson Pub.
[2] Heizer J. and Render B. (2013), Principles of Operations Management, 9th
Edition, Pearson Pub
Recommended References:
[3] Nembhard H. B. and Aktan M. (2009), Real Options in Engineering Design,
Operations, and Management, 1st Edition, CRC Press.
[4] Brown S., Blackmon K., Cousins P. and Maylor H. (2001), Operations
Management 1st Edition, Routledge Publishing.
[5] Buffa and Sarin (2007), Modern Production/Operations Management, 8th
edition, Wiley India Private Limited

3. Lecture One: Introduction to Operation
Management
Learning Objectives:
By the end of this lesson a trainee will be able to:
Define operation management and other terms
Describe the objectives of operations management
List the activities under production and operations
management functions.
Describe characteristic of modern operations function
Discuss recent trends in operation management.

4. Basic Introduction
 Production Management can be defined as the management of
the conversion process, which converts land, labor, capital, and
management inputs into desired outputs of goods and services. It
is also concerned with the design and the operation of systems for
manufacture, transport, supply or service.
 Examples of goods and services all around you are each book you
read, every video you watch, every e mail you send, every
telephone conversation you have, and every medical treatment
you receive involves the operations function of one or more
organizations.
 Operating System is a configuration of resources combined for
the provision of goods or services. Retail organizations, hospitals,
bus and taxi services, tailors, hotels and dentists are all examples
of operating systems.
 Any operating system converts inputs, using physical resources,
to create outputs, the function of which is to satisfy customer’s
wants. The creation of goods or services involves transforming or
converting inputs into outputs.

5. Scope of Operation Management
Following are the activities, which are listed under
production and operations management functions

6. Definitions
 Production Management: can be defined as the management of
the conversion process, which converts land, labor, capital, and
management inputs into desired outputs of goods and services. It
is also concerned with the design and the operation of systems for
manufacture, transport, supply or service.
 Difference between Operations and Production In the
transformation process, the inputs change the form into an
output, by adding value to the entity. The output may be a product
or service.
 If it is a product centric that is known as production,
 If it is a service centric then that is known as operation.
 Material Management: It is a scientific technique, concerned with
Planning, Organizing & Control of flow of materials, from their
initial purchase to destination.
 Material handling: It is the movement and storage of material at
the lowest possible cost through the use of proper method and
equipment.” Or “Material handling is the art and science of
moving, storing, protecting, and controlling material”.

7. Definitions cont….
Product design: It is cross-functional, knowledge
intensive work that has become increasingly important
in today's fast-paced, globally competitive environment.
It is a key strategic activity in many firms because new
products contribute significantly to sales revenue.
Process Design: It is the activity of determining the
workflow, equipment needs, and implementation
requirements for a particular process.
Design: refers to the process of originating and
developing a plan for a product, service or process.
Process: It is any part of an organization which takes a
set of input resources which are then used to transform
something into outputs of products or services.

8. Definitions cont….
 Production planning and control: It is a predetermined
process which includes the use of human resource, raw
materials, machines etc. PPC is the technique to plan each and
every step in a long series of separate operation. It helps to
take the right decision at the right time and at the right place
to achieve maximum efficiency.
 Planning: It is the process of determining how the
organization can get where it wants to go, and what it will do
to accomplish its objectives. Or Planning is the systematic
development of action programs aimed at reaching agreed
business objectives by the process of analyzing, evaluating,
and selecting among the opportunities which are foreseen.
 Routing: It is about selection of path or route through which
raw materials pass in order to make it into a finished product.
 Scheduling: It is the determination of the time that should be
required to perform the entire series as routed, making
allowance for all factors concerned.

9. Definitions cont….
Dispatching: It is the routine of setting productive
activities in motion through the release of orders and
instructions, in accordance with previously planned
time and sequence, embodied in route sheet and
schedule charts.
Expediting/Follow-up: It is a control tool which
brings an idea on breaking up, delay, rectifying error
etc., during the progress of work.
Operational planning: It is the process of
planning strategic goals and objectives to tactical
goals and objectives.

10. Definitions cont….
 Quality control: It is the set of measures and procedures to
follow in order to ensure that the quality of a product is
maintained and improved against a set of benchmarks and that
any errors encountered are either eliminated or reduced.
 Science: It is the study of the nature and behavior of natural
things and the knowledge that we obtain about them. Or Any
systematized knowledge derived from observation, study,
and experimentation carried on in order to determine the
nature or principles of what is being studied.
 Engineering: It is the profession in which knowledge of the
mathematical and natural sciences gained by study,
experience, and practice is applied with judgment to develop
ways to utilize economically the materials and forces of nature
for the benefit of mankind.

11. Definitions cont….
Technology: It is the collection of techniques, skills,
methods and processes used in the production of
goods or services or in the accomplishment of
objectives, such as scientific investigation. Or is a body
of knowledge devoted to creating tools, processing
actions and the extracting of materials.
Production: It is a process of transforming (converting)
inputs (raw-materials) into outputs (finished goods). So,
production means the creation of goods and services. It
is done to satisfy human wants. Thus, production is a
process of transformation.
Productivity: It is a ratio of production output to the
input required to produce. It is a measure of production
efficiency. Also, it is defined as a total output per one
unit of a total input.

12. Definitions cont….
System: It is a set of detailed methods, procedures and
routines created to carry out a specific activity, perform
a duty, or solve a problem.
Goods: are items that are tangible, such as pens, salt,
shoes, hats and folders while services are activities
provided by other people, such as doctors, lawn care
workers, dentists, barbers, waiters, or online servers.
A need is something that a person must have in order to
thrive. Without it, that person will suffer either
physically or mentally.
A want is a choice; it is a desire which a person may or
may not be able to get. Life will continue if a person
doesn’t get what they want.
And others more definitions ……….

13. Objectives of Operations Management
The objectives of operations management can be
categorized into two of them, these are customer
service and resource utilization.
Customer service: Customer service is therefore a
key objective of operations management for the
satisfaction of customer wants.
Therefore, the operations management must provide
something to a specification which can satisfy the
customer in terms cost and timing.
Thus, primary objective can be satisfied by
providing the ‘right thing at the right price at the
right time’.

14. Aspects of Customer Service

15. Objectives of Operations Management cont…
Resource utilization: Another major objective is to
utilize resources for the satisfaction of customer
wants effectively, i.e., customer service must be
provided with the achievement of effective
operations through efficient use of resources.
Inefficient use of resources or inadequate customer
service leads to commercial failure of an operating
system.
Operations management is concerned essentially
with the utilization of resources, i.e., obtaining
maximum effect from resources or minimizing their
loss, under utilization or waste.

16. Summary of the objectives of operations
management
The customer service objective: to provide
agreed/adequate levels of customer service (and
hence customer satisfaction) by providing goods or
services with the right specification, at the right cost
and at the right time.
The resource utilization objective: to achieve
adequate levels of resource utilization (or
productivity) e.g., to achieve agreed levels of
utilization of materials, machines and labour.

17. Characteristic of Modern Operations
Function
Today’s production system is characterized by at least four
features which are:
Manufacturing as Competitive advantage
In the past production was like any other function in the
organization.
When demand was high and production capacities were
inadequate, the concern was to somehow muster all
inputs and use them to produce goods which would be
grabbed by –market.
But today’s scenario is contrasting. Plants have excess
capacities; competition is mounting, and firms look and
gain competitive advantage to survive and succeed.

18. Characteristic of Modern Operations
Function cont…
Services Orientation
As was stated earlier, service sector is gaining greater
relevance these days. The production system, therefore,
needs to be organized keeping in mind the abnormal
requirements of the service component.
The entire manufacturing needs to be geared to serve
(i) intangible and perishable nature of the services,
(ii) constant interaction with clients or customers,
(iii) small volumes of production to serve local markets,
(iv) need to locate facilities to serve local markets.
There is increased presence of professionals on the
production, instead of technicians and engineers.

19. Characteristic of Modern Operations
Function cont..
 Disappearance of Smokestacks
 Protective labour legislation, environmental movement and
gradual emergence of knowledge-based organizations have
brought total transformation in the production system.
 Today’s factories are aesthetically designed and built,
environment friendly - in fact, they are homes away from
homes.

20. Characteristic of Modern Operations
Function cont…
Small has become beautiful
It was E.F. Schumacher who, in his famous book Small
is Beautiful, opposed giant organizations and increased
specialization.
He advocated, instead, intermediate technology based on
smaller working units, community ownership, and
regional workplaces utilizing local labour and resources.
For him, small was beautiful.
Businessmen, all over the world, did not believe in
Schumacher’s philosophy. Inspired by economies of
scale, industrialists went in for huge organizations and
mass production systems.

21. Recent Trends in Production/Operation
Management
Recent trends in production/operations management
relate to global competition and the impact it has on
manufacturing firms. Some of the recent trends are:
Global Market Place
Globalization of business has compelled many
manufacturing firms to have operations in many
countries where they have certain economic advantage.
This has resulted in a steep increase in the level of
competition among manufacturing firms throughout the
world.

22. Recent Trends in Production/Operation
Management cont…
Production/Operations Strategy
More and more firms are recognizing the importance of
production/ operations strategy for the overall success of
their business and the necessity for relating it to their
overall business strategy.
Total Quality Management (TQM)
TQM approach has been adopted by many firms to
achieve customer satisfaction by a never-ending quest
for improving the quality of goods and services.

23. Flexibility
The ability to adapt quickly to changes in volume of
demand, in the product mix demanded, and in product
design or in delivery schedules, has become a major
competitive strategy and a competitive advantage to the
firms
Time Reduction
Reduction of manufacturing cycle time and speed to
market for a new product provide competitive edge to a
firm over other firms. When companies can provide
products at the same price and quality, quicker delivery
(short lead times) provide one firm competitive edge over
the other.
Recent Trends in Production/Operation
Management cont…

24. Recent Trends in Production/Operation
Management cont…
Technology
Advances in technology have led to a vast array of
new products, new processes and new materials and
components. Automation, computerization,
information and communication technologies have
revolutionized the way companies operate.
Worker Involvement
This is known as employee involvement and
empowerment. Examples of worker involvement are
quality circles and use of work teams or quality
improvement teams.

25. Recent Trends in Production/Operation
Management cont…
Re-engineering
This involves drastic measures or break-through
improvements to improve the performance of a firm. It
involves the concept of clean-slate approach or starting
from scratch in redesigning the business processes.
Environmental Issues
Today’s production managers are concerned more and
more with pollution control and waste disposal which are
key issues in protection of environment and social
responsibility. There is increasing emphasis on reducing
waste, recycling waste, using less toxic chemicals and
using biodegradable materials for packaging.

26. Recent Trends in Production/Operation
Management cont…
 Corporate Downsizing (or Right Sizing)
Downsizing or right sizing has been forced on firms to shed their
obesity. This has become necessary due to competition, lowering
productivity, need for improved profit and for higher dividend
payment to shareholders.
 Supply-Chain Management
Management of supply-chain, from suppliers to final customers
reduces the cost of transportation, warehousing and distribution
throughout the supply chain.
 Lean Production
Production systems have become lean production systems which use
minimal amounts of resources to produce a high volume of high
quality goods with some variety. It using flexible manufacturing
systems and multi-skilled workforce to have advantages of both mass
and job production.

27. The end,
• Thank you for your concentration