3. M. Qasim Sharif BC10028
Ansar Shakeel BC10032
M. Waqas Sajid BC10023
Arslan Bukhari BC10027
Usman Mahmood BC10030
4.
5. The term “operations management” refers to the
design, operations, and control of the transformation
process that converts such resources as labor and
raw materials into finished goods and services
6. Every organization has an operations system that creates
value by transforming inputs into outputs
Inputs Outputs
•People Transformation •Goods
•Technology •Services
•Capital
•Equipment Process
•Material
7. Productivity means the overall output of goods or
services produced, divided by the input needed to
generate that output
output
= Productivity
Input
8. Example
A company is manufacturing 24,000 components per
month by employing 100 workers in 8 hour shift. The
company gets additional order from government to supply
additional 6000 components. The management decides to
hire additional workers. What will be productivity level
when the number of a additional workers employed are:
(i) 30
(ii) 25
(iii) 20.
10. With increased order
(i) When additional 30 workers are hired
Output = 24,000 + 6000 = 30,000 components
= 30,000 / (100 + 30) (8) (30) = 0.96
(ii) When additional 25 workers are hired
Output = 24,000 + 6000 = 30,000 components
= 30,000/ (100 +25) (8) (30)
= 1 Component/ man-hour
(iii) When additional 20 workers are hired
Output = 24,000 + 6000 = 30,000 components
= 30,000/ (100 +2o) (8) (30)
= 1.04 Component/ man-hour
11.
12. Plan for the long-term future, not for the next month
or year
Find out whether your problems are confined to
particular parts of the production process or stem
from the overall process itself
Train workers for the job that you are asking to
perform
Encourage departments to work closely together rather
than to concentrate on departmental or divisional
distinctions
13. Require your workers to do quality work, not just
to be at their stations from 9 to 5
Train your employees to understand statistical
methods
Train your employees in new skills as the need
arises
Make top managers responsible for implementing
these principles
15. Operations Management
Operations management is an area
of management concerned with overseeing, designing, and
controlling the process of production and
redesigning business operations in the production of goods
and/or services
16. O.M includes Both Manufacturing & Services
Org.
Manufacturing Organization
An organization that produce physical goods like
steel, automobiles & textiles etc…
17. O.M includes Both Manufacturing & Services
Org.
Service Organizations
Organizations that produce non-physical outputs such
as educational, medical & transportation services…
18. Both Manufacturing & Services
•As the U.S. economy has changed from a goods
producer to a service provider.
•The predominance of the manufacturing sector
has declined substantially over the last fifty years.
•Today, only about 12% are involved in
manufacturing organization.
19. Both Manufacturing & Services
•Most of the people in U.S. are employed in
Service sector…….
•Contribute about 77% to service sector.
20. Characteristics Of Service
There are four characteristics of Services.
Intangible Inseparability
Can’t be
stored/ Variability
Perishable
21. Characteristics Of Service
Intangible
Intangible Services are those activities
performed by the provider, they can not be
seen, tasted, felt, heard or smelt before they are
consumed. Therefore, services are
intangible, so they do not have features that
appeal to the customer’s sense. It just tells the
advantages to the customer.
22. Characteristics Of Service
Inseparability
Inseparability Services are typically produced and
consumed simultaneously. Incase of physical
goods, they are manufactured into
products, distributed through multiple sellers, and
consumed later. But, incase of services, it cannot be
separated from the service provider. Thus, the
service provider would become a part of a service.
23. Characteristics Of Service
Perishable
Perish ability Services are deeds, performance or
act whose consumption take place simultaneously;
they tend to perish the absence of consumption.
Hence, services cannot be stored. The services go
waste if they are not consumed at time.
24. Characteristics Of Service
Variability
Variability Services are highly variable, as they
depend on the service provider, and where and
when they are provided. Service marketers face a
problem in standardizing their service, as it varies
with experienced hand, customer, time and firm.
Service buyers are aware of this variability.
25. Strategic Operations Management
Strategic Management is the process of
understanding the business
environment, developing the desired state of
performance and implementing strategies to
achieve it.
27. Strategic Operations Management
Situation Analysis
The situation analysis provides the information necessary to
create a company mission statement. Situation analysis
involves "scanning and evaluating the organizational context
and organizational environment". This analysis can be
performed using several techniques. Observation and
communication are two very effective techniques.
28. Strategic Operations Management
Strategy Formulation
Strategy formulation involves designing and developing the
company strategies. Determining company strengths which
aids in the formulation of strategies. Strategy formulation is
generally broken down into three organizational levels:
operational, competitive, and corporate.
29. Strategic Operations Management
Strategy Implementation
Strategy implementation involves putting the strategy into
practice. It includes developing steps, methods, and
procedures to execute the strategy. It also determining which
strategies should be implemented first. The company should
first focus on the worst problems, then move onto the other
problems.
30. Strategic Operations Management
Strategy Evaluation
Strategy evaluation involves "examining how the strategy has been
implemented as well as the outcomes of the strategy". It also
determining whether deadlines have been met, whether the
implementation steps and processes are working correctly, &
whether the expected results have been achieved. If it is determined
that deadlines are not being met, processes are not working, or
results are not in line with the actual goal, then the strategy can and
should be modified or reformulated.
33. Planning Operations
It provide the long term strategic direction for
operations planning.
It provide the proper size of an operating system.
It’s a best method of transforming the input into
output
34. What is
to be
produced
What’s the How
overall many are
production to be
plan produced
How
should Where
equipme are to be
nt be produced
arranged
Which
productio
n method
are to be
used
36. Capacity Planning
Assessing an operating system’s ability to produce
a desired number of output units for each type of
product during a given time period
37. Facilities location Planning
The design and location of an operations facility.
It include the availability of labor skills, labor
cost, energy cost and proximity to supplier and
customers.
38. Process Planning
It determine how a product or
servicewill be produced.
It is difficult to decide the
processes in term of
cost, quality & labor efficiency
because the change in one
element of production has
effect on the number of other
elements.
39. Facilities layout Planning
Assessing and selecting among alternative
layout options forequipment and workstations
Process layout
Product layout
Fixed-position layout
43. Cost control
Purchasing control
Maintenance control
Quality control
44. Cost controls starts by the businesses identifying what
their costs are and evaluate whether those costs
are reasonable and affordable.
To be profitable, companies
must not only earn revenues,
but also control costs.
45. Direct cost:
Cost incurred in proportion to the output of a
particular goods or services.
Indirect cost:
Cost which is unaffected by changes in output.
46. Items purchased by the business may have an
expiration date an overstocked inventory with expired
items can become a liability rather than a valued asset.
48. Preventive maintenance:
Maintenance performed before a breakdown
occurs.
Remedial maintenance:
The replacement or repair of equipment when it
breaks down.
49. A process through which product quality is
maintained or improved and manufacturing errors are
reduced or eliminated.
50. Acceptance sampling:
A procedure in which a sample is taken and
a decision to accept or reject a complete production lot
of material.
Process control:
A procedure in which sampling is done during the
transformation process to determine whether the
process itself is under control.
53. The implementation of global enterprise resource planning
systems, now common in large companies, has challenged
managers to use all of this information.
Companies have only begun to truly take advantage of the
information from these systems to optimally control such
resources as inventory, transportation, and production
equipment.
54. The Internet has opened new ways for the customer to
interact directly with a firm.
Intelligent use of information technology will allow
customers in reductions in cost while actually improving
service to the customer.
55. Product design is a critical task because it determines
the characteristics and features of the product.
Product design determines a product's cost and
quality, as well as its features and performance.
In recent years, new design models such as Design for
Manufacturing and Assembly (DFMA) have been
implemented to improve product quality and lower
costs.
56. Planning the system describes how management expects to
utilize the existing resource.
For example, management may decide to increase or
decrease capacity to cope with changing demand to
enhance efficiency.
57. Managing the system involves working with people to
encourage participation and improve organizational
performance. Participative management and teamwork are
an essential part of successful operations, as are leadership,
training, and culture.
Two key areas of concern.
1. material management
2. quality management
58. By linking operations and operating strategies with the
overall strategy of the organization (including engineering,
financial, marketing, and information system strategy) can
result best.
59. In today's business environment, a key component of
operational flexibility in many industries is technological
development. Advances in technology make it possible to
build better products using fewer resources
60. Firms can increase efficiency and reduce cost by reducing
raw material, work in process, and finished goods inventory
61. For lower performing firms
For medium performing firms
For higher performing firms
62. Increase training
Emphasize teams across & within departments
Don’t create unreasonable goals
unreasonable goals frustrate quality efforts
63. Increase problem solving skills
Simplify corporate process such as design
Focus on employees training
64. Encourage company-wide quality meeting
Explain the organizations strategy
Improving development process
Reducing time which take from design to till delivery
