project report

1. 1. What is the role of Operations manager?
 Managing in a Small Operation
 Workflow and Staffing
 Supervise Supply Chain and Inventory
 Oversight of Financial Information and Budgets
 While operations managers all use a wide variety of skills to do their job, some,
particularly in large companies, may specialize in an area and focus within a
particular department. For example someone with a strong background in human
resources may become an HR operations manager, overseeing the entire
department. Some of their specific responsibilities may include:
 Create and manage the department's budget
 Define company policies and implement training
 Monitor internal HR systems and ensure compliance
 Oversee hiring objectives and job description creation
 Stay on top of employment trends, legal issues and best practices
 Purchase software or other tools to improve department efficiency
2. What according to you are the similarities and differences in a
manufacturing and service
organization?
 Tangibility of Output-The key difference between service firms and
manufacturers is the tangibility of their output. The output of a service
firm, such as consultancy, training or maintenance, for example, is
intangible. Manufacturers produce physical goods that customers can see
and touch.
 Production on Demand-Service firms, unlike manufacturers, do not hold
inventory; they create a service when a client requires it. Manufacturers
produce goods for stock, with inventory levels aligned to forecasts of
market demand. Some manufacturers maintain minimum stock levels,
relying on the accuracy of demand forecasts and their production capacity
to meet demand on a just-in-time basis. Inventory also represents a cost
for a manufacturing organization.
 Customer Specific Production-Service firms do not produce a service
unless a customer requires it, although they design and develop the
scope and content of services in advance of any orders. Service firms
generally produce a service tailored to customers’ needs, such as 12
hours of consultancy, plus 14 hours of design and 10 hours of installation.
Manufacturers can produce goods without a customer order or forecast of
customer demand. However, producing goods that do not meet market
needs is a poor strategy.
 Labor Requirements and Automated Processes-Aservice firm recruits
people with specific knowledge and skills in the service disciplines that it
offers. Service delivery is labor intensive and cannot be easily automated,
although knowledge management systems enable a degree of knowledge
capture and sharing. Manufacturers can automate many of their
production processes to reduce their labor requirements, although some

2. manufacturing organizations are labor intensive, particularly in countries
where labor costs are low.
 Physical Production Location-Service firms do not require a physical
production site. The people creating and delivering the service can be
located anywhere. For example, global firms such as consultants Deloitte
use communication networks to access the most appropriate service
skills and knowledge from offices around the world.
2. What do you understand by MTO? Explain using an example
The make-to-order (MTO) strategy means that a firm only manufactures the end product
once the customer places the order, creating additional wait time for the consumer to
receive the product, but allowing for more flexible customization when compared to
purchasing directly from retailers' shelves.This type of manufacturing strategy is referred
to as a pull-type supply chain operation because products are only made when there is
firm customer demand. The pull-type production model is employed by the assembly
industry where the quantity needed to be produced per product specification is one or
only a few. This includes specialized industries such as construction, aircraft and vessel
production, bridges, and so on. MTO is also appropriate for highly configured products
such as computer servers, automobiles, bicycles, or products that are very expensive to
keep inventory.In order to manage inventory levels and provide an increased level of
customization, some companies adopt the make to order production system. The MTO
strategy relieves the problems of excess inventory that is common with the traditional
make-to-stock strategy. Dell Computers is an example of a business that uses the MTO
production strategy, wherein customers can order a fully customized computer online
and receive it in a couple of weeks.The main advantage of the MTO system is the ability
to fulfill an order with the exact product specification required by the customer. Sales
discounts and finished goods inventory are also reduced, and stock obsolescence is
managed. However, for an MTO system to succeed, it should be coupled with proactive
demand management. It should also be considered that the MTO system is not
appropriate for all types of products.
Dell Computers is an example of a business that uses the MTO production strategy,
wherein customers can order a fully customized computer online and receive it in a
couple of weeks. The main advantage of the MTO system is the ability to fulfill an order
with the exact product specification required by the customer.
4. Explain assemble to order in detail with the help of an example
Assemble-to-order (ATO) is a business strategy where products are quickly produced
from component parts once the order is confirmed.
Assemble-to-order is a combination of make-to-order and make-to-stock.
In a typical ATO approach, the costs of assembling the product from its components are
negligible, but the costs of making the different components can be substantial.
Consider a manufacturer of personal computers. It might have all of the essential parts
of a computer—motherboards, graphic cards, processors, monitors, keyboards—in stock
and already manufactured. The company depends on various suppliers for these
components.
When orders for new PCs arrive, it is easy for the company to assemble and customize
the computers using the various components. The process is driven by customer
Resource flexibility is the ease with which employees and equipment can handle a wide
variety of products, output levels, duties, and functions.

3. 5. What do you understand by process strategies? Elaborate each one of them.
A process (or transformation) strategy is an organization’s approach to transforming
resources into goods and services.
The objective of a process strategy is to build a production process that meets customer
requirements and product specification within cost and other managerial constraints.
The process selected will have a long term effect on efficiency and flexibility of
production as well as on cost and quality of the goods produced. Therefore the
limitations of a process strategy are at the time of the process decision.
Major process decisions include:
 Process Structure determines how processes are designed relative to the kinds
of resources needed, how resources are partitioned between them, and their key
characteristics.
 Customer Involvement refers to the ways in which customers become part of the
process and the extent of their participation.
 Resource flexibility is the ease with which employees and equipment can handle
a wide variety of products, output levels, duties, and functions.
 One of the decisions and operations manager has to make is whether or
not to have a flexible workforce, that is, employees that are capable of
doing many tasks.
 When a firm’s product or service has a short life cycle and a high degree
of customization, low production volumes mean that a firm should select
flexible, inexpensive, general-purpose equipment.