This document discusses operations management. It defines operations management as keeping the lights on in an organization, with strategy providing direction and management driving progress. It then outlines several key functions of operations management like forecasting, capacity planning, scheduling, inventory management and quality control. It provides examples of operations management at companies like Nestle, discussing topics like inventory management, production capacity, and the supply chain for transporting milk. Finally, it discusses the roles and responsibilities of production managers in selecting products and processes, planning and controlling production and quality.

1. OPERATION
MANAGEMENT
‘’OPERATIONS KEEPS THE LIGHTS ON, STRATEGY PROVIDES
A LIGHT AT THE END OF THE TUNNEL, AND MANAGEMENT IS
THE TRAIN ENGINE THAT MOVES THE ORGANIZATION
FORWARD’’.

2. INTRODUCTION TO OPERATION
MANAGEMENT
• An airline company to illustrate an operations system
Forecasting
Capacity planning
Scheduling
Managing inventories
Employee motivation
Location of facilities
Buying materials

3. WHY STUDY OPERATIONS MANAGEMENT?
• operations management activities are at the core of all business
organizations
• a large number of all jobs are in operations management
• activities in all of the other areas of business organizations, such as
finance, accounting, human resources, management information
systems (MIS), and marketing

4. FUNCTIONS WITHIN ORGANIZATIONS
1. Operations
$ Products
DEMANDFunding needs

5. Value-added Process
Inputs
Building
Labor
Machines
Materials
Customers
Information
Transformation/
Conversion
process
Outputs
Goods
Services
Control
Suppliers, Customers
Feedback
Feedback

6. 2. Finance
• Provision of funds.
• Economic analysis
3. Marketing

7. Other Functions
OPERATIONS
• Accounting
• Management information
systems (MIS
• Purchasing
• personnel or human
resources
• Product design
• Maintenance
• Manufacturing engineering
• Logistics

8. Example:
Nestle Operations Management
INVENTORY
MANAGEMENT
RAW MATERIALS
WORK IN PROCESS INVENTORIES
FINISHED GOODS INVENTORY
QUALITY MANAGEMENT

9. Human Resource Management
MATERIALS
MANAGEMENT INVENTORY CONTROL SYSTEMS
CAPACITY PLANNING OF NESTLE
PRODUCTION CAPACITY OF
NESTLE

10. The Journey of milk from Cow to Nestlé's Kit Kat

11. Importance of Production Management
• Helps to Introduce New Products
• Expansion of the Firm
• Minimizes price of Production
• Accomplishment of Firm’s Objectives
• Reputation, Goodwill and Image
• Helps to Face Competition
• Optimum Utilization of Resources
• Supports different usefulAreas

12. Types of Production system
Vehicle Quality Division
Assembly Frame Division
Paint Division
Weld Division
Material Logistics Division
Press Division
Mass Production System
• HONDA MOTORS

13. Flexible Manufacturing System (FMS) or Flexible
Production System
• Meaning
Example: Steam Iron
Computer Controlled
System
WorkStation
DrillHoles
WorkStation
PAINTING
WorkStation
QUALITY
CHECK
WorkStation
PACKGING

14. THE CUSTOMER DRIVEN PRODUCTION
Example: Samsung: A Customer-Driven Production

15. Production Process
• Analytical Production System
• Synthetic Production System
• Continuous Production system
• Intermittent Production system

16. TECHNOLOGY AND THE PRODUCTION
PROCESS
• Green Manufacturing Process
• Process of Green Manufacturing
Robots
• Assembling products
• Handling dangerous materials
• Spraying finishes
• Inspecting parts, produce, and livestock
• Cutting, polishing andWelding

17. Computer-Aided Design and Manufacturing
• Prototype manufacture
• Determining the efficient method for manufacturing by calculating the costs and
considering the production methods, volume of products, storage and distribution
• Ordering of the necessary materials needed for the manufacturing process
• Computer-aided manufacturing of the products with the help of computer
numerical controllers
• Quality controls at each phase of the development.
• Product assembly with the help of robots
• Quality check and automated storage
• Automatic distribution of products from the storage areas to waiting lorries/trucks
• Automatic updating of logs, financial data and bills in the computer system
Computer Integrated Manufacturing

18. The Job of Production Managers
• Selection of Product and Design
• Selection of Production Process
• Selecting Right Production Capacity
• Production Planning
• Production Control
• Quality and Cost Control
• Inventory Control
• Maintenance and Replacement of Machines

19. Example:
Unilever’s Production Management
Design of
Goods and
Services.
Quality
Management
Process and
Capacity
Design
Location
Strategy
Layout
Design and
Strategy
inventory
Management
Scheduling
Maintenance
PRODUCTION
MANAGEMENT

20. Importance of Quality
• Customer Expectations
• Reputation
• Meeting Standards
• Costs

21. Quality Control
• ISO STANDARDS
• HISTORY
• PAKISTAN STANDARDS AND QUALITY CONTROL AUTHORITY
Conclusion

22. ‘’Operations keeps the lights on, strategy
provides a light at the end of the tunnel, and
management is the train engine that moves the
organization forward’’.
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