This document discusses key concepts in operations management for service industries. It defines operations management as designing, operating, and improving systems that deliver primary products and services. Key concepts are efficiency, effectiveness, and value. The transformation process takes inputs, transforms them through a process, and produces outputs. Examples of production systems are given for hospitals, restaurants, automobile plants, and universities. The document outlines the scope of operations management and competitive dimensions. It also discusses challenges in managing services compared to manufacturing.

1. OPERATION MANAGEMENT
AND SUSTAINABILITY IN
SERVICE INDUSTRY
MANSI DEOKAR
BBA-IB
SEMESTER - 6

2. Definition
Operations management is defined as the design, operation, and
improvement of the systems that create and deliver the firm’s primary
products and services.

3. Key OM Concepts
■ Efficiency - Doing something at the lowest possible cost
■ Effectiveness - Doing the right things to create the most value for the
organization
■ Value - Quality divided by price

4. TheTransformation Process
■ 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.
Inputs
•Land
•Labor
•Capital
•Information
Outputs
•Goods
•Services
Transformation/
Conversion
Process
Control
Measurement
and Feedback
Measurement
and Feedback
Measurement
and Feedback
Value-Added

5. Examples of Production Systems
System Inputs Conversion Output
(desired)
Hospital Patients
MDs, Nurses
Medical Supplies
Equipment
Health Care Healthy
Individuals
Restaurant Hungry Customers
Food, Chef
Servers
Atmosphere
Prepare Food
Serve Food
Satisfied
Customers
Automobile
Plant
Sheet Steel
Engine Parts
Tools, Equipment
Workers
Fabrication
and Assembly
of Cars
High Quality
Automobiles
University High School Grads
Teachers, Books
Classroom
Transferring
of Knowledge
and Skills
Educated
Individuals

6. Scope of Operations Management
■ Operations Management includes:
– Forecasting
– Capacity planning
– Scheduling
– Managing inventories
– Assuring quality
– Motivating employees
– Deciding where to locate facilities
– Supply chain management

7. Competitive Dimensions
■ Cost
■ Quality and Reliability
■ Delivery
– Flexibility
– Speed
– Reliability
■ Coping with Changes in Demand
■ New Product Introduction
– Speed
– Flexibility

8. Types of Operations
Operations Examples
Goods Producing Farming, mining, construction ,
manufacturing, power generation
Storage/Transportation Warehousing, trucking, mail
service, moving, taxis, buses,
hotels, airlines
Exchange Retailing, wholesaling, banking,
renting, leasing, library, loans
Entertainment Films, radio and television,
concerts, recording
Communication Newspapers, radio and television
newscasts, telephone, satellites

9. Challenges of Managing Services
■ Service jobs are often less structured than manufacturing jobs
■ Customer contact is higher
■ Worker skill levels are lower
■ Services hire many low-skill, entry-level workers
■ Employee turnover is higher
■ Input variability is higher
■ Service performance can be affected by worker’s personal factors

10. THANKYOU….!!!!