Simple understanding of Operation Management

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• Actual ‘Doing’ part is
the Operation
• Methods to accomplish
• Organizational Strategies
• Functional Strategies
• Mission has a purpose
• Goals are mission details
Roles of An Operation Manager
Prepared by: Mr. National Dangi
OPERATION MANAGEMENT

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3. Case study: Inside Singapore World
class education system
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https://www.youtube.com/watch?v=_aB9Tg6SRA0

4. Vision, Mission, Objectives
• Vision: An idealistic emotional future of a company
Eg: Vision statement of a school; We know we have made progress not when a genius is able to do
something new but when non-geniuses are able to repeat it. Our vision aligns with shifts in the global
economy, environment and society which animates our mission and our values. Our vision is to develop
students’ personality, morality and other characters so that they respect societal values
• Mission: Who’s Who, Reason for existence
Eg: Mission statement of a school; We prioritizes humanity, cultural, moral and spiritual values
along with the knowledge. We aim to develop well-rounded thoughtful and confident students
prepared to cope with the ever-changing globalized world. We provide a culture of mutual respect
and acceptance with children moving onto their next venture with the skills and values to set them
on the path to achieve their dreams.
• Objectives: Action as per the strategies
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5. Definition
• What is Operations?
– The part of a business organization that is responsible for producing goods or
services
• How can we define operations management?
- The management of systems or processes that create goods and/or provide
services
Note: Operations management has expanded from treating only the core production
processes in manufacturing organizations to include service organizations, non-core
operations processes and processes in other functions such as marketing, finance and
HRM. Pearson College of London
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6. Transformation process
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Inputs • Materials Information Customers
Process
• People Facilities(Technology,
buildings, etc.)
Outputs • Products and services
Control

7. Sample Operation Strategies
Organizational
Strategy
Operations
Strategy
Examples of
Companies or services
Low price Low cost U.S. first-class, postage Wal-Mart
Responsiveness Short processing times On-
time delivery
McD’s Restaurants,
FedEx
High Quality High Performance design
and/or high quality processing
Sony TV
Newness Innovation 3M, Apple
Varitety Flexibility
Volume
Burger King(Have it your way),
McD’s(Buses Welcome)
Service Superior Customer Service Disneyland, IBM
Location Convenience Supermarkets, Malls stores
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8. Role of Operation Managers
• All activities directly related to producing goods or providing services.
• Primary function: Guide decision making
• System design decisions(Strategic Decision) - Capacity, facility location, facility layout,
product and service planning, acquisition and placement of equipment
• System operation decision – Generally Tactical and operational decisions.
Management of personnel, Inventory management an control.
– Note: Responsible for maintaining a business. Work along with location personnel
and upper management to ensure the functions of the business and service delivery.
Oversee everything from cleani
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9. System design decision
Strategic decisions usually require long term commitment of resources
• Capacity,
• facility location,
• facility layout,
• product and service planning,
• acquisition and placement of equipment
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10. System operation Decision
• Generally Tactical and Operational decisions
• Management of Personnel
• Inventory management and control
• Scheduling
• Project management
• Quality assurance
Note: Operation Managers spend more time on system operation decision than
any other decision area and still have a vital role in system Design
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11. System Approach
• System is a set of interrelated parts that must work together
• Business organization is a system composed of subsystems
Marketing sub-system
Operations sub-system
Finance sub-system
• The system approach: It emphasizes interrelation among sub-system
• Main theme: The whole is greater than the sum of its parts
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12. Operation Manger Decision making
• Most decision involve many alternatives that can have quite different
impacts on costs or profits
• Typically, decisions are:
What resources are needed, its quantity?
When will each resources needed?
where will the work be done?
How will the product and services be designed?
Who will do the work?
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13. Reviews
• Harmony Public School Model:
Establishing OM System is quintessential
OM is behind the scene course responsible for functioning
From Enrollment to attendance
Students nutritionist and students health
Campus safety and maintenance to inventory record
management
Note: Record management refers to Tracking inventory, School records, employees records, compliance
records
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14. Ethical Issues in Operation Management
• Aspects of Financial statements
• Workers safety and rights
• Product safety
• Quality
• The environment
• The community
• Facilities
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15. Key issues for OM today
• Economic conditions
• Innovation
• Quality problems
• Risk management
• Competing in a global economy
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16. Why some organization fail?
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17. A cold hard fact
• Better quality
• Higher Productivity
• Lower costs
• Ability to respond quickly to customers needs
• The bar is getting higher…
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18. Summary
Page Title Page Title
2 OM in a picture 3 Case study
4 Vision mission objective 5 Definition
6 Transformation process 7 Sample operation strategies
8 Role of Operation Managers 9 System operation decision
10 System operation decision 11 System approach
12 Operation manager decision
making
13 Reviews
14 Ethical issues 15 Key issues today
16 Why organization fail 17 A cold hard fact
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19. Q&A
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