Operations management involves the design, operation, and improvement of systems for delivering a firm's products and services. Key concepts include efficiency, effectiveness, value, and various transformation types, alongside competitive dimensions such as cost, quality, and delivery. The document highlights the importance of a systematic approach for enhancing organizational processes and career opportunities in operations management.

1. Operations Management
T.Rama Krishna Reddy
161452

2. Operations Management
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. Why Study Operations Management?
Operations
Management
Business Education/
Career Opportunities
Systematic Approach
to Org. Processes
Increase Competitive
Advantage/Survival
Cross-Functional
Applications

4. 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

5. Transformations
 Physical--manufacturing
 Locational--transportation
 Exchange--retailing
 Storage--warehousing
 Physicological--health care
 Informational--telecommunications

6. 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

7. Front and Back Office
Front Office
Customer
Service Provider
Back Office

8. Core “Factory Services”
Core Services are basic things that
customers want from products that they
purchase.

Quality

Flexibility

Speed

Price (or production cost)

9. Competitive Dimensions
 Cost
 Quality and Reliability
 Delivery
 Flexibility
 Speed
 Reliability
 Coping with Changes in Demand
 New Product Introduction
 Speed
 Flexibility

10. Balanced Scorecard
1. Financial perspective
2. Internal perspective
3. Customer perspective
4. Innovation and learning perspective

11. Thank You