The document provides an overview of operations management. It discusses key inputs like raw materials, machinery, and manpower that are transformed through operations like crushing and grinding to produce outputs like cement. Operations management involves managing these transformations effectively and efficiently. It aims to satisfy customer demand while achieving organizational goals of effectiveness and efficiency.

1. OPERATIONS MANAGEMENT AN OVERVIEW

7. OBJECTIVES AND GOALS OF AN ORGANIZATION Objective Goal To produce product / service To produce product of good quality at an price that meets Customer’s satisfaction

8. INTER-RELATIONSHIP OF ELEMENTS OF OM Operation System Process Capacity Customer Demand

23. OM MEETS THE REQUIREMENTS OF EXTERNAL CUSTOMERS IN THE CHAIN Supplier 1 Cement Co. Supplies cement to Construction company Supplies structural steel items to construction company Construction company (immediate customer) Builds the hospital (the ultimate customer) Supplier 2 Steel Co.

25. GROUPS OF PERSONS OR PERSONS HAVING INTEREST IN THE ORGANIZATION - 1 Groups / persons Their Interest Banks & investment firms Assured rate of return on their investments Suppliers, manpower recruiting and supply agencies & contractors Prompt payments on delivery, timely payments of wages/salary, timely payment on completion of work.

26. GROUPS OF PERSONS OR PERSONS HAVING INTEREST IN THE ORGANIZATION - 2 Groups / persons Their Interest Local population Employment opportunities, general development of region, potential problems like traffic jams, sharing of community resources, pollution and law & order situation. Government agencies Adherence of rules and regulations

27. EVOLUTION OF PRODUCTION AND OPERATION MANAGEMENT Continual Evolution of POM Tomorrow Post-Civil War Period Human Relations and Behavioral Service Revolution Computer Revolution Industrial Revolution Scientific Management Operations Research Today’s Developments Reality of global competition, Quality, Customer services, Cost challenges, Rapid expansion of Advanced Technologies, Continued growth of the service sector, Scarcity of Operations Resources and Social-Responsibility Issues

49. INTEGRATED MIS Organizational Functions Customer Demand Management Activities Management Planning & Control Strategic Planning Operational Planning & Control Purchasing Warehousing & inventory control Production Marketing Finance & accounting Personnel Engineering STRUCTURAL MODEL OF MANAGEMENT INFORMATION SYSTEM OF MODERN OPERATION MANAGEMENT Supplier Interface

52. STRATEGIC ACTIONS TO ACHIEVE COMPETITIVE ADVANTAGE BY IMPROVED DELIVERY PERFORMANCE Delivery Performance Strategic Actions Fast Delivery Larger finished-goods inventories Faster production rates Quicker shipping rates On-time delivery More realistic promises Better control of production of orders Better information systems

53. STRATEGIC ACTIONS TO ACHIEVE COMPETITIVE ADVANTAGE BY BETTER CUSTOMER SERVICE AND FLEXIBILITY Ref: Table 2.6, page 45, Operations Management by Norman Gaither & Greg Fraizer Customer Service Strategic Actions Ability to quickly change production to other products/ services, customer responsiveness Change in types of processes used Use of advanced technologies. Reduction of amount of work in process through lean manufacturing. Increase in capacity

54. STRATEGIC ACTIONS TO ACHIEVE COMPETITIVE ADVANTAGE BY IMPROVED PRODUCTS/SERVICES Quality of products/ services Strategic Approach Customers’ perception of degree of excellence exhibited by products/ services Appearance Malfunction or defect rates Performance and function Wear, endurance ability After-sales services