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    Lecture 03 Operations Management Function and Scope

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    Sanskar Agrawal
    The document discusses operations management, which involves converting resources into goods and services. The operations department is responsible for production planning, quality control, and cost management. Operations personnel forecast demand, procure resources, and utilize production facilities. The scope of operations management includes strategic decisions around new products, processes, facilities, and capacity as well as tactical decisions regarding production planning and control. Operations management framework focuses on the 5 Ps: product, plant, program, processes, and people.

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    Lecture 03 Operations Management Function and Scope

    Uploaded by

    Sanskar Agrawal
    42 views14 pages
    The document discusses operations management, which involves converting resources into goods and services. The operations department is responsible for production planning, quality control, and cost management. Operations personnel forecast demand, procure resources, and utilize production facilities. The scope of operations management includes strategic decisions around new products, processes, facilities, and capacity as well as tactical decisions regarding production planning and control. Operations management framework focuses on the 5 Ps: product, plant, program, processes, and people.

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    Lecture 03 Operations management function and scope

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    The document discusses operations management, which involves converting resources into goods and services. The operations department is responsible for production planning, quality control, and cost management. Operations personnel forecast demand, procure resources, and utilize production facilities. The scope of operations management includes strategic decisions around new products, processes, facilities, and capacity as well as tactical decisions regarding production planning and control. Operations management framework focuses on the 5 Ps: product, plant, program, processes, and people.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    42 views14 pages

    Lecture 03 Operations Management Function and Scope

    Uploaded by

    Sanskar Agrawal
    The document discusses operations management, which involves converting resources into goods and services. The operations department is responsible for production planning, quality control, and cost management. Operations personnel forecast demand, procure resources, and utilize production facilities. The scope of operations management includes strategic decisions around new products, processes, facilities, and capacity as well as tactical decisions regarding production planning and control. Operations management framework focuses on the 5 Ps: product, plant, program, processes, and people.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 14

    Lesson 03

    Operations Management
    Operations Management: Functions and Scope

    Dr. Inderdeep Singh


    Department of Mechanical and Industrial Engineering

    1
    Basic Functions of the Business Organization

    Organization

    Finance Operations Marketing

    Source:-https://s3.amazonaws.com/ppt-download/chap001
    Activities of Operation Department

     Convert available capital into physical resources

     Convert the physical resources into saleable goods and


    services

    Source:-https://s3.amazonaws.com/ppt-download/chap001
    Activities of Operation Department
    Additional activities required to fulfill the previous
    activities
     Production of goods at the right time and sufficient
    quantity to meet the demand
     Production of goods at minimum cost
     Production of goods of acceptable quality

    Source:-https://s3.amazonaws.com/ppt-download/chap001
    Function of Operation personnel

    • Forecasting the demand for the products


    • Arranging for the procurement of required factors of
    production
    • Arranging for the services such as maintenance, store
    keeping material handling, inspection and quality
    control etc.
    Source:-https://s3.amazonaws.com/ppt-download/chap001
    Function of Operations personnel

    • Utilizing effectively the factors of production


    and service facilities available to produce the
    product.

    Source:-https://s3.amazonaws.com/ppt-download/chap001
    Scope of Operations Management
    • Scope of operations management depends on
    decisions (strategic and tactical decision)
    • The strategic level decisions are:
    - New product identification and design
    - Process design and planning
    - Facilities location and layout planning
    - Design of material handling system
    - Capacity planning
    • The tactical (operational) level decisions are:
    - Production planning
    - Production Control
    - Other activities such as Inventory control, maintenance and
    replacement cost reduction and cost control and work system
    design
    Operations Management Frame Work
    • Operations Management framework is
    divided into 5p’s
    - Product
    - Plant
    - Programme
    - Processes
    - People
    Product
    - It is link between production and marketing.
    A product must have:
    - Performance
    - Quality and reliability
    - Aesthetics and ergonomics
    - Quantity and selling price
    - Delivery schedule
    Plant
    • The plant accounts for major investment (fixed assets)
    • The plant is concerned with;
    - Design and layout of building and offices
    - Reliability and maintenance of equipment
    - Safety of operations
    • Plant layout must allow smooth movement of men and
    material.
    • Type of layout dependent on production type, volume of
    demand etc.
    Process
    • Methods used to create a product
    Selection of a particular process depends on following factors;
    - Available capacity
    - Manpower skills available
    - Type of production
    - Layout of plant
    - Safety
    - Maintenance required
    - Manufacturing cost
    Programme
    • Programme refers to the timetable of production.

    • Programme prepares schedule for;


    - Purchasing
    - Transforming
    - Maintenance
    - Cash
    - Storage and transport
    People
    • People are part of organization. Progress of organization
    depends on attitude and skills of working people
    • Job satisfaction of people depends on good match between
    people and jobs
    It is possible by:-
    - Motivation
    - Training of employees
    - Condition of work/safety
    - Proper wages/salary

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