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operations function

Operations Management involves the planning, coordinating, executing, and controlling of processes that produce goods and services. It encompasses various functions including forecasting demand, capacity planning, scheduling, and quality assurance, which are essential for effective business operations. Key trends in this field include lean production, cost control, and the increasing importance of technology and globalization.

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2 views

operations function

Operations Management involves the planning, coordinating, executing, and controlling of processes that produce goods and services. It encompasses various functions including forecasting demand, capacity planning, scheduling, and quality assurance, which are essential for effective business operations. Key trends in this field include lean production, cost control, and the increasing importance of technology and globalization.

Uploaded by

distinctoutlook
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Operations Management

Basic Functions of Business Organizations

Ensure and Produce goods or Assess consumer


allocating services needs, and sell /
financial promote goods or
resources services
Operations Management
Management of systems / processes

that
manufacture goods

and/or

provide services.

– Planning

– Coordinating

– Executing

– Control
Feedback

Inputs Outputs

Workers
Managers Performance
Goods
Equipment
Operations: A Transformation
Operations Services
Facility and
Materials
Process processes
Land
Energy

Information
• Inputs
– 5 Ms
Management, Methods, Material, Machines, Maintenance

– Also: Personnel , information & energy

• Transformation/conversion process
Operations = Transformation
Cutting, Process
machining, storing, transporting, investing,
analyzing

• Output
Goods/services
Example: Food Processing Plant

Inputs Processing Outputs

Raw Vegetables Cleaning Canned vegetables


Metal Sheets Making cans
Water Cutting
Energy Cooking
Labor Packing
Building Labeling
Equipment

Consumer Feedback
Example: Hospital

Inputs Processing Outputs

Doctors, nurses Examination Healthy


Hospital Surgery patients
Medical Supplies Monitoring
Equipment Medication
Laboratories Therapy

Improvement of patients health condition


Example: Operations Management at
GNIMS

Inputs Processing Outputs

Knowledge Lecturing Future


• Text Book Tutoring operations
• Lecture Notes Assignment managers
• Handouts Exam
• Blogs

Teaching Evaluation
Steel production Home Auto Repair Maid Service Teaching
Automobile remodeling Appliance Manual car
fabrication Retail sales repair wash

Goods-Service
High percentage Continuum
Low percentage
goods goods
Low percentage High percentage
service service
Manufacturing vs. Service

Characteristic Manufacturing Service


Output Tangibl Intangible
Uniformity of output e Low
Uniformity of input High Low
Labor content High High
Measurement of Low Difficult
productivity Easy High
Customer contact Low
Opportunity to correct Low
quality problems before High
Difficult
delivery Easy Not
Evaluation Usually Usually
Scope of Operations Management

• Operations Management includes:


– Forecasting Demand
– Planning Capacity
– Scheduling Jobs
– Managing Inventories
– Assuring Quality
– Motivating Employees
– Locating Facilities
– And more . . .
• Forecasting: Weather, landing conditions, seat demands
for flights.
• Capacity Planning: How many number of planes in each
route?
Airline
• Scheduling: Company
Scheduling of planes for flights and for
routine maintenance, scheduling of pilots and flights
attendants.
• Quality: Quality of the services, Safety.
• Forecasting: Demands for cars.

• Capacity Planning : Number of shifts, level of


workforce.

• Inventory: Various component, parts.


Automobile Factory
• Scheduling: Scheduling of various types of cars,
Scheduling of workforce.

• Quality: Quality of products, services.


Responsibilities of Operations Manager

Planning Organizing
– Capacity
–Degree of centralization
– Location
– Process selection
– Products & services
Staffing
– Make or buy
– Hiring/laying off
– Layout
– Use of Overtime
– Projects
Directing
– Scheduling
Controlling/Improving – Incentive plans
– Inventory –Issuance of work orders
– Quality – Job assignments
– Costs
– Productivity
Reasons to Study Operations Management

• > 50% jobs in industry are opns mgmt. related :


• Customer Service
• Quality Assurance
• Production Planning & Scheduling
• Inventory Management
• Logistics
• OM activities = core of all businesses
• All Other Functional Areas are related with OM
Operations as Technical Core

Capital Markets, Stockholders

Finance
Purchasing

Personnel
Suppliers

Workers
Operations

Marketing

Customers
Supporting Functions

– Purchasing
– Accounting
– Personnel/Human
Industrial
resources Engineering

– Public relations Maintenance


– Maintenance Distribution

– Industrial engineering
– Distribution Purchasing Public
Operations Relations

Legal
Personnel

Accounting MIS
Decision Making

System Design System Operation


– capacity – personnel
– location –inventory
–product and –scheduling
service planning – project
–arrangement of management
departments –quality assurance
–acquisition and
placement of
equipment
• Models

• Quantitative Approach

• Trade-off
Approaches to Decision Making
• Systems approach
Simple Supply Chain

Supplier Direct Final


Producer Distributor
s’ Suppliers Consumer
Supplier
s

Supply Chain:
sequence of activities/organizations involved in producing
and delivering a good or service.
Important Trends
1. Operations Strategy
2. Working with fewer Resources
3. Lean production
4. Cost control and productivity
5. Quality and process improvement
6. Increased regulation and product liability
7. Ethical Behavior

8. Increasing use of internet,e-com

9. Management of technology

10. globalization

11. supply chains

12. agility

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