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    Unit 1: To Operations Management

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    shubham
    1) Operations management involves planning, organizing, and controlling the processes that produce and deliver goods and services. It includes functions like forecasting, capacity planning, facilities layout, scheduling, inventory management, quality assurance, and employee motivation. 2) There are three major functional areas of organizations: operations, marketing, and finance. Operations is responsible for producing goods and services. 3) The scope of operations management ranges across the entire organization and involves transforming inputs like materials, labor, capital, and information into outputs like goods and services through core production and support processes.

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    Unit 1: To Operations Management

    Uploaded by

    shubham
    71 views14 pages
    1) Operations management involves planning, organizing, and controlling the processes that produce and deliver goods and services. It includes functions like forecasting, capacity planning, facilities layout, scheduling, inventory management, quality assurance, and employee motivation. 2) There are three major functional areas of organizations: operations, marketing, and finance. Operations is responsible for producing goods and services. 3) The scope of operations management ranges across the entire organization and involves transforming inputs like materials, labor, capital, and information into outputs like goods and services through core production and support processes.

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    1) Operations management involves planning, organizing, and controlling the processes that produce and deliver goods and services. It includes functions like forecasting, capacity planning, facilities layout, scheduling, inventory management, quality assurance, and employee motivation. 2) There are three major functional areas of organizations: operations, marketing, and finance. Operations is responsible for producing goods and services. 3) The scope of operations management ranges across the entire organization and involves transforming inputs like materials, labor, capital, and information into outputs like goods and services through core production and support processes.

    Copyright:

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

    Unit 1: To Operations Management

    Uploaded by

    shubham
    1) Operations management involves planning, organizing, and controlling the processes that produce and deliver goods and services. It includes functions like forecasting, capacity planning, facilities layout, scheduling, inventory management, quality assurance, and employee motivation. 2) There are three major functional areas of organizations: operations, marketing, and finance. Operations is responsible for producing goods and services. 3) The scope of operations management ranges across the entire organization and involves transforming inputs like materials, labor, capital, and information into outputs like goods and services through core production and support processes.

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    of 14

    UNIT 1

    Introduction
    to
    Operations
    Management
    1
    NATURE & SCOPE OF O.M
     You should be able to:
    1. Define the term operations management
    2. Identify the three major functional areas of organizations and describe how they
    interrelate
    3. Identify similarities and differences between production and service operations
    4. Describe the operations function and the nature of the operations manager’s job
    5. Summarize the two major aspects of process management
    6. Explain the key aspects of operations management decision making
    7. Briefly describe the historical evolution of operations management
    8. Characterize current trends in business that impact operations management

    2
    OPERATIONS MANAGEMENT

     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

    3
    GOOD OR SERVICE
     Goods are physical items that include raw materials, parts, subassemblies, and final
    products.
    • Automobile

    • Computer

    • Oven

    • Shampoo

     Services are activities that provide some combination of time, location, form or
    psychological value.
    • Air travel

    • Education

    • Haircut

    • Legal counsel

    4
    BASIC FUNCTIONS OF THE BUSINESS ORGANIZATION

    Organization

    Marketing Operations Finance

    5
    THE TRANSFORMATION PROCESS
    Value-Added

    Inputs Transformation/ Outputs


    •Land Conversion •Goods
    •Labor •Services
    •Capital
    Process
    •Information

    Measurement
    and Feedback
    Measurement Measurement
    and Feedback and Feedback
    Control

     Feedback = measurements taken at various points in the transformation process.


     Control = The comparison of feedback against previously established standards to
    determine if corrective action is needed

    6
    GOODS-SERVICE CONTINUUM
    Products are typically neither purely service- or purely goods-
    based.
    Goods Services
    Surgery, Teaching

    Songwriting, Software Development

    Computer Repair, Restaurant Meal

    Home Remodeling, Retail Sales

    Automobile Assembly, Steelmaking

    Instructor Slides 1-7


    MANUFACTURING VS. SERVICE?
    Manufacturing and Service Organizations differ chiefly because
    manufacturing is goods-oriented and service is act-oriented.

    Goods Services

    Tangible Act-Oriented

    Instructor Slides
    1-8
    MANUFACTURING VS. SERVICE
    1. Degree of customer contact
    2. Uniformity of input
    3. Labor content of jobs
    4. Uniformity of output
    5. Measurement of productivity
    6. Production and delivery
    7. Quality assurance
    8. Amount of inventory
    9. Evaluation of work
    10. Ability to patent design
    1-9
    MANAGING SERVICES IS CHALLENGING
    1. Jobs in services are often less structured than in manufacturing
    2. Customer contact is generally much higher in services compared to
    manufacturing
    3. In many services, worker skill levels are low compared to those of manufacturing
    employees
    4. Services are adding many new workers in low-skill, entry-level positions
    5. Employee turnover is high in services, especially in low-skill jobs
    6. Input variability tends to be higher in many service environments than in
    manufacturing
    7. Service performance can be adversely affected by many factors outside of the
    manager’s control (e.g., employee and customer attitudes)
    PROCESS MANAGEMENT

    Process - one or more actions that transform inputs into outputs

    Three Categories of Business Processes:


    Upper-management processes These govern the operation of the entire
    organization.
    Operational processes These are core processes that make up the
    value stream.
    Supporting processes These support the core processes.

    Instructor Slides 1-11


    SUPPLY & DEMAND

    Operations &
    Supply Chains Sales & Marketing

    Wasteful
    Supply
    > Demand Costly

    Opportunity Loss
    Supply
    < Demand Customer
    Dissatisfaction

    Supply
    = Demand Ideal

    Instructor Slides
    1-12
    PROCESS VARIATION
    Four Sources of Variation:
    Variety of goods or services The greater the variety of goods and services
    being offered offered, the greater the variation in production
    or service requirements.
    Structural variation in demand These are generally predictable. They are
    important for capacity planning.
    Random variation Natural variation that is present in all
    processes. Generally, it cannot be influenced
    by managers.
    Assignable variation Variation that has identifiable sources. This
    type of variation can be reduced, or
    eliminated, by analysis and corrective action.

    Variations can be disruptive to operations and supply chain processes.


    They may result in additional costs, delays and shortages, poor
    quality, and inefficient work systems.

    Instructor Slides 1-13


    SCOPE OF OPERATIONS MANAGEMENT

    The scope of operations management ranges across


    the organization.
    The operations function includes many interrelated
    activities such as:
     Forecasting
     Capacity planning
     Facilities and layout
     Scheduling
     Managing inventories
     Assuring quality
     Motivating employees
     Deciding where to locate facilities
     And more . . .
    1-14

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