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Operations Management

Operations Management

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Published by Shaheen Mahmud
This document is about Operations Management
This document is about Operations Management

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Categories:Types, Business/Law
Published by: Shaheen Mahmud on Jan 17, 2013
Copyright:Attribution Non-commercial


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Operations Management
Unit 1 Overview of Operations Management
1.1 IntroductionObjectives1.2 The Meaning of Operations Management Aspects of Operation ManagementScope of Operations Management1.3 Evolution of Operations Management1.4 Operations FunctionResources in Operating SystemsRole of Operations in an Organisation1.5 Current Trends in Manufacturing in India1.6 World-class Manufacturing Practices1.7 Services as a Part of OperationsService and Manufacturing Organisations1.8 Operations Management-A Systems Perspective1.9 Challenges in Operations ManagementQuality Management IssuesLead Time IssuesLabour Productivity Issue1.10 Emerging Trends in Business1.11 Summary1.12 Terminal Questions1.13 Answers1.14 Case Study1.15 Glossary
1.1 Introduction
Operations Management deals with designing and managing products, processing, andservicing. Manufacturing, service, and agriculture are the major economic activities inany country. In India, manufacturing and servicing together constitute nearly 75% of theGross Domestic Product (GDP). In recent years, growth in GDP has been primarily dueto the growth in these sectors of the economy. Therefore, managing manufacturing andservice operations are important economic activities. Utilising appropriate
OperationsManagement Unit 1 .: 2
methods for planning and control of operations in manufacturing and serviceorganisations can result in significant productivity improvements and cost savings. It canalso positively influence the overall health of the economy. „Operations Management
isa discipline that focuses on this aspect.Operations Management (OM) is important for both society as well as organisationbecause the consumption of goods & services is an integral part of our society.Operations Management is responsible for creating goods and services. Hence,operations are the core function of an organisation.
Learning Objectives:
 After studying this unit you will be able to
Define “Operations Management” and its meanings, aspects and scope.Distinguish between functions and activities of operations managers/ personnel.
Distinguish between servicing operations and manufacturing operations.
Explain the manufacturing trends in India and compare with World class
 manufacturing trends.Explain the emerging business trends in Operations Management.
Discuss the role of services as a part of Operations Management.
Identify the challenges in Operations Managements.
1.2 The Meaning of Operations Management
Operations Management is a systematic approach to all the issues pertaining to thetransformation process that converts inputs into useful outputs, and fetches revenue tothe organisation. Operations Management, deals with the production of goods &services. The variety and types of goods & services that we see everyday are producedunder the supervision of operations managers. A modern industrialised society cannotexist without effective management of „operations
Operations Managers
Operations managers have important positions in every company. They are collectivelyresponsible for producing the supply of products in a manufacturing business. Thisgroup also includes those managers at the corporate level (example, Vice President)who are overall in charge or are holding staff functions related to operations such as:
Operations Management Unit 1 .: 3
The Plant Manager 
Production Manager 
Inventory Control Manager 
Quality Manager 
Line Supervisors
1.2.1 Aspects of Operation Management
The focus of the Operations Management is on the various aspects of design in thetransformation process as well as planning and operational control. A systematic approach involves understanding the issues and problems, establishingmeasures of performance, collecting relevant data, using scientific tools & techniquesand solution methodologies for analysing and developing effective as well as efficientsolutions to the problem at hand. Another aspect of Operations Management pertains toaddressing several issues that an organisation faces. These issues vary markedly interms of the time horizon, the nature of the problem to be solved and the commitment of the needed resources.For example, performing the task even though the machine breaks down or duringshortage of time or taking decisions on critical issues related to product and servicerequire greater commitment of time and resource.Operations Management provides alternative methodologies to address such wide-ranging issues in an organisation. Through careful plan and control of the operations, theorganisation can keep „costs
to the minimum and definitely below „revenues
obtainedfrom the market. In order to ensure this, an appropriate performance evaluation systemis required, the development of which is also the job of Operations Management.
1.2.2 Scope of Operations Management
The scope of Operations Management ranges across the organisation and is vast. Itcommences with the selection of location followed by activities such as acquisition of land, constructing building, procuring and installing machinery, purchasing and storingraw materials and converting them into saleable products.

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