Production Viewed as a System
CustomersCustomers
Suppliers of Materials andEquipment
Receipt and Testof Materials
Consumer Feedback
Design andRe - design
DistributionProductionAssemblyInspectionTests of Processes , Machines , Methods , Costs
“ I believe this Diagram made the difference in Japan….the greatest way I accomplished anything there wasthrough this diagram ”W. Edwards Deming
Foundation of Modern Operations Management
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Energy30 crores per hour
•
Telecommunication20 crores per hour
•
Manufacturing17.5 crores per hour
•
Financial15 crores per hour
•
Information Technology15 crores per hour
•
Insurance12.5 crores per hour
•
Retail10 crores per hour
•
Pharmaceutical7.5 crores per hour
•
Energy30 crores per hour
•
Telecommunication20 crores per hour
•
Manufacturing17.5 crores per hour
•
Financial15 crores per hour
•
Information Technology15 crores per hour
•
Insurance12.5 crores per hour
•
Retail10 crores per hour
•
Pharmaceutical7.5 crores per hour
A META Group Study
Evolution of Operations Management
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Agriculture
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Organising and coordinating groups of people to carry out tasksin the fields
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Military Operations
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Regimented organisation of groups of people established toprotect a settlement from tyranny or conquer
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Creation of Professions
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Essentially artisans who developed and passed on ‘tradesecrets’ within their immediate families
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Handcrafting products or services for individual customers
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Guilds
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Structured group of people involved with the same professioncreating their own ‘set of rules’
Pre – Industrial Revolution Era
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