OM

and
Other Functional Areas

Dr. B. P. Panda
 OM’s interface with
other functional areas
Finance
Acquires financial resources and
capital for inputs

Material & Sales

Service Inputs Revenue

Support Functions
• Accounting
• Information Systems
• Human Resources
Operations • Engineering Marketing
Translates materials and Generates sales of
service into outputs outputs

Product & Service

Outputs
 Operations as the Technical Core
Finance/Accounting
Production and Budgets
Inventory data Cost analysis
Capital budgeting requests Capital investments
Capacity expansion and Stockholder
Technology plans requirements
Orders for materials Product/Service
Production and delivery Availability
Schedules Quality Lead-time estimates

Marketing
Suppliers

Requirements Design/ Status of order

Performance specs Delivery schedules

Operations
Material availability Sales forecasts
Quality data Customer orders
Delivery schedules Customer feedback
Designs Promotions
Personnel needs
Skill sets Hiring/firing
Performance evaluations Training
Job design/work Legal requirements
measurement Union contract negotiations

Human Resources
To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved.
OM & Other Functional Areas of Mgt.
Everyone who manages a process or some business activity should possess
a set of basic OM skills in conjunction with other functional skills.

– OM & Industrial Mgt.; OM & Accounting; OM & IT; OM & Process Mgt.; OM &
Marketing & Finance etc.
– Quality assurance; customer service; statistics, ctrl. Charts; Data analysis and
decision making for purchase and upgradation of equipment
– Optimizing the m/c performance in a process by eliminating bottlenecks and
reducing cycle time
– Cross-functional continuous improvement teams
– Managing projects
– Reducing wastes
– Performance measurement and evaluation
– Managing inventory
– Planning and budgeting; Scheduling and sequencing; Facility and capacity planning
– Developing new products, processes, services, technologies
To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved.
 Organization: Function Vs. Process

CEO
Functional Focus

VP-1 VP-2 ***

Mgr-1-1 Mgr -1-2 Mgr-2-1 Mgr-2-2 Mgr-2-3

Process -A

Process -B
Process Focus

Process - C

Process -D

Process -E

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved.
 Classwork-2

• Read the CASE-1 (Acme Whistles) to

– Identify the OM activities

– List various functional areas

– Write the other functional areas with which the

OM area interacts and in what way.