Summary of Managing Production and Services Operation

What is Operations Management?

Operations management is concerned with the efficient production and distribution of goods and
services. The efficiency and efficacy of procedures are given a lot of attention. As a result,
internal processes are frequently measured and analyzed as part of operations management.

What Is the Difference Between Goods and Services?

A product, on the other hand, is a physical offering to a consumer, but a service is intangible.
The former is often a one-time value transaction. A service, on the other hand, generally takes a
longer time. A product's worth is inherent in the tangible offering itself, such as a can of paint or
a pair of trousers. In contrast, the value of a service is frequently determined by the customer's
perceived gain from the time spent using the service.

Operations Management Specific Roles

1. Chief Operating Officer

The chief operating officer oversees the company's day-to-day operations and reports to the
company's highest-ranking executive, generally the CEO

2. Operations Manager

Product development and delivery, inventory and supply chain management, operations
personnel and job design, and production are all under their control. They are in charge of an
organization's core activities and, as a result, they generally have a broad and strategic vision of
the company.

What Are Operations Systems?

The key activities in operations management are organized into a system that is fully integrated
and coordinated. The operations manager's duty is to make sure that everyone is working
together effectively and efficiently to achieve the intended objective of providing valuable goods
and services to consumers.

An operations system includes, for example:

a. Inputs include experience, best practices, financing, equipment, buildings, and

technology, as well as input from customers and the broader strategic goals of the
company.
b. Processes such as planning in capacity, product and service design, production,
facilities, jobs, inventory, quality control, etc. productivity management in order to create
high-quality goods and services.

c. Outputs are the high-quality products and services

d. Outcomes are the very satisfied customers
Align Operations Systems with Strategic Planning
The strategic priorities of the organization are one of the inputs to the operations system. The
operations system must be tightly linked and aligned with the organization's mission and
strategic objectives. Otherwise, the system will not function as efficiently as it might. There
should be tightly integrated and aligned elements inside the system for it to operate as efficiently
as it should.

Phase 1: Planning Operations Systems

Product/Service Planning

Market research is used in the planning of products and services to:

a. Clarify the requirements and goals of possible consumer groups, as well as how
particular products and services could meet those needs and wants.
b. Determine the best way to provide the new products and services to those target
audiences.
c. Determine who your rivals are, as well as who could be interested in collaborating with
you.
d. Propose the most favorable price arrangements for the items and services.
e. Suggestions about how to better market and promote to those customer segments are
welcome.

Capacity Planning

Capacity planning is determining how many outputs (products or services) will be generated and
how frequently they will be provided. Predicting, or forecasting, the demand for such results is
part of this.

Facilities and Layout Planning

This is one of the most important activities in operations management, not only because it
underpins and facilitates the activities that create products and services extremely effectively
and efficiently, but also because facilities and their upkeep are one of the costliest.

Job and Work Design

An arrangement in the workplace with the goal of reducing employee alienation and job
discontent caused by the workplace's mechanical and repetitive duties. Organizations utilize
work design to increase productivity by providing non-monetary benefits to employees, such as
pleasure from a better feeling of personal success.

Workflow Management

Workflow management is the act of designing and improving data routes in order to finish items
in a process. Workflow management include creating a model of the ideal workflow, eliminating
duplicate processes, automating the process, and identifying bottlenecks or areas for
improvement.

Phase 2: Planning Operations, Inventory and Quality Control

Production and Scheduling

 Production Planning

This activity also includes creating a thorough map of the steps involved in obtaining,
assembling, integrating, and testing the product or service before it is delivered to clients.

 Scheduling

Coordinating (scheduling) the time of activities to arrange, monitor, and optimize the equipment,
people, and production processes is a vital task in ensuring that the operations system is highly
effective and efficient. Scheduling has a significant influence on the system's productivity.

Supply Chain Management and Inventory Management

The active management of supply chain operations to maximize customer value and establish a
sustained competitive advantage is known as supply chain management. It is a purposeful effort
on the part of supply chain companies to create and manage supply networks in the most
effective and efficient manner feasible. Product development, sourcing, production, and logistics
are all covered by supply chain operations.

Service Design

The process of designing and organizing people, infrastructure, communication, and material
components of a service to improve its quality and interaction between the service provider and
its consumers is known as service design. Service design can be used to guide modifications to
an existing service or to build a completely new service.

Quality Control

Effective operations management, particularly continuous improvement, requires quality

management, which includes quality control. More recent improvements in quality, such as
benchmarking and Total Quality Management, have also improved operations management.

Phase 3: Managing Productivity

What is Productivity?

Productivity is defined as the ratio of the system's output to its input in the context of operations
systems. The system will be more productive if the ratio is higher. Output per hour is one of the
most popular productivity metrics. This is particularly essential in the industrial industry.