1. Define operations management.

OM contains “ resources, transformation,

systems, value addition”. Explain these in detailed manner.

Operation management can be define as the management of the entire process that
transfers inputs into outputs.whereas Outputs are as said physical goods or services. Inputs
can be material, manpower and machines.

Operations management refers to the administration of best business practices in order to

achieve the maximum levels of effectiveness and efficiency in terms of the use of company
resources. This includes the proper management of materials, machinery, technology and
labor to produce high-quality goods and services that will benefit the company.

1. Resources

Resources are in the forms of the human, material and capital inputs. Human resources are
the key resources of an organization. By using the intellectual capabilities of people,
managers can multiply the value of their employees. Material resources are the physical
inputs, which are needed for production

2.transformation :-

Operations management transforms inputs (labour, capital, equipment, land, buildings,

materials, and information) into outputs (goods and services) that provide added value to
customers. All organizations must strive to maximize the quality of their transformation
processes to meet customer needs.

3.. Systems

Systems are the arrangement of components designed to achieve objectives. The business
systems are subsystem of large social systems. Business system contains subsystem such as
personnel, engineering, finance and operations. The ability of any system to achieve its
objective depends on its design and control mechanism. System design is a predetermined
arrangement of components. It establishes the relationships between inputs,
transformation activities and outputs in order to achieve the system objectives. System
control consists of all actions necessary to ensure that activities conform to preconceived
plans.
4.. Productivity

The objective of combining resources is to transform the inputs into goods and services
having a higher value than the original inputs. The effectiveness of the production factors in
the transformation process is known as productivity. The productivity refers to the ratio
between values of output per work hour to the cost of inputs.

2. What is the importance of OM in mfg. organization. Explain with examples.

3.. What are the principles of OM as given by Dr.Richard Schonberger.

The 16 principles of operations management by Dr. Richard Schonberger

Dr. Richard J. Schonberger, renowned researcher of American manufacturing and author of

the book “World Class Manufacturing: The Next Decade,” has become widely known in
operations management by his set of 16 customer-focused principles.

• Team up with customers. Know what they buy and use, and organize product
families accordingly. Market basket analysis

firstly always know about what customer wants to buy from the company and their uses.
organize your resources according to the use of the customer. make client communication
easy and ask for reviews from your customer. appoint a decision-maker and be consistent
and quick in replying to the customer. provide superior customer service to your customer.

• Continual, rapid improvement.

d47deliver the best quality of the result with non-stop improvement. the organization aims
to provide a quick response to customer demand. always offers maximum flexibility to the
customer. thus, it gives more value to the organization.

• Unified purpose. Involve frontline employees in strategic discussions to make sure

they understand the purpose of their work and have their say in what to change.

communicate your strategy and know-how; success is measured. make sure how they
understand the purpose of their work. Recognize and reward the high performance. value
your worker's opinions and provide them the growth opportunities.
• Know the competition.

The management should always know about their customer and the best services provided
by the other organizations. You can look toward the opportunities to either compete with
them directly. You should list your competitors with their strengths and weaknesses.

• Focus. Always focus on the reason why customers are not buying from you. The
team needs to spend time on the customer's needs. focus on the effort that offers the best
chance of success. do a little bit every day. Communicate regularly and transparently with
your employees. Focus on less and simplify your priorities.

• Organize resources.

Organize the priorities for the resources that you need for the organization.

Organize them in such a way the resources matches the demand in the service industry. An
organization should make sure that all assets are available to the firm for use during the
production process. Basic organization resources are human, monetary, raw material, and
capital.

• Invest in HR. Offer cross-training options, job rotation, and improvements in work
safety and health. Also offer more rewards and recognitions.

• Maintain equipment. Always think of improvement of current assets first, instead of

a new purchase.

• Simple “best” equipment. Keep the equipment as simple and flexible as possible, at
a reasonable cost.

• Minimize human error. Improve the equipment and keep frontline workers
accountable. (eg. Polio drops vs sanitizer)

• Cut times. Shorten product path to customer by making processes and delivery
faster. (d mart – collection centres by customers)

• Cut setup. Be prepared to support different processes and get all information and
tools ready for on-demand production.

• Pull system. Improve the workflow and cut the waste by producing on demand.

• Total quality control. Use only the best materials, processes, and partners.

• Fix causes. Focus on controlling the root causes that really affect cost and
performance.

• Visibility management. Promote corporate achievements, let the market know about
your improvements in competence or productivity.
4.What are the activities of OM. What are the recent trends in OM

RECENT TRENDS IN OPERATIONS MANAGEMENT

The ever-shrinking product lifecycles, the new trends on the labour market, the
environmental concerns, and the digitalization of the processes require innovative
approaches to operations management. Some of the trends that have a significant impact
on the discipline today are:

Business Process Reengineering (BPR)

It’s a radical (essential) approach to designing core processes: take everything that you used
before, discard it, and then start again from scratch. With Business Process Reengineering,
you can foster innovation and improve any selected measures dramatically. If you want to
do it well, focus on how you can add more value to the customer.

Lean manufacturing

Established by the Toyota Corporation, the term lean manufacturing has become a
mainstream trend in the industry, and it is used interchangeable with just in time
production. The concept behind is a constant improvement of processes in order to reduce
waste and inventory, and maximize the output of high-quality, low-cost products and
services.

A new twist on this concept is agile (alert), or otherwise known as “the new lean.” It has its
origins in software development but now is used by various industries. The reason it came
to life was the growing complexity of processes, and it is characterized by product
development done in small increments and super-fast decision-making. These together
ensure the necessary flexibility and interactivity, proven remedies for unpredictable changes
in market demand.

1. Six Sigma (a set of management techniques intended to improve business processes

by greatly reducing the probability that an error or defect will occur.)

"the company has long used Six Sigma to analyse its manufacturing processes"

Improving processes using a data-driven approach is an innovation of Motorola from mid-

1980. It’s still among the trends of impact because it is a quality-improvement and cost-
reducing method that focuses on customer satisfaction.

The method is based on the Six Sigma measure, which is achieved if only 3.4 defects are
found in a million of output. This way, production efficiency can be nearly 100%. When
presented with a problem, the Six Sigma approach uses a five-step method called DMAIC, an
acronym of define, measure, analyse, improve and control.

Reconfigurable manufacturing system (RMS)

Another possible method for reacting to quick changes in the market is (Reconfigurable
manufacturing system )RMS, a production system that can be used with different
functionalities within a product family. With an RMS, you can make adjustments in
production cost-effectively.

Employee involvement

A recent trend that impacts the human resources management activities in operations is the
increasing involvement of employees in the planning processes. Listening to the opinions of
the workers often brings up fresh ideas, a different perspective on what problems should be
solved and how to make the operations more effective.

Sustainability

Due to the ever constraining environmental regulations, businesses must operate under
pressure to reduce their harmful impact while still being able to grow. The issues, since
affecting all levels of operations, need the insights of operations management on what are
the options to meet these new expectations.

Many times, principles applied for efficiency coincide with sustainable operations
management principles, like organizing resources or cut times and waste.

Behavioural operations management

This trending research area studies the impact of human behaviour, especially non-rational
decision-making, on the discipline. Because of its complexity, operations management is a
field prone to frequent deviances in problem-solving.

There is a solid interest to understand the most important factors that influence manager’s
decisions, as well as to make efficient problem-solving methods more widely available. With
such a toolbox, managers can make more rational decisions and improve the overall
efficiency of the operations.

5.explain 4 v of om

The 4 V’s Overview

All operations processes have one thing in common, they all take their ‘inputs’ like, raw
materials, knowledge, capital, equipment and time and transform them into outputs (goods
and services). They do this in different ways, and the main four are known as the Four V’s,
Volume, Variety, Variation and Visibility.

1. The Volume Dimension

This refers to how much production of a specific product is required to satisfy its overall
demand in the market. This refers to the physical number of units or items produced. A
high volume manufacturing service example would be a fast-food joint like Dominos. They
sell quite literally millions of pizzas and other related food items every day around the
world, and one of the known characteristics of Dominos is that they have a very high
degree of consistency in all of their products and their service delivery.

Volume is significant tool because it shows the confidence of buyers in a product or

service. Though volume should never be used alone to determine price or selling patterns,
but it is a base to gain insight into the markets and determine the next strategies.
A great example of this can be seen by looking at a fast food giant, such as McDonalds.

They are a well known example of high volume low cost hamburger and fast food
production. The volume of their operation is key to how their business is organised.
Essential to their operation is the repeatability of the tasks, as well as the systemisation of
the work. From this, standards and procedures drive the way in which each part of the job is
carried out and then by combining in this way provides the organisation with a low cost
base. In contrast a local café or restaurant will have a much lower volume of output, less
labour, less systemisation, and each staff member completes a wider variety of tasks which
results in higher unit costs.

2. The Variety Dimension

A common example used to describe the variety dimension is the contrast between a taxi
and a bus service. Both offer hired transportation services but a taxi service has a much
higher variety dimension as they will basically pick you up and drop you off wherever it is
you need to go. A bus can only provide a defined route and schedule. Whilst they offer a
similar service, variety and flexibility is high for the taxi company and low for the bus
company. It is worth noting here that a low cost model is more easily achieved with less
variety.

3. The Variation Dimension

Consider two home building contractors. One offers prefabricated homes that you choose
from a catalogue or online. It is transferred to site and erected over the course of a few
days. The second building company offers customised homes they have display homes they
have built that you can walk through. Each aspect of the home from the façade to the
number of bedrooms to the floor materials to the type of heating can all be customised to
the customer. The design and build phase can take anywhere between 24 weeks to 52
weeks. Company two will have a much higher level of cost and lower volume than
company one who offers standard pricing and can control costs much more easily.
4. The Visibility Dimension

This dimension refers to a customers ability to see, track their experience or order through
the operations process. A high visibility dimension includes courier companies where you
can track your package online or a retail store where you pick up the goods and purchase
them over the counter. A low visibility dimension could be a web design company who
takes your order and advises your new website will be ready in 4 – 8 weeks. The service skill
of employees will greatly affect the customers’ experience.

These four aspects should be carefully dealt with in ensuring process excellence. It includes
higher efficiency, faster cycle time and higher overall productivity. In essence, adding value
to organisation. As the competitive nature of the business world increasingly demands,
value creation is the key path to survival. It is well recognised that the four Vs of operation,
once aligned and appropriately tuned, should ensure value creation.

6.Write the scope of OM in detailed manner

Operations management is mostly concerned with converting input to physical resources

that cater to the customers’ needs. They need to reach effectiveness, efficiency, and
adaptability in an organization.
Facility Location

The option of the venue is a crucial factor in the making of a plant and other facilities. The
inappropriate position of the plant can contribute to an incorrect location of the plant,
causing a massive wastage of time, money, and resources. After this, the position of the
plant focuses on the growth of the business project. Moreover, it also centres on various
other sectors. For instance, strategy, commodity diversification program, shifting sources,
raw materials, and several other considerations.

Material handling

Material handling refers to the ‘moving of materials from the storeroom to the machine and
from one machine to the next during manufacture.’ This activity is specialized for modern
manufacturing concerns. Firstly, minimization of costs by proper segment and process.
Secondly, maintenance of facilities for treating goods. Thirdly, material handling facilities
increase performance efficiency, hence speeding up distribution. And lastly, it reduces the
cost of development and production. Stock management is also a prime concern in
constructing a new plant and maintaining current plants.

Product design

Each company enterprise will plan, produce, and execute new products as a strategy for
sustainability and development. Developing and launching new products on the market is
the greatest challenge facing organizations. The whole cycle of recognition of the need for
physical processing of the goods requires three functions. Firstly, Branding and promotion.
Secondly, plant and creation. Lastly, manufacturing.

Product design and creation connect marketing, consumer demands and preferences. It also
offers activities needed for the manufacture of the product.

Process design

Product design and creation connect marketing and consumer demands and preferences.
The relevant decisions in the process design stand important. In addition, it evaluates the
workflow for transforming the raw material to the finished product. And in the end, to pick
the workstation for each one used in the workflow.

Production Planning And Control

Planning and management of output is the planning process of pre-production. It specifies
the exact route of each object fixes the starting and finishing dates for every product. In
addition, it also includes sending orders for output shops. It also tracks the production of
goods according to orders.

Quality control

Quality Control is a system that maintains a desired level of quality in a product or service’.
It is a systematic control of various factors that affect the quality of the product. Quality
Control aims at the prevention of defects at the source. It also relies on an effective
feedback system and corrective action procedure.

Material and maintenance management

Materials Management is a big part of the management system. It includes the

procurement, control and usage of the materials required. Moreover, it also affects the
manufacturing cycle’s distribution of products and services. Equipment and machinery are a
very important part of the total productive effort. Hence, their idleness or downtime
becomes very expensive. This makes it very important for proper maintenance of the plant
machinery.

7.What do you mean by Process Analysis, write the objectives of Process Analysis

Meaning :

Process analysis is an analysis which focuses on the advancement of work from one person
to another, at the same time describing the input and output, the individual steps and
possibly also the use of resources.It serves as a tool for the understanding, improvement
and management of business processes.

Definition: Process Analysis can be understood as the rational breakdown of the production
process into different phases, that turns input into output. It refers to the full-fledged
analysis of the business process, which incorporates a series of logically linked routine
activities, that uses the resources of the organization, to transform an object, with the aim
of achieving and maintaining the process excellence.

Process Analysis is nothing but a review of the entire process flow of an organization to
arrive at a thorough understanding of the process. Further, it is also helpful to set up targets
for the purpose of process improvement, which is possible by eliminating unnecessary
activities, reduce wastage and increasing efficiency. Thus, it ultimately ends up improving
the overall performance of the business activities.

Objectives of Process analysis

1. Identify the factors that make it difficult to understand the process.

2. Ascertain completeness of the process.

3. Remove bottlenecks

4. Find redundancies

5. Ascertain the allocation of resources

6. Check out process time

8.write two types of process analysis with examples

Process analysis is an analysis which focuses on the advancement of work from one person
to another, at the same time describing the input and output, the individual steps and
possibly also the use of resources.It serves as a tool for the understanding, improvement
and management of business processes.
1. Instructional/directional process: When you explain how to get from the registrar's office
to make perfect pastry, or any other how to topic, your purpose is how to enable your
readers to perform the process themselves. Giving instructions or directions is often done in
point form: think of a recipe, for example, or the instructions that come with a child's toy, a
barbecue, or a piece of furniture from Ikea. Instructions are usually written in the second
person (you) and include commands (e.g., allow to dry for 10 minutes leave yourself time to
revise").

2. Informational process: This type of process analysis describes how something is done or
is made, or worked. In explaining how hamburger get from the farm to table, how snow
flack, how the stoke market operates; you don't expect your readers to be able to
reproduce the process. Your purpose is simply to inform them about it.

9. Explain the difference between the manufacturing operations and service operations
10. write the steps in invoved in process analysis

Steps Involved in Process Analysis

• Step 1 – Interview major participants of the process: Discuss the participants about
what they do, why they do and how they do it. Identify the information and inputs required
by the workers to perform the task assigned to them. Research about the source of input
and outputs of each task.

• Step 2 – Carry out group discussion: Group interview and brainstorming session are
conducted, with the aim of generating ideas, validating and refining the information
collected, at the first step.

• Step 3 – Identify bottlenecks and redundancies: Find out the bottlenecks in each task
that causes delay and various measures to remove it. Further, identify the unnecessary
activities, whose elimination can ease the process.

• Step 4 – Create Sketch: Make a sketch right from the scratch of the entire process,
depending upon the business process requirements, which came into light after interviews
and discussions.

• Step 5 – Compare: At the end, compare the latest process flow with the previous
one, and mark the areas that require changes, as per the research conducted.

Process Analysis is a methodical approach to enhance the understanding and redesigning of

the workflow of the organization. It acts as a tool to maintain and improve the business
processes and also help in attaining the incremental to transformational benefits, such as
cost reduction, optimum utilisation of resources, effective human resource allocation and
process efficiency.

11

12.
13.What are the common errors takes places while selecting the location.

Though location selection is relatively easy, businessmen commit errors and wrong locations
are selected. Interestingly, errors in site selection seem to fall into a pattern.

Some of the most common errors are:

• lack of investigation

• personal likes and dislikes

• reluctance of key executives to move from traditional established home ground to

new and better locations

• moving to congested areas already or about to be over industrialised

• preference for acquiring an existing structure that is improperly located or not

designed for the most efficient

production

• choice of community with low cultural and educational standards

14.Write the concept of facility layout. Discuss the importance of facility layout in OM

Facility layout :

For an organization to have an effective and efficient manufacturing unit, it is important that
special attention is given to facility layout. Facility layout is an arrangement of different
aspects of manufacturing in an appropriate manner as to achieve desired production
results. Facility layout considers available space, final product, safety of users and facility
and convenience of operations.

An effective facility layout ensures that there is a smooth and steady flow of production
material, equipment and manpower at minimum cost. Facility layout looks at physical
allocation of space for economic activity in the plant. Therefore, main objective of the
facility layout planning is to design effective workflow as to make equipment and workers
more productive.

Importance of facility layout:

The importance of layout would be better appreciated if one understands the influence of
an efficient layout on the manufacturing function; it makes it smooth and efficient.

• Good layout helps to manufacture quality goods in less manufacturing cost.

• Long distance movements should be avoided and irrelevant operations are

eliminated.

• Full utilisation of area and work force.

• It minimises the lead time and production delays.

• It helps to improve quality control and inspection.

• Investment on equipment can be minimised by planned machine balanced and

location.

• It helps in better production control and easy supervision.

• Ultimately all above factors will improve the employee morale, which depends on
working conditions, employee facilities, reduced number of accidents and increased
earnings.
15.What are general principles of plant layout.

(i) Principle of Minimum Movement:

Materials and labour should be moved over minimum distances; saving cost and time of
transportation and material handling.

Principle of sequence :

the work areas should be arranged according to the sequence of operation so that there is
continuous flow of materials without congestion.

(ii) Principle of Space Utilization:

All available cubic space should be effectively utilized – both horizontally and vertically.

(iii) Principle of Flexibility:

Layout should be designed in the manner that production facilities can easily be rearranged
when it becomes necessarty in future o account of expansion and technological
advancement.

(iv) Principle of Interdependence:

Interdependent operations and processes should be located in close proximity to each

other; to minimize product travel.

(v) Principle of Overall Integration:

All the plant facilities and services should be fully integrated into a single operating unit; to
minimize cost of production.
(vi) Principle of Safety:

There should be in-built provision in the design of layout, to provide for comfort and safety
of workers.

(vii) Principle of Smooth Flow:

The layout should be so designed as to reduce work bottlenecks and facilitate uninterrupted
flow of work throughout the plant.

(viii) Principle of Economy:

The layout should aim at effecting economy in terms of investment in fixed assets.

(ix) Principle of Supervision:

A good layout should facilitate effective supervision over workers.

(x) Principle of Satisfaction:

A good layout should boost up employee morale, by providing them with maximum work
satisfaction.

Principal of minimum investment:

The layout should yield savings in fixed capital investment through optimum utilization of
available facilities.