COURSE CONTENTS

q Functions of management
q Production systems and factors affecting industrial development in Pakistan
q Productivity and factors contributing to productivity of organizations
q Work Study motion economy, efficiency, ergonomics and throughput
q Inventory management; economic order quantities, coverage analysis
q Demand Forecasting,
q Production planning and scheduling and capacity planning
 COURSE CONTENTS
q Just in time and Lean Operations, HR management, Process Analysis and Design,
q Cost concepts and economic environments, cost terminology, general economic
environment etc.
q Principals of money time relationship,
q Simple and compound interest, present and future and uniform series cash flows etc.
q Money time relationships; determining minimum ROR, present, future annual worth
methods, internal and external ROR
q Comparing Alternatives, capitalized worth methods, mutually exclusive investment
etc.
 RECOMMENDED BOOKS

q Operations Management by Jay Heizer, Barry Render, Jagdesh Rajashekhar

q Work Systems: The Methods, Measurement and Management of by
Mikell P. Groover
q Production and Operations Management by Martin Starr.
 ASSESSMENT CRITERIA

ü 1st surprise quiz – 05 Marks

ü Formal Presentation – 05 Marks
ü Mid term examination – 30 Marks

ü 2nd surprise quiz – 05 Marks

ü 2nd Assignment – 05 Marks
ü Final term examination – 40 Marks
ü Attendance – 10 Marks
 PRODUCTION & OPERATIONS MANAGEMENT

Production is the creation of goods and services. Operations management (OM) is the set of
activities that creates value in the form of goods and services by transforming inputs into
outputs.

An efficient production of goods and services requires effective applications of the concepts,
tools and techniques of OM. We will discover how to manage operations in a changing global
economy, and how operations managers create the goods and services that enrich our lives.
 PRODUCTION & OPERATIONS MANAGEMENT

Activities are named as services. The services may be “hidden” from the public and even from
the customer. The product may take such forms as the transfer of funds from a saving account
to a checking account, the transplant of a liver, the filling of an empty seat on an airplane, or
the education of a student.

Regardless of whether the end product is a good or service, the production activities that go
on in the organization are often referred to as operations or operations management.
 ORGANIZING TO PRODUCE GOODS & SERVICES
To create goods and services, all organizations perform three functions, They are;

q Marketing, which generates the demand, or at least takes the order for a product or
service (Nothing happens until there is a sale).
q Production/operations, which creates the product.
q Finance/Accounting, which takes how well the organization is doing, pays the bills, and
collects the money.

All businesses including universities perform theses functions. Figure shows how an airline
organizes itself to perform these functions;
ORGANIZING TO PRODUCE GOODS & SERVICES
 WHY STUDY “OM”
We study OM for four reasons;

q OM is one of the three major functions of any organization, and it is integrally related to
all the other business functions. It is important to know how the OM activity functions.
Therefore, we study how people organize themselves for productive enterprise.
q We study OM because we want to know how goods and services are produced.
q We study OM to understand what operations managers do. By knowing this you can
perform better at your job. In addition, understanding OM will help you explore the
numerous career opportunities in the field.
q We study OM because it is such a costly part of an organization. A large percentage of
the revenue of most firms is spent in the OM function. Indeed, OM provides a major
opportunity for an organization to improve its profitability and enhance its service to
society.
THE HERITAGE OF OPERATIONS MANAGEMENT
 THE HERITAGE OF OPERATIONS MANAGEMENT

q Early Concepts 1776-1880

Labor Specialization (Smith, Babbage);

Standardized Parts (Whitney)

q Scientific Management Era 1880-1910

Gantt Charts (Gantt);
Motion & Time Studies(Giibreth);
Process Analysis (Taylor);
Queuing Theory (Erlang)

q Mass Production Era 1910-1980

Moving Assembly Line; Statistical Sampling (Shewhart);
Economic Order Quantity (Harris);
Linear Programming PERT/CPM (DuPont);
Material Requirements Planning (MRP)
 THE HERITAGE OF OPERATIONS MANAGEMENT

q Lean Production Era 1980-1995

Just-in-Time (JIT);
Computer-Aided Design (CAD);
Electronic Data Interchange (EDI)
Total Quality Management (TQM);
Baidrige Award Empowerment Kanbans

q Mass Customization Era 1995-2015

Globalization; Internet/E-Commerce;
Enterprise Resource Planning; Finite Scheduling;
International Guaiity Standards (iSO); Supply-Chain Management;
Mass Customization Build-to-Order Sustainability
WHAT OPERATIONS MANAGERS DO
 WHAT OPERATIONS MANAGERS DO
All good managers perform the basic functions of the management process. The
management process consists of planning, organizing, staffing, leading and controlling.

Operations managers apply this management process to the decisions they make in the
OM function. The major 10 decisions of OM are shown in the table.

Where are the OM Jobs?

Competent business students who know their accounting, statistics, finance, and OM have
an opportunity to assume entry-level positions in all of these areas. The more background an
OM student has in accounting, statistics, information systems, and mathematics, the more
job opportunities will be available.
 WHAT OPERATIONS MANAGERS DO
Operations Management Positions
Some of the operations management
positions are as follows;

q Plant Manager
q Operations Analyst
q Quality Manager
q Supply chain Manager and Planner
q Process Improvement Consultants
 WHAT OPERATIONS MANAGERS DO

The following professional organizations provide various certifications that may enhance your
education and be of help in your career;

q APICS, the Association for Operations Management (www.apics.org)

q ASQ, American Society for Quality (www.asq.org)
q ISM, Institute for supply Management (www.ism.org)
q PMI, Project Management Institute (www.pmi.org)
q Council of Supply Chain Management Professionals (www.cscmp.org)