OPERATIONS MANAGEMENT: DEFINITION
Operations Management (Lecture #1)
| SEM 1 2022
OPERATIONS MANAGEMENT IS:
● Involves managing the operations
and processes of an organization.
● Some of the functions performed
by an operations manager include
supply chain management, product
design, forecasting, quality control,
and delivery management.
● An operations manager must have
excellent organizational, people
skills, and coordination, and be
tech-savvy.
INTRODUCTION OF TQM
● Means Total Quality Management.
● It was started in 1954 in Japan.
● “TQM is an organized structural
tool that focuses on continuous
quality improvement of products
and services using the continuous
feedback system.”
● It uses strategy, data, and effective
communication to integrate a
quality discipline into the employee
and organization.
8 Principles of Total Quality Management
1. Focus on Customer
- No matter what type of methods,
the customer decides whether the
efforts were worthwhile or not.
2. Employee Involvement
- Empowerment should be there in
the workplace and a good working
environment is a must as well.
3. Process-Centered
- It has to meet the standards set by
product manufacturing experts.
4. Integrated System
- Incorporating quality standards like
ISO 9000 standards could help
produce quality products and
services.
5. A Strategic and Systematic
Approach
- Considering a systemic flow would
ensure the products and services
are passing through every stage in
the quality production process.
6. Continual Improvement
- Raising an organization creatively
and analytically.
7. Decision Making on Fact-Based
- Management decisions should look
into the data first so that they can
have a clear picture of what is
going on and make a much more
good decision.
8. Communication
- It all helps in motivating the
employees to their individual goals
as well.
HOW DOES TQM WORK?
● TQM enables organizations to
align their workforce with the
manufacturing processes to find
and eliminate errors to improve the
overall quality of their outputs.
They take various measures such as:
❖ Detect the issue and prevent it
from occurring.
❖ Pass it on to the value-added chain
for further quality inspection.
❖ Deploy the technological support.
IMPORTANT INFO
TQM aims to assist organizations in
understanding that quality assurance is
everybody’s responsibility and is not
limited to any one segment. Its main
aim is to develop quality products and
services, retain customers in the
competitive market, increase sales
revenue, and boost profitability.
Benefits of Total Quality Management
1. TQM emphasizes the needs of the
market.
2. TQM ensures better quality
performance within the
organization.
3. TQM checks and cuts out
non-productive activities.
4. TQM helps in competing.
5. TQM assists in the development of
an adequate system of
communication.
6. TQM helps in the continuous
review of progress.
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OPERATIONS MANAGEMENT: DEFINITION
Operations Management (Lecture #1)
| SEM 1 2022
OPERATIONS IN MARKETING
Marketing operations are the actions that
deliver on the marketing strategy, such as
writing content, designing materials, or
negotiating marketing agreements.
HOW TO BE BETTER IN THIS AREA?
1. Establish a cross-department
workflow
2. Work with your audience in mind
3. Know your customers
4. Align all consumer insights
5. Establish your key marketing
metrics
6. Prioritize content development
7. Stay on brand
8. Focus on the ROI of your
campaigns
OPERATIONS IN DELIVERY
A service delivery system is similar to the
processes of operations management in
business. The main difference is the
perception of the target population.
HOW TO BE BETTER IN THIS AREA?
1. Use a route planner that updates
routes in real-time
2. Prioritize orders based on their
importance
3. Schedule orders and routes weeks
ahead of time
4. Factor driver breaks and lunches
into your schedule
5. Track driver performance over time
OPERATIONS IN INVENTORY
Inventory management, a critical element
of the supply chain, is the tracking of
inventory from manufacturers to
warehouses and from these facilities to a
point of sale. The goal of inventory
management is to have the right products
in the right place at the right time.
HOW TO BE BETTER IN THIS AREA?
1. Use bar codes to accurately
manage inventory.
2. Track the on-the-shelf inventory
value
3. Use dashboards to their full
potential
4. Create KPIs for inventory
management
5. Integrate your software systems
6. Calculate the efficiency
7. Balance the overstock inventory
OPERATIONS IN DEMAND
PROJECTION
Trend projection uses your past sales data
to project your future sales. It is the
simplest and most straightforward demand
forecasting method.
HOW TO BE BETTER IN THIS AREA?
1. One size does not fit all.
2. Understand the drivers of
uncertainty.
3. Keep it simple.
4. Prepare for change.
5. Expect the unexpected.
OPERATIONS IN DEMAND
PLANNING
Demand planning is a supply chain
management process that enables a
company to project future demand and
successfully customize company output —
be it products or services — according to
those projections.
HOW TO BE BETTER IN THIS AREA?
1. Implement the Right Software
2. Gather and Prepare Data Data
3. Define Process Models
4. Implement and Monitor