Individual Assignment

Course name: Production management

Course code- MGT314
Semester- SPRING 24

Assign to
Respectful Professor Md. Masum Sir, PhD
Dean, Faculty of Textile Management and business Studies
Phone- 01758293063
Mail- masum@northsouth.edu
Dept. Management

Assign by
Sachya Kumar Ghosh
Id;2211144030
Mail. Sachya.ghosh@northsouth.edu
Department of BBA

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Operations Management
Operations management is the administration of business practices to create the highest
level of efficiency possible within an organization. It is also responsible for converting
raw materials or labor goods into finished goods & services as efficiently as possible to
maximize the company profit. It concerns product, process and supply chain management
while taking care of time, cost, quality and flexibility.

Role of operation management

Transformation: operations management role is to transform inputs into outputs through a
production process.

Transformation Process
The transformation process starts with inputs which goes through a production process
and ends with outputs.

 Inputs: inputs can be listed as labor, materials, machines, information & capital.
Operations management utilizes these raw materials to maximize outputs and
generate less waste.
 Transformation process: the transformation process includes product designing,
process planning, production control, maintenance.
 Outputs: in this stage, the raw materials are turned into products or services as
outputs.

Transformation role
 Adding Value: operations management adds value to production. Which means
adding value to every stage of the production process. Value added is the net
worth between the input raw materials cost and output product cost.
 Efficiency: Operation managements another target is to improve efficiency,
meaning improving the performing activity for least possible cost. In other words,
achieving goals with minimum cost of resources with maximum utilization of
resources.

Important areas in operations management include:

Planning and controlling production: This involves figuring out what to make, how
much to make, and when to make it. It includes making plans, assigning resources, and
monitoring the production process.

Stock administration is about keeping track of how much raw materials, work-in-
progress, and finished products are available. This is important to make sure that

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production goes smoothly and that the company has enough stock to meet customer
requests.
Quality Administration: Making sure that products or services are good and meet what
the customer expects is important. Quality administration involves putting in place
processes and systems to keep track of and improve the quality of products and services.

Managing the supply chain means organizing and combining all the activities involved in
finding, buying, making, and distributing goods and services. It involves managing
relationships with vendors, shipping, and logistics.

Designing the layout and plan for offices, including factories, warehouses, and service
centers, to make sure materials and information can move smoothly.

Making things better: Always trying to improve how things are done is important in
managing operations. This means making and carrying out changes in a way to make
things work better, cost less, and improve overall performance.

Project Management: Sometimes, operations management involves supervising specific

projects, especially in industries where projects are an important part of the business.

Efficiently managing operations is vital for businesses to function effectively, satisfy

customer demands, and attain their objectives. It means using a plan to make things work
better and using resources wisely.

So, for my project I chose Beximco Pharma. Here is the short brief about the company. .
Establishment and Location:

Beximco Pharmaceuticals was established in 1976 and is headquartered in Dhaka,

Bangladesh.

Operation management and Supply Chain management

OSCM, or Operations and Supply Chain Management, is a crucial aspect of business
concerned with the design, execution, and improvement of the systems that create and
deliver a firm's primary products and services. It involves the coordination of resources,
processes, and activities to ensure efficiency, quality, and customer satisfaction while
minimizing costs and maximizing profits.

There are several key functions of Operational Supply Chain Management

1. Supply Chain Management: this involves the management of the flow of goods
and services, production, distribution and logistics from suppliers to customers. It

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 aims to optimize processes to enhance efficiency and reduce costs while ensuring
timely delivery and quality.
2. Operations Management: this focuses on the internal processes and activities
involved in producing goods and services. It includes production planning,
scheduling, inventory management, quality control, and process improvement
methodology.
3. Quality management: this ensures that products and services meet or exceed
customer expectations by implementing quality control management throughout
the production process.
4. Inventory Management: this involves managing and controlling the levels of raw
materials, work in process, finished goods to minimize cost while ensuring
customer demand.

Effective Operations Supply Chain Management practices can lead to various benefits for
organizations.

Operations Management Decisions

Operations management focuses on two types of decisions which are, strategic and
tactical decisions.

1. Strategic Decisions:

Strategic decisions in operations management involve long-term planning and goal-

setting to align operations with overall organizational strategy. These decisions often
revolve around determining the competitive priorities of the business, such as cost
leadership, differentiation, or focus. Strategic decisions may include selecting the most
suitable technology and infrastructure investments, establishing strategic partnerships
with suppliers, entering new markets, or designing innovative processes to gain a
competitive advantage. Operations management makes the strategic decisions less often
as it is long term decisions.

2. Tactical Decisions:

Tactical decisions in operations management are focused on the short to medium term
and involve implementing strategies to achieve specific objectives within the broader
operational framework. These decisions often address day-to-day operational issues and
aim to optimize processes, resources, and performance. Examples of tactical decisions
include adjusting production schedules based on changing demand patterns, optimizing
inventory levels to reduce holding costs while ensuring availability, fine-tuning staffing
levels to match workload fluctuations, and implementing process improvements
identified through continuous monitoring and feedback. By making tactical decisions
effectively, organizations can enhance efficiency, responsiveness, and agility in their

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operations, ultimately contributing to improved performance and customer satisfaction in
the short term.

What operations Managers do

Operations managers are involved in coordinating and developing new processes while
reevaluating current structures.As part of their daily responsibilities, operations managers
must possess a variety of skill sets, such as,

 Technical expertise in areas such as production automation, data entry, budget

tracking, and design.
 Organizational ability and attention to detail to include keeping track of project
files, employee reports, budgets, schedules, and other details related to company
processes.
 Motivational prowess in the form of strong leadership skills that provide the
expertise to motivate others, inspire ideas, and foster a supportive and diverse
team.
 Analytical aptitude, including skill in risk analysis and mitigation when initiating
new projects. Operations managers also must analyze processes to identify
challenges and offer solutions in the event that negative situations develop.
 Decision-making proficiency, especially under stress when there is very little
time to assess all factors.
 Ability to maintain quality standards, including as they relate to raw materials,
machinery, manufacturing procedures, packaging, delivery processes, and the
finished product.

Example:
Operations management is involved in different kinds of organization. If we look at the
Square Textiles Limited company, operations management is a crucial and important part
of this company. If we look at their annual report of 2018-2019 fiscal year, we will see
that their actual production of yarn in 2017-2018 fiscal year was 22,925,478 kg and that
increased to 33,622,604 kg in 2018-2019 fiscal year, which is almost about 10,697,126
kg more than the previous year. The production efficiency increased during the year
2018-2019 to 96.70% from 96.26% than the efficiency of 2017-2018 fiscal year.
Also if we look at the statement of their value added, in 2017-2018 the value added was
1,215,547,114 and it increased in 2018-2019 to 1,625,423,889 which is about
4,09,876,775 more than previous year. By judging from these statements we can say that
the operations management department added value to the production process which
eventually increased their profit from operations by 25.28% in FY 2018-2019.