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Operations Management
For PGDM Program NMANTEC Ghaziabad Function and Strategy Module
By Prof. S. S. Sharma

Operations Management Function and Strategy .

.Chemical Operations etc.Assembly lines .Batch type chemical operations.Production Systems 1. Continuous Flow production system . Intermittent or Customized Flow production system .Job shop type machine shops . 2.Fabrication shops .

Production/Operations as per plans 3. Production & Operations Planning and control 2. Inspection/quality assurance 4. Industrial Engineering 6. Plant & Facilities Maintenance.Functions of Production & Operations Manager 1. Engineering: Support of Design and Development 5. 7. Interdepartmental Co-ordination .

5. Concerns with resource allocation Affected by the values and expectations of stakeholders Affects operational decision . 2. Matching the activities of an organization to the environment in which it Operates 3. Direction and scope of an organization over long term. 4.Operations Strategy Strategy is the: 1.

Corporate Level strategy 2. Operational Strategy . Business Strategy 3.Operations Management Levels of Strategy : 1.

Decides criterion for allocation of resources to different operations .Influence by Vision and Mission of the organization . Corporate Level strategy .Concerns with operations in structural and financial terms .Covers overall scope of the organization .Operations Management Levels of Strategy : 1.

To what extent products and services meets customer needs . Market growth etc .r.Operations Management Levels of Strategy : 2.Does it achieve the objectives of the company w. Business Strategy .Which products and services to be developed and offered to which market .How to compete in a market .to Long term profitability.

• Operational Efficiency:  Deliver more efficiently at lower cost • Customer Intimacy:  Provide experience for customers. .Business Strategies • Product leadership:  Developing & Delivering innovative products and services.

The success at the operational levels ultimately enables an organization to achieve the corporate level and competitive/Business strategies. Operations Strategies: . . .Operations Management Levels of Strategy : 3.Adopted at functional levels.

Make or buy decision 4. Organization structure 5. Type of equipments to be utilized a. Specific function or general purpose machineries and equipments. type. b. 2. . Work force selection.Operations Strategy Factors to consider for adopting operations Strategy : 1. Automated or manual 3. employment security. The number. compensation methods and management style. size and location of operations facility.

: 6. Management Information System to be used for collection. Methods of productivity improvements to be used for process. . Production planning. manpower and machinery. 7. 8. Inventory. Methods of quality control and improvements to be used 9. Purchasing. scheduling and control.Operations Strategy Factors to consider for adopting operations Strategy contd. system and inventory policy. analysis and distribution of information on: Production. personnel etc. Quality.