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GROUP MEMBERS Ron Christous.P.

K Vishnu Prasad Gawin Sam Vijay Krishnan Nobby Jerry

MODULE 1
 Introduction of Operations Management;  Introduction of Operations Function

 Input/output transformation;
 Operations as Competitive Advantage

.  What is a transformation process? A series of activities along a value chain extending from supplier to customer.INTRODUCTION  What is operations? A function or system that transforms inputs into outputs of greater value.  What is a value chain? A value chain is a chain of activities for a firm operating in a specific industry.

.  It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed.What is operations management?  Operations management is an area of management concerned with overseeing. and effective in terms of meeting customer requirements.  It is concerned with managing the process that converts inputs into outputs. designing. and redesigning business operations in the production of goods and/or services.

How Operations are linked  Marketing  Finance and accounting  Human resources  Outside suppliers .

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organizing. include planning. like in other management disciplines. directing.OPERATIONAL MANAGEMENT FUNCTIONS AND ACTIVITIES  The operations management functions. . motivating and controlling to achieve the set organizational goals. staffing.

. service stations. manufacturing unit or service outfit. geographically.  The layout design determines how the internal facilities (departments. workstations etc ) will be arranged.operation managers perform many other activities also  The facility location activity involves the decision of the location for the facility. equipments.

.  The job design activity involves the structuring of work tasks assigned to an employee and the study of the tasks that make up the job.  The work measurement activity involves the timing of the tasks that comprise a job.The job design and work measurement activities are carried out to optimize output.CONT. .

.CONT.  Operation managers need to estimate future demand as accurately as possible as this will influence not only the requirement of manpower resources but also the utilization of working capital.  Demand forecasting-Organizations need to forecast the demand for their products and services so that all relevant plans can be developed for the future..

assembly. finishing etc.short range(operational) or medium range(tactical).. An operational management plan follows as a sequel to the overall corporate planning and includes marketing. financial.CONT. Aggregate plans define how the resources can be best employed to meet market demand for the given products . other plans at the functional level and departmental plans for the purchasing. personnel/MIS.  Planning is the most important function performed by an operations manager. Planning may be long range(strategic). inventory.

CONT.. the planning and control of unfinished products in process at various stages of production and the warehousing.  The materials management activity involves the grouping of management functions supporting materials flow. shipping and distribution of the finished product . Materials management includes activities starting from purchase and internal control of production materials.

consumables.  The inventory management activity is concerned with the planning and control of inventories of raw materials. . other economic resources and finished goods. work in progress materials..CONT.

Purchase management functions include vendor development. selection of suppliers.CONT.. make or buy decisions and maintaining the high ethics .  Purchase management-This function is a subsystem of the materials management and is of special importance in a typical manufacturing firm where 50-60%of the total costs is made up of purchases. value analysis. contract negotiation.

..  Total Quality Management-This is a management concept that focuses the collective efforts of all managers and employees on satisfying customer expectations by continually improving operation management processes and products.CONT.

CONT. . Effective management of the supply chain enables organisations to meet customer requirements in time with improved facility utilisation. optimimal inventory etc..  Supply chain management integrates procurement.  Supply chain management-Supply chain can be described as the network covering the various stages in the provision of products or services to the customers. operations and logistics to provide value added products or services.

. tools and techniques is essential for the operations manager as almost all organizations embark upon projects of one kind or another almost all the time. Project management uses basic tools like PERT/CPM and their advanced versions for planning . .  Project Management-A thorough knowledge of project management procedures.scheduling and expediting.Also some project oriented organizations take years to deliver their products.CONT.

.  Maintenance management-The objective of maintenance management is to ensure that the systems are working at their optimum efficiency and is essential to the organization for productivity. increase operational life of equipments and keep safe working conditions. Maintenance management uses modern preventive and predictive maintenance tools and monitoring techniques .CONT.

Transformation Process .

labour and processing plants and the output is petroleum products like gasoline. feedback is production rates. accountants.EXAMPLE  In an oil refinery the inputs are crude oil. and the control elements are plant managers. diesel etc. . The transformation process consists of heating. mixing and distillation. expenses. supervisors etc.

Competitive Advantage  A distinctive competency that clearly set an organization apart from competitors and gives it an advantage over them in a competitive marketplace. .

production proof Design for Manufacturing Design for Disassembly  Technology Utilization Lean Production Flexible Manufacturing Agile Manufacturing Mass Customization.Operations as Competitive Advantage  Product Design Customer appeal Robust . .

Cross-functional task forces Job enrichment Self-managing teams Autonomous work groups It is about Organizational Flexibility. and Worker Empowerment. Adaptability. Organization Design Blending the best of technology with the full potential of people. .

lean production.”  “Things you learn in an operations class—scheduling. and there’s no better place to apply it than in operations.”  “IT is a tool. theory of constraints. and tons of quality tools.How is operations relevant to my major?  Accounting  Information  “As an auditor you must Technology  Management understand the fundamentals of operations management.” .

and most of the cost savings. too.” .How is operations relevant to my major?  Marketing  “How can you do a good job  Finance marketing a product if you’re unsure of its quality or delivery status?”  “Most of the capital budgeting requests are from operations.