OPERATIONS

MANAGEMENT

12/04/2020 by Prof. Vivek Nerurkar 1

What is your perception @ O.M.?

12/04/2020 by Prof. Vivek Nerurkar 2

 Introductory video
https://www.youtube.com/watch?v=sL7hi5i
9xMo

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 Operations Management

Operations
 Management is a systematic approach to address
issues in transformation process, that converts inputs into
useful, revenue generating outputs.

 OM covers manufacturing as well as service sector.

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What is OM?

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Operations Management

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 Restaurant

CU HUN
ST GR
OM Y
ER
S

WELLPREPARED, WELL SERVED

SATISFIED
FOOD,
CUSTOMER
AGREEABLE ENVIRONMENT

K,
OO EN
D ,C NM
OO RO
F VI T
EN

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 Mall
SH
OP
PE
RS

ATTRACT SHOPPERS, SALES TO

PROMOTE PRODUCTS, FILL SATISFIED
ORDERS CUSTOMERS

S
CK S
E
S TO AL
AY, S,S S
D N
S PL OO SO
DI F G PER
O

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 Automobile
ME
NO TA
L
CO N M IC
M ET AN
PO A D
NE LIC
NT
S

METAL CUTING, FABRICATION HIGH

AND QUALITY
ASSEMBLY OF VEHICLE VEHICLES

S, S,
L T
O EN S
TO PM ER
UI RK
EQ W O

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 Input-Resource-Conversion-Out put
SYSTEM PRIMARY RESOURCES PRIMARY TYPICAL
INPUTS TRANSFORMATION DESIRED
FUNCTION(s) OUTPUT
Hospital Patients Doctors, Nurses, Healthcare(physiological) Healthy
medical supplies, individuals
instruments,
infrastructure
Restaurant Hungry Food, cook, Well prepared, well served Satisfied
customers waiters, food, agreeable customers
Environment environment
(Physical &exchange)
Automobile Various metal Tools, Fabrication and assembly of High quality
factory and non metal equipments, vehicles vehicles
components workers
Educational Students Teachers, library, Imparting knowledge and Educated
institute class rooms, labs skills individuals
Department Shoppers Displays, stocks of Attract shoppers, promote Sales to
store goods, sales products, fill orders satisfied
persons customers
Distribution Stock keeping Storage bins, stock Storage and redistribution Fast delivery,
centre Units(SKUs) keepers available
SKUs
Airline Travelers Airplanes, crews, Move to destination On time, safe
scheduling system
Oil refinery Crude oil Plant, machinery Chemical processes Petrol, Diesel,
and operators LPG, Tar etc.

12/04/2020 by Prof. Vivek Nerurkar 10

 Ice cream
https://www.youtube.com/watch?v=P5R1
2zxuSvk

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 Current priorities for O.M.
1.Relate the operations systems to customer/market
requirements

2. Acquire capabilities to cope up with enhanced

product/service expectations

3. Develop systems and procedures that promote learning

4. Develop green manufacturing practices.

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Strategy
Word “Strategy” has emerged from Greek
word “strategia” meaning “Art of troop
leader”
It(strategy) is a high level plan to achieve
one or more goals under conditions of
uncertainty.

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Strategy(contd.)
Itfocuses on broad policies and plans for
using the resources of the firm to best
support its long term competitive
performance.
Operations strategy involves decisions
that relate to the design of a process and the
infrastructure needed to support the process.
Operations strategy remains in line with
corporate strategy

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 Strategy formulation process
Competitive dynamics at Order winners and
the market place Order qualifiers

Generic competitive
Strategic options for priorities
-Quality
Sustaining competitive -Cost
advantage -Delivery
-Flexibility

Firm level strengths and

Corporate strategy
weaknesses

Measures for
Strategic options for
Operations strategy operational
operations
excellence
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 Strategy….

We can’t manage what we

don’t measure

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Operations strategy
Operations competitive dimensions-
1. Price
2. Quality
3. Delivery speed
4. Delivery reliability
5. Coping with changes in demand
6. Flexibility and new product introduction speed
7. Other product specific criteria viz. after sales
support, spare parts.

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 Design and operational control issues

OPERATIONAL
DESIGN ISSUES
CONTROL ISSUES
-Product, process -Forecasting
design & development -Production planning and
- Quality management control
- Location and layout -Supply chain management
-Maintenance management
facilities -Continuous improvement
- Capacity planning of operations

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 Products and Services
 Tangible/ Intangible

 Inventory

 Customer Interface

 Consumption

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Thank you!

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