Department of Business Administration

Sub: Technology & Operational Strategy

Code: 20MBA302
Prof. Monisha Shetty
 MODULE 1- Introduction to Production and Operation Management

• Introduction Operations Management: Meaning,

Definition, Scope and Functions.
• Difference Between Production and Operations
Management
• Management Guru’s and their Contribution
• The Roles and Functions of Operations Manager
• Industry 4.0
• Productions and Operations Management in
Indian Context
 Operation Management Meaning
• An operations system is defined as one in which several activities are performed to transform a set of inputs into a
useful output using a transformation process. These inputs and outputs can be tangible, in the form of raw materials
and physical products, or intangible, in the form of information and experiences.
• Operations management is a systematic approach to addressing issues in the transformation process that converts
inputs into useful, revenue generating outputs.
– Operations management is a systematic approach. It involves understanding the nature of issues and
problems to be studied, establishing measures of performance; collecting relevant data; using scientific
tools, techniques, and solution methodologies for analysis; and developing effective as well as efficient
solutions to the problem at hand.
– Operations management involves addressing various issues that an organization faces. These issues vary
markedly in terms of the time frame, the nature of the problem, and the commitment of the required
resources. Simple problems include deciding how to re-route jobs when a machine breaks down on a shop
floor, or how to handle a surge in demand in a service system. On the other hand, decisions such as where to
locate the plant, what capacity to build in the system, and what types of products and services to offer to
the customers.
 Operation Management Meaning continued…
• Transformation processes are central to operations systems. The transformation process ensures that inputs are
converted into useful outputs the focus of operations management is to address the design, planning, and operational
control of the transformation process.
• The goal of operations management is to ensure that the organization is able to keep costs to a minimum and
obtain revenue in excess of costs through careful planning and control of operations. An appropriate performance
evaluation system is required for this and methods through which the operating system can make improvements to
meet targeted performance measures.

• Therefore Operating Management involves:

• Coordinating resources – Forecast Demand – Capacity Planning – Demand Management – Scheduling –
Resource requirement planning – system design – Operation strategy- Performance Management
 OBJECTIVES OF OPERATION MANAGEMENT
1. Produce goods at right quality, right quantity, right time and at minimum cost.

2. Optimum utilization of resources and available production capacity.

3. Produce required quantities at a required quality.

4. Ensure maximum capacity utilization.

5. Flexible working conditions.

6. Minimum raw material, labour cost and maintenance cost.

7. Minimum storage, material handling and inspection. 8. Improve productivity of all inputs.

To attain maximum output with lowest cost. 9. To control pollution and wastage.

9. To ensure optimum capacity and resources utilization

10.To ensure quality of products. 11.To suggest changes in machinery and equipment.

11.To ensure timely delivery of output.

12. To maintain inventory.

 Importance of Operations Management
1. Enhances productivity

2. Objectives are met

3. Improves goodwill

4. Employee motivation

5. Resource utilization

When does one know if the operations management techniques are effective

6. When one has devised effective strategies and techniques in operations management, the organization can witness the following:

7. Increase in productivity

8. Rise in revenue

9. Improvement in customer satisfaction

10. Enhanced goodwill

11. Increase in investment opportunities
 Difference between Manufacturing and service organizations

Manufacturing Organizations Service Organizations

Physical, durable product Intangible, perishable product

Output can be inventoried Output cannot be inventoried

Low customer contact High customer contact

Long response time Short response time

Regional, national, international markets Local markets

Large facilities Small facilities

Capital intensive Labour intensive

Quality easily measured Quality not easily measured

Similarities in Manufacturing and service organizations

Similarities

Is concerned about quality, productivity and timely response to its customers

Must make choices about capacity, location, layout

Has suppliers to deal with

Has to plan operations, schedules and resources

Must balance capacity with demand by a careful choice of resources

Has to make an estimate of demand

 Definition of Operating Management
"Operations management is the administration of business practices to create the highest level of efficiency
possible within an organization. It is concerned with converting materials and labour into goods and services as
efficiently as possible to maximize the profit of an organization. Operations management teams attempt to
balance costs with revenue to achieve the highest net operating profit possible."

- Investopedia

"Operations management is the business function responsible for managing the process of creation of goods and
services. It involves planning, organizing, coordinating, and controlling all the resources needed to produce a
company’s goods and services. Because operations management is a management function, it involves managing
people, equipment, technology, information, and all the other resources needed in the production of goods and
services."

- InformIT
Example of Amazon
Scope of Operations management

Location of
Facilities
Plant
Maintenance Layout
Management

Process
Design
Scope
Material
Handling

Product
Design
Quality Production
Control planning
and
Control
 LOCATION OF FACILITIES
• Location of facilities for operations is a long-term capacity decision, which involves a long-term commitment about the
geographically static factors that affect a business organization.
• It is an important strategic level decision-making for an organization. It deals with the questions such as ‘where our
main operations should be based?’ The selection of location is a key-decision as large investment is made in building
plant and machinery.
• An improper location of plant may lead to waste of all the investments made in plant and machinery equipment.
• Hence, location of plant should be based on the company’s expansion plan and policy, diversification plan for
the products, changing sources of raw materials and many other factors.
• The purpose of the location study is to find the optimal location that will results in the greatest advantage to the
organization
 PLANT LAYOUT AND MATERIAL HANDLING
• Plant layout refers to the physical arrangement of facilities. It is the configuration of departments, work centers and
equipment in the conversion process. The overall objective of the plant layout is to design a physical arrangement
that meets the required output quality and quantity most economically. According to James More ‘Plant layout is a
plan of an optimum arrangement of facilities including personnel, operating equipment, storage space, material
handling equipment and all other supporting services along with the design of best structure to contain all these
facilities’.
• ‘Material Handling’ refers to the ‘moving of materials from the store room to the machine and from one machine to the
next during the process of manufacture’. It is also defined as the ‘art and science of moving, packing and storing of
products in any form’. It is a specialized activity for a modern manufacturing concern, with 50 to 75% of the cost of
production. This cost can be reduced by proper section, operation and maintenance of material handling devices.
Material handling devices increases the output, improves quality, speeds up the deliveries and decreases the cost of
production. Hence, material handling is a prime consideration in the designing new plant and several existing plants.
 PRODUCT DESIGN
• Product design deals with conversion of ideas into reality. Every business organization have to design, develop and
introduce new products as a survival and growth strategy. Developing the new products and launching them in the
market is the biggest challenge faced by the organizations.
• The entire process of need identification to physical manufactures of product involves three functions; Design and
Marketing, Product, Development, and manufacturing.
• Product Development translates the needs of customers given by marketing into technical specifications and
designing the various features into the product to these specifications. Manufacturing has the responsibility of
selecting the processes by which the product can be manufactured.
• Product design and development provides link between marketing, customer needs and expectations and the
activities required to manufacture the product.
 PROCESS DESIGN
• Process design is a macroscopic decision-making of an overall process route for converting the raw
material into finished goods. These decisions encompass the selection of a process, choice of
technology, process flow analysis and layout of the facilities. Hence, the important decisions in process
design are to analyze the workflow for converting raw material into finished product and to select the
workstation for each included in the workflow
 PRODUCTION PLANNING AND CONTROL (PP&C)
• Production planning and control can be defined as the process of planning the production in advance, setting the exact route of
each item, fixing the starting and finishing dates for each item, to give production orders to shops and to follow-up the
progress of products according to orders.

• The principle of production planning and control lies in the statement ‘First Plan Your Work and then Work on Your Plan’. Main
functions of production planning and control include Planning, Routing, Scheduling, Dispatching and Follow-up.

• Planning is deciding in advance what to do, how to do it, when to do it and who is to do it. Planning bridges the gap from where
we are, to where we want to go. It makes it possible for things to occur which would not otherwise happen

• Routing may be defined as the selection of path, which each part of the product will follow, which being transformed from raw
material to finished products. Routing determines the most advantageous path to be followed for department to department and
machine to machine till raw material gets its final shape.

• Scheduling determines the program for the operations. Scheduling may be defined as 'the fixation of time and date for each
operation' as well as it determines the sequence of operations to be followed.

• Dispatching is concerned with the starting the processes. It gives necessary authority so as to start a particular work, which has
been already been planned under ‘Routing’ and ‘Scheduling’. Therefore, dispatching is ‘Release of orders and instruction for the
starting of production for any item in acceptance with the Route sheet and Schedule Charts’.

• The function of Follow-up is to report daily the progress of work in each shop in a prescribed proforma and to investigate the
causes of deviations from the planned performance
 QUALITY CONTROL (QC)
• Quality Control may be defined as ‘a system that is used to maintain a desired level of quality in a product or service’. It is a
systematic control of various factors that affect the quality of the product. Quality Control aims at prevention of defects at the
source, relies on effective feedback system and corrective action procedure.
• Quality Control can also be defined as ‘that Industrial Management technique by means of which product of uniform acceptable
quality is manufactured’. It is the entire collection of activities, which ensures that the operation will produce the optimum quality
products at minimum cost.

The main objectives of Quality Control are:

– To improve the companies' income by making the production more acceptable to the customers i.e. by providing longlife,
greater usefulness, maintainability, etc.
– To reduce companies cost through reduction of losses due to defects.
– To achieve interchangeability of manufacture in large-scale production.
– To produce optimal quality at reduced price.

– To ensure satisfaction of customers with productions or services or high quality level, to build customer good will, confidence
and reputation of manufacturer.
– To make inspection prompt to ensure quality control.

– To check the variation during manufacturing

 MATERIALS MANAGEMENT
• Materials Management is that aspect of management function, which is primarily concerned with the acquisition,
control, and use of materials needed and flow of goods and services connected with the production process
having some predetermined objectives in view.

The main objectives of Material Management are:

– To minimize material cost.
– To purchase, receive, transport and store materials efficiently and to reduce the related cost.
– To cut down costs through simplification, standardization, value analysis, import substitution, etc.
– To trace new sources of supply and to develop cordial relations with them in order to ensure continuous supply
at reasonable rates.
– To reduce investment tied in the inventories for use in other productive purposes and to develop high inventory
turnover ratios.
 MAINTENANCE MANAGEMENT
• In modern industry, equipment and machinery are a very important part of the total productive effort. Therefore their
idleness or downtime becomes are very expensive. Hence, it is very important that the plant machinery should be
properly maintained.

The main objectives of Maintenance Management are:

– To achieve minimum breakdown and to keep the plant in good working condition at the lowest possible cost.
– To keep the machines and other facilities in such a condition that permits them to be used at their optimal
capacity without interruption.
– To ensure the availability of the machines, buildings and services required by other sections of the factory for the
performance of their functions at optimal return on investment
The Roles and Functions of Operations Manager

ROLE

Design Develop Directing

Deliver
 The Roles and Functions of Operations Manager
 A Big-Picture Perspective: Because they are responsible for the overall well-being of the company's operations, these types of managers tend to
have a big-picture perspective. They need to be critical thinkers who can analyze situations and make decisions geared toward the company's best
interests rather than those of a single department
 Oversight of Financial Information and Budgets: A large part of an operations manager's job is to oversee the creation and administration of
budgets within each area of the company, regularly monitor expenses and curtail a department's spending if necessary cost-benefit analysis,
seeking to obtain the best price for materials and oversee production methods so that output is at peak efficiency levels..
 Supervise Supply Chain and Inventory: Management of supply chain procedures and inventory tracking
 Workflow and Staffing: Good handle on the staffing requirements of the organization They work with HR to hire and train new employees and
handle disciplinary issues, they can adjust the workflow and reassign tasks to improve efficiency in the operation.
 Operations Managers in Various Industries: While operations managers all use a wide variety of skills to do their job, some, particularly in
large companies, may specialize in an area and focus within a particular department. For example someone with a strong background in human
resources may become an HR operations manager
 Managing in a Small Operation: An office manager will typically function in a very similar capacity, supervising the overall functioning of
business operations, including finances, staffing, policies, marketing and goal-setting.
 Product Design: It involves generating new ideas or expanding on current ideas in a process that will lead to the production of new products. The
operations manager’s responsibility is to ensure that the products sold to consumers meet their needs, as well as match current market trends.
 Forecasting: operations manager is required to predict is the consumer demand for the company’s products. The forecasts help the company know
the volume of products needed to meet the market demand.
 Supply Chain Management: Supply chain management involves managing the production process from raw materials to the finished product. It
controls everything from production, shipping, distribution, to delivery of products
 Delivery Management: The manager ensures that the goods are delivered to the consumer in a timely manner. They must follow up with
consumers to ensure that the goods delivered are what the consumers ordered and that they meet their functionality needs as well as collect
feedback for further improvement.
 The Roles and Functions of Operations Manager
 Provide inspired leadership for the organization.
 Make important policy, planning, and strategy decisions.
 Develop, implement, and review operational policies and procedures.
 Assist HR with recruiting when necessary.
 Help promote a company culture that encourages top performance and high morale.

 Oversee budgeting, reporting, planning, and auditing.

 Work with senior stakeholders.

 Ensure all legal and regulatory documents are filed and monitor compliance with laws and regulations.
 Work with the board of directors to determine values and mission, and plan for short and long-term goals.

 Identify and address problems and opportunities for the company.

 Build alliances and partnerships with other organizations.

 Support worker communication with the management team.

 Functions of Operations Management
Finance

Strategy

Operation

Product Design

Forecasting
Functions
Quality Control

Business Process Reengineering (BPR)

Lean and agile manufacturing

Sigma six

Reconfigurable manufacturing system

 Functions of Operations Management
• Finance - In any manufacturing organization, finance plays a crucial role in ensuring that financial resources are properly
allocated and utilized to their full extent. Finance in operations management helps create a budget that will allow the organization
to meet its production goals and can help evaluate various investment opportunities to make the best decision. Proper
utilization and allocation of finances will allow for a product to be created for the lowest cost that will also satisfy overall
consumer needs.
• Strategy - Strategic management is the planning, monitoring, analysis, and assessment of tall aspects of an organization on a
continuing basis. Attention to these elements ensures that a strategy is developed and then implemented in the manufacturing facility.
The benefits of strategic management will help manufacturing organizations make better decisions regarding production
planning and scheduling, keep customers happy and allow the facility to meet its overall goals. Many business strategies
include supply chain configuration, sales, capacity to hold money, and optimal utilization of human resources.

• Operation - This function of operations management is concerned with planning, organizing, directing, and overall control of all
activities within the organization. This is the primary function of operations management and will effectively aid in converting raw
materials and human efforts into a durable good and service that consumers will be able to utilize. Operations within production must
be scheduled in a way that minimizes the amount of setup required and maximizes the utilization of resource capacity. If this is
achieved, the production facility will be able to increase its production output.
 Functions of Operations Management
• Product Design - With new technology becoming available, the selling of a product becomes much more simple. One of the main
duties of operations management is to ensure that a product is designed properly and caters to market trends and satisfies the
needs of consumers. In addition, introducing new product designs can be challenging due to the existing product mix and
available resources. Those are important factors to consider when looking to introduce new items.
• Forecasting - Demand forecasting is the process of predicting what the demand for certain products will be in the future. It identifies
what both current and future customers will want to buy and tells manufacturing facilities what they should actually produce. Ideally,
manufacturing companies want to be able to accurately predict customer demands so that they can produce the right amount
of products. Producing too few items leads to stock shortages and can negatively impact customer relationships. On the other hand,
having too much inventory is costly and can lead to having excess stock if the items become obsolete. Finding the right balance is
one of the functions of operations management.

• Quality Control - In addition to the product design function, operations managers should strive to produce the best quality product
possible. Modern-day consumers are concerned about quality instead of quantity, which is why it is so crucial to develop a durable
and top-notch quality product. This is especially important when evaluating the existing processes as improving production processes
should not be at the expense of quality. Operations managers should ensure that quality control processes are defined and
implemented to catch any defective items.
 Business process re-engineering
• Business process re-engineering : Business process re-engineering is the radical redesign of business processes to achieve
dramatic improvements in critical aspects like quality, output, cost, service, and speed. Business process reengineering (BPR) aims
at cutting down enterprise costs and process redundancies on a very huge scale

1. Map the current state of your business processes

Gather data from all resources–both software tools and stakeholders. Understand how the process is performing currently.

2. Analyze them and find any process gaps or disconnects

Identify all the errors and delays that hold up a free flow of the process. Make sure if all details are available in the respective steps for the
stakeholders to make quick decisions.

3. Look for improvement opportunities and validate them

Check if all the steps are absolutely necessary. If a step is there to solely inform the person, remove the step, and add an automated
email trigger.

4. Design a cutting-edge future-state process map

Create a new process that solves all the problems you have identified. Don’t be afraid to design a totally new process that is sure to work
well. Designate KPIs for every step of the process.

5. Implement future state changes and be mindful of dependencies

Inform every stakeholder of the new process. Only proceed after everyone is on board and educated about how the new process works.
 Lean and agile manufacturing
• Lean and agile manufacturing refer to modern advances in production technology and manufacturing methodology that have led to
reduced costs, quicker response time and improved customer service in manufacturing companies. "Lean" and "agile" refer to two
distinct concepts, but they share certain similarities.
• "Lean" refers to the relatively small amount of money invested in raw materials, work-in-process and finished-goods inventory
at any given time. Lean organizations minimize inventory costs through efficient purchasing and distribution systems that request
inputs just as they are needed and ship finished goods just as they are ordered. Lean manufacturers also focus on their core
competencies while outsourcing a range of other productive activities to contracted specialists, creating additional cost efficiencies.
For example, a lean manufacturing business may outsource its outbound logistics in order to focus on and invest exclusively in
production. The concept of continuous quality improvement and waste reduction as a source of cost control factors heavily into lean
manufacturing, as well.

• Agile manufacturing is all about the ability to respond to shifting customer demands quickly. Agile manufacturers design their
production processes in ways that can be changed rapidly, using existing equipment, tools, labor and raw materials to create new or
custom products on the fly. As an example, an agile car manufacturing plant will have the ability to use its existing infrastructure to
manufacture new vehicle models without significant capital investment. Agile manufacturing relies on robust data systems shared by
the marketing, design and production departments, providing up-to-date information on the resources available for use and redesign
at any given time
 Six Sigma and Reconfigurable manufacturing systems
•  (6σ) is a set of techniques and tools for process improvement

What Is Six Sigma?

• The term Six Sigma refers to a set of quality-control tools that businesses can use to eliminate defects and improve processes to help
boost their profits. It was developed by a scientist in the 1980s while he was working at Motorola, Six Sigma is a management
ideology that focuses on statistical improvements to a business process and advocates for qualitative measurements of success over
qualitative markers.

• Six sigma reduces time, defects and variability (lack of consistency)

• It emphasizes cycle-time improvements while reducing manufacturing defects to no more than 3.4 occurrences per million units or
events. 

• There are two methodologies : Define, measure, Analyse, Improve and Control (DMAIC) and Define, Measure, Analyse, Design
and Verify (DMADV).

• Reconfigurable manufacturing systems are production systems designed to incorporate accelerated change in structure,
hardware, and software components. This allows systems to adjust rapidly to the capacity to which they can continue production and
how efficiently they function in response to market or intrinsic system changes.
 Difference Production and Operation Management

BASIS FOR COMPARISON PRODUCTION MANAGEMENT OPERATIONS MANAGEMENT

Meaning Production Management connotes the Operations Management refers to the part
administration of the range of activities of management concerned with the
belonging to the creation of products. production and delivery of goods and
services.

Decision Making Related to the aspects of production. Related to the regular business activities.

Found in Enterprises where production is Banks, Hospitals, Companies including

undertaken. production companies, Agencies etc.

Objectives To produce right quality goods in right To utilize resources, to the extent possible
quantity at right time and at least cost. so as to satisfy customer wants.

Capital Highly capital intensive Low Capital Intensive

Industry 4.0
 Industry 4.0- Six Design Principles
Interoperability: the ability of cyber-physical systems (i.e. work piece carriers, assembly stations and products),
humans and Smart Factories to connect and communicate with each other via the Internet of Things

Virtualization: a virtual copy of the Smart Factory which is created by linking sensor data (from monitoring physical
processes) with virtual plant models and simulation models

Decentralization: the ability of cyber-physical systems within Smart Factories to make decisions on their own

Real-Time Capability: the capability to collect and analyse data and provide the insights immediately
Service Orientation: offering of services (of cyber-physical systems, humans and Smart Factories) via the Internet of
Services

Modularity: flexible adaptation of Smart Factories for changing requirements of individual modules
 Industry 4.0 - Technologies
• The Internet of Things(IOT)- IoT stands for Internet of Things, a concept that refers to connections between physical objects like
sensors or machines and the Internet.
• IIoT: IIoT stands for the Industrial Internet of Things, a concept that refers to the connections between people, data, and machines as
they relate to manufacturing
• Artificial intelligence- Artificial intelligence is a concept that refers to a computer’s ability to perform tasks and make decisions that
would historically require some level of human intelligence.
• Machine learning: Machine learning refers to the ability that computers have to learn and improve on their own through artificial
intelligence—without being explicitly told or programmed to do so.
• Cyber-physical systems (CPS)- Cyber-physical systems, also sometimes known as cyber manufacturing, refers to an Industry 4.0-
enabled manufacturing environment that offers real-time data collection, analysis, and transparency across every aspect of a
manufacturing operation.
• Cloud computing - Cloud computing refers to the practice of using interconnected remote servers hosted on the Internet to store,
manage, and process information.
• Smart Factories- A smart factory is one that invests in and leverages Industry 4.0 technology, solutions, and approaches.
 Important Terminologies in Industry 4.0
• Enterprise Resource Planning (ERP): Business process management tools that can be used to manage information across an
organization.

• Big data: Big data refers to large sets of structured or unstructured data that can be compiled, stored, organized, and analysed to
reveal patterns, trends, associations, and opportunities.

• M2M: This stands for machine-to-machine and refers to the communication that happens between two separate machines through
wireless or wired networks.

• Digitization: Digitization refers to the process of collecting and converting different types of information into a digital format.

• Real-time data processing: Real-time data processing refers to the abilities of computer systems and machines to continuously and
automatically process data and provide real-time or near-time outputs and insights.

• Ecosystem: An ecosystem, in terms of manufacturing, refers to the potential connectedness of your entire operation—inventory and
planning, financials, customer relationships, supply chain management, and manufacturing execution.
 Management Gurus and their contribution
Appox Date Contribn/Concept Originator

1776 Division of Labour Adam Smith- Scottish economist, philosopher, pioneer of political economy, and
a key figure during the Scottish Enlightenment

1790 Interchangeable parts Eli Whitney- was an American inventor, widely known for inventing the cotton
gin

1911 Principles of Scientific Frederick W. Taylor- Frederick Winslow Taylor was an American mechanical
Management engineer. He was widely known for his methods to improve industrial efficiency. 

1911 Motion Study, use of Frank & Lillian Gilbreth- Frank Bunker Gilbreth was an American engineer,
industrial psychology consultant, and author known as an early advocate of scientific management
and a pioneer of time and motion study. Lillian Evelyn Moller Gilbreth was an
American psychologist, industrial engineer, consultant, and educator who was
an early pioneer in applying psychology to time-and-motion studies

1912 Chart for scheduling Henry Gantt

activities

1913 Moving assembly line Henry Ford

 Management Gurus and their contribution
• Division of Labour: Division of labour is an economic concept which states that dividing the production process into different stages enables workers
to focus on specific tasks. If workers can concentrate on one small aspect of production, this increases overall efficiency – so long as there are
sufficient volume and quantity produced. This concept was popularised by Adam Smith in An Inquiry into the Nature and Causes of the Wealth of
Nations (1776). Famously, he used the example of a pin factory.

• Interchangeable parts: interchangeable parts, identical components that can be substituted one for another, particularly important in the history of
manufacturing. Mass production, which transformed the organization of work, came about by the development of the machine-tool industry by a series of
19th-century innovators. Developed by Eli Whitney.

• Principles of Scientific Management: F.W. Taylor or Fredrick Winslow Taylor, also known as the ‘Father of scientific management’ proved with his practical
theories that a scientific method can be implemented to management. Taylor gave much concentration on the supervisory level of management and
performance of managers and workers at an operational level. Principles- Science, Not Rule of Thumb, Harmony, Not Discord, Cooperation, Not
Individualism and Development of Each and Every Person to His / Her Greatest Efficiency and Prosperity:

• Motion Study, use of industrial psychology: Motion study was developed by Frank B. Gilbreth and Lillian M. Gilbreth and consists of a wide variety of
procedures for the description, systematic analysis, and means of improving work methods . 

• Chart for scheduling activities: also known as Gantt chart, A Gantt chart is a commonly used graphical depiction of a project schedule. It's a type of
bar chart showing the start and finish dates of a project's elements such as resources, planning and dependencies.

• Moving assembly line: On December 1, 1913, Henry Ford installs the first moving assembly line for the mass production of an entire automobile. His
innovation reduced the time it took to build a car from more than 12 hours to one hour and 33 minutes
Management Gurus and their contribution
 Productions and Operations Management in Indian Context

• The number of operations jobs for MBAs in India is on the rise, thanks to the region’s growing number of e-commerce
companies as well as the increased use of technology in operations.
• Operations management (OM) has always been an important field of management in India, given the size of the country and the
scarcity of resources.
• Make in India campaign has, according to, led to an increased focus on promotion of Indian manufacturing. The critical role of
supply chain and logistics management in the e-commerce industry, along with the Make in India campaign, has recently
helped operations management become a more prominent MBA specialization in recent years
• While operations management has its origins in the manufacturing industry, starting with Henry Ford’s assembly line in 1913,
business schools in India have been looking at ways to apply operations principles to the service industry for the past two decades
as its IT industry has continued to expand.
• In India, due to the significant role that the IT services sector has played during the two decades starting from early 1990s, the
business schools to some extent offered courses that help adopt operations management concepts for the services sector.
• Operations principles which can be applied to the INDIAN automotive industry- JUST-IN-TIME (JIT) PRODUCTION, TOTAL QUALITY
MANAGEMENT (TQM), TOTAL PRODUCTIVE MAINTENANCE (TPM), LEAN PRODUCT DEVELOPMENT (LPD), AND SIX SIGMA

Source: https://www.topmba.com/jobs/career-trends/operations-management-view-india
 Operations roles offered include:

• Vendor management
• Sales operations
• Procurement
• Delivery and returns management
• Customer service
• Production planning
• Supply chain management
 RECENT TRENDS IN OPERATIONS MANAGEMENT
• Global Market Place : Globalisation of business has compelled many manufacturing firms to have operations in many countries where they have
certain economic advantage. This has resulted in a steep increase in the level of competition among manufacturing firms throughout the world.
• Production/Operations Strategy: More and more firms are recognising the importance of production/ operations strategy for the overall success
of their business and the necessity for relating it to their overall business strategy.
• Total Quality Management (TQM) : TQM approach has been adopted by many firms to achieve customer satisfaction by a never-ending quest
for improving the quality of goods and services.
• Flexibility : The ability to adapt quickly to changes in volume of demand, in the product mix demanded, and in product design or in delivery
schedules, has become a major competitive strategy and a competitive advantage to the firms. This is sometimes called as agile manufacturing.
• Time Reduction : Reduction of manufacturing cycle time and speed to market for a new product provide competitive edge to a firm over other
firms. When companies can provide products at the same price and quality, quicker delivery (short lead times) provide one firm competitive edge
over the other.
• Technology : Advances in technology have led to a vast array of new products, new processes and new materials and components. Automation,
computerisation, information and communication technologies have revolutionised the way companies operate. Technological changes in products
and processes can have great impact on competitiveness and quality, if the advanced technology is carefully integrated into the existing system.
• Re-engineering : This involves drastic measures or break-through improvements to improve the performance of a firm. It involves the concept of
clean-slate approach or starting from scratch in redesigning the business processes.
• Corporate Downsizing (or Right Sizing) : Downsizing or right sizing has been forced on firms to shed their obesity. This has become necessary
due to competition, lowering productivity, need for improved profit and for higher dividend payment to shareholders.
• Supply-Chain Management: Management of supply-chain, from suppliers to final customers reduces the cost of transportation, warehousing and
distribution throughout the supply chain.
• Lean Production: Production systems have become lean production systems which use minimal amounts of resources to produce a high volume
of high quality goods with some variety. These systems use flexible manufacturing systems and multi-skilled workforce to have advantages of
both mass production and job production (or craft production).