OPERATIONS MANAGEMENT

O P M
By: HAKEEM UR REHMAN
MS Total Quality Management IRCA(UK) Lead Auditor QMS MSc (Information & Operations Management)

PCBA UCP

OPERATIONS: DEFINITION
Operations refers to the production of goods and services, the set of value-added activities that transform inputs into outputs.
Inputs Flow units (raw material, customers) Process Outputs Goods Services

Resources Labor & Capital The Process View of an Organization

VALUEADDED:
The difference between the cost of inputs and the value or price of outputs.

OPERATIONS MANAGEMENT DEFINITION:

Operations management may be defined as the design, operation, and improvement of the production systems that create the firm's products or services. (OR) The management of systems or processes that create goods and/or provide services

TRANSFORMATIONS PROCESS
The transformation process can be: Physical as in manufacturing operations Locational as in transportation or warehouse operations Exchange as in retailing operations Physiological as in health care Informational as in communication Psychological as in Mental Clinic....

OM TRANSFORMATIONS
Customer Needs Customer Needs Explicit forecasting Resource Plan Production input Organization Customer Satisfies Explicit forecasting Resource Plan Production input Output

Identification & Forecasting facility

Analyzing & Integrating facility Supplying facility Transformation facility

Output

Distribution facility

Customer Satisfies

MANUFACTURING OR SERVICE?
Tangible Act

 Production of goods tangible output  Delivery of services an act

DIFFERENCES BETWEEN MANUFACTURING AND SERVICE ORGANIZATIONS

SERVICES
Intangible product Product cannot be inventoried High customer contact Short response time Labor intensive

MANUFACTURERS
Tangible product Product can be inventoried Low customer contact Longer response time Capital intensive

OPERATIONS FUNCTION
Operations Marketing Finance and Accounting Human Resources Outside Suppliers

KEY DECISIONS OF OPERATIONS MANAGERS

What
What resources/what amounts

When
Needed/scheduled/ordered

Where
Work to be done

How
Designed

Who
To do the work

EVOLUTION OF OPERATIONS MANAGEMENT

CRAFT PRODUCTION
process of handcrafting products or services for individual customers

DIVISION OF LABOR
dividing a job into a series of small tasks each performed by a different worker

INTERCHANGEABLE PARTS
standardization of parts initially as replacement parts; enabled mass production

SCIENTIFIC MANAGEMENT
systematic analysis of work methods

MASS PRODUCTION
high-volume production of a standardized product for a mass market

LEAN PRODUCTION
adaptation of mass production that prizes quality and flexibility

QUESTIONS