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Operations Management

Introduction
The systematic design , direction and control of processes that transform inputs into services and products for internal , as well as external customers. Operations Management concentrates on the core businesses , squeezes out the waste and focuses on differentiating between competitors in a meaningful ways.

Operations Management is the set of activities that creates values in the form of goods and services by transferring inputs into outputs. - Jay Heizer & Barry Render Operation Management may be defined as the design, operation, and improvement operations of the production systems that create the firms primary products or services. Richard B. Chase, Nicholas J. Aquilano & F. Robert Jacobs

Historical Contribution
FW Taylor contributed in the development of management techniques for personal selection, planning and scheduling, motion study, and the field of ergonomics. Henry Ford and Charles Sorenson derived the revolutionary concept of the assembly line where men stood still and materials moved. Walter Shewart introduced the concept of Statistical Quality Control (SQC)

Historical Contribution
Cost focus Early Concept (1776-1880) Labour specialization (Smith, Babbage) Standardized parts (Whitney) Scientific Management Era (1880-1910) Gantt Charts (Gantt) Motion, Time Studies (Gilberth) Process Analysis (Taylor) Queing Theory (Erland) Mass Production Era (1910-1980) Moving assembly line (Ford/ Sorensen) Statistical sampling (Shewarts) EOQ (Harris) Linear Programming PERT/ CPM (Du Pont) MRP Quality Focus Lean Production Era (1980-1995) Just in Time Computer aided Design (CAD) Electronic Data interchange (EDI) Total Quality Management (TQM) Mass Customization Era (1995 onwards) Globalization Internet Enterprise resource planning Learning Organization International Quality standards Finite scheduling Supply chain Management E- Commerce

System Approach to Operation Management


Production Function/ System
Random Disturbances

Inputs Plants Land People Capital Management Information

Transformation Process

Outputs Goods Services

Feedback mechanism

OUTPUT Outputs are the desired result of the system, which may be goods or services. The output should be of desired utility in terms of quality, cost and delivery or of stakeholders interest. RANDOM DISTURBANCES These are unplanned and uncontrollable environmental influences that causes the difference between planned and actual output. FEEDBACK MECHANISM The feedback is obtained from end of each step. This is used for measuring the performance previous actions.

Operation Strategy and Competitiveness


Operations strategy is a long-range plan for the operations function that species the design and use of resources to support the business strategy. Just as the players on a football team support the teams strategy, the role of everyone in the company is to do his or her job in a way that supports the business strategy.

Types of Production Systems


The most common types of production systems are as follows: 1) Project production 2) Job shop production 3) Batch production (Disconnected line) 4) Assemble line production 5) Continuous flow production 6) Flexible manufacturing system (FMS)