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Introduction To OPM

This document provides an overview of operations management. It defines operations management as the design, operation, and improvement of production systems that create a firm's products or services. Operations management is distinguished from related fields like operations research and industrial engineering in that it is a field of management rather than applied mathematics. Key activities of operations management include capacity planning, facility layout, aggregate planning, inventory management, materials requirements planning, scheduling, and quality control. The document also discusses the evolution of operations management approaches over time.

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319 views

Introduction To OPM

This document provides an overview of operations management. It defines operations management as the design, operation, and improvement of production systems that create a firm's products or services. Operations management is distinguished from related fields like operations research and industrial engineering in that it is a field of management rather than applied mathematics. Key activities of operations management include capacity planning, facility layout, aggregate planning, inventory management, materials requirements planning, scheduling, and quality control. The document also discusses the evolution of operations management approaches over time.

Uploaded by

moh4u
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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OPERATIONS

MANAGEMENT

By: -
HAKEEM–UR–REHMAN
MS–Total Quality Management
IRCA(UK) Lead Auditor QMS
MSc (Information & Operations
Management)
MANAGEMENT
: AN INTRODUCTION
 Operations Management is frequently
confused with:
 Operations Research (OR)
 Management Science (MS)
 Industrial Engineering (IE)
 The critical difference between Operations
Management
and these fields is this:
 Operations Management is a field of
management,
 OR & MS are branches of applied mathematics,
OPERATIONS:
 DEFINITION
Operations refers to the production of goods and services,
 the set of value-added activities that transform inputs into
outputs.
Transformation
Input Process Output

VALUE–ADDED:
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
OM TRANSFORMATIONS
Transformation
Input Process Output

LAND (Value Adding) HIGH PROFIT

LABOR LOW COST

CAPITAL  People HIGH QUALITY

MANAGEMENT  Plants FIRST TO MKT

TECHNOLOGY  Parts
 Processes
 Planning and Control
Transformation using
The 6 Ps of OM:
 Productive Technology
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
Organization
Customer Needs Customer Satisfies

Identification & Forecasting


Customer Needs facility Explicit forecasting

Analyzing & Integrating


Explicit forecasting facility Resource Plan

Resource Plan Supplying facility Production input

Production input Transformation facility Output

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 MANUFACTURERS
 Intangible product  Tangible product
 Product cannot be  Product can be
inventoried inventoried
 High customer contact
 Low customer contact
 Short response time
 Longer response time
 Labor intensive
 Capital intensive
SIMILARITIES:
SERVICE / MANUFACTURING
 All use technology
 Both have quality, productivity, &
response issues
 All must forecast demand
 Each will have capacity, layout, and
location issues
 All have customers and suppliers
 All have scheduling and staffing issues
OPERATIONS
MANAGEMENT
ACTIVITIES
 Strategy  Inventory
 Capacity Planning Management
 Facility Location  Materials
Requirements
 Facility Layout
Planning
 Aggregate
Planning
 Scheduling
 Quality Control
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
QUESTION
S

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