Scribd
Upload
146 views16 pages

Introduction To Operations Management: - Dr. Ziaul Haq Adnan

Uploaded by

Jahid Hasan Menon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
146 views16 pages

Introduction To Operations Management: - Dr. Ziaul Haq Adnan

Uploaded by

Jahid Hasan Menon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 16

1-1 Introduction to Operations Management

Introduction to
Operations Management

-Dr. Ziaul Haq Adnan

Operations Management, Eighth Edition, by William J. Stevenson


McGraw-Hill/Irwin Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.
1-2 Introduction to Operations Management

Operations Management (OM)


Definition
OM is the management of systems, which transform
inputs into value-added products and/or services.

Primary Functions
Organization

Finance Operations Marketing

Support Functions – R&D, HR, PR, Accounting, etc.


1-3 Introduction to Operations Management

Value-Added

The difference between the cost of inputs


and the value or price of outputs.
Value added
Inputs
Transformation/ Outputs
Land
Conversion Goods
Labor
process Services
Capital
Feedback

Control
Feedback Feedback
1-4 Introduction to Operations Management

Food Processor

Inputs Processing Outputs


Raw Vegetables Cleaning Canned
Metal Sheets Making cans vegetables
Water Cutting
Energy Cooking
Labor Packing
Building Labeling
Equipment
1-5 Introduction to Operations Management

Hospital Process

Inputs Processing Outputs

Doctors, nurses Examination Healthy


Hospital Surgery patients
Medical Supplies Monitoring
Equipment Medication
Laboratories Therapy
1-6 Introduction to Operations Management

Manufacturing or Service?

Tangible Act
1-7 Introduction to Operations Management

Production of Goods vs. Delivery of Services

· Production of goods – tangible output


· Delivery of services – an act (Intangible)
· Service job categories
· Government

· Wholesale/retail

· Financial services
· Healthcare

· Personal services

· Business services

· Education
1-8 Introduction to Operations Management

Manufacturing vs Service

Characteristic Manufacturing Service


Output Tangible Intangible
Customer contact Low High
Uniformity of input High Low
Labor content Low High
Uniformity of output High Low
Measurement of productivity Easy Difficult
Opportunity to correct High Low
quality problems
1-9 Introduction to Operations Management

Scope of Operations Management


· Operations Management includes:
· Forecasting
· Capacity planning
· Scheduling
· Managing inventories
· Assuring quality
· Motivating employees
· Deciding where to locate facilities
· Supply Chain Management (SCM)
· And more . . .
1-10 Introduction to Operations Management

Operations Function

· The operations function


· Consistsof all activities directly related to producing
goods or providing services
1-11 Introduction to Operations Management

Types of Operations

Operations Examples
Goods Producing Farming, mining, construction,
manufacturing, power generation
Storage/Transportation Warehousing, trucking, mail
service, moving, taxis, buses,
hotels, airlines
Exchange Retailing, wholesaling,
banking, renting, library, loans
Entertainment Films, radio and television,
concerts, recording
Communication Newspapers, radio and television
newscasts, email, telephone,
satellites
1-12 Introduction to Operations Management

Responsibilities of Operations Manager

Planning Organizing
– Capacity – Degree of centralization
– Location – Process selection
– Products & services Staffing
– Make or buy – Hiring/laying off
– Layout – Use of Overtime
– Projects Directing
– Scheduling – Incentive plans
Controlling/Improving – Issuance of work orders
– Inventory – Job assignments
– Quality
– Costs
– Productivity
1-13 Introduction to Operations Management

Business Operations Overlap

Operations

Marketing Finance
1-14 Introduction to Operations Management

Operations Interfaces
Industrial
Engineering
Maintenance
Distribution

Purchasing Public
Operations Relations

Legal
Personnel

Accounting MIS
1-15 Introduction to Operations Management

Historical Evolution of Operations Management


· Industrial revolution era (1770’s) [Steam Engine – 1769
(James Watt), Division of Labor – 1776 (Adam Smith)]

· Scientific management era (1911’s) [Principles of Sc. Mgt.


– 1911 (Fredrick Winslow Taylor), Gantt Chart – 1912 (Henry L.
Gantt), Moving Assembly Line – 1913 (Henry Ford), Inventory
Models – 1915 (F.W. Harris)

· Human relations movement era (1920-60) [Hawthorne


Studies – 1930 (Elton Mayo), Statistical Process Control – 1935
(H.F. Dodge and et al.), Motivation Theories -1940 (Maslow), 1950
(Frederick), 1960 (McGregor)]
1-16 Introduction to Operations Management

Historical Evolution of Operations Management


· Management science era [Linear programming – 1947
(George Dantzig), Digital Computer – 1951 (Remington Rand),
Simulation, Waiting Line Theory, Decision theory, PERT
(Performance Evaluation Review Technique)/CPM (Critical Path
Method) – 1950s to 1960s (various)]

· Quality revolution era [Lean Production – 1970s (Taiichi


Ohno), JIT - 1980s (Toyota), TQM – 1980S to 1990s (W. Edward
Deming, Joseph Juran and et al.)

· Process revolution era [Computer Integrated Manufacturing


(CIM), Concurrent Engineering – 1980s to 1990s (various)
Reengineering – 1990s (Michael Hammer and James Champy)]

You might also like