Operations Management

An Overview

Need for Operation management

Problems Outdated technology Underdeveloped Infrastructure Inappropriate payment systems Ineffective scheduling and control systems Global competition

Need for Operation management

Perspectives Reduce Manufacturing costs Optimize productivity Improve product quality Understanding Automation Optimization of scheduling Inventory management system TQM and Quality Control

Decisions and activities of Operations Managers

Planning Organizing Controlling Directing Motivating Coordinating Training and Developing Personnel

Planning

Plan product and service Mix Location and capacity planning Decide upon production methods to use for each item Plan procurement of wquipments Decide on the number of shifts and work hours Geanerate a master schedule of what product to make and when Organize changes by incorporating new processes and procedures

Organizing

Centralize or decentralize operations Decide upon functions, products, or hybrid organization structure Establish work center assignments Assign responsibility for every activity Arrange supplier and subcontractor networks Establish maintenance policies.

Controlling

Encourage pride in performing as expected Compare costs to budget Compare actual labor hours to standard Inspect the quality levels Compare work progress to schedule Compare inventory level to targets

Directing

Establish provisions of union contracts Establish personnel policies Establish employment contracts Issue job assignments and instructions

Motivating

Provide challenges through leadership example, specific objectives, and goals Encourage through praise, recognition, and other intangibles Motivate through tangible reward system Motivate employees by job enrichment and giving challenging assignments

Coordinating

Coordinate through use of common forecast and master schedules Observe actual performance and recommend needed improvement Report, inform and communicate Coordinate purchases, deliveries, design changes, and maintenance activities Respond to customer inquiries about status of orders

Training and Developing Personnel

Guide by informing correct work methods Encourage employees to seek perfection in their tasks Give more challenging job assignments Support employees in training programs

Market Shift
Production driven System

Product

Market Driven System

Services

Operations

Definition of Operations Management

Management of direct resources (machine, material and manpower), which are required to produce goods and services.
It involve planning, organizing, controlling, directing and coordinating all the activities of production systems which convert resource input into products or services

Operations management deals with

Design of product and processes Acquisition of resources Transformation of resource inputs into outputs Distribution of goods and services

Operation Management Decisions

designing and implementation of operations strategies
Strategic

decisions (5years or more) Tactical decisions (1 or 2 years) Operational decisions (less than a week)

Strategic decisions