PRESENTATION ON

OPERATION MANAGEMENT
GROUP MEMBER
 MANAS MISHRA
 GYANESH PINJARE
 VIMAL KANT SHARMA
 SHUBHAM AGARWAL
 JITENDRA BHANDARI
 APPARAO GUDAPATI
 INTRODUCTION
Operations management is the
management of an organization’s
productive resources or its
production system.
A production system takes inputs
and converts them into outputs.
The conversion process is the
predominant activity of a
production system.
The primary concern of an
operations manager is the activities
of the conversion process.
Gyanesh
 Operations as a System
Production System

Conversion
Inputs Outputs
Subsystem

Control
Subsystem

Gyanesh
 Hospital Process

Inputs Processing Outputs

Doctors, nurses Examination Healthy

Hospital Surgery patients
Medical Supplies Monitoring
Equipment Medication
Laboratories Therapy

Gyanesh
 Types of Operations

Operations Examples
Goods Producing Farming, mining, construction ,
manufacturing, power generation
Storage/TransportationWarehousing, trucking, mail
service, moving, taxis, buses,
hotels, airlines
Exchange Retailing, wholesaling, banking,
renting, leasing, library, loans
Entertainment Films, radio and television,
concerts, recording
Communication Newspapers, radio and television
newscasts, telephone, satellites

Gyanesh
 Industrial Location Decision

¨ Cost focus
¨ Revenue varies little
between locations
¨ Location is a major
cost factor
¨ Affects shipping &
production costs (e.g., labor)
¨ Costs vary greatly between
locations

Jitendra
 Location Decision Example

© 1995 Corel Corp.

Jitendra
 Operations Interfaces

Industrial
Engineering
Maintenance
Distribution

Purchasing Public
Operations Relations

Legal
Personnel

Accounting MIS
Jitendra
 LAYOUT
 Layout: The physical configuration of
facilities the arrangement of equipment
within facilities or both
 Importance of layout
◦ Economies in handling
◦ Effective use of available area
◦ Minimization of production delays
◦ Minimum equipment investments

Shubham
 Basic Layout Types
Product Layout
A physical configuration of facilities arrangement the
product
 Auto plants, cafeterias
 Process Layout
A physical configuration of facilities arrangement the
process
 Tool and die shops, university departments
 Fixed Position Layout
A physical configuration of facilities arrangement
around a single work area

Shubham
 The Need for Layout Design
 Changes in
 environmental
 Changes in volume of
 output or mix of
 or other legal
 products
 requirements

 Morale problems
 Changes in methods
 and equipment

Shubham
 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

Manas
 Simple Product Supply Chain

Suppliers’ Direct Final

Producer Distributor
Suppliers Suppliers Consumer

Supply Chain: A sequence of activities

And organizations involved in
producing
And delivering a good or service

Manas
 Responsibilities of Operations Management

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
Manas
 Entry-Level Jobs in OM
 Purchasing planner/buyer
 Production (or operations) supervisor
 Production (or operations)

scheduler/controller
 Production (or operations) analyst
 Inventory analyst
 Quality specialist

Manas
 Today's Factors Affecting OM
 Global Competition
 Quality, Customer Service, and Cost

Challenges
 Rapid Expansion of Advanced Technologies
 Continued Growth of the Service Sector
 Scarcity of Operations Resources
 Social-Responsibility Issues

Manas
 Decision Making in OM
 Strategic Decisions
 Operating Decisions
 Control Decisions

Vimal
 Strategic Decisions
 These decisions are of strategic importance
and have long-term significance for the
organization.
 Examples include deciding:

◦ the design for a new product’s production process

◦ where to locate a new factory
◦ whether to launch a new-product development plan

Vimal
 Operating Decisions
 These decisions are necessary if the ongoing
production of goods and services is to satisfy
market demands and provide profits.
 Examples include deciding:

◦ how much finished-goods inventory to carry

◦ the amount of overtime to use next week
◦ the details for purchasing raw material next month

Vimal
 Control Decisions
 These decisions concern the day-to-day
activities of workers, quality of products and
services, production and overhead costs, and
machine maintenance.
 Examples include deciding:

◦ labor cost standards for a new product

◦ frequency of preventive maintenance
◦ new quality control acceptance criteria

Vimal
 Questions Before Selecting A Process

 Variety of products
and services
◦ How much
 Flexibility of the process; volume,
mix, technology and design Batch
◦ What type and degree
 Volume

◦ Expected output Job Shop Continuous

Repetitive

Apparao
Automation: Machinery that has sensing and
control devices that enables it to operate

Fixed automation: Low production cost and high volume

but with minimal variety and high changes cost
◦ Assembly line
Programmable automation: Economically producing a
wide variety of low volume products in small batches
◦ Computer-aided design and manufacturing systems (CAD/CAM)
◦ Numerically controlled (NC) machines / CNC
◦ Industrial robots (arms)
Flexible automation: Require less changeover time and
allow continuous operation of equipment and product
variety
◦ Manufacturing cell
◦ Flexible manufacturing systems: Use of high automation to
achieve repetitive process efficiency with job shop process
 Automated retrieval and storage
 Automated guided vehicles
◦ Computer-integrated manufacturing (CIM)
Apparao
 Flexible Manufacturing System
 Group of machines that include supervisory
computer control, automatic material handling,
robots and other processing equipment
◦ Advantage:
reduce labor costs and more consistent quality
lower capital investment and higher flexibility
than hard automation
relative quick changeover time
◦ Disadvantage
used for a family of products and require
longer planning and development times

Apparao
 Outputs of an Operations System
 Direct
◦ Products
◦ Services
 Indirect
◦ Waste
◦ Pollution
◦ Technological Advances

Apparao
 What Controls the Operations
System?
 Information about the outputs, the
conversions, and the inputs is fed back to
management.
 This information is matched with

management’s expectations
 When there is a difference, management must

take corrective action to maintain control of

the system

Apparao
 Scope of Operations Management
 Operations Management includes:
◦ Forecasting
◦ Capacity planning
◦ Scheduling
◦ Managing inventories
◦ Assuring quality
◦ Motivating employees
◦ Deciding where to locate facilities
◦ And more . ..

Apparao
Thank You………