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3 - OM & Other Functional Areas PDF

OM interfaces with other functional areas such as finance, marketing, and human resources. OM acquires financial resources from finance and provides production and inventory data. It generates sales outputs for marketing and determines personnel needs and skills for human resources.

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Snehil Kr
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147 views6 pages

3 - OM & Other Functional Areas PDF

OM interfaces with other functional areas such as finance, marketing, and human resources. OM acquires financial resources from finance and provides production and inventory data. It generates sales outputs for marketing and determines personnel needs and skills for human resources.

Uploaded by

Snehil Kr
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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OM

and
Other Functional Areas

Dr. B. P. Panda
OM’s interface with
other functional areas
Finance
Acquires financial resources and
capital for inputs

Material & Sales


Service Inputs Revenue

Support Functions
• Accounting
• Information Systems
• Human Resources
Operations • Engineering Marketing
Translates materials and Generates sales of
service into outputs outputs

Product & Service


Outputs
Operations as the Technical Core
Finance/Accounting
Production and Budgets
Inventory data Cost analysis
Capital budgeting requests Capital investments
Capacity expansion and Stockholder
Technology plans requirements
Orders for materials Product/Service
Production and delivery Availability
Schedules Quality Lead-time estimates

Marketing
Suppliers

Requirements Design/ Status of order


Performance specs Delivery schedules

Operations
Material availability Sales forecasts
Quality data Customer orders
Delivery schedules Customer feedback
Designs Promotions
Personnel needs
Skill sets Hiring/firing
Performance evaluations Training
Job design/work Legal requirements
measurement Union contract negotiations

Human Resources
To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved.
OM & Other Functional Areas of Mgt.
Everyone who manages a process or some business activity should possess
a set of basic OM skills in conjunction with other functional skills.

– OM & Industrial Mgt.; OM & Accounting; OM & IT; OM & Process Mgt.; OM &
Marketing & Finance etc.
– Quality assurance; customer service; statistics, ctrl. Charts; Data analysis and
decision making for purchase and upgradation of equipment
– Optimizing the m/c performance in a process by eliminating bottlenecks and
reducing cycle time
– Cross-functional continuous improvement teams
– Managing projects
– Reducing wastes
– Performance measurement and evaluation
– Managing inventory
– Planning and budgeting; Scheduling and sequencing; Facility and capacity planning
– Developing new products, processes, services, technologies
To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved.
Organization: Function Vs. Process

CEO
Functional Focus

VP-1 VP-2 ***

Mgr-1-1 Mgr -1-2 Mgr-2-1 Mgr-2-2 Mgr-2-3

Process -A

Process -B
Process Focus

Process - C

Process -D

Process -E

To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved.
Classwork-2

• Read the CASE-1 (Acme Whistles) to


– Identify the OM activities

– List various functional areas

– Write the other functional areas with which the


OM area interacts and in what way.

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