1.

Function of Operation Management​

Operations Management (OM) is responsible for managing the
processes that produce goods and services. Its main functions include
planning, organizing, and supervising production. It ensures that inputs
like raw materials, labor, and technology are used efficiently to create
high-quality products or services. OM focuses on minimizing costs,
reducing waste, and maximizing productivity. It also involves making
decisions about inventory, capacity, quality control, scheduling, and
maintenance. Another key function is improving customer satisfaction
by delivering products on time and meeting quality standards. Overall,
OM helps businesses run smoothly by aligning operations with customer
needs and company goals.

2. Definition of Quality​
Quality refers to how well a product or service meets the expectations
and requirements of customers. It involves features like performance,
reliability, durability, and consistency. A high-quality product does what it
is supposed to do without defects. In services, quality means timely
delivery, courteous behavior, and accurate information. From a business
perspective, quality also involves continuous improvement and meeting
industry standards. It plays a major role in customer satisfaction, brand
reputation, and competitive advantage. When companies focus on
quality, they reduce returns, complaints, and rework, which also saves
costs and builds customer trust.
3. Overview of TQM and LEAN​
Total Quality Management (TQM) is a system where all employees work
together to improve processes, products, and services continuously. It
focuses on customer satisfaction, reducing errors, and involving
everyone in quality improvement. Tools like check sheets and control
charts are often used in TQM.

LEAN is a management approach that aims to reduce waste in

processes without affecting quality. Waste can be in the form of excess
inventory, waiting time, or unnecessary motion. LEAN uses tools like 5S,
Kaizen, and Value Stream Mapping. Both TQM and LEAN aim to improve
efficiency, lower costs, and deliver better value to customers.

4. Impact of Global Competition​

Global competition has made businesses more focused on quality, cost,
and innovation. Companies now face competition not only from local
firms but also from international players. This forces them to improve
their products and services constantly. Customers have more choices,
so they demand better quality at lower prices. As a result, businesses
must adopt advanced technologies, improve supply chain efficiency, and
manage their operations more strategically. It also leads to faster
product development and better customer service. To survive in global
markets, companies must be flexible, cost-effective, and focused on
continuous improvement and customer satisfaction.
5. Process Product Layout​
A process layout is used in job shops where products are customized.
Machines of similar functions are grouped together. It is flexible and
best for low-volume, high-variety production. For example, in a hospital,
different departments like X-ray, lab, and surgery are located separately
based on functions.

A product layout is used in assembly lines where a standard product is

made in large quantities. Machines are arranged in a sequence based on
the production steps. It is efficient for high-volume, low-variety products,
like in car manufacturing. Each layout has its benefits and is chosen
based on the type of product and production goals.

6. Service Blueprinting​
Service blueprinting is a tool used to design and analyze service
processes. It helps companies understand the steps involved in
delivering a service, from the customer's point of view. It shows both
what the customer sees (front stage) and what happens behind the
scenes (back stage). A blueprint includes customer actions, employee
actions, support systems, and physical evidence. It helps identify service
gaps, improve efficiency, and enhance customer satisfaction. For
example, in a restaurant, blueprinting can show the process from
ordering food to billing and cleaning the table. It helps ensure that every
step is smooth and consistent.
7. MRP I and MRP II​
MRP I (Material Requirements Planning) is a system used to plan the
materials needed in production. It calculates how much raw material is
required and when it is needed based on the production schedule. MRP I
focuses only on materials.

MRP II (Manufacturing Resource Planning) is an advanced version that

includes not only materials but also labor, machines, and finances. It
integrates different departments like production, finance, and HR for
better coordination. MRP II helps in overall production planning and
control. Both systems aim to reduce inventory, avoid delays, and improve
production efficiency, but MRP II provides a broader view of resources.

8. Functions of Production Planning and Control​

Production Planning and Control (PPC) ensures that manufacturing runs
smoothly, efficiently, and cost-effectively. The planning part involves
deciding what to produce, how much to produce, and when to produce. It
sets production schedules and allocates resources. The control part
monitors the production process, compares it with the plan, and takes
corrective actions if needed. PPC helps in managing inventory, reducing
waste, and avoiding delays. It also ensures proper coordination between
different departments like purchasing, manufacturing, and sales. By
keeping everything on track, PPC helps businesses meet customer
demands on time and improve productivity.
9. Capacity Planning​
Capacity planning is the process of determining how much production
capability a company needs to meet customer demand. It ensures that
the company has enough resources like machines, labor, and space to
produce the required goods or services. Capacity planning can be
short-term (weekly), medium-term (monthly), or long-term (yearly). It
helps avoid problems like underproduction, overproduction, and
excessive inventory. Good capacity planning leads to better resource
utilization, cost savings, and timely delivery. For example, during festive
seasons, companies may increase capacity to meet higher demand. It is
a key part of efficient operations and customer satisfaction.

10. EOQ and ABC Problems​

EOQ (Economic Order Quantity) is a formula used to find the ideal
quantity of stock to order so that total costs (ordering and holding) are
minimized. It helps businesses avoid ordering too often or holding too
much inventory.

ABC analysis is a method to categorize inventory based on importance.

‘A’ items are high-value and need strict control, ‘B’ are moderate-value,
and ‘C’ are low-value items that need less attention. This helps in
prioritizing inventory management efforts.

Both EOQ and ABC help businesses save money, reduce waste, and
manage stock efficiently by focusing on what matters most.
11. VED/ GOLF Classification​
VED Classification is used mainly in spare parts management. It stands
for Vital, Essential, and Desirable. Vital items are critical and must
always be in stock to avoid production stoppage. Essential items are
important but not critical. Desirable items are nice to have but not
urgent.

GOLF Classification stands for Government, Ordinary, Local, and

Foreign based on the source of supply. It helps in understanding where
materials come from and how their availability might be affected by
factors like regulations or import delays.

Both methods help in better inventory planning and decision-making

based on importance and source.

12. Define the Concept of Supply Chain Management​

Supply Chain Management (SCM) is the process of managing the flow of
goods, services, information, and finances from the raw material stage
to the final customer. It includes all activities such as sourcing,
production, warehousing, transportation, and customer service. SCM
aims to deliver the right product at the right time, place, and cost. It
connects suppliers, manufacturers, distributors, and retailers. Effective
SCM improves efficiency, reduces costs, and increases customer
satisfaction. It also helps companies respond quickly to market changes
and customer needs. In simple terms, SCM ensures everything flows
smoothly from the beginning to the end of the supply chain.
13. Generalised Supply Chain Model​
A generalized supply chain model includes five main stages: Suppliers,
Manufacturers, Distributors, Retailers, and Customers. The process
begins with suppliers who provide raw materials. These materials are
then used by manufacturers to create finished goods. Distributors
transport and store products in warehouses. Retailers sell these
products to the final customers. Along with the physical flow of goods,
there is also a flow of information and money at every stage. Each part
of the chain must work together smoothly to deliver the right product on
time and at the right cost. This model helps businesses manage and
optimize their supply chain processes.

14. Key Issue in Supply Chain Management​

One of the key issues in Supply Chain Management is lack of
coordination among the different parties involved. Poor communication
can lead to problems like overstocking, stockouts, delays, and higher
costs. Other major issues include demand fluctuations, long lead times,
supplier reliability, and logistical inefficiencies. Also, globalization has
added challenges such as currency fluctuations, political risks, and
environmental concerns. Managing inventory levels, maintaining quality,
and meeting customer expectations are also critical. To handle these
issues, businesses need good planning, technology, and strong
relationships with suppliers and partners. Effective supply chain
management helps reduce these problems and improves overall
performance.
15. Drivers of Supply Chain Management​
Drivers are factors that influence the performance of a supply chain. The
main drivers include:

1.​ Facilities – Where products are manufactured and stored.

2.​ Inventory – Raw materials, work-in-progress, and finished goods.
3.​ Transportation – Movement of goods between locations.
4.​ Information – Data sharing for planning and coordination.
5.​ Sourcing – Choosing suppliers and managing procurement.
6.​ Pricing – Strategies to match supply with demand.

These drivers affect speed, cost, and responsiveness. For example, fast
transportation improves customer service but increases costs. By
managing these drivers wisely, companies can balance efficiency and
responsiveness in the supply chain.

16. Forecasting as a Planning Tool​

Forecasting is a technique used to predict future demand, sales, or
trends based on past data and market analysis. It helps businesses plan
their resources, production schedules, staffing, and inventory. There are
different methods of forecasting, such as historical data analysis, trend
analysis, and market surveys. Accurate forecasting reduces uncertainty
and helps companies make informed decisions. It also helps in avoiding
underproduction or overproduction. Forecasting is essential in
budgeting, capacity planning, and supply chain management. By
understanding future needs, businesses can prepare in advance and stay
competitive in the market.
17. Demand Forecasting​
Demand forecasting is the process of estimating the future demand for
a product or service. It helps companies decide how much to produce,
when to produce, and what resources are needed. Accurate demand
forecasting helps reduce inventory costs, avoid shortages, and meet
customer needs effectively. There are two main types: qualitative
forecasting(based on expert opinion or market research) and
quantitative forecasting (based on historical data and mathematical
models). For example, a company may look at past sales data to
forecast how much stock to prepare for the festive season. Demand
forecasting is crucial for planning and decision-making in operations.