Course Objectives

– To develop awareness in the field of ‘Operations’ in

manufacturing & service organizations
– To understand and appreciate the association,
interrelationships and independence of ‘Operations
Management’ with other functional disciplines of
management
– To get acquainted with simple tools and techniques of
‘Operations Management’ that ensures effective and
efficient utilization of resources in different functional areas
Efficiency
– Doing things right
– Degree to which process generates outputs
with minimal consumption of inputs or
generates maximum output for given input
Effectiveness
– Doing right things efficiently
– Achieving orgn’s objective or goal through
eyes of customer
Course Content

 Unit I (Introduction & Managing Operations)

 Introduction: History, Evolution; Transformational Processes and definition;
Facilities Location; Manufacturing Processes; Types of Layouts
 Unit II (Planning & Control of Operations)
 Resource planning; Scheduling of operations
 Unit III (Operations Logistics & Materials management; Inventory
Planning & Control)
 Types of inventory; inventory classification; inventory control systems
 Unit IV (Quality Management & Design of Service Systems )
 Quality definitions; QC;TQC; TQM; Characteristics; customer contact in
services; service layouts
 Unit V (Maintenance management & Modern concepts)
 Breakdown, preventive, Poka Yoke, 5S, Toyota Way
Operations

– Responsible for actually producing goods & services

– Activities – create & deliver prod/service

– Goods
– Production of goods – tangible output
– Services
– Production of services – intangible output
Operations Management

Science and art of ensuring –

goods and services are
created and delivered
successfully to customers
Operations Management

Design, Operation and Improvement

of Systems
that
Create and Deliver
Firms’ Primary Products & Services
 Goods vs Services

Tangible Intangible
 Goods vs Services

Consumed/Used Experienced
 Goods vs Services

Physical Skills Behavioural Skills

 Differences between Services &
Goods
GOODS SERVICES
– Tangible – Intangible
– Goods are consumed – Services are experienced
– Good producing – Industries use IS
industries rely on m/c &
technology
– Goods – moved, stored & – Require strong
repaired and require behavioural skills
physical skills & expertise
Differences between Services &
Goods

GOODS SERVICES
– Customers – not involved in – Customers and service
manufacturing providers co-produce service,
work together to create &
simultaneously consume
service
– Demand for goods is easier to – Demand for services is difficult
predict to predict
– Manufacturing facility may be – Service facilities need to be in
located far-off closer proximity to customer
Key concepts in operations
management

– Process design and improvement: Analyzing and improving the efficiency

and effectiveness of operational processes to enhance productivity,
quality, and customer satisfaction.
– Capacity planning: Determining the optimal level of resources, such as
labor, equipment, and facilities, needed to meet customer demand while
avoiding underutilization or overutilization.
– Supply chain management: Managing the flow of materials, information,
and services from suppliers to customers, including procurement,
logistics, inventory management, and distribution.
– Quality management: Implementing systems and processes to monitor
and control the quality of products or services, aiming for continuous
improvement and customer satisfaction.
Key concepts in operations
management

– Inventory management: Optimizing the levels of raw materials,

work-in-progress, and finished goods to minimize costs while
maintaining adequate stock to meet customer demand.
– Lean and just-in-time (JIT) principles: Applying principles and
techniques to eliminate waste, reduce lead times, and improve
overall operational efficiency.
– Operations strategy: Developing a long-term plan that aligns
operations with the organization's overall business strategy,
considering factors such as market demand, competition, and
technological advancements.
– Production systems
– Manufacturing products like boilers, constructing flats, cars,
television, etc

– Service systems
– Medical facilities, arranging food for parties, developing
softwares, providing insurance policies
Nature of OM

– Understanding needs of customers, measuring customer satisfaction

and using info to develop new and improved goods and services –
supporting long-term strategy of orgn
– Using info about customers, goods and services, operations,
suppliers, employees and costs and finances to make better decisions
– Exploiting technology – design goods, services, manufacturing and
service delivery processes – respond rapidly and flexibly to cust
requirements and improve productivity
– Building quality into goods, services and processes and continually
improving them to reduce errors, defects and waste and to improve
responsiveness and business performance
Nature of OM

– Ensuring – material flows and operational activities are

coordinated from suppliers to customers
– Creating high-performance workplace by developing skills
and motivating them thru education, training, rewards, etc
– Continually learning from co-workers, competitors, and
customers and adapting orgn to global and env changes
Objectives

– Achieve highest efficiency at all operational subsystems

– Meet delivery commitments
– Flexibility in meeting customers’ demand
– Satisfying customers’ demand - Product Quality
– To be effective in labour relation & manpower cost control
– Efficient material utilization & cost control
– Efficient facility utilization & cost control
 Historical Evolution

– Industrial Revolution – HR Movement

– Craft production – Elton Mayo (Hawthorne studies)
– Steam engine
– Abraham Maslow (Hierarchy of Needs)
– Machines made of iron instead of wood
– Douglas McGregor (Theory X & Y)
– Factories grew in numbers
– Decision Models & Management Science
– Scientific Management (F.W. Taylor)
– Harris – model for inventory order size
– Science of management based on
Observation, Measurement, Analysis & – Dodge, Romig & Shwhart – statistical
Improvement of Work methods and procedures for sampling & quality
Economic Incentives control
– Best way to perform job – Influence of Japanese Manufacturers
– Maximizing Output/Efficiency
– Edwards Deming – 14 Principles for
– Henry Ford introduced moving assembly TQM
lines, mass production
– Joseph Juran - quality improvement
 By effectively managing
operations, organizations can
achieve greater efficiency, cost
savings, improved quality,
increased customer satisfaction,
and a competitive advantage in
the marketplace