Introduction

PM, OM , POM ?

Operations Management

The Design & Operation of Productive Systems

Operations : a function or system that transforms inputs into outputs of greater value
Operations managers Design systems Ensure quality Produce products Deliver services Operations managers found in Factories Government Banks Hospitals

Operations managers reengineer processes, innovate

 Hero Honda 18 seconds Indian Railways 64000km Track length,7000 stations,20 M passengers,2 ml T freight ,14500 trains daily, IRCTC - 8 lakh tickets Amul replicated in 70k villages

POM (Goods Services )

Manufacturing : transforming raw materials into finished products that customers buy. Services : airlines, railways, education & training, repair and maintenance, healthcare, IT ,entertainment, etc. Repair & maintenance : services used by manufacturers. Quick-service restaurants : repetitive operations similar to manufacturing OM : applies to both manufacturing goods and providing services

Historical Events in OM
Steam Engine Watt Adam Smith
1769 1776

Industrial Revolution

Division of Labour

Interchangeable parts
Principles of SM

Whitney
Taylor Gilbreths Gantt Ford Mayo

1790
1911 1911 1912 1913 1930 1940 1947 1951 1960

Industrial Revolution Time studies Scientific Scheduling Management

Assembly line Hawthorne studies

Human Relations

Motivation studies
LPP Digital Computer PERT,CPM MRP,CIM

Maslow,Mcgregor,Herzberg
Dantzig Babbage, Boole,Hollerith

Operations Research Quality Revolution Internet Revolution

JIT , TQM,Six Sigma www,ERP,ECom

Taiichi ohno,Deming,

80-90 90-00

Globalization

WTO,EU,BPO,SCLM

Manufacturing vs Service
Characteristic
Output Customer contact Labor content Uniformity of output Measurement of productivity

Manufacturing
Tangible Low Low High Easy

Service
Intangible High High Low Difficult

High

Transformation Process : a series of activities extending from supplier to customer

INPUT Material Machines Labor Management Capital

TRANSFORMATION PROCESS

OUTPUT Goods Services

Feedback & Requirements

Hospital Process
Inputs
Doctors, nurses Hospital Medical Supplies Equipment Laboratories

Processing
Examination Surgery Monitoring Medication Therapy

Outputs
Healthy patients

A Framework for POM

Random Fluctuations

Planning

Organizing

Inputs

Conversion Process

Outputs

Controlling

Feedback

Random Fluctuations Late deliveries Recession Labour turnover

Adjustments needed ?
Inputs Land Labour Store mgr Merchandise Conversion Process

Monitor output Outputs

Serviced customer with desired merchandise

Comparison

Feedback( Inventory levels, labour effcy, sales volume)

Departmental Store

Random Fluctuations
weather Eqpt breakdown Govt controls

Inputs
Land Farmer Labour Tractors/eqpt Mgmt skills of Farmer

Adjustments needed ?
Conversion Process

Monitor output Outputs

Grains Milk Butter

Comparison Feedback( observation of crop and soil conditions, prices received) Farm

Career Potentials in POM

Jobs by area of specialization.

Quality Inventory Management Performance Improvement Project Management Line Supervision

Positioning the Firm : cost,speed,quality,flexibility

Cost

Waste elimination Examining the cost structure Lean production Internet Service organizations(McDonalds, Hallmark cards Manufacturers (Toyota)

Speed

& FedEx)

Quality

Minimizing defect rates /conforming to design specifications please the customer (Ritz-Carlton)

Flexibility

ability to adjust to changes in product mix, production volume, design

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