Professional Documents
Culture Documents
A & F
Introduction to Operations
A. B. C. D. E. F. G. H. I.
Overview Concepts Productivity of conversion process Objectives of production and operations management Major components of production function Short history of production management Organization of production management Manufacturing methods Product life cycle concept.
Introduction to Operations
Historical mile stones in P&OM Factors affecting operations management Operations as a system Decision making World class organizations ; what they do
Operations Management
Over view To remain competitive in an ever changing global market place. place. Organization should have an efficient operation management. management. Operations management is the management of an organizations productive resources or its production system which converts inputs into an organization products or services. services. Inputs: Inputs: Raw material Technology Manpower Money Machines Information Buildings Other resources P&OM Production and Operations Management
Manufacturing Plant management Factory manager Production control Materials management Quality control Personnel HRD Administration & Security Finance & Accounting
Production Engineering Process planning Tool design Standards Industrial engineering Finished goods Warehouse
1900 1960
Scientific Management Time and Motion Study Gantt Charts Principles of efficiency Automobile revolution
Scientific management applied from the lower echelons of the organization contributed to improved productivity, efficiency and cost reduction through mass production.
Hawthorne studies conducted at western Electric Company (1927 1932) helped recognizing 1932) Psychological and sociological factors contributing to motivation and Productivity. Productivity. Operations Managers must create an atmosphere / climate that encourages employees to devote their energy, ingenuity and skill to achieve the organizational objectives
Operational Research
Organizations use enormous quantities of manpower, supplies, materials and other resources. resources. During the post world war the concepts of a total systems approach, cross functional team, and complex mathematical techniques were developed for scientifically developing optimal solutions for efficient use of resources A few of such techniques followed are: are: Lenier programming PERT / CPM Forecasting models etc. etc.
Model building and mathematical manipulation provide the methodology that has perhaps been the key contribution of OR. OR. The primary focus is on decision making. making. Computers are used extensively. extensively.
Service organizations have now become as important as Production Organizations. More than 2/3rd of employees work in service sector.
The telecom industry Postal department Railways Road transport undertakings Banks Airlines Hospitality industry Transport & freight forwarding
Automotive Industries Steel Mills Chemical Factories Pharmaceutical Industries Heavy Engineering Industries Machine Building Industries PetroPetro- Chemical Industries, etc.
Information Technology
The recent developments in IT have contributed enormously in developing information systems, decision support systems, helped in improving the speed of data processing and communication.
Real time computers ERP System Internet & e-commerce eRFID Automated Storage and retrieval systems
Robotics & NC&CC Machines CAD - Computer Aided Design CAM - Computer Aided Manufacture SPC Statistical Process Control JIT/KANBAN Lean Manufacturing ISO/QS/TS standards Time Based Competition
Process Engineering Out Sourcing Vendor Managed Inventories Third Party Logistics & 4PL Benchmarking Balanced Score Card
Global competition Quality customer service Intelligent customer with high expectation Rapid technological changes High growth of service sector Scarcity of resources Social responsibility investment From domestic to global markets.
Operations system uses inputs Adds value through conversion and creates an output Output is monitored through the control system./ system. The diagram shows a Systematic Production Model
Inputs : External Market Primary resources Outputs of Production System : Direct Outputs Tangible goods Intangible Outputs
Value Addition
The core of Production System is conversion / value addition subsystem. The main departments are : Manufacturing Retailing Trucking
Decision Making
Operation Managers have to take several decisions for efficient functioning . These can be strategic, operations and control decisions. Strategic Decisions : Product Process Facilities Operating Decisions : Plan Production to meet
demand
Control Decisions : Planning Operations & Controlling Operations
Royal Dutch / Shell Group Sumitomo Nippon Telegraph & Telephone Marubeni AXA International Business Machines BP Amoco Citigroup Volkswagen Nippon Life Insurance
Netherlands Japan Japan Japan France U.S. United Kingdom U.S. Germany Japan
Source: Operations
Management