BASICS OF PRODUCTION AND OPERATION MANAGEMENT (BM216) UNIT- 1 Dr. Moiz Akhtar Integral Business School Integral University, Lucknow INTEGRAL UNIVERSITY, LUCKNOW
Operations Management Quality and Competitiveness in a Global Environment
Topic 1 Operation Management
What is operations management ? Operations management is the set of activities that create value in the form of goods and services by transforming inputs into outputs. Value added is the net increase between output product value and input material value ( The value of the outputs is greater than the value of the inputs , resulting in the profit or the benefit for government or non-profit organizations). All types of organizations , manufacturing or service, large or small, transform inputs into outputs . Every organization has OM function , since all organizations provide products or services , but the function may be formal or informal ( In many smaller organizations operations management may be done by people who perform many other types of task such as marketing and accounting ).
What is operations management ? 1-The collection of people, technology, and systems within a company that has primary responsibility for providing the organization’s products or services. 2-The management of the direct recourses that are required to produce and deliver an organization's goods and services . 3- A discipline and profession that studies and practices the process of planning, designing, and operating production systems and subsystems to achieve the goals of the organization. 4- The business function responsible for planning, coordinating, and controlling the resources needed to produce a company’s products and services. 5- The management of the conversion process that transforms inputs into outputs in the form of finished goods and services.
Defining Operations Management The management of sys t ems or processes that create goods and/or provide services Operations management is concerned with converting materials and labour into goods and services as efficiently as possible to maximize the profit of an organization.
The Evolution of Operations Management One of the oldest management technique The Pyramids of Egypt The Great Wall of China The Roads and the Aqueducts of Rome Operations Management begin with Industrial Revolution in the 1700s, when Craft Production is converted into factory When a series of industrial inventions and mechanically powered machines have taken place
Operations as a Transformation Process Transformation Process Product Design Process Planning Production Control Maintenance Input Man Material Machine Money Method Output Product Services Continues Inventory Quantity Cost Feedback Feedback Feedback
INPUTS Material Machines Labor Management Capital - Customer TRANSFORMATION PROCESS OUTPUTS Goods Services Feedback Operations as a transformation process
The transformation process within OM
Input-transformation-output relationships for typical systems
What's the difference between PM and OM? Some thinks that they are really one and the same by different names. others think that production management is just a subset of operations management because operations involve more than just production. if services concept added to the production management it can be called operations management.
What responsibilities do operations managers have? Direct responsibilities :the activities which are directly related to producing and delivering products and services. Indirect responsibilities :the activities involved in interfacing with other parts of the organization . Broad responsibilities :a wider set of tasks that involve scanning the business, social and political environment in which the organization exists in order to understand its context.