Operation management Introductions of BBM.pptx

BBM 5th sem

1. Definitions Operation management Operations Management is the design, planning, and control of organizational processes to deliver products and services efficiently and effectively. Operations Management involves overseeing the processes of converting inputs into outputs. For example, in a smartphone manufacturing company, operations managers plan, control production processes, manage inventory, ensure quality, and optimize manufacturing to meet customer demand and enhance profitability.

2. Scopes & Objectives Scopes Operations Management covers a wide range of activities, including process design, inventory management, quality control, supply chain management, and capacity planning. Objectives The main objectives of Operations Management are to improve efficiency, reduce costs, enhance quality, increase productivity, and optimize resource utilization to meet customer demand and organizational goals.

3. Transformation Process The transformation process in operations management refers to the series of activities and operations that are performed on inputs to convert them into outputs. - Inputs can include raw materials, labor, capital, and information, while outputs are the final products or services delivered to customers. - The transformation process involves various stages such as planning, scheduling, organizing, controlling, and monitoring to ensure efficient and effective conversion of inputs into outputs.

4. Difference between Production and service operation Production Operation Produce tangible goods such as cars, machinery, or clothing. Limited direct interaction with customers; focus on product quality and efficiency. Manage physical inventory levels and supply chains to meet demand for products. Service Operation Offer intangible services like education, healthcare, or banking. High customer interaction; emphasis on service quality, customer satisfaction, and personalized experiences. Focus on managing capacity, scheduling appointments, and staff allocation to meet service demands effectively.

5. Operations Functions of Operation Management Planning: Setting objectives, determining resources needed, and developing strategies to achieve operational goals. Scheduling : Allocating resources, including labor, equipment, and time, to ensure efficient production or service delivery. Quality Control: Ensuring products or services meet quality standards through inspection, testing, and continuous improvement. Inventory Management : Managing inventory levels to balance supply and demand, minimize costs, and prevent stockouts or overstock situations. Process Design: Designing workflows, layouts, and procedures to optimize production processes and enhance productivity. Maintenance: Performing preventive maintenance and repairs to ensure equipment and facilities operate efficiently and safely.

6. Supporting Functions of Operation management Supply Chain Management: Managing the flow of materials, information, and finances across the supply chain to ensure timely and cost-effective production. Human Resources: Recruiting, training, and motivating employees to meet operational objectives and ensure a skilled and engaged workforce. Information Technology (IT): Implementing and managing technology systems to support operational processes, data analysis, and communication. Marketing: Identifying customer needs, promoting products or services, and developing pricing strategies to align with operational capabilities. Finance: Managing financial resources, budgeting, forecasting, and analyzing costs to support decision-making and ensure operational profitability.

7. Role Of Operation Manager Roles of an Operations Manager: Strategic Planning: Resource Management Quality Assurance Process Improvement. Risk Management. Team Leadership Supply Chain Management Performance Monitoring Customer Satisfaction

8. A production system is a network of components and processes that work together to transform inputs into outputs efficiently, meeting customer demands and optimizing resources. Intermittent Production System: Involves the production of customized products in small batches or lots. Production processes are flexible and can be adjusted to accommodate various product specifications. Common in industries like furniture manufacturing, custom clothing, and specialty food production. Continuous Production System: Involves the production of standardized goods in a continuous flow. Production processes are highly automated and operate 24/7 without interruption. Common in industries like oil refining, chemical processing, and food packaging.

9. Key Issues 1. Quality Control: Ensuring products or services meet quality standards. 2. Cost Management: Optimizing resources to minimize costs. 3. Inventory Management: Efficiently managing inventory levels. 4. Supply Chain Management: Ensuring a smooth flow of materials and information. 5. Capacity Planning: Scheduling resources to meet demand.

10. Historical evolution of operation management Industrial Revolution (late 18th to early 19th century): The focus was on increasing productivity through mechanization and standardization of production processes. Scientific Management (late 19th to early 20th century): Frederick Taylor introduced the principles of scientific management, which emphasized efficiency, standardization, and time-motion studies to improve productivity. Human Relations Movement (1920s): Elton Mayo's Hawthorne Studies highlighted the importance of social and human factors in productivity and management. Total Quality Management (TQM) Movement (1980s): Focus shifted to quality control, continuous improvement, and customer satisfaction. Lean Production (1980s): Toyota introduced lean manufacturing principles, emphasizing waste reduction, efficiency, and just-in-time production. Globalization (late 20th century to present): Operations management expanded to address global supply chains, cultural differences, and increased competition on a global scale. Digital Transformation (21st century): Emphasis on technology integration, automation, data analysis, and Industry 4.0 concepts to improve operational efficiency and decision-making.

11. Productivity Productivity is a measure of the efficiency of production, indicating the output generated relative to the inputs utilized in a process. It is typically expressed as the ratio of output to input, such as the amount of goods or services produced per unit of labor, capital, time, or resources. Increased productivity signifies the ability to generate more output with the same or fewer resources, leading to improved efficiency and profitability.