Operations Management

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2. Learning Objectives. What you will realize in this unit:Define Operations Management?The part and exercises of operation managementThe information change yield model Difference in the middle of products and servicesWhat is Operations strategyPerformance destinations of operations strategyProductivity Measurement.

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Lesson 1 Fundamentals of Operations Management Operations Management Prepared by Sudarsan Jayasingh

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Learning Objectives What you will realize in this unit: Define Operations Management? The part and exercises of operation administration The information change yield display Difference amongst merchandise and enterprises What is Operations technique Performance targets of operations system Productivity Measurement

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What is Operations Management? " Operation Management is the arrangement of exercises that make merchandise and enterprises through the change of contributions to yields. " (Slack, 2001)

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Typical Organization Chart Source: Reid and Sanders, 2005.

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Activities of Operations administrator Understand the operation's vital destinations Developing an operation's methodology for the association Designing the operation's items, administrations and procedures Planning and controlling the operation Improving the execution of the operation.

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Some Activities of Ikea Operations Manager Design exquisite items which can be level pressed productively Storage Quality Design Store Layout Site Location

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OM's Transformation Role Source: Reid and Sanders, 2005.

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The info change yield display T ransformed assets Materials Information Customers Goods Transformation Input Out put and process administrations T ransforming assets Facilities Staff Source: Slack, 2001

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Inputs Transformed assets – the assets that are dealt with, changed or changed over somehow. The changed assets which operations take in are normally a blend of materials, data and clients. Changing assets – the assets that follow up on the changed assets. Offices and staff are the two sorts of changing assets. Offices incorporate building, hardware, plant and process innovation and so forth., Staff incorporates every one of the individuals who work, keep up, plan and deal with the operation.

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The yield from most operations is a blend of merchandise and ventures PURE GOODS Tangible Can be put away Production goes before utilization Low client contact CRUDE OIL PRODUCTION Can be transported Aluminum SMELTING Quality is apparent SPECIALIST MACHINE TOOL MANUFACTURER RESTAURANT COMPUTER SYSTEMS SERVICES Intangible Cannot be put away MANAGEMENT CONSULTANCY Production and utilization are synchronous PSYCHOTHERAPY CLINIC High client contact Cannot be transported Quality hard to judge PURE SERVICES Source: Slack, 2001

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Similarities-Service/Manufacturers All utilization innovation Both have quality, efficiency, & reaction issues All must gauge request Each will have limit, format, and area issues All have clients and providers All have booking and staffing issues

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Historical Development of OM Industrial revolution Late 1700s Scientific management Early 1900's Human relations movement 1930s to 1960s Management science Mid-1900s Computer age 1970s Just-in-Time Systems (JIT) 1980s Total quality administration (TQM) 1980's Reengineering 1990s Flexibility 1990s Time-Based Competition 1990s Supply chain Management 1990's Global Competition 1990s Environmental Issues 1990s Electronic Commerce Late 1990s

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Today's OM Environment Customers request better quality, quicker conveyances, and lower costs Increased cross-practical basic leadership Recognized need to better oversee data utilizing ERP and CRM frameworks

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Highlights OM is capacity that deals with the assets that add esteem Its part is to change contributions to items or administrations Key contrasts between mfg. also, benefit organizations are substantial quality of item and level of client contact Historical points of reference range from 1700s Industrial Revolution to the present day Electronic Commerce age OM must comprehend and execute significant process changes like JIT, TQM, production network administration, and natural changes OM works intimately with all different business capacities

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Operations Strategy Operations technique is the aggregate examples of choices and activities which set the part, targets and exercises of the operation so they add to, and bolster, the association's business procedure

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Operations Strategy – Designing the Operations Function

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Corporate Strategy (Gain upper hand by) giving clients access to quality merchandise, when and where required, at aggressive costs Operations Structure Operations Strategy EDI – Short process durations – Fast transportation framework – Low stock levels – Focused areas – Communication between – retail locations The Wal-Mart Strategy and Operations Structure

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Competitive Advantage Competitive preferred standpoint is term as the additional edge that a firm has over their industry peers (Reid and Sanders, 2005). The capacity of a firm in dealing with their operation can be change into their upper hand if there can distinguish and take advantage of their impalpable assets.

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Competitive Priorities-The Edge Four Important Operations Questions: Will you contend on – Cost? Quality? Time? Adaptability? The greater part of the above? A few? Tradeoffs? Source: Reid and Sanders, 2005.

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Competitive Priorities-The Edge 0r Performance Objectives Quality Time (Speed and Dependability) Flexibility Cost

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Lower costs (or higher benefits) Cost Faster client reaction On-time conveyances Depend-capacity Speed Quality Flexibility sans error items and administrations Wider assortment More customisation More development Cope with volume variances

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Are There Priority Tradeoffs? Which needs are "Request Qualifiers"? e.g. Must have magnificent quality since everybody expects it Which needs are "Request Winners"? e.g. Dell contends on every one of the four needs Southwest Airlines contends on cost McDonald's contends on consistency FedEx contends on speed Custom tailors contend on adaptability Can you have both high caliber and ease ? e.g. Yes , Coke and Pepsi are great cases Can you offer plan adaptability and short conveyance ? e.g. Yes , particular lodging makers do it

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Productivity is a measure of how productively data sources are changed over to yields Productivity = yield/input Total Productivity Measure Total Productivity = $sales/inputs $ Partial Productivity Measure Partial Productivity = autos/representative Multifactor Productivity Measure Multi-calculate Productivity = deals/add up to $costs Measuring Productivity Source: Reid and Sanders, 2005.

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Business Strategy is a long range arrange. Capacities create supporting arrangements Strategy must address mission, condition, and center abilities Business technique gives a manual for planning operations procedure Operations system must consider which focused needs are fundamental to meet business destinations Competitive needs are cost, quality, time, and adaptability Productivity measures how viably a firm is utilizing assets Productivity is figured as a proportion of yields isolated by data sources Highlights

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References Reid R.D., and Sanders N. R., (2005) Operations Management , 2 nd Edition, Wiley Publication. Slacks Nigel and Lewis Mike, (2002) Operations Management , Prentice Hall.