 The part of a business organization that is

responsible for producing goods or

services
 The management of systems or
processes that create goods and/or
provide services.
 OM is a systematic approach to
addressing issues in the transformation
process that converts inputs into useful,
revenue generating outputs.
 SYSTEMATIC APPROACH
 ADDRESSES VARIOUS ISSUES THAT AN
ORGANISATION FACES
 TRANSFORMATION PROCESS
 ENSURES MINIMUM COST AND MAXIMISES
REVENUE
 Value-Added

Inputs Transformation/ Outputs

•Land Conversion •Goods
•Labor •Services
•Capital
Process
•Information

Measurement
and Feedback
Measurement Measurement
and Feedback and Feedback
Control

Feedback = measurements taken at various points in the transformation process

Control = The comparison of feedback against previously established

standards to determine if corrective action is needed.

Student Slides
1-4
1. Degree of customer contact
2. Uniformity of input
3. Labor content of jobs
4. Uniformity of output
5. Measurement of productivity
6. Production and delivery
7. Quality assurance
8. Amount of inventory
9. Evaluation of work
10. Ability to patent design

Student Slides
1-5
 The scope of operations management ranges
across the organization.

The operations function includes many interrelated

activities such as:
 Forecasting
 Capacity planning
 Facilities and layout
 Scheduling
 Managing inventories
 Assuring quality
 Motivating employees
 Deciding where to locate facilities.
Student Slides 1-6
 TRANSFORM
PROCESS • GOOD
• MATERIAL • SERVICE
• VALUE ADDITION
• LAND
• CAPITAL
• METHOD

INPUT OUTPUT
8
 Industrial revolution Late
1700s
 Scientific management Early
1900s
 Human relations movement 1930s-
60s
 Management science 1940s-
60s
 Computer age 1960s
 Environmental Issues 1970s
 JIT & TQM 1980s

9
 Reengineering 1990s
 Global competition 1980s
 Flexibility 1990s
 Time-Based Competition
1990s
 Supply chain Management 1990s
 Electronic Commerce
2000s
 Outsourcing & flattening of world 2000s

For long-run success, companies must place much

importance on their operations

10
 Economic conditions
 Innovating
 Qualityproblems
 Risk management
 Competing in a global economy
 Environmental issues