OPERATIONS MANAGEMENT

OVERVIEW OF THE COURSE

OPERATIONS MANAGEMENT IS:

Operation Management is about getting the day-to day work done Quickly, efficiently, without errors and at low cost.

In addition to making process work right, operation

Management cost. is helping companies in dramatic improvements in customer service and reductions in

OPERATIONS MANAGEMENT IS:

A management function An organizations core function In every organization whether Service or

Manufacturing, profit or Not for profit

OPERATIONS MANAGEMENT IS:

Definition:- OM is defined as the design, operation, and improvement of systems that deliver the firms primary products and services.

REASONS FOR STUDYING OM

Operation Management provide a systematic way of looking at organizational process. Operation Management presents interesting carrier opportunities Supply chain management, purchasing, material management, quality assurance, process reengineering, ERP systems, BAs, etc. The concepts and tools of OM are widely used in managing other functions of a business. All managers have to plan work, control quality, and ensure productivity of individuals under their supervision.

TYPICAL ORGANIZATION CHART

WHAT IS ROLE OF OM?

OM Transforms inputs to outputs
Inputs are resources such as
People, Material, and Money

Outputs are goods and services

OMS TRANSFORMATION PROCESS

OMS TRANSFORMATION ROLE

To add value
Increase product value at each stage Value added is the net increase between output product value and input material value

Provide an efficient transformation

Efficiency means performing activities well for least possible cost

OM INTERFACE WITH MARKETING

Marketing is the creation of customer demand. Operations management is the supply and fulfillment of that demand.
When the two areas are in conflict, one often sees a mismatch in
demand and supply, leading to production inefficiencies and unsatisfied customers.

When they are in synch, we frequently see an improved firms

competitiveness and profit
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INTERFACE BETWEEN OPERATIONS AND HUMAN RESOURCES MANAGEMENT

Operations managers and human resource managers interact primarily on administrative issues regarding payroll and other matters. Operations are the context that often explains or moderates the effects of human resource activities such as pay, training, communications and staffing. Human responses to operations management systems often explain variations or anomalies that would otherwise be treated as randomness or error variance in traditional operations research models.

INTERFACE BETWEEN OPERATIONS AND FINANCIAL MANAGEMENT

Capital equipment and inventories comprise a sizable portion of many firms' assets. Generating long term finance for it is a strategic decision. Project Management- Operation and financial managers act together for Project Appraisal and Financing. Also they need to work together during Mergers and Acquisitions.