CHAPTER-I-INTRODUCTION.pptx

 “ Operations are processes that add ? value to inputs through a transformation that results in outputs. … Operations transform these inputs by adding value to them (and sometimes...

 “ Operations are processes that add ? value to inputs through a transformation that results in outputs. … Operations transform these inputs by adding value to them (and sometimes 2 wasted effort) and make them available B to others as outputs. A INPUTS OUTPUTS INPUTS INPUTS ▪️Can come in conventional forms as direct labor, direct materials, and other direct costs. ▪️Can also be capital items that are not consumed in the operation. Capital items a. Human capital (labor) b. Intellectual capital (knowledge) c. Social capital (reputation, brand equity, customer loyalty, etc) OUTPUTS OUTPUTS ▪️Can be classified as tangible or intangible ▪️Tangible if it can be perceived by touch ▪️Intangible outputs tend to be emotional or experiential results such as satisfaction, relaxation, convenience, and ambience WHAT IS THE ROLE OF OPERATIONS MANAGEMENT? O M PM OPERATIONS PURCHASING MANAGER MANAGER  Responsible for all activities related to  Head of a team that works to procure the production of whatever goods or materials necessary for the services a company produces production of a service or product that the company produces.  Their job deals with formulating  Their job is to get the best quality operational strategy, improving performance, procuring materials and materials for the lowest prices. other resources and securing They also evaluate suppliers, compliance. negotiate contracts and review product quality. WHAT IS THE ROLE OF OPERATIONS MANAGEMENT? HR PM PRODUCTION M HUMAN RESOURCE MANAGER MANAGER  Oversees the production process,  HR managers plan, coordinate and direct coordinates all related activities and the administrative functions of a ensures that there are enough company. This includes the hiring resources on hand when they’re processes and onboarding of new needed. employees  They also act as a liaison between the company’s management and its  Their responsibilities includes employees. They will advise executives planning workers’ schedules, in strategic planning as it relates to estimating costs and preparing staffing. budgets to make sure that the TYPICAL ORGANIZATION CHART DIFFERENT TYPES OF OPERATION  OM in the retail industry ensures that stores run smoothly and efficiently.  It includes tasks such as stocking shelves, managing inventory, and providing customer service. RETAIL RETAIL DIFFERENT TYPES OF OPERATION  It is the process of managing the day-to-day operations of a business.  Operations managers look after all aspects of the business to run smoothly and ensure that the company’s goals are met. HOSPITALIT HOSPITALIT Y Y DIFFERENT TYPES OF OPERATION  Logistics entails planning, implementing, and controlling the flow of products and services from the point of origin to the point of consumption.  Logistics is critical to operations management because it determines how efficiently a company can produce and deliver its products or services. LOGISTICS LOGISTICS DIFFERENT TYPES OF OPERATION  The process that takes place from acquiring raw materials to delivering the finished product to the customer.  It is the set of activities that transforms inputs into outputs that includes managing resources, information, and finances. SUPPLY SUPPLY CHAIN CHAIN  SKILLS & QUALITIES OF OPERATIONS MANAGER LEADERSHIP SKILLS ANALYTICAL SKILLS  OMs need to have strong leadership  OMs need strong analytical and critical skills to manage and motivate staff thinking skills to analyze data, identify members and drive the entire trends and patterns, and make informed workforce toward achieving the decisions to drive operational company's goals. improvements.  The responsibilities of an operations  They’re also required to spot manager also include making inefficiencies and bottlenecks in their decisions that will affect the entire organization's processes, forecast company demand based on data, and optimize resources based on metrics and key  SKILLS & QUALITIES OF OPERATIONS MANAGER PROJECT MANAGEMENT COMMUNICATION SKILLS SKILLS  Operations managers are project managers  Communication skills involve the methods used at heart. In fact, they’re often responsible for in conveying, receiving, and processing managing multiple, complex projects at one information through verbal and non-verbal time. meanings.  Planning, executing, and monitoring project 1. Speaking and listening effectively progress is all part of an operation manager’s 2. Interpreting gestures, body language, and job, as well as setting project goals, emotions collaborating with stakeholders, managing 3. Using the right communication on the right project resources, and developing mitigation occasion strategies. 4. Conveying messages without misinterpretation 5. Effectively communicating with a range of  SKILLS & QUALITIES OF OPERATIONS MANAGER PROBLEM-SOLVING SKILLS INTERPERSONAL SKILLS  Being able to identify and analyze  OMs need great interpersonal skills problems in the best way possible. since their role involves interacting with people from all levels of the organization,  Implementing solutions based on the including executives, team members, company’s best interests without customers, and vendors. disrupting the flow of business  Successful collaborations, project outcomes, and operational efficiencies all depend on an operations manager’s ability to interact with others.  SKILLS & QUALITIES OF OPERATIONS MANAGER FINANCIAL MANAGEMENT ORGANIZATIONAL SKILLS SKILLS  OMs need to have strong organizational  Responsible for managing resources and time-management skills, as well as and ensuring that the organization be able to prioritize tasks in a way that operates within its financial constraints, bolsters operational efficiency. operations managers need strong financial acumen.  They’re familiar with financial management principles, including budgeting, forecasting, supply chain management, ensuring profitability, and  SKILLS & QUALITIES OF OPERATIONS MANAGER PEOPLE MANAGEMENT STRATEGIC PLANNING SKILLS SKILLS  Responsibilities includes building  OMs must be able to adapt quickly strong teams, encouraging teamwork, when things change unexpectedly, fostering a positive workplace, and identify root causes and optimization engaging employees. strategies, and develop contingency plans to ensure the health of the  Managing by performance, planning, business. mentoring and problem-solving  OPERATIONS MANAGEMENT DEFINITION  Is the activity of managing the resources which produce and deliver goods and services.  Is the administration of business structure, practices, and processes to enhance efficiency and maximize profit.  It entails overseeing, designing, and controlling the production of goods or services. It involves managing the resources that are necessary for the creation of a product or service.  OM is the administration of business practices to create the highest level of efficiency possible within an organization. It is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization. KEY CONCEPTS OF OPERATIONS MANAGEMENT KEY CONCEPTS OF OM  All businesses have processes that need to be managed to produce their products or services.  Operations managers are responsible for ensuring all the processes are efficient and effective. PROCESSES PROCESSES KEY CONCEPTS OF OM  The amount of work a company can do in a given period.  Operations managers must be aware of a company’s capacity to ensure that it is being used effectively. CAPACITY CAPACITY KEY CONCEPTS OF OM  This measures how much of a company’s capacity is being used.  Operations managers strive to ensure that utilization is high to maximize efficiency. UTILIZATIO UTILIZATIO NN KEY CONCEPTS OF OM  The movement of resources through a company’s production process.  Operations managers need to ensure that resources flow smoothly to avoid bottlenecks. FLOW FLOW PROCESS OF OPERATIONS MANAGEMENT PROCESS OF OPERATIONS MANAGEMENT  This is the process of determining what needs to be done and when it needs to be done.  With OM, you create a plan that will guide the operations of your business. PLANNING PLANNING PROCESS OF OPERATIONS MANAGEMENT  It decides when each task will be completed.  In operations management, you create a schedule to ensure all tasks are completed on time. SCHEDULIN SCHEDULIN G G PROCESS OF OPERATIONS MANAGEMENT  It is about carrying out the plan.  In operations management, you execute the plan by ensuring that all resources are used efficiently and effectively. EXECUTION EXECUTION