Operations Management PDF

 “ 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 wasted effort) 2 and make them available to others as outputs. B A INPUTS OUTPUTS 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 ▪️ 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? OM PM OPERATIONS PURCHASING MANAGER MANAGER  Responsible for all activities related to the  Head of a team that works to procure production of whatever goods or services a materials necessary for the production of a company produces service or product that the company produces.  Their job deals with formulating operational strategy, improving performance, procuring  Their job is to get the best quality materials and other resources and securing materials for the lowest prices. They also compliance. evaluate suppliers, negotiate contracts and review product quality. WHAT IS THE ROLE OF OPERATIONS MANAGEMENT? HR PM PRODUCTION HUMAN M RESOURCE MANAGER MANAGER  Oversees the production process,  HR managers plan, coordinate and direct the coordinates all related activities and administrative functions of a company. This ensures that there are enough resources on includes the hiring processes and onboarding hand when they’re needed. of new employees  They also act as a liaison between the  Their responsibilities includes planning company’s management and its employees. workers’ schedules, estimating costs and They will advise executives in strategic preparing budgets to make sure that the planning as it relates to staffing. workflow meets required deadlines. 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 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. HOSPITALITY 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 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 CHAIN  SKILLS & QUALITIES OF OPERATIONS MANAGER LEADERSHIP SKILLS ANALYTICAL SKILLS  OMs need to have strong leadership skills to  OMs need strong analytical and critical thinking manage and motivate staff members and skills to analyze data, identify trends and drive the entire workforce toward achieving patterns, and make informed decisions to drive the company's goals. operational improvements.  The responsibilities of an operations  They’re also required to spot inefficiencies and manager also include making decisions that bottlenecks in their organization's processes, will affect the entire company forecast demand based on data, and optimize resources based on metrics and key performance indicators.  SKILLS & QUALITIES OF OPERATIONS MANAGER PROJECT MANAGEMENT SKILLS COMMUNICATION SKILLS  Operations managers are project managers at heart.  Communication skills involve the methods used in In fact, they’re often responsible for managing conveying, receiving, and processing information multiple, complex projects at one time. through verbal and non-verbal meanings.  Planning, executing, and monitoring project 1. Speaking and listening effectively progress is all part of an operation manager’s job, as 2. Interpreting gestures, body language, and emotions well as setting project goals, collaborating with 3. Using the right communication on the right occasion stakeholders, managing project resources, and 4. Conveying messages without misinterpretation developing mitigation strategies. 5. Effectively communicating with a range of people  SKILLS & QUALITIES OF OPERATIONS MANAGER PROBLEM-SOLVING SKILLS INTERPERSONAL SKILLS  Being able to identify and analyze problems  OMs need great interpersonal skills since their in the best way possible. role involves interacting with people from all levels of the organization, including executives,  Implementing solutions based on the team members, customers, and vendors. company’s best interests without 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 and  Responsible for managing resources and time-management skills, as well as be able to ensuring that the organization operates prioritize tasks in a way that bolsters within its financial constraints, operations operational efficiency. managers need strong financial acumen.  They’re familiar with financial management principles, including budgeting, forecasting, supply chain management, ensuring profitability, and cost management.  SKILLS & QUALITIES OF OPERATIONS MANAGER PEOPLE MANAGEMENT SKILLS STRATEGIC PLANNING SKILLS  Responsibilities includes building strong  OMs must be able to adapt quickly when teams, encouraging teamwork, fostering a things change unexpectedly, identify root positive workplace, and engaging causes and optimization strategies, and employees. develop contingency plans to ensure the health of the business.  Managing by performance, planning, 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 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 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. UTILIZATION 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 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 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. SCHEDULING 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