Introduction to Operations Management Week 1 PDF

Introduction to Operations Management Week 1  Meaning of Production and Operations: Production is the process of combining various inputs, both material (such as metal, wood,glass, or plastics) and immaterial (such as plans, or knowledge) in order to create output. Operations refer...

Introduction to Operations Management Week 1  Meaning of Production and Operations: Production is the process of combining various inputs, both material (such as metal, wood,glass, or plastics) and immaterial (such as plans, or knowledge) in order to create output. Operations refer to the activities and tasks that organizations use to produce goods and services. It includes planning, organizing, directing, coordinating and controlling the various aspects of production, such as procurement, manufacturing, distribution and marketing. 2  Production and Operations Management Production Management means applying the principles of management to build an effective outline for production. It involves various tasks like planning, supervising, scheduling and enforcing adequate regulation to maximise output. Operations management applies the principles of management to manage the everyday activities of a company. 3 Production management aims at proper integration and utilisation of 6M’s: Its main objective is to manufacture products and services in the right quantity, of the right quality, at the right time and at a lower cost. 4 OM’s Transformation Process  Functions and Responsibilities of Production Management The scope of production management applies to directing, controlling, planning, and organizing production operations. This is the process that helps encourage raw material conversion into finished goods. The following is a list of the scope of production management ranges. Location of Facilities The selection of location is a key decision as a large investment is made in building, land, and machinery. 7 Plant Layout & material handling Product Design deals with Plant layout refers to the physical the conversion of ideas about arrangement of facilities. the product into the reality Process Design Material handling refers to the It is the decision-making on moving of material from the storeroom the overall process route for to the machine & from one machine to converting the raw material the next during the process of into the finished goods manufacturing. 8  Production Planning & Controlling (P.P.C) P.P. C can be defined as the process of planning the production in advance, setting the exact route of each item, fixing the starting & finishing dates for each item to give production orders to shops & to follow up on the progress of products according to the orders. Quality Control Quality control may be defined as a system that is used to maintain a desired level of quality in a product & service. 9  Material Handling Material management is that aspect of management function that is primarily concerned with the acquisition control & use of the needed material. Maintenance Management Maintenance deals with taking care of factory layout, and types of machinery. This is essential for equipment & machinery which are a very important part of thetotal production process. 10  Production System A production system transforms input to output. It’s the systems that manufacture a product consisting of whatever components is needed to make it a reality. MGT 236 11  There are usually five types of ways of transforming input into output: Separating–One item enters and two or more exit. Example: A wooden plank is cut into two. Putting together–Several items enter and one exits. Example: Wooden planks that are glued together. Detaching–And item entersand exits shaped differently, alongside waste. Example: A block of wood is shaped with a lathe. Forming–An item enters and exits in a different shape, without waste. Example: A piece of metal is shaped by hammering the object. Quality adaptation–An item enters and exits with different characteristics. Example: Surface treatment of a metal object  Key Functions within Operations Management Finance-plays a crucial role in ensuring that financial resources are properly allocated and utilized to their full extent. Strategy-Strategic management is the planning, monitoring, analysis, and assessment of tallnaspects of an organization on a continuing basis.  Operation-This function of operations management is concerned with planning, organizing, directing, and overall control of all activities within the organization. T his is the prim ary function of operations management and will effectively aid in converting raw materials and human efforts into a durable good and service that consumers will be able to utilize. Product Design-With new technology becoming available, the selling of a product becomes much more simple. One of the main duties of operations management is to ensure that a product is designed properly and caters to market trends and satisfies the needs of consumers  Forecasting-demand forecastingis the process of predicting what the demand for certain products will be in the future. It identifies what both current andfuture customers will want to buy and tells manufacturing facilities what they should actually produce. Quality Control- operations managers should strive to produce the best quality product possible. Modern-day consumers are concerned about quality instead of quantity, which is why it is so crucial to develop a durable and top-notch quality product.  Manufacturing (=Goods) vs. Service operations n Production of goods (goods oriented) n Tangible products n Automobile n Refrigerator n Services (TV and auto repair, lawn care) n Government n Regulatory bodies, FAA, FDA n Wholesale/retail n Financial services Goods vs. Service Operations n Differences 1. 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  Manufacturing vs. Service Characteristic Manufacturing Service Output Tangible Intangible Customer contact Low High Uniformity of output High Low Labor content Low High Uniformity of input High Low Measurement of Easy Difficult productivity Opportunity to correct Easy Difficult quality problems Similarities for Service/Manufacturers n Both use technology n Both have quality, productivity, & response issues n Both must forecast demand n Both can have capacity, layout, and location issues n Both have customers, suppliers, scheduling and staffing issues MGT 236 19