Operations management overview

Operations management overview

• 2.
  Project and Production Project: Concrete entity Idea Facory Design Building Plan Highway Prototype Products Services
• 3.
  PROJECTS PRODUCTION  Automobilefactory Produce automobiles  Build a house Operate house holds  Construct hospital Treat Patients  Conceive new product Manufacture  Develop prototype Produce multiples  DONE ONCE DONE REPETITIVELY
• 4.
  MIX OF PROJECTSAND PRODUCTION  Projects and production are intimately interwoven in real life.  Projects Starts production and solve problems relating to -operation, maintenance, house keeping -Marketing, Distribution, quality
• 5.
  ISSUES FOR DISCUSSION Pervasiveness of projects and production  Growing organizational complexity  Products vs services  Value addition in operations  Generalized model of production  Productivity and other performance indicators  Kinds of production system  Key decisions in the life cycle of a production system
• 6.
  AIM OF PRODUCTION To provide goods and services for mankind -in the right quantity -at the appropriate place -at the desired time -with the required quality -at a reasonable cost
• 7.
  Nature of production Inputs OutputTransformation
• 8.
  Nature of production Inputs Output men Desirable machines Undesirable materials money information energy ------ Transformation
• 9.
  Nature of production Inputs Output men Desirable machines Undesirable materials feedback money information energy ------ Transformation
• 10.
  Nature of production Inputs Output men Desirable machines Undesirable materials feedback money information Environment energy social ------ economic political Transformation
• 11.
  VALUE ADDITION THROUGH TRANSFORMATIONS Operations is the process of changing inputs into outputs and thereby adding value to some entity. This constitutes the primary function of virtually every organization.
• 12.
  HOW VALUE ADDITIONTAKES PLACE?  ALTER -physical -sensual -psychological • TRANSPORT • STORE • INSPECT
• 13.
  KINDS OF TRANSFORMATIONS Physical as in manufacturing  Location as in transpotation  Exchange as in retailing  Storage as in warehousing  Physiological as in hoapital  Attitudinal as in reading  Informational as in entertainment
• 14.
  GROSS MEASURES OF PRODUCTION PRODUCTION=OUTPUT/TIME  PRODUCTIVITY=OUTPUT/INPUT(in a given time)  EFFICIENCY= ACTUAL/TARGET  EFFECTIVENESS= CAPACITY TO ACHIEVE DESIRED GOAL  FLEXIBILITY=CAPACITY TO RESPOND TO CHANGES (internal and external)
• 15.
  ECONOMIC MEASURES OF PERFORMANCE Investment(initial and phased)  Profit(gross and net after taxes)  Revenue  Turn over  Net present value  Benefit/cost value  Internal rate of return  Payback period
• 16.
  NEW CHALLENGES IN PRODUCTION  COMPETITION •More producers •Demanding customers price quality Reduced Lead time Greater variety Customer satisfactio n
• 17.
  PRODUCTION AS PARTOF THE SUPPLY CHAIN TRANSFORMATION PROCESS VEN DO RS WAREH OUSES RET AIL
• 18.
  FEATURES OF SERVICE ORGANIZATIONS Customer participation  Services not inventoried  Service capacity time perishable  Customer governs location  Generally labour intensive  Intangible nature of service
• 19.
  OPERATIONS MANAGEMENT  Theperformance of managerial activities in  Selecting  Designing  Operating  Controlling and  Updating  Productive systems