PRESENTATION TOPIC:

Operations management, Operations

management and decision making.

A. B. M. Rashed Mahmud
ROLL NO: D- 080001
MBA, 3rd SEMESTER
IBA, RAJSHAHI UNIVERSITY
Operations management is the management of that of an organization
that is responsible for producing goods and services.

According to Krajewski and Ritzman, “ The term operations

management refers to the systematic design, direction and control of
process that transform inputs into services and product for internal, as
well as external customers.”

As we can say according to Chase and Aquilano, “ Operations

management may be defined as the design, operation and
improvement of production systems that creates the firm’s primary
product or services.”
Customers may be two types-

External customers Internal customers

3
  Operations decisions are made in the context of the firm as a whole.

Marketplace

Corporate Strategy

Finance Strategy Operations Strategy Marketing Strategy

Operations Management

Outputs
Inputs
People Plants Parts Processes
Material Product
Planning and Control Systems Services
Customers
Production Systems 4
The marketplace ( the firm’s customers for its products or
services) shapes the firm’s corporate strategy. This strategy is
based on the corporate mission and in essence, it reflects how
the firm plans to use all its resources and functions ( marketing,
finance and operations ) to gain competitive advantage.
The operations strategy specifies how the firm will employ its
production capabilities to support its corporate strategy.
( Similarly, the marketing strategy addresses how the firm will
sell and distribute its goods and services, and the finance
strategy identifies how best to utilize the firm’s financial
resources.)
Management decisions can be divided into three broad areas:

 Strategic ( long-term ) decisions.

 Tactical ( intermediate-term ) decisions.
 Operational planning and control ( short-term) decisions.

6
The strategic issues are usually very broad in nature addressing such
questions as: How will we make the product ? Where do we locate
the facilities ? How much capacity do we need ? etc.

Tactical planning primarily addresses how to efficiently schedule

material and labor within the constraints of previously made
strategic decisions.

Management decisions with respect to operational planning and

control are narrow and short-term by comparison.
THANK YOU ALL.