ASSIGNMENT OF PRODUCTION

AND OPERATION MANAGEMENT

 TRANSFORMATION PROCESS?
 WHAT ARE THE ROLES AND RESPONSIBILITIES OF PRODUCTION AND
OPERATION MANAGER?
 WHAT ARE THE IMPORTANT FACTOR OF OPERATIONAL STRATEGY?
 WHAT ARE THE TYPES OF OPERATIONAL STRATEGIES?
 WHAT ARE THE KEY FUNCTION OF OPERATIONAL MANAGEMENT?

SUBMITTED TO: SUBMITTED BY:

Ms. Swati Gaurav Sharma
BU2019PGMB12
MBA 2nd SEM
 TRANSFORMATION PROCESS?
A transformation process is any activity or group of activities that takes one or more inputs,
transforms and adds value to them, and provides outputs for customers or clients. Where the
inputs are raw materials, it is relatively easy to identify the transformation involved, as when
milk is transformed into cheese and butter. Where the inputs are information or people, the
nature of the transformation may be less obvious. For example, a hospital transforms ill patients
(the input) into healthy patients (the output).

Transformation processes include:

 Changes in the physical characteristics of materials or customers

 Changes in the location of materials, information or customers
 Changes in the ownership of materials or information
 Storage or accommodation of materials, information or customers
 Changes in the purpose or form of information
 Changes in the physiological or psychological state of customers.

Often all three types of input – materials, information and customers – are transformed by the
same organisation. For example, withdrawing money from a bank account involves information
about the customer’s account, materials such as cheques and currency, and the customer.
Treating a patient in hospital involves not only the ‘customer’s’ state of health, but also any
materials used in treatment and information about the patient.

One useful way of categorising different types of transformation is into:

 Manufacture: the physical creation of products (for example cars)

 Transport: the movement of materials or customers (for example a taxi service)
 Supply: change in ownership of goods (for example in retailing)
 Service: the treatment of customers or the storage of materials (for example hospital
wards, warehouses).

Several different transformations are usually required to produce a good or service. The overall
transformation can be described as the macro operation, and the more detailed transformations
within this macro operation as micro operations. For example, the macro operation in a brewery
is making beer. The micro operations include:

 Milling the malted barley into grist

 Mixing the grist with hot water to form wort
 Cooling the wort and transferring it to the fermentation vessel
 Adding yeast to the wort and fermenting the liquid into beer
 Filtering the beer to remove the spent yeast
 Decanting the beer into casks or bottles.
 Type of inputs:

 Materials
 Information (e.g. Consultancy firms and accountancy firms)
 Customers (e.g. Hairdressing, Hospitals)

Transformation process is any activity or group of activities that takes one or more inputs,
transform and adds value to them and provides output for customers.

Transformation process includes:

 Changes in the physical characteristics of materials or customers

 Changes in the location of materials, information or customers
 Changes in the ownership of materials or information
 Storage or accommodation of materials, information or customers
 Changes in the purpose or form of information
 Changes in the physiological or psychological state of customers.

Type of transformation:

 Manufacture: The physical creation of products (for example cars)

 Transport: The movement of materials or customers (for example a taxi service)
 Supply: Change in ownership of goods (for example in retailing)
 Service: The treatment of customers or the storage of materials (for example hospital
wards, warehouses).

Nature of outputs:

 Tangibility
 Transportability
 Storability (can be stored) 
 Customer contact
 Simultaneity
 Quality

WHAT ARE THE ROLES AND RESPONSIBILITIES OF

PRODUCTION AND OPERATION MANAGER?

Some people (especially those professionally involved in operations management!) argue that
operations management involves everything an organisation does. In this sense, every manager is
an operations manager, since all managers are responsible for contributing to the activities
required to create and deliver an organisation's goods or services. However, others argue that this
definition is too wide, and that the operations function is about producing the right amount of a
good or service, at the right time, of the right quality and at the right cost to meet customer
requirements.

So operations managers are responsible for managing activities that are part of the production of
goods and services. Their direct responsibilities include managing both the operations process,
embracing design, planning, control, performance improvement, and operations strategy. Their
indirect responsibilities include interacting with those managers in other functional areas within
the organisation whose roles have an impact on operations. Such areas include marketing,
finance, accounting, personnel and engineering.
Operations managers' responsibilities include:
 Human resource management – the people employed by an organisation either work
directly to create a good or service or provide support to those who do. People and the way
they are managed are a key resource of all organisations.
 Asset management – an organisation's buildings, facilities, equipment and stock are
directly involved in or support the operations function.
 Cost management – most of the costs of producing goods or services are directly related
to the costs of acquiring resources, transforming them or delivering them to customers. For
many organisations in the private sector, driving down costs through efficient operations
management gives them a critical competitive edge. For organisations in the not-for-profit
sector, the ability to manage costs is no less important.

Decision making is a central role of all operations managers. Decisions need to be made in:
 designing the operations system
 managing the operations system
 improving the operations system.

The five main kinds of decision in each of these relate to:

 the processes by which goods and services are produced
  the quality of goods or services
 the quantity of goods or services (the capacity of operations)
 the stock of materials (inventory) needed to produce goods or services
 the management of human resources

WHAT ARE THE IMPORTANT FACTOR OF

OPERATIONAL STRATEGY?
Operations strategy is a functional strategy. Basically, operations strategies are related to the
process of transformation of inputs to outputs. Hence, such strategies provide the basis for any
decisions at the operations level. Some of the indicative areas of operations strategy are design of
products (tangible and intangible), vendor selection, selection of appropriate process for
transformation of inputs to outputs, production scheduling, etc.

Although strategy, per se, is more for taking long-term decisions, operations strategy are by
nature more tactical and are more relevant for short-term and even day-to-day decisions. Some of
the long-term decisions which are based on the operations strategy are location and facility
planning, selection of technology, decision making or decision buying, selection of type of
products and services, that the company intends to manufacture or provide, decisions on
information systems and even the use of software, management-related decisions, etc. Tactical
and even short-term decisions that are taken based on operations strategy are production
forecasting and planning, capacity planning, inventory management, etc.

Operation Strategy Factors:

From operations manager’s point of view, it is important to study the following factors while
adopting operations strategy.

 The number, type, size and location of operations facilities

 Type of equipment that will be utilized (focused and specific or general-purpose and flexible,
automated or principally manual)
 Decision buying or decision making
 Organizational structure (whether it is suitable to accomplish and coordinate all the necessary
efforts)
 The information systems that will be used to collect, analyse and distribute information on
production, purchasing, inventory, quality, personnel, etc.
 Production planning, scheduling and control, system and inventory policy
 The quality of control and improvement methods that will be used
 The productivity improvement methods for machine/manpower
From the point of view of operations manager, operations strategy, therefore, shows how an
organization develops game plan to derive competitive advantage. Operations function help the
organization achieve a competitive advantage in the marketplace.

WHAT ARE THE TYPES OF OPERATIONAL

STRATEGIES?
The word “strategy” means different things to different people, much of which isn’t really
strategy at all, A Strategy by Any Other Name, more on this topic.  

Within the domain of well-defined strategy there are uniquely different strategy types, here are
three:

Business strategy

Operational strategy

Transformational strategy

It is worth noting, that a common consideration across different types of strategy are people,
process, and technology.  Without this, strategy is a set of lofty ideas, ungrounded in reality.

Let's look further into each of the three that come

to mind. What strategy types do you see?

 Business Strategy

The first of the three types of strategy is Business.

It is primarily concerned with how a company
will approach the marketplace - where to play and
how to win.

Where to play answers questions like, which customer segments will we target, which
geographies will we cover, and what products and services will we bring to market.

How to win answers questions like, how will we position ourselves against our competitors, what
capabilities will we employ to differentiate us from the competition, and what unique approaches
will we apply to create new markets.

Senior managers typically create business strategy. After it is created, business architects play an
important role in clarifying the strategy, creating tighter alignment among different strategies,
and communicating the business strategy across and down the organization in a clear and
consistent fashion.
Executives are just beginning to bring advanced, highly credible business architecture practices
into the strategy discussions early to provide tools, models, and facilitation that enable better
strategy development.

 Operational Strategy

The second of the three types of strategy is Operational. It is primarily concerned with accurately
translating the business strategy into a cohesive and actionable implementation plan. Operational
Strategy answers the questions:

Which capabilities need to be created or enhanced?

What technologies do we need?

Which processes need improvement?

Do we have the people we need?

The vast majority of business architects are currently working in the operational strategy domain
reaching up into the business strategy domain for direction.

They work from the middle out to bring clarity and cohesiveness to the organization’s operating
model typically working vertically within a single business unit while resolving issues at the
business unit boundaries.

More mature business architecture practices work in multiple verticals or move from one vertical
to another creating common business architecture patterns.

 Transformational Strategy

The third of the three types of strategy is Transformational. It is seen less often as it represents
the wholesale transformation of an entire business or organization.

This type of strategy goes beyond typical business strategy in that it requires radical and highly
disruptive changes in people, process, and technology.

Few organizations go down this path willingly.

Transformational strategy is generally the domain of Human Resources, organizational

development, and consultants.

These efforts are incredibly complex and can experience significant benefit from applying
business architecture discipline though it is rare to see business architects playing a significant
role here.
Bottom line:

Not all strategy work is the same. Each strategy type creates a unique role for the business
architect requiring a different approach and skill set. Business architects who are successfully
delivering in one role should be actively developing the skills they need to move into other
strategy domains.

WHAT ARE THE KEY FUNCTION OF

OPERATIONAL MANAGEMENT?
Operations Management is a branch that deals with managing operations and processes within
the organisation. Efficacious management of operations ensures successful delivery of the
project. The operation managers optimises the operations by making judicious use of
resources and capital. They manage all the aspects related to the operations that take place in
businesses. Operation managers are not only found in a company but also in manufacturing
units. They are required to perform various functions as a part of their job responsibilities. Some
of the key functions of an Operations Manager includes:

 Finance
Finance plays a chief role in operations management. It is essential to ensure that the
organization’s finance has been utilized properly to carry out major functions such as the
creation of goods or services so that the customer’s needs could be satisfied.

 Operation
This function in operation management is mainly concerned with planning, organising,
directing and controlling all the activities of an organisation which helps in converting the raw
materials and human efforts into valuable goods and services for satisfying customer needs.

 Strategy
Strategy in operation management refers to planning tactics that could help them to optimise
the resources and have a competitive edge over others. Business strategies imply to supply chain
configuration, sales, capacity to hold money, optimum utilisation of human resources and many
more.
 Design of the product
Incorporating innovative technologies play a crucial role in the selling of a product. Thus it is the
duty of operations manager to ensure that the product is designed catering to the market trends
and needs of the customers. The modern-day customers are more concerned about the quality of
the product than its quantity. So, the operation managers focus on producing top-notch quality
products.

 Forecasting
Forecasting refers to the process of making an estimation regarding certain events that might
occur in the future. In operation management, forecasting refers to the estimation of customer’s
demand so that production can be done accordingly. Through this, the manager gets to know
what to produce, when to produce and how to produce in accordance with the customer’s needs.

 Supply Chain Configuration

The main motive of Supply Chain Configuration is to ensure effective management, monitoring
and controlling of all the main activities that are held in a firm. The supply chain configuration
starts from the supply of the raw materials and continues till the production of the final product
and then their selling to the customers which will satisfy their needs and wants.

 Managing the Quality

Quality management plays an imperative role in selling a product. The operation

managers allocate the task of quality management to a team and then supervise their task. The
managers identify project defects and rectify them to ensure quality. For this, certain systems are
used that measure and maintain the quality of the product.