The primary objective of production and operations management is to effectively manage and utilize

those resources of the firm that are essential for the production of goods and services. Production
management refers to the management of activities related to the production of goods.

Example: Activities involved in the manufacture of a car.

On the other hand, operations management is a step ahead of production management, or it can be said
that the production management is a part of the operations management. Operations Management, as the
name suggests is the administration of business operations, by the managers of the organization.

Example: Man power planning required for car production

The difference between production and operations management is very thin and blurred, which is
simplified as detailed below.

Content: Production Management Vs Operations management

Comparison

POINT OF
PRODUCTION MANAGEMENT OPERATIONS MANAGEMENT
DIFFERENCE

Operations Management refers to that

part +
Production Management tells us about
Meaning administration of the range of activities involved of management concerned with the
in the creation of products. efficient production of goods

eg ; planning,organizing,supervising

.Decision which enable to do business

activities.: Ex: Vendor
Decision Making Choosing production methodology.
selection ,Planning activities,vendor
selection

Enterprises where operational activities

Found in Enterprises where production is undertaken.
happen

To utilize resources, to the optimal

To produce right quality goods in right quantity at
Objectives extent Ex: speed,quality,cost of
right time and at least cost.
production

Key Differences Between Production and Operation Management

The difference between production and operation management, are presented hereunder:
Eg: Production deals with manufacture of goods i.e converting raw material into finished goods

Eg: Operation deals with both production and service to the customer

In production management, the manager has to make decisions regarding quality, quantity and cost of the
product manufactured by the department. On the contrary, the scope of operations management is larger
in comparison to the production management. Operations manager looks after additional functions such
as process design, location, manpower required, storing, maintenance, logistics, inventory management,
waste management, etc.

Production Management can only be found in the firms where production of goods is undertaken.
operations management can be found whether it is a in every organization, i.e. manufacturing concerns or
service-oriented firms, banks, hospitals, agencies, etc. Intangibles

The basic objective of production management is to provide the right quality goods in the right quantity at
right time and best price. In contrast, operations management aims at making the best possible use of
organization’s resources, in order to fulfill the customer’s wants.

Principles of Operations Management

Randall Schaefer, CPIM, described The 10 Principles of Operations Management at his presentation at

the 2007 conference of the American Production and Inventory Control Society (APICS). 

Reality: There is no universal solution to the problems in your business.

Organization: You must organize all aspects of production into a coherent whole.

Fundamentals: Adhere to fundamentals, such as accurate inventory records.

Accountability: People try harder when they’re held accountable.

Variance: Variance is part of every process.

Causality: Problems are often symptoms. Get to the root cause.

Managed Passion: People with a passion for their jobs will drive your company.

Humility: You don’t have to know everything.

Success: Define success, and change with the market.

Change: Every manufacturing solution is temporary.

 Another set of operations management principles comes from author Dr. Richard Schonberger. His 16
principles are: 

1.Know the competition: The management should always know about their customer and the best
services provided by the other organizations. You can look toward the opportunities to either compete
with them directly. Look for the articles and add in the upstream publications.
2. Focus: Always focus on the reason why customers are not buying from you. The team needs to spend
time on the customer’s needs. Focus on the effort that offers the best chance of success. Do a little bit
every day.

3.Organization Resources: Organize the priorities for the resources that you need for the organization.
Organize them in such a way that the resource matches the demand in the service industry. An
organization should make sure that all assets are available to the firm for use during the production
process.

4.Team up with Customer: Firstly always know about what customer wants to buy from the company
and their uses. Organize your resources according to the use of the customer. Make client communication
easy and ask for reviews from your customer.

5.Unified purpose: Communicate your strategy and know-how; success is measured. Make sure how
they understand the purpose of their work. Recognize and reward the high performance. Value your
worker’s opinions and provide them the growth opportunities.

6.Continual and Rapid improvement: Deliver the best quality of the result with non-stop improvement.
The organization aims to provide a quick response to customer demand. Always offers the maximum
flexibility to the customer.

7.Maintain Equipment: Before purchasing the new equipment for the organization, improve your
current assets first. By using high-quality lubricants, you can save your equipment. Using lubricants to
operate equipment on a daily basis plays a major role in protecting the equipment.

8.Invest In HR: Offer rewards and recognition to employees. You should provide the cross-training
options and job rotation to the employees. Help employees to keep up with necessary skills. Generally, an
employee needs security, development, and support from the organization.

9.Visibility Management: Promote your achievements so that the market knows about your
improvements in the corporate world of productivity. Track and limit how much time you are spending on
your task. Set deadlines for your task and make a habit of committing a single task before moving on to
the next task.

10.Total Quality Control: When you think about quality control, it comes with the manufacturing
inspecting product flaws. Quality control is the key component of a well-run business. Developing a
quality control process makes it easier to expand the business. There are four quality inspections a) Pre-
production inspection b) During production inspection c) Pre-shipment inspection d) Loading Supervision

11.Fix Causes: Focus on the root causes that affect the cost and performance of the organization. Identify
the issue in the management and understand everyone’s interest. Separate the evaluation options from the
selection of options. Avoid the lack of awareness and determine the reasons for the problem and
implement the solution. Evaluating the success of your solution determines the underlying condition
behind the problem you have defined.
12.Pull System: Improve the workflow of the organization by analyzing the current processes. Prioritize
the project based on the importance and provide the proper training to the employees. Keeping workflow
moving efficiently so that everyone knows what requirements are used for the organization. Schedule
your employees to assign them a specific task. Analyze the result by knowing what’s working and what’s
slowing down the process and then find the solution timely.

13.Cut Times: Shorten your time by making processes faster and delivering on time. Reduce non-value-
added steps in the process and also reduce common cause issues. Improve communication with the
warehouse and streamline your process with documentation. Simplify your internal processes and keep
your customers informed. Use the right technology to locate your item quicker.

14.Minimize Human Error: Training is the most important way to minimize human error. Keep
improving your equipment and limit access to sensitive systems. Develop a recovery plan for the strong
disaster and test your disaster recovery plan. Work on your internal communication lines. If your staff is
rushing to achieve unrealistic objectives and deadlines, they will naturally end up making mistakes. So,
don’t make targets and deadlines unattainable.

15.Cut Setup: Always ready your tool for on-demand production and be prepared to support different
processes. Employees are at the mercy of the management to inform them to change. Being proactive in
communication can minimize resistance and make employees feel like they are part of the process. Once
a change is planned, it is important to have good care about the rollout and implementation to change.

16.Simple Equipment: Keep your equipment as simple and flexible as possible and sell it at a reasonable
price. All machines can transfer a force from one place to another. Some machines can increase the
amount of force so that we can lift heavier objects. Simple equipment reduces the effort. Extend the
ability of people to perform tasks beyond their normal capabilities. Simple equipment may magnify and
reduce the forces that can be applied to them. They do not change the total amount of work needed to
perform the overall task.

FUNCTIONS OF OPERATIONS MANAGERnctions of Operations Management

Finance- Finance plays a main function in operations management. The operation manager should not
waste finance in unproductive tasks. He should ensure that all finance of the organization is utilized for
the manufacturing of useful goods or services which may satisfy consumer wants.

Main function of finance is to maintain balance between customer satisfaction and profit of the company

Operation– The function of operation management is basically concerned with planning,

organizing, directing and controlling of daily routine operations of an organization. The operation
manager ensures that all activities are going effectively.

Strategy– The strategy formulation is also the main function of operation management. The operation
manager should have pre-planned tasks. Formulation of plans and tactics helps the organization in
optimizing their resources and developing a competitive edge over competitors.
Eg: Creation of products for different segments like mobile phone. Apple iphone is sold at the same price
as I phone i3.product differentiation is the main strategy of apple

Product Design–  It is the duty of operations manager to design the product according to the market
trends and demands. He should ensure that innovative techniques are incorporated within the product and
its quality is maintained. Manager should understand end users requirement and understand the need of
the customer to whom the product is designed. Example: mobile phone

Maintaining Quality–  Operations managers should ensure a better quality of products. The manager
should not compromise with the quality of Products. They should work on quality management and
should supervise all tasks. If any defects are found they should take steps to rectify such defects.

Ex: Maintaining the quality of battery in electrical vehicle

IMPORTANCE OF OPERATIONS MANAGEMENT

Helps in achievement of objectives: Operations management has an effective role in the achievement of

pre-determined objectives of an organization like Coordinating Planning and Actions. It ensures that all
activities are going as per plans by continuously monitoring all operations of organization.

Ex:upgradation of a mobile device

Improves Employee productivity: Operation management improves the productivity of employees. It

checks and measures the performance of all people working in the organization. Operation manager trains
and educate their employees for better performance. 

Eg:To impart training skill development to perform the job

Enhance Goodwill: Operation management helps in improving the goodwill and presence of the
organization. Goodwill is an intangible asset. It ensures that quality products are delivered to all
customers that could provide them better satisfaction and makes them happy. Goodwill refers to building
good brand name, , good employee relations, and any patents or proprietary technology are few
examples 

Optimum utilization of resources: Operation management focuses on optimum utilization of all

resources of the organization. It frames proper strategies and accordingly continues all operations of the
organization. Operation managers keep a check on all activities and ensure that all resources are utilized
on only useful means and are not wasted.Wastages are to be minimized.

Motivates Employees: Operation management helps in motivating the employees towards their roles.

Operation managers guide all peoples in performing their roles and provide them with better atmosphere.
Employees are remunerated and rewarded according to their performance level.Both monetary and non
monetary methods can be employed to motivate employees

SCOPE OF OPERATIONS MANAGEMENT

Increase Productivity: Operation management played an important role in increasing the productivity of

business. It manages all aspects of production activities to achieve highest efficiency possible. Operation
manager are responsible for designing production plan for carrying out the operations. They ensure that
all inputs used by organisations are efficiently transformed into outputs that is products or services. It is
crucial for all business for properly managing their day to day activities and efficient utilisation of all its
resources which helps in raising productivity.

Raises Revenue: Operational management directly influences the profitability of the business. It works
on reducing the cost of operations to business by reducing the wastage of resources. Operations managers
monitor every production activity and take all necessary steps for maintaining efficiency in the
organisation. They try to maintain an appropriate balance between cost and revenue.
Maintenance of quality of products and delivering them as per customer needs is another function played
by these operation managers. It helps in attracting more and more customers which increase the overall
revenue of business.

Eg: Improve revenue year on year

Achievement Of Organisation Goals: Every organisation strives towards achievement of its desired
goals. Proper management of production activities helps business to properly implement their strategic
plans in their operation. Operation management ensures that all operations of business are going in
desired direction.Example: Wanting to be billion rupee compay in next 3 years

It regularly monitors every activity and takes all corrective measures as required according to prevailing
situations. Proper functioning of business as per strategic plans helps in achievement of desired goals.

Improve Customer Satisfaction: Customer satisfaction is necessary for every business to improving its
relations with its customers. It helps them in retaining them for the long term. Operation management
monitors the quality of products manufactured by organisations. It ensures that high-quality products are
produced in accordance with the requirements of customers. When products manufactured by business
completely fulfil the needs of customers, their satisfaction level will improve. 

Customer satisfaction: Difference between what customer wants and what he gets

Reduce Investment Need: Operation management reduces the additional capital requirements of the
business. It ensures that all capital employed in the business are efficiently used. Management of
operations ensures that all production activities go uninterrupted without any shortage of capital. By
increasing the efficiency and avoiding the wastage of employed resources, it avoids any deficiency of
capital in business. Businesses are not required to invest more in their production activities.

Enhance Goodwill: Maintaining proper goodwill in the market is the goal of every business. Operation
management focuses on improving the position of the organisation in the market. It ensures that business
works for providing better services to its customers. Business should manufacture durable and high-
quality products that may provide better satisfaction to users. Customers will gain confidence in their
products which will improve their market image. 

Example: Apple's brand identity says about them is that they are sleek, cutting-edge and creative
Improve Innovation: Operation management helps in implementing innovative changes in
organisational activities. All decision regarding production planning is taken by operation managers by
doing research and analysis of prevailing market situations. It takes into account all technological changes
and builds a strong base of knowledge and operations. This helps in bringing various innovations in
operations of the business.

Innovation oriented company’s :Apple,Alfabet

Industry 4.0, refers to the fourth industrial revolution, is the cyber-physical transformation of
manufacturing.

Industry 4.0 refers to the intelligent networking of machines and processes for industry with the help of
information and communication technology (.0)

The original definition of Industry 4.0

The definition of Industrie 4.0 as proposed in 2011 was pretty lengthy. In a paper, entitled
“Industrie 4.0 – Smart Manufacturing for the Future”, GTAI (Germany Trade and Invest) looked at
the questions what is smart industry (a synonym of Industry 4.0) and what Industrie 4.0 means.

An extract: Smart industry or “INDUSTRIE 4.0” refers to the technological evolution from embedded
systems to cyber-physical systems…INDUSTRIE 4.0 represents the coming fourth industrial revolution
on the way to an Internet of Things, Data and Services. Decentralized intelligence helps create intelligent
object networking and independent process management, with the interaction of the real and virtual
worlds representing a crucial new aspect of the manufacturing and production process”.
Industry 4.0 refers to a new phase in the industrial revolution that is heavily depending on 1)Automation
2)real time data 3)More customers. It represents fourth industrial revolution.

Smart industry is the other name for industry 4.0.It enables to achieve 1)Better quality, meeting customer
expectations, improve product design, reduce product failure risk. Industry 4.0 is basically a software
solution.

In essence, the technologies making Industry 4.0 possible leverage existing data and ample additional
data sources, including data from connected assets to gain efficiencies on multiple levels, transform
existing manufacturing processes, create end-to-end information streams across the value chain and
realize new services and business models.

What's the Difference Between Industry 4.0, Digital Transformation, and Smart Manufacturing?

As already mentioned, there isn’t an agreed-upon formal definition for Industry 4.0. The same goes for
digital transformation and smart manufacturing. Many organizations and standards bodies have been
working on attempting to define this new space, not yet with any luck. Joint Working Group 21 between
IEC and ISO standards is probably the furthest along, and they still have arguably years to go. Currently,
they have chosen to focus on the phrase “smart manufacturing” as a way of taking a piece of Industry
4.0 and narrowing the focus. So far, their current definition (still in draft stage) for smart manufacturing
is, “Manufacturing that improves its performance aspects with integrated and intelligent use of processes
and resources in cyber, physical, and human spheres to create and deliver products and services, which
also collaborates with other domains within enterprises’ value chains.”

The National Institute of Standards and Technology (NIST), as another example, defines smart

manufacturing systems as "fully-integrated, collaborative manufacturing systems that respond in real
time to meet changing demands and conditions in the factory, in the supply network, and in the customer
needs."

There are countless other groups attempting to define these concepts and put their stake in the ground
with a specific term. At the International Society of Automation (ISA), we recognize that these terms and
their associated concepts are evolving and will continue to change. Thus, we have decided (for now) to
focus on the concept of “smart manufacturing” and think of it as an ecosystem which enables factories,
warehouses, supply chains, and so on to be fully integrated and agile to fulfill customer demand for
product or service delivery. Although arguments can be made to differentiate between other big
buzzwords like "Industry 4.0" and "digital transformation," they are often used interchangeably. 

Regardless of the semantics, these concepts boil down to collecting and harnessing a tremendous
amount of data to make better decisions, telling business leaders what to do and when to do it. The goal
of most Smart Manufacturing initiatives, therefore, are to identify opportunities for automating operations
and use data analytics to drive better agility, increase efficiency,, improve quality, and reduce a
company's time-to-market. What makes all this possible is the collective application of different cutting-
edge technologies that make manufacturing more connected, more intelligent, and more dynamic.  
BUILDING BLOCKS OF INDUSTRY 4.0 are:

1. Internet of Things (IoT): establishes a connected value chain by networking machine to machines.

2. Cloud Computing: provides huge storage, networking and computational capabilities enabling
interaction between technologies.

3. Big Data and data analytics: creates capabilities to support intelligent and real-time decision-making,
and reducing the downtime and wastage.

4. Additive Manufacturing or 3D Printing: Reduces leadtime from product design to release, permitting
customization, and small batch production in a costeffective manner.

5. Augmented Reality: Uses mathematical modelling, artificial intelligence and virtual reality to enhance
business generation.

6. Robotics: Improves efficiency through automated manufacturing processes.

7. Cyber security: ensures secured communication protocols enabling data security.

8. Machine Learning: exploits industrial sensors and instruments to record and communicate data directly
with software.

9. Simulation: the imitation of the operation of a real-world process, which would help to visualize the
design and identify the problems that might occur in a much earlier stage.
A key role is indeed played by the Internet of Things or IoT, in the scope of Industry 4.0 Industrial
IoT with its many IoT stack components, from IoT platforms to Industrial IoT gateways, devices
and much more.

Yet, it’s not just IoT of course: cloud computing (and cloud platforms), big data (advanced data
analytics, data lakes, edge intelligence) with (related) artificial intelligence, data analysis, storage and
compute power at the edge of networks (edge computing), mobile, data communication/network
technologies, changes on the level of, among others, HMI and SCADA, manufacturing execution
systems (MES), enterprise resource planning (ERP, becoming i-ERP), programmable logic
controllers (PLC), sensors and actuators, MEMS and transducers (sensors again) and innovative data
exchange models all play a key role.

Additionally, the same technologies, such as Robotic Process Automation (RPA), AI (AI engines,
machine learning), the meeting of both and so forth that pop up in close to all software areas such as
enterprise information management, business process management and applications in the sourcing
market are of course showing in IoT-enabled industrial/manufacturing applications and IoT
manufacturing platforms as well.

Industry 4.0 is not ‘something’ you realize overnight. Just as is the case with IoT deployments you
need a strategic and staged approach.

This is exactly the same as with digital transformation strategy and gets covered in depth when we look at
Industry 4.0 strategy and implementation and at the state of Industry 4.0 and maturity of organizations as
they move from initial stages and pilots to more innovative approaches on top of the traditional low-
hanging fruit in terms of optimization and automation. If you are in a hurry, there is a chapter on Industry
4.0 maturity models and roadmaps.

Data and optimization across the value chain

As you will discover in this guide Industry 4.0 is conceived as the next stage of organization and
control in the full life cycle of the product value chain.

The cyber-physical systems are the basis and enable new capabilities in areas such as product design,
prototyping and development, remote control, services and diagnosis, condition monitoring, proactive and
predictive maintenance, track and trace, structural health and systems health monitoring, planning,
innovation capability, agility, real-time applications and more.

These latter capabilities also lead to the types of use cases and deployments as well as the benefits of
industry 4.0 which we cover later and include personalization capabilities, real-time alerts and
interventions, innovative service models, dynamic product improvement, increased productivity, higher
up-time and, ultimately, new business models.

The new capabilities of Industry 4.0 lead to the ‘smart anything’ phenomena which often get most
attention: from smart grid, smart energy and smart logistics to smart facilities, including smart buildings,
smart plants, and smart offices to the mentioned smart manufacturing, smart factories, smart cities and so
on.

Challenges of Industry 4.0 are:

1. Huge investment - With the emergence of Industry 4.0, industry’s functioning has become more
process driven, which demands for large investment for smooth digital transition and transformation . In
addition, in training the existing workforce.

2.Need to consider new business models -With Industry 4.0, companies are in a new industrial paradigm
wherein there is a need to transform the way we interact with the customers, understand business cases,
changing operations for manufacturers and how customers receive and engage with products.

3. . Resistance to change - There is need to examine the company culture and enhance the flexibility in
adopting the change for the good. There is lack of courage to launch the radical digitalization plan.

4. Reorganizing the processes- For Industry 4.0, there is a need to automate and integrate horizontal and
vertical value chains. Therefore, it is essential to understand where there is a need for action [14]. In
addition, it is required to conduct pilot study to leverage better outcomes.
5. Workforce- Current technological trends are bringing about the change at an unprecedented rate and
there is a lack of in-house talent to meet those changes. To improve quality and efficiency it is essential to
develop and train the existing employees as the skill sets, they possess are getting obsolete. New
categories of jobs will emerge and there is a need to hire new breed of techsavvy employees. According
to the 2018 Global Trends report released by World Economic Forum, 76% of recruiters and hiring
managers think that Industry 4.0 will have a significant impact on the recruitment industry.

6. Standardization - The world is undergoing a digital transition phase that will enter and change all
areas of industry. Industries require norms and standards to ensure that the individual components are
compatible and interoperable.

7. Data Management - Industries are generating a lot of real-time production and quality data. There is a
need to make data readily available and accessible.

8. Competition- Increasing competition is driving an integration between the customer and manufacturer
at various stages of product.

9. Data security - Industry 4.0 deals with large amount of data. To achieve the true potential of Industry
4.0 security is a major concern. It is essential to implement end-to-end encryption to avoid vulnerability,
phishing and various other attacks.

OPERATIONS MANAGEMENT AT APPLE

Apple currently maintains an intensely cooperative management style, as senior leaders believe that it is
the best method to enhance product quality. In contrast to a conventional company supply chain system,
when designing products, Apple will ensure various expert-run departments are actively communicating 

1.Any disputes that arise are resolved by arbitration from senior executives, including CEO. However,
generally, department leaders are encouraged to reach consensus without contacting upper management.
This degree of cooperation is achieved through regular inter-department communication and feedback,
where teams will present their work or progress to other units and receive input

2. Apple, Inc., is structured around prioritizing innovation of their products. The company’s cooperation
style aims to maximize innovative solutions. 

3. Apple’s primary resources are allocated to hiring experts in the technical sphere instead of using
professional managers’ knowledge and expertise. Since it is tech based

Apple’s key advantage: (1) Favorable pricing terms with vendors and customers

(2) Guarantee high volume of production of manufactured parts from china

and taiwan

Apple manages changes as its approach is built upon extensive communication. Different members of
departments are welcome to cooperate, which intensifies the creative process but also strengthens their
ability to adapt to change
Apple has a sustainability progress plan development that meets the need of the present without
comparisions,the ability of future generation to meet their own needs, which is essential for a company of
its size;

Example: Using solar energy to reduce environmental pollution

Innovation remains to be their central focus

OPERATIONS MANAGERS' ROLES AND 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.Task includes

(1) Implementing the policies

(2)Procedure following
(3) Budget preparation

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.

Eg: Inventory management, Performance improvement.

OPERATIONS MANAGEMENT IN MANUFACTURING SECTOR

Every organization—whether it produces goods or provides services—sees Job 1 as furnishing customers

with quality products. Thus, to compete with other organizations, a company must
convert resources (materials, labor, money, information) into goods or services as efficiently as possible.
The upper-level manager who directs this transformation process is called an operations manager. The
job of operations management (OM) consists of all the activities involved in transforming a product
idea into a finished product. In addition, operations managers are involved in planning and controlling the
systems that produce goods and services. In other words, operations managers manage the process that
transforms inputs into outputs.
Figure 10.2 illustrates these traditional functions of operations management.

All manufacturers set out to perform the same basic function: to transform resources into finished
goods. To perform this function in today’s business environment, manufacturers must continually strive
to improve operational efficiency. They must fine-tune their production processes to focus on quality, to
hold down the costs of materials and labor, and to eliminate all costs that add no value to the finished
product. Making the decisions involved in the effort to attain these goals is another job of operations
managers. Their responsibilities can be grouped as follows:

Production planning. During production planning, managers determine how goods will be produced,
where production will take place, and how manufacturing facilities will be laid out.
Production control. Once the production process is under way, managers must continually schedule and
monitor the activities that make up that process. They must solicit and respond to feedback and make
adjustments where needed. At this stage, they also oversee the purchasing of raw materials and the
handling of inventories.

QUALITY CONTROL. The operations manager is directly involved in efforts to ensure that goods are
produced according to specifications and that quality standards are maintained. Examples of managing
business operations

Examples of operations management in different sectors

Healthcare – An operations manager of a healthcare facility is generally responsible for ensuring

efficiency in delivery of high-quality care. That can include overseeing administrative costs, managing
claims and billing, and legal compliance.

Manufacturing – A company that makes home appliances, for example, has processes for sourcing
materials, managing factories, maintenance, overseeing inventory, and ensuring quality.

Restaurant – An operations manager for a restaurant or chain of restaurants is usually responsible for
facility maintenance, employee training and supervision, financial planning, inventory management,
compliance, and payroll.

Retail – In an industry that can span multiple environments, from brick-and-mortar to e-commerce and
single stores to chains, business operations can encompass many functions, including sourcing, inventory,
staffing, logistics, store management, and customer service.

Transportation – Operations management for a transportation company includes overseeing vehicle

maintenance, fuel supply, routing, staffing, and communication, among other functions.

Apple’s Product Development Process -Operations management in manufacturing sector

Apple’s Product Development Process is one of the most successful design processes ever implemented.
With a valuation that exceeds $2 trillion, there’s a lot that designers can learn from Apple and introduce
into their own design environments.

Apple is a notoriously secretive business. It’s worth keeping it under wraps. It includes the following
steps mentioned below.
Design is at the precursor: Forefront, key to winners.Product is built,tested and reviewed by
designers ,than the design team improves on it.This can tak 4 to 6 weeks

Design Teams are Separated From the Larger Company:Design of apple is eye catchy.Products look
clean,simple every thing from the shape of the phone to the button design to color options.Even fonts
used are clean and simple

A Documented Development Process: Consists of a process to create a document.It involves analysis of

the document,designing and information gathering.-

Review Day on starting day of the week

Role of EPM and the GSM at Apple

The EPM is the engineering program manager and the GSM is the global supply manager. Together they
are known within Apple as the “EPM Mafia”. It’s their job to take over when a product moves from
design to production.

Iteration Is Key

Apple iterates the design throughout manufacturing. The product is built, it’s tested and reviewed, then
the design team improves on it and it’s built all over again. These cycles take 4-6 weeks at a time and
may be run many times over a product’s development lifecycle.

The Packaging Room

This is a very-high security area in Apple and it’s where prototypes are unboxed. As you might expect,
the security is to prevent leaks to the outside world. If you ever do see a leaked prototype for an Apple
product – it won’t have come from here. It’s more likely to have vanished from a production line in
China.

A Launch Plan
The final step in Apple’s product development is product launch. When the product is considered to be as
good as it can be – it enters an action plan known as “the Rules of the Road”. This explains all the
responsibilities and actions that must be taken prior to a commercial launch of the product.

The Take Away

Apple’s process is complex, expensive and demanding. If you compare it to most business theories – it
shouldn’t work. However, to date it has out-performed even the wildest of expectations.

OPERATIONS MANAGEMENT AT SERVICE SECTOR : IBM:

IBM Blueworks Live is a cloud-based software that provides a dedicated, collaborative anywhere
environment to build and improve business processes through process mapping.

Teams can work together through an intuitive and easily accessible web interface to document and
analyze processes to help make them more efficient.
1.Simulate, execute and improve

Analyze process performance and test model improvements with process simulation. Defining to-be
process models and import the changes to Blueworks Live to implement across the business.

Empowering high-quality care

Healthcare organizations use IBM Blueworks Live to remove inefficiencies in their processes and
improve outcomes for patients.

2.Elevating patient-centered care

Today’s healthcare organizations depend on a wide range of processes, from the front office to the lab.
The key elements in these processes—whether involving patients, clinicians, administrative staff,
insurance providers, medical partners, suppliers or other third-party entities—must all work together
accurately and efficiently to ensure the highest quality care. After all, any process bottlenecks or
administrative errors can literally be a matter of life and death.

3.Transforming processes for smarter healthcare

IBM Blueworks Live is a cloud-based business process modeling tool that makes it easy to document,
analyze and improve your healthcare processes. Business analysts, medical staff and other subject matter
experts can work together using an intuitive web interface, identifying ways to make processes more
efficient. And these diverse teams can collaborate from anywhere.

Here are some examples of how IBM Blueworks Live is being used around the world to create dramatic
benefits in healthcare organizations like yours: One healthcare service provider built an agile
development platform for developing, implementing, and changing organ allocation scheme rules on an
ongoing basis, allowing them to optimize the scheme based on the latest research and data. With
Blueworks Live, the organization can continuously evaluate new processes and models, capturing
workflow information in an accessible and understandable format so they can both improve
implementation planning and easily articulate those plans to a wider audience—including statisticians,
analysts, IT teams, and regulators—so all stakeholders can see how the allocation scheme works. Another
healthcare organization has used IBM Blueworks Live to custom-ize an app that was developed to meet
the specific requirements of the nursing staff. This app helps caregivers manage the hospitalization
process from registration to release, with patient records and orders available in real time on mobile
devices such as tablets and smartphones. Hospital experts defined and validated standard therapeutic
pathways that then went into the underlying workflow design. Using these standard processes, the app can
guide nurses through a series of prescribed steps, helping minimize omissions, duplication, and other
errors.