Operations Management

HRM-306

Chapter-01
Q.01 what is Operations Management

Operations Management is a set of activities that create goods

and services through the transformation of inputs into outputs.
(Slack,2001)

Operations Management is a systematic design, direction and

control of processes that transform inputs into services and
product for internal as well as external customers.
Q.02 How Process Work?
Process:
Any activities or group of activities that take one or more inputs, transforms them and
provide one or more outputs for its customers.

Accounting Process

outputs
inputs

Advertising
design and Client
planning interface
process process

Production Process

Figure: Process view of a company

2.1 Nested Process:
The concept of process within a Process.

Advertising design
and planning process

Creative Design Process: Media Planning Process:

• Receive work Request • Receive work Request

• Assemble team • Prepare service media
• Prepare service plans
design • Receive inputs
• Receive inputs • Prepare final plan
• Prepare final concept • Revise plan, pre
• Revise concept, pre client’s inputs
client’s inputs
2.2 Customer-Supplier Relationship:
• External Customers
• Internal customers
• External Suppliers
• Internal Suppliers.

2.3 Service and Manufacturing Process:

• Manufacturing process convert materials into finish goods they have physical
form we call product.
• Firm provide good product as well as good service.
Q. 03 Core Process and Support Process:
3.1 Core Process: A chain of activity that delivers value to external customer is called
core process.
1. Customer relationship process
2. New Service/product development process
3. Order fulfillment process
4. Supplier relationship Process.

Support Process
External suppliers

External customers
Customer
New
relationship
Service/produc
t development Order process
Supplier
fulfillment
relationship
process
Process

Figure: value chain linkages

3.2 Support Process

• Capital acquisition
• Budgeting
• Recruitment and hiring
• Evaluation and compensation
• Human resource support and development
• Regulatory compliance
• Information systems
• Enterprise and functional management
Q. 04 Operations management as a decision making tools:
1. Recognize and clearly define the problem
2. Collect the information needed to analysis possible alternative
3. Choose the most attractive alternative
4. Implement the chosen alternative.

Tactical Decision:
1. Process improvement and Performance measure
2. Managing and planning project
3. Generating production and staff planning
4. Managing inventories and scheduling resources.

Strategic level Decision:

1. Development of new capabilities
2. Maintenance of existing capabilities to best serve the firm external customers.
05. Trends in Operations Management:

1. Productivity improvement
2. Global Competition
a) Improve transportation and information technology
b) Loosened regulations on financial institution
c) Increase demand for imported services and goods
d) Reduce import quotas and others international trade barriers
e) Comparative cost advantages
3. Rapid Technological change
4. Ethical workforce diversity and environmental issue.
Q. 06: Addressing the challenges in Operations Management:

1. Use operations to compete

2. Managing Process
a) Identify the opportunities
b) Define the scope
c) Document the process
d) Evaluating performance
e) Redesign the process
f) Implement the changes
3. Managing value chain
a) Location
b) Inventory management
c) Forecasting
d) Sales and operation planning
e) Resource planning
f) scheduling
Math : Productivity calculations:
Calculate the productivity for the following operations:
A. Three employees process 600 insurance in a week. They work 8
hours per day, 5 day per week.
B. A team of worker makes 400 units of a product, which is valued
by its standard cost of taka 10 each (before markup for other
expenses and profit). The accounting department reports that for
this job the actual cost are taka 400 for labor, taka 1,000 for
materials and taka 300 for overhead.
Solution:
Policies Processed
A. Labor Productivity= Employees Hours

600 policies
= (3 employees)(40 hours/employees)

= 5 policies/Hour
Quantity at standard cost
B. Multifactor productivity: Labor cost + Materials cost + overhead cost

(400 units)(taka 10/units)

= Taka 400 + taka 1000 + taka 300

4000
= 1700

= 2.35
THANKS EVERYONE