ics a rdeetasting Flows auaity Chega a tines a Click on topic to RO to Fesourcs® 1 | Operations Management EERE intropuction The aim of any business is to provide best quality goods and services to its customer. Whenever one thinks of starting a business, the major decisions it need to take are * from where the raw material will be sourced + how, at what conditions and at what time it will be received in the organization ‘how the transformation of goods and services will take place and * finally how the finished product will reach to customer in time It is possible only when the transformation of input into output is simple, efficient and creates value for the customer. The group of acfivities, processes and systems that control production of design & development; converting raw material into finished goods or creating services and ending ‘with proper distri se products and services to end customer is called operations ‘operations by which the goods are created and services are provided. CASE OPERATIONS MANAGEMENT: MUMBAI DABBAWALA’S STYLE Dabbawala is someone who carries a Dabba, an aluminum cylindrical tin, food. The Dabbawalla’s organization started with a hundred men who service in the year 1890, a period when Bomb: and regions of India migrating to the city. with canteens and fast-food centers, containing home cooked launched the delivering ay saw an influx of people from various communities This service not only managed to survive, competing but has also been extended to other cities on India. Today there are 5,000 Dabbawala in Mumbai (400,000 transactions every day). At an average of tumover of 500 million rupees per year, despite and costs of transports delivering lunch to 200,000 people every day ° of 200 rupees per lunch box per month, they have a despite relatively low in-kind investments in manpowerVarious resources vi resources viz the value of the orig organization, produ customer ot whi a which creat repair and maintenanes sp ee © the c Mn al ‘chinery. ‘The production aims at Bene ction ‘ref tials / products which are paren transformed. In relation © | “rs to the execution of the activity / function which is uustomer. For example, service garage Po nance of automobil on di : iles, beauty parlor and hair salons providing its. To.sum up, produetion is the conversion of inputs int value added OUP WEB weaning j AND DEFINITION OF PRODUCTION MANAGEMENT . oe aoe eae {erm “Production Management” consists of two words = reduction and Manas (fas discussed earlier), refers to the conversion of inputs into VAN’ “ting the is the pro a - ing, coordinating an : activites of the ongtnzation te acieee te pegrmined goa herefore the, PSA Management is that part of the management Sceh ig caeernea with the production Scuvaoce 2. a organization. In other words, production management is concerned with the plantin6: Seen directing, coordinating and controlling the process of conversion of inputs into outputs: mater Management Definitions “According to EiL;Brech “Production Management isthe process of effective planning and regulating the operations of that section of an enterprise which is responsible forthe actual transformation of materials into finished products.” E.L.Butfa defines production management as, “Production management deals with decision making related to production processes so thal the resulting goods or services are produced according to ‘specifications, in the amount and by the schedule demanded and at minimum cost.” ome words of H. A. Harding “Production Management is concerned with those processes which ers the inputs into outputs. The inputs are various resources like raw material, men, machines, methods etc. and the outputs are goods and services.” ‘According to A.W.Field “Production Management is the process of planning and regulating the operations ofthat part of an enterprise, which is responsible for actual transformation of material into finished products.” ‘To sum up, it can be said that the use of management principles and concepts to the process of transformation of inputs into outputs is called the production management. Production management aims at the efficient utilization of the resources of the organization in order to deliver to the customers, the goods and services of requisite quantity and quality at the right time and at minimum cost aa BREMM OPERATIONS MANAGEMENT Introduction on was less, the process 1m the earlier times when the scale of operations was small and c competiOPERATIONS MANAGEMEK Gal i i led_production management. Slowly, with ta and knowledge that h_production was called_ agement. Slowly, with ty raeage of time as the business progresses, the competition and complexities in which itis being run peveneed manifold. The business has to survive by cutting costs and realigning all of its operation, Product designs and development undergoes @ change. The modemization has introduced ful ines in the manufacturing The business started supplying servi a aTSTIUTE sclvitcs ae handed over to the third party service providers. ye distribution network has to be strengthen in order to remain in business. All| these things log organization to believe that they need an operations department that could coordinate all these activities. Hence, the operations management as a branch of management was born in the modem world to coordinate and control all operations such as planning, designing, development ang distribution of goods and services of the organization.) The operation management process can be shown as " Output aa -coode 1 Shices Wee unr) Geen era) Money Definitions ‘According to Norman Gaither “Operation Management is some configuration of resources combined for the purpose of production, transport, supply, service or storage” According to Barry Shore “Operations Management is the management of any operational system which transforms inputs into outputs.” According to B.Mahadevan “ Operations Management is a systematic approach to address all the issues Pertaining to the transformation process that converts some inputs into outputs that are usetul, and could fetch revenue to the organization’. : On the basis of the above definitions, it can be summed up that operations management consists Of tactics such as scheduling work, assigning resources, managing inventories for the improvement of the production system and for the creation of the products. 7, __ CASE- TOYOTA PRODUCTION SYSTEM: CONTINUOUSLY EVOLVING’ oi ‘oy ota Production System (TPS) is a management concept based on the Just-in-Time system and jidoka which can be loosely translated as ‘automation with a human wisdom, The Just-in-Time system derives from a comment by founder Kiichiro Toyoda: the best way to gather automotive parts is "Just-in-Time,"; in which each Process produces only what is needed b the next process in a continuous flow. JIDOKA concept was first used in 1896 by Saichi Toyoda. i is the main pillar of Toyota Production system. The meaning of JIDOKA ie Een ye ia ‘human touch”. It helps in identifying the defect in a machine at an early stage and st ion pee a delivering the defective product to the next process. ‘8s stops it frombi Produce vehici iil ‘ i 1S Of sound quality 9g OX* M4 Just-in-Time, the TPS can eff Starting around / one ata time, that fully satisfy customer requ 980: ifferent Je yo, t0 the early 1990s, the TPS was adopted in oie age Slobalization, with various innovations being inlfOSUT orm of tHE rement times, The TPS continues to address new issues use companies that will oversee short- : development. The names of the fe newly erented and too renamed companies a: INNO ys ‘gineering Company; Toyota Compact Car Company; Mid-size Vehicle COMPANY: Fn cunther divide International Company; Power Train Company, and Connected Company. The automa i ction, into the R&D, production engineering, and manufacturing operations, currently organized by fu ‘advanced” and "mass my. production” categories, and these will be allocated to each company MEG aur oF PRODUCTION AND OPERATIONS MANAGEMENT ; i w material Production Management is a branch of management that deals with conversio®’ of rat i it that Into finished goods. Technically, itis a subsystem or small part of operation’ ace ae concentrates on production systems and its efficent functioning. Operations ManABiMA tN other hand, is a group of all activities that begins with product and service planning, P! ends with distribution of these products and services to end customer. Sr ition ‘Management ‘Operations Management no. 7 | Old term that was used when business scale and | Modem term as it includes organizations that deal operations was small and complexities and | in supply of services and also watch overall competition was less. The focus was on | operations of the organization. It is more in sync production as market was production driven, _| with the concept of ‘customer is a king’. 2 | Focused on products Focused on both product and services ~~ 3 | Narrow concept confined only to conversion of Broad concept that includes planning, design raw material into finished goods development, conversion and distribution 4 | Nocustomer contact Continuous customer contact INTER- RELATIONSHIP OF VARIOUS FUNCTIONS UNDER OPERATIONS MANAGEMENT ‘The main functions of the organization are — Production, Research . Finance, Marketing, Personnel_and arch & Development. All these functions are inter-related-and inter-dependent and hence it is "naps ayo aban company istry dare Mary ules ea years data /automotive_business /produetion/system/ ySetup?newsID=21477