Presentation On

OPERATION MANAGEMENT

SUBMITTED TO : Mr. AJAY SUBMITTED BY: KARAMVEER SINGH

Historical Development of OM
Industrial revolution Scientific management
Hawthorne Effect

Late 1700s Early 1900s

1930s

Human relations movement Management science Computer age Environmental Issues JIT & TQM*

1930s1940s1960s1970s1980s-

*JIT= Just in Time, TQM= Total Quality Management

Historical Development cont

Reengineering Global competition Flexibility Time-Based Competition Supply chain Management Electronic Commerce Outsourcing & flattening of world

1990198019901990199020002000-

For long-run success, companies must place much importance on their operations

The Basics Of Operations Management

Operations Management The process of managing the resources that are needed to produce an organizations goods and services. Operations managers focus on managing the five Ps of the firms operations:

People, plants, parts, processes, and planning and control systems.

The Production System

Input
A resource required for the manufacture of a product or

service.

Conversion System
A production system that converts inputs (material and

human resources) into outputs (products or services); also the production process or technology.

Output
A direct outcome (actual product or service) or indirect

outcome (taxes, wages, salaries) of a production system.

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The Basic Production System

The Scope of Operations Management

Types of production systems

Classification on the basis of output

Three bases considered1. Variety 2. Uniformity 3. Volume per output type o Two types -

a)continuous b)intermittent

LOW VARIETY CONTINUOUS

HIGH INTERMITTENT

FLOW PRODUCTION

MASS PRODUCTION

BATCH PRODUCTION

JOB ORDER

PROJECTS

HIGH HIGH VPOT

LOW UNIFORMITY LOW

DIFFERENCE BETWEEN CONTINUOUS AND INTERMITTENT SYSTEMS

ON THE BASIS OF MACHINERY
CONTINUOUS
1.SPECIFIC MACHINERY 2.PERMANENT MACHINE SETUP 3.DUPLICATION OF MACHINES

INTERMITTENT
1.GENERALISED MACHINERY 2.FREQUENT CHANGES IN MACHINE SETUP 3.LESS MACHINES REQUIRED

 ON THE BASIS OF MATERIAL HANDLING

AND LABOUR USE

CONTINUOUS

INTERMITTENT

1.UNSKILLED AS WELL AS 1.HIGHLY SKILLED LABOUR SMALL TEAM OF FORCE SPECIALISED LABOUR FORCE 2.MECHANIZED MATERIAL HANDLING 3.MATERIAL HANDLING COST IS LESS 4.INVESTMENT IN INVENTORY IS HIGHER 2.NOT FEASIBLE TO EMPLOY MECHANIZED HANDLING 3.MATERIAL HANDLING COST IS HIGHER 4.NEED FOR INVENTORY IS MINIMISED

 ON THE BASIS OF OUTPUT PRODUCED-

CONTINUOUS

INTERMITTENT

1.FEW STANDARD PRODUCTS IN LARGE QUANTITIES

1.WIDE RANGE OF PRODUCTS IN SMALL QUANTITIES

2.OUTPUT ON THE BASIS OF ANTICIPATION OF DEMAND

2.OUTPUT ACCORDING TO ORDER RECEIVED

 DIFFERENCES ON THE BASIS OF

MAINTENANCE AND CONTROL EMPLOYED

CONTINUOUS
1.ABSENCE OF MAINTENNCE MAY INTERRUPT WHOLE PROCESS 2.CONTROLLING IS SIMPLER

INTERMITTENT
1.NO DANGER OF STOPPAGE OF WHOLE LINE

2.CONTROLLING IS COMPLEX

TYPES OF CONTINUOUS PRODUCTION SYSTEM

1.FLOW TYPE

Output cannot be segregated into different units High degree of uniformity

Output cannot be measured directly

Example-power plant

2.MASS PRODUCTION Straight line flow of materials Output of one stage normally becomes input for another Output visible in form of identical units Standardised output produced in large quantities PROBLEMS

1. Balancing of production lines 2. Machine maintenance

3. Raw materials supply

Example sugar production

Types of intermittent production systems

1.BATCH PRODUCTION SYSTEM Variety of products are made in small quantities Various products compete for share of machines Outputs are aggregated in form of batches Batches may comprise of similar or dissimilar outputs PROBLEMS 1. Machine-job allocation problem 2. Determination of economic batch quantity 3. Scheduling and sequencing of operations Example electrical goods

2.JOB-ORDER PRODUCTION SYSTEM Does not has its own standard product but accepts whatever customer orders come in Output identifiable in terms of specific job order Material flow is very complex PROBLEMS 1. Determination of the sequence of processing Example tailor shop

3.PROJECT PRODUCTION SYSTEM Project is a temporary endeavour having a defined beginning and end ;undertaken to meet unique goals and objectives Project is non repetitive This type of production system uses resources on different projects Product remains fixed and manpower and facilities put work on it PERT/CPM can be used for planning and control in this case Example- Ship production

OM Decisions
All organizations make decisions and follow a similar

path
First decisions very broad Strategic decisions

Strategic Decisions set the direction for the entire company; they are broad in scope and long-term in nature

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OM Decisions
Following decisions focus on specifics - Tactical decision
Tactical decisions: focus on specific day-to-day issues

like resource needs, schedules, & quantities to produce are frequent

Strategic decisions less frequent

Tactical and Strategic decisions must align

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OM Decisions

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Todays OM Environment
Customers demand better quality, greater speed, and lower costs
Companies implementing lean system concepts a

total systems approach to efficient operations Recognized need to better manage information using ERP and CRM systems Increased cross-functional decision making

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OM in Practice
OM has the most diverse organizational function Manages the transformation process OM has many faces and names such as;
V. P. operations, Director of supply chains,

Manufacturing manager Plant manger, Quality specialists, etc.

All business functions need information from OM

in order to perform their tasks

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OM Across the Organization

Marketing is not fully able to meet customer needs if they

do not understand what operations can produce Finance cannot judge the need for capital investments if they do not understand operations concepts and needs Information systems enables the information flow throughout the organization Human resources must understand job requirements and worker skills Accounting needs to consider inventory management, capacity information, and labor standards

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Thank you.