Professional Documents
Culture Documents
Lecture 1
Lecture 1
Lecture 1
Contd.
Purchasing managers
Supply chain and logistics managers
Customer service managers
Project managers
Quality managers
Restaurant, hotel, retail, & airport managers
Health centre managers, hospital managers
Head teachers, etc., etc..
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Automobile assembly factory – Operations
management uses machines to efficiently
assemble products that satisfy current
customer demands
Physician (general practitioner) – Operations
management uses knowledge to effectively
diagnose conditions in order to treat real
and perceived patient concerns
e.g., What are the unique features e.g., Who will work the 2nd Shift
of our product that make us tomorrow?
competitive?
The operations manager is more involved in day-to-day
operating decisions than with decisions relating to system
design.
However, the operations manager has a vital stake in
system design because system design essentially determines
many of the parameters of system operation.
1. Purchasing: It has the responsibility for procurement of
materials, supplies, and equipment.
Close contact with operations is necessary to ensure
correct quantities and timing of purchases.
The purchasing department is often called on to evaluate
vendors for quality, reliability, service, price, and ability
to adjust to changing demand.
Purchasing is also involved in receiving and inspecting
the purchased goods.
Contd.
2. Industrial Engineering: It is often concerned with
scheduling, performance standards, work methods, quality
control, and material handling.
3. Distribution: It involves the shipping of goods to
warehouses, retail outlets, or final customers.
4. Maintenance: It is responsible for general upkeep and
repair of equipment, buildings and grounds, heating and
air-conditioning, removing toxic wastes, parking and
perhaps security.
Organization:
Operations is the core function of an organization.
Provide primarily services or create goods.
Responsible for creating those goods or providing services.
Major portion of the assets in most business organizations.
Society:
More than half of all employed people in most
countries have jobs in operations.
Providing services and, the consumption of these goods
and services is an integral part of our society.
The Interrelated Activities:
o Forecasting
o Capacity planning
o Scheduling
o Managing inventories
o Assuring quality
o Motivating and training employees
Forecasting
Weather and landing conditions
Seat demand for flights
Growth in air travel
Capacity Planning
Ensuring the maintenance of cash flow and
generating reasonable profit.
The adjustment of flight timings and
destinations that could maximize profits.
Scheduling
Maintenance of flight schedule
Schedules of on duty pilots and flight
attendants
Scheduling of ground crews, counter staff,
and baggage handlers.
Managing Inventories
Managing inventories such as:
Foods and beverages
First-aid equipment
In-flight magazines
Pillows and blankets
Life preservers
Assuring Quality
Quality Assurance: It is essential in flying and
maintenance operations.
Emphasis
◦ safety
◦ dealing with customers at ticket counters,
◦ check-in,
◦ telephone,
◦ electronic reservations and
◦ taxi service where the emphasis is on efficiency and
courtesy.
Motivating and Training Employees
Employee motivation and training in all
phases of operations.
Locating Facilities
Locating facilities according to manager’s
decisions on which cities to provide service
for, where to locate major and minor hubs.
• The operations function consists of all
activities directly related to producing goods
or providing services. Such activities include:
1. Development of idea for a product or service
2. Product verification and funding
3. Product Development
4. Product Production
5. Product Distribution
Contd.
Operations Management involves:
Product and Service design
Process selection
Selection and management of technology
Design of work systems
Location planning
Facilities planning
Quality improvement of the organization’s
products and services
to develop your knowledge and understanding key
principles, concepts & processes associated with
◦ operational planning, control and improvement of
‘efficiency’ of business operations.
to deepen your understanding of the strategic
importance of operations management for
competitive success in a global economy.
Journal of Operations Management
International Journal of Operations & Production Mgt
International Journal of Quality and Reliability Mgt
International Journal of Productivity & Performance Mgt
Managing Service Quality
Total Quality Management
Total Quality Management and Business Excellence
The Service Industries Journal
The TQM Magazine
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