Welcome

to
the Presentation
on
Operations Management
BY
DR. ZAHED HUSAIN SIKDER
PROFESSOR
DEPARTMENT OF MANAGEMENT STUDIES
UNIVERSITY OF CHITTAGONG
Organization’s
* vision
*Mission
*Goals
*Objectives
*Strategies

 Competitive Priorities
 * Efficiency
 * Quality
 * Speed
 *Flexibility
 *Service
2
 * Adaptability
 Production/ OPERATIONS MANAGEMENT
 Meaning of Operations and Operations Management
Operations is concerned with conversion of all inputs into outputs
of goods and services
It deals with the activities, concepts and techniques employed in
producing goods and services.

Operations Management is the process of designing, operating,

and controlling a productive system capable of transforming
physical resources and human talent into needed goods and
services.


3
 Random Fluctuations
Strike of students,
Quality of Inputs teachers & staff Quality of Outputs
Monitored & Undue interference of Monitored
Adjustment Needed the Govt. in the
working of the
institution.
Inputs Outputs
Raw minds (Students) Enlighten students with
Teachers * Good communication skills
Administrative staff * Pleasant personalities
Class Room Transformation * Leadership qualities
Computer Lab Process *Good analytical ability
Library * Team spirit
Projector( OHP/LCD) * Decision making abilities;
Feedback Mechanism * Computer skills
Success at placement
interviews
Grade obtained in the
examination
Rising career graph of
the alumni in
corporations
Number of applicants for
admission in the institute
Ratings of survey.

4
 Random Fluctuations

 High turnover of workers

and managers
Quality of Inputs Monitored  Recession Quality of Outputs
& Adjustment Needed  Govt.’s taxations policy Monitored
 Strikes instigated by Trade
Unions.

Inputs

 Materials Outputs
 Machines and equipments • Refrigerators with
 Components parts, sub- Good cooling performance
assemblies, etc. • Less consumption of
 Office infrastructure( Transformation electricity
computers, furniture, etc,) • Good after sales service
 Capital • Genuine prices
 Building
Process • New advance features
 Workers
 Managers Feedback Mechanism

 Rising sales volumes

 Lesser customer complaints
 Positive response of
customers in the feedback
forms.

5
 OPERATIONS MANAGEMENT

 Objectives of Operations Management

 Primary Objectives
 Secondary Objectives
 The five P’s of Operations
 The Product
 The Plant
 The Process
 The Program
 The People

6
Distinction between Manufacturing
Operations and Service Operations
On the basis of the following Characteristics:
 Definition
 Nature of Product
 Response Time
 Facilities
 Consumption of Output
 Degree of Customer Contact
 Customers Participation in Conversion Process
 Measurement of Performance
 Nature of Job ( works)
 Nature of Inventory
 Measurement of Productivity
 Quality
 Expenses Required for Material Handling
 Utilization of Investment
 Maintenance 7
Functions / Responsibilities
of an Operations Executive
 Production Planning  Plant layout
 Production Control  Plant Location
 Quality Control  Material Handling
 Forecasting  Inventory Control
 Method Analysis  Work Measurement
 Product Design and  Wage Incentives
Development  Design of Factory /
 Capacity Planning Office Building

8
 Production Planning and Control
 .* Demand Forecasting
 * Make availability of Input Resources.
 *Preparing Bill of Materials
 * Routing
 * Scheduling
 * Loading
 * Dispatching
 * Evaluation
 * Comparison between actual performance and Budgeted
performance
 * Take Corrective Actions.
 TYPES OF MANUFACTURING SYSTEM
 A. Intermittent Manufacturing System
 B. Continuous Manufacturing System.
 Techniques of production Planning:
 A. Aggregate Planning (AP) 9
 B. Master Production Scheduling ( MPS)
Forecasting :
Qualitative techniques
Quantitative techniques
: Method Analysis
 Plant Location :
Break-even analysis,
Factor rating System , and
Center of Gravity System.
 Plant layout :
Product layout
Process layout
Hybrid layout
Fixed Position layout 10
Group Tehnology (GT)layout
 Capacity Planning :
* Lead capacity
*Lag capacity
*Match capacity
 Material Handling
 Quality Control/ Management:
 Dimensions of Product quality: a.
Performance, b. Features, c. Reliability; d.
Durability; e. Serviceability ; f. Aesthetics ; and
g) Perceived quality.
 Dimensions of Service quality: a. Timeliness; b.
Courtesy; c. Convenience; c. Reliability; d.
Responsiveness; e. Efficiency; f. Tangibles.
 . 11
Quality control : Inspection; and
Statistical Process control : Acceptance
Sampling method and Control Chart
Approach : a. Control chart for variables
and control chart for attributes.
*
 Total Quality Management (TQM)

12
Decision Areas in production
and Operations Management
 Strategic Level Decisions:
 New Product Identification and Design
 Process design and Planning
 Facilities Location
 Layout of Planning
 Capacity Planning
 Job Design
 Selection of Equipment
 Operations Level Decisions:
 production Planning
 Production Scheduling and control
 Inventory Control
 Quality Control
 Material Handling
 Labor Control
 Maintenance and Reliability
 Cost Control and improvement.
13
14
15
PRINCIPLES OF OPERATIONS MANAGEMENT /
FACTORS CONTRIBUTING TOWARD
INCREASING OPERATIONAL EFFICIENCY
 Get to know the customer
 Cut work –in – process
 Cut throughput time
 Cut setup and changeover times
 Cut flow distance and space
 Decrease cycle intervals for production
 Cut number of suppliers to a few good ones
 Cut number of components of the product or
service
 Make it easy to make / provide goods or
services
 Arrange the workplace to eliminate search time
 Cross-train for mastery of more than one job 16
PRINCIPLES OF OPERATIONS MANAGEMENT /
FACTORS CONTRIBUTING TOWARD
INCREASING OPERATIONAL EFFICIENCY
 Record and retain production, quality and
problem data at the work place.
 Assure that the line people get first crack at
problem solving—before staff experts.
 Maintain and improve existing equipment and
human work before thinking about new
equipment.
 Look for simple, cheap, movable equipment.
 Seek to have plural rather than singular
workstations, machines, cells, and lines for
each product or service.
 Automate incrementally when process
17
variability cannot otherwise be reduced.
Thank You