Seminar

On
Operations Management

Submitted By:
Mahtab Alam
ECE-4
BBDNIIT
Content
 Operations
 Functional relationship of Operations
 Operation Management
 The Basics Of Operations Management
 Basic Functions of the Business Organization
 Business Functions are Interconnected
 Operation Management Function
 Architect of Operation management
 Supply chain Management
 Planning & Control
Operations

◦ Management of Value Creation Process

◦ A systematic approach to transform input into useful

revenue generating output

◦ Everything that happens within a company to keep it

running and earning money is referred to collectively
as business operations
Functional Relationships

Finance

Operations

Marketing HR
Operations Management…
◦ Refers to the management of the production system
that transforms inputs into finished goods and
services.

 Production system: the way a firm acquires inputs then

converts and disposes outputs.
 Operations managers: responsible for the transformation
process from inputs to outputs.

◦ Operations management seeks to increase the

quality, efficiency, and responsiveness of the firm.

 Seeks to provide a competitive advantage.

The Basics Of Operations
Management

 Operations Management
◦ The process of managing the resources that are
needed to produce an organization’s goods and
services.

◦ Operations managers focus on managing the “five

Ps” of the firm’s operations:
 People, plants, parts, processes, and planning and
control systems.
Basic Functions of the Business
Organization

Organization

Finance Operations Marketing

7
Business Functions are
Interconnected

Operations

Finance Marketing
 Operation Management
Functions
Design Issue Operational Control Issue

Product / Service Design Forecasting

Process Design Production Planning and

Control
Quality Management Supply Chain Management

Location and Layout of facilities Maintenance Management

Capacity Planning Continuous Improvement

of Operations
 Architecture of Operation
Forecastin
g
Management

Processing
Labor •Process and product design

Output
•Material and Capacity Planning
Input

Material Goods
Capital •Operations planning and control Service
•Purchase and inventory control

Quality Maintenance Process

Management Management Improvement
 Supply Chain Management
• Chain of Activities in creating and delivering
value
• Flow of Raw Material, Components, Service
– Inbound, In house , Outbound

RM Regional
Warehouse
n:1 Plant Warehouse 1:n 1:n Distributors 1:n Retailers
Warehouse
 Supply Chain Network
Retailers
Distributor
stocokc
k
Regional
WH
stock Distributor
stock

Regional
WH stock Distributor

stock

Regional stock
Plant WH
Distributor

stock
RM
Warehouse
Regional
WH

stock
Direct
Material Supply
Suppliers Government,
Non Stock Hos pitals &
Supply
Institutions
Supply Chain: Performance
• Availability
• Reliability
• Responsiveness
• Flexibility
• Cost
• Asset
Inventory Planning and
Control
• Material Waiting anywhere is Inventory.
• Why Inventory is needed
– Customer tolerance time is more than supply time
– Uncertainty
• Types of Inventory
• Pipeline Inventory
• Safety Inventory
• Decoupling Inventory
• Cyclic Inventory
• Seasonal Inventory
 Planning and Control
• Demand Forecasting
• Aggregate Planning
• Resource Planning
• Scheduling and
Control
• Operation Improvements
Operation Management Planning
Horizon
Planning Aspect Time Horizon
Facility 5-10 years
Capacity Augmentation 3-5 years
Design Decisions 1-10 years
Business Plan 1 year
Master Production Scheduling, 3 months
Material & capacity
requirement planning
Scheduling and Control 1 week
Thanks