SYSTEMS CONCEPT

TRANSFORMATION PROCESS
EVOLUTION OF OPERATION
MANAGEMENT
OPERATIONS MANAGEMENT
FUNCTIONS
Operations Management:
A Systems Perspective
 SYSTEM?

• A system is a group of interacting or interrelated and interdependent

entities that have a common objective.
• Sub system
 INPUT

• LABOUR
• MATERIAL
• CAPITAL
 PROCESSSING

• Includes the various activities that an operating system undertakes to

convert the raw material into useful products for the customers.
 OUTPUT

• GOODS
• SERVICES
 TRANSFORMATION PROCESS

• A transformation process is any activity or group of activities that takes one

or more inputs, transforms and adds value to them, and provides outputs for
customers or clients.
• Where the inputs are raw materials, it is relatively easy to identify the transformation
involved, such as when milk is transformed into cheese or butter. For example, a
hospital transforms ill patients (the input) into healthy patients (the output).
• The overall transformation can be described as the macro operation, and the more
detailed transformations within this macro operation as micro operations. 
CATEGORIES OF TRANSFORAMTION
PROCESS
EVOLUTION OF OPERATIONS
MANAGEMENT
 FUNCTIONS OF PRODUCTION AND
OPERATIONS MANAGEMENT
• SELECTION OF MATERIAL
• SELECTION OF APPROPRIATE METHOD
• SELECTION OF SUITABLE MACHINERY AND EQUIPMENT
• FIXATION OF PRODUCTION TARGETS AND DELIVERY DATES TO MINIMIZE THE COST
• SCHEDULING OF ACTIVITIES
• Routing and making layout of lines
• Dispatching
• FOLLOW-UP
• INSPECTION