System perspective of operations

management

Production and Operation

Management
(BBA- 303)
BBA-V semester

Dr. Shuchi Mehra

 Outline
• What is System
• Understanding Systems view of operations
management 

BBA 303 (Production and Operations

2
Management)
 Learning Outcome
• The learner will be able to understand and relate
the conceptual understanding of operations
management with respect to System’s view.
• The learner will be able to apply the concept in
different application areas.

BBA 303 (Production and Operations

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Management)
 What is a System?
• A System is a group of interrelated items in which no item studied
in isolation will act in the same way as it would in the system.
• A system is divided into a series of parts or subsystems that works
together.
• The system’s boundary defines what is inside the system and what
is outside.
• A system’s environment is everything outside the system boundary
that may have an impact on the behaviour of the system. 
• A system’s inputs are the physical objects of information that enter
it from the environment and its outputs are the same which leave
it for the environment.

Source:https://theintactone.com/2018/02/21/om-u1-topic-3-systems-perspectives-of-operations-management/

BBA 303 (Production and Operations

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Management)
 System view of operations management
Systems view of operations management states that activities in an operations
system can be classified as inputs, transformation process and output. Inputs are
classified into three general categories-external, market and primary resources.

Source: Mahadevan B, Operations Management:Theory and practice

BBA 303 (Production and Operations

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Management)
 System view of operations
management contd..
• The operating system is concerned with
converting the transformed resources from
inputs into outputs in the form of goods and
services. 
• There are three main types of transformed
resource of materials which can be transformed
either physically (e.g. manufacturing), by
location (e.g. transportation), by ownership (e.g.
retail) or by storage(e.g. Warehousing)
Source: Mahadevan B, Operations Management:Theory and practice

BBA 303 (Production and Operations

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Management)
 System view of operations management
contd..

• Sub-system are present in 4 major sections: Process and product

design, purchase and inventory control, operations planning and
control and material and capacity planning.
• They are centrally controlled by the Plant Management Office
(PMO).
• The PMO controls the central decision making and is responsible
for running all the departments in sync.
• The PMO ensures that the decisions made by the departments do
not contradict and a healthy harmony is maintained so that all of
them work together as a part of a system.
Source:https://theintactone.com/2018/02/21/om-u1-topic-3-systems-perspectives-of-operations-management/

BBA 303 (Production and Operations

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Management)
 Summary
• A system perspective essentially means identifying the input, output,
processing and feedback mechanisms.
• The basic inputs to an operating system are labour, capital and material.
• Processing pertains to various activities that an operating system
undertakes to convert raw material into useful products for the
customers.
• Sub-system are present in 4 major sections: Process and product
design, purchase and inventory control, operations planning and control
and material and capacity planning. These sub-systems are controlled
by PMO.

BBA 303 (Production and Operations Management) 8