Operations Management

Lecture-1 22July’23. 1.30-3.30 pm.

Sandeep Kayastha, at Hyderabad

Course and Programs

Course Title: Operations Management

Programs: MBA and Quality Management
Course Codes: MBA ZG526 and QM ZG526.

Timings: 1.30-3.30 pm.

Days: Saturdays.

Dates: Jul: 22, 29

Aug: 5, 12, 19, 26.
Sep: 2, 9, 16, 30.
Oct: 14, 21, 28.
Nov: 4, 11, 18.

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OM L-01 22Jul’23
Textbook

Operations Management
 Jay Heizer, Barry Render, Chuck
Munson and Amit Sachan.
 Pearson Education. Twelfth Edition. 2017.

At Amazon-

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 Syllabus
Chapter
No. Chapter Title
1 Operations and Productivity

Mid-Term Test Syllabus

2 Operations Strategy in a Global Environment
5 Design of Goods and Services

Comprehensive Exam Syllabus

7 Process Strategy
7.1 Capacity and Constraint Management
8 Location Strategies
9 Layout Strategies
10 Human Resources, Job Design, and Work Measurement
12 Inventory Management
13 Aggregate Planning and S&OP
14 Material Requirements Planning (MRP) and ERP
15 Short-Term Scheduling  Chapter # 3 and 6 are scheduled later.
 Chapter # 4 (Forecasting), 11 (Supply Chain
6 Managing Quality Management), and 17 (Maintenance and
Reliability) are not in the syllabus.
16 Lean Operations
3 Project Management

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Pre-Recorded lectures (PRLs)

 Fifteen modules of Pre-recorded Screenshots from Taxila

lectures
 Accessible from Taxila/eLearn.

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HS Talks- useful additional resource

Lectures, Case Studies, Interviews, etc., by

professionals on several topics, including
Operations Management.

How to log in?

1.Visit https://hstalks.com/ 
2.Click on “Login”.
3.Click on “Login via Organization”.
4.In the Institution dropdown, choose Birla
Institute of Technology & Science Pilani -
WILP and click on “Proceed to Login Page”.
 If asked, provide your credentials for the elearn/Taxila portal.
(Access to this digital collection is integrated through elearn portal
access).

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Enhanced learning

1. The sessions will be highly interactive-

participate through the chats.
2. Learning from one another.
3. OM News.
4. Not in the Text Book (NITB).
5. OM in Practice (OMIP).
6. Simulation.

7. PPTs and Lecture Videos Recordings will be

well-organised on MS Teams page.
8. Share your feedback at eLearn/Taxila or MS
Teams after the session, any time, etc.

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Course handout and Evaluation

Course Handout is available at MS Teams Taxila.

 Textbooks, Reference books, Topics, Delivery plan …

Evaluation scheme-

Code Name Weight, % Date(s)

EC-1 Quizzes and Assignment 20 Will be announced in the next session
EC-2 Mid-Semester Test 35 Announced by WILP office.
EC-3 Comprehensive Exam 45 Announced by WILP office.

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About you….

1. Your organisation.
Type all 7 in a single chat.
2. Designation.
3. Experience, in years.
4. Highest educational qualification.
5. Your city.
6. Other courses taken with me in this or previous semesters.
7. Do you deal with Operations Management?

For example-
 ONGC/Asst Mgr/9 yrs/ElectricalEngg/Mumbai/Project Mgt/Yes.
 TataMotors/Senior Engineer/6 yrs/MechanicalEngg/Pune/None/No.

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 Today’s session
Chapter
No. Chapter Title Date(s)
1 Operations and Productivity 22Jul
2 Operations Strategy in a Global Environment

Mid-Term Test Syllabus

5 Design of Goods and Services
7 Process Strategy
7.1 Capacity and Constraint Management

Comprehensive Exam Syllabus

8 Location Strategies
9 Layout Strategies
10 Human Resources, Job Design, and Work Measurement
12 Inventory Management
13 Aggregate Planning and S&OP
14 Material Requirements Planning (MRP) and ERP
15 Short-Term Scheduling
6 Managing Quality
16 Lean Operations
3 Project Management
 Chapter # 3 and 6 are scheduled later.
 Chapter # 4 (Forecasting), # 11 (Supply Chain Management), and
# 17 (Maintenance and Reliability) are not in the syllabus.
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 Operations and Productivity

What is the meaning of operation in business?

Business operations refer to the activities and tasks that organizations use to
produce goods and services. This includes planning, organizing, directing,
coordinating and controlling the various aspects of production, such as
procurement, manufacturing, distribution and marketing

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Topics

1. Operations
2. Courier Service
3. Operations Management
4. Goods and Services
5. Productivity
6. Productivity- Numerical
-----------------------
7. Population Census (if time permits)
8. Historical milestones in Operations Management
9. Method study in a Garment Factory

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 Operations

What is the meaning of operation in business?

Business operations refer to the activities and tasks that organizations use to
produce goods and services. This includes planning, organizing, directing,
coordinating and controlling the various aspects of production, such as
procurement, manufacturing, distribution and marketing

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 Transformation
The transformation process in operations management is all about converting inputs into outputs. This can be done either through manufacturing or service
processes.

Transformation
Inputs Outputs

Transformation by Product 1-tangible, durable products. 2- Output can be inventoried. 3-consumption/use takes more time. 4-low
costumer’s involvement. 5-long response time. 6-available at regional, national and international market. 7-Reqire large facilities. 8-
Capital intensive. 9-Quality easily measured. 10-Demand variable on weekly, monthly, seasonally.

 Fan, Windmill
 Oven
 Computer, µP, PCB
 Engine, Turbine
 Tree, Bacteria
 y= 3 + 7x; y=Ax
 Organisations

 Services 1- Intangible, perishable products. 2- Output can’t be inventoried. 3-Immidiate consumption. 4- High costumer’s involvement. 5-
Short response time. 6-local market. 7- Require small facilities. 8-Labour intensive. 9- Quality not easily measured. 10- Demand variable
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Transformation by organisations

 Material  Machines Goods/Services

 Forecasts  Manpower  Cars, Laptops, Shoes….
 Banking, Insurance, Transport, Courier….
 Orders  Methods
 Education, Software, Health services….
 Movies, Concerts, Olympics….
 Construction….
 Wheat, Apples, Cotton, Silk….
 Elections, Census, Polio drops, Surgical strike,
Rescue operations, Garbage collection….

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 Operations Management
Operations management (OM) is the administration of business practices to create the highest level of efficiency possible within an organization. It is concerned with converting
materials and labor into goods and services as efficiently as possible to maximize the profit of an organization.

1. Activities Transformation
Inputs Outputs

Resources

2. Resources OM 3. Management

4. Performance

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 Courier Service Operations

What is the courier operations process?

Courier management is the process of organizing last-mile delivery operations.
Courier management involves scheduling order deliveries and assigning them
to couriers, overseeing operations, planning and optimizing routes, overseeing
vehicles, managing fuel, and handling courier expense approvals
 Courier service….1/2
Operations/Activities
 Collect, Weigh, Sort, Bag, Load,
Transport, Unload, Data entry, Billing,
Paste barcode, Scan barcode, Deliver
…

Materials, Resources and

Technology
 Manpower, Offices, Warehouses,
Conveyors, Forklift, Pallets, Weighing
machines, Aircraft, Trucks, Barcode
printers, RFID, Computers, Paper,
Schedules, Work allocation…

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Courier service….2/2

 Activities
 Collection, Sorting,
Transportation, Delivery, Funds
flow….

 Resources
 Delivery boys, aircraft, trucks,
machines- weighing, bar coding,
sorting; funds….

 Performance
 Delivery in 36 hours. (Loan in 2
days, 200 cars/day.)
 Objective: Execute the operations
with few resources, fast, error
free, few losses….

 Management
 Design, Plan, and Control….

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Operations: Banking, Airline, Manufacturing

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 The Supply Chain
supply chain management deals with a system of procurement, operations management, logistics and marketing channels, so that the raw materials can be converted into a
finished product and delivered to the end customer

Farmer Syrup Bottler Distributor Retailer

producer

Operations outside the organization.

Supply chain:
 A network of organizations that transform
inputs into outputs.

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Operations Management

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What Is Operations Management (OM)?

Operations Management-
 Set of activities to efficiently transform
inputs into goods and services. Resources

Efficiently means-
 Using fewer/cheaper inputs and resources.
 Producing higher outputs.
 Doing faster.
 Higher quality.

Efficiently in courier service business means-

 Process more packets, use fewer resources,use
cheaper resources, faster delivery, timely delivery,
fewer damages and losses,….

Operations Management includes Production Management.

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A tale of two services
Item
Network Connectivity
Pickups and delivery
Transport vehicles
Shipments, pickups, & delivery
Batch size
Collection/Sorting houses
Customization
Focus on speed
Focus on Capacity utilisation
Cost and Pricing
More examples….
Ordinary post Speed post
Hub & Spoke; Thin Direct; Dense
 If no of nodes N=50, no  If no of nodes N=50, then no
of links=50. of links=1,225. [N*(N-1)/2].
 Large milk runs.  Small milk runs; also 1-2-1.
 Large-size, few trucks,  Small size, several trucks
 Slow transport  Fast transport (Air)
 Scheduled & Infrequent  Frequent & even Unscheduled
 Large  Small
 Few, but large  Several, but small
 Low or Nil  Moderate to high
 Low  High
 High  Low
 Low cost, Low price  Very high cost, Very high price
 Amazon regular  Amazon Pantry & Prime
 Steel, Cement, Fertilizers  Fashion garments, Mobiles
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Importance of Operations

 Every organisation does operations; it may not

do marketing.
 Even celling fans, µP and PCBs do operations.

 Employees engaged in operations- 40 to 90%.

 Survival of several industries depends on

operations speed enabled by operations-
 Fire and Ambulance service, Pizza delivery,
Military.…
 Profitability of several industries depends on low
cost enabled by operations-
 Low cost airlines, Ordinary post.…
 Profitability of several industries depends on
high-profit margins enabled by operations-
 FedEx; SpeedPost.…OM L-01 22Jul’23 C-01: Operations and Productivity
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Goods and Services

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Characteristics of Goods and Services

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Remaining chapter will be covered in the next session.

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