Session 1

Production & Operations
Management
Session-1
Program: FT MBA Core

Trim: III
Instructor: Dr. Abhinav Sharma
Evaluation Scheme
Specific 3 AOL CLO 1 CLO2 CLO3 CLO4

assessment Credit Instruments
methods (*)
Test 15 Embedded 15
(Session-1 to Questions
Session-10)
Test (Session-11 10 Embedded 10
to Session-18) Questions
Project Work 25 Rubrics 10 10 05
Class 10
Participation
Final Exam 40 Embedded 10 10 10 10
Questions
Total 100 25 20 20 25
Production & Operations Management, Dr. A.K. Sharma, SBM, NMIMS Mumbai 2
Write in your own words
What do you understand by operations management?
What is the primary purpose of a business?
To make money!
How do business make money?
Business makes money by selling goods/services
For successful business
Objectives
Quality Quantity Price Delivery
Operations as Business Function
Organization
Marketing Operations Finance
Operations is the core of what an organisation does.
What is Operations?
Operations: Converting raw material into usable products using transformation.

For e.g. conversion of aluminum into laptop body
Raw material Transformation Usable product
Input Transformation Output
Can you think the same for a service industry?
What is Operations?
Operations management involves people from:
• Product design
• Purchasing
• Manufacturing
• Service operations
• Logistics and distribution
Based on the requirement (product/service), these people are mixed and matched.
Manufacturing vs Service
Tata majorly focuses on Amazon majorly focuses on
• Designing cars • Purchasing

• Acquiring material • Website service
• Coordinating resources to • Logistics and distribution
convert raw material to products
• Delivering products
Manufacturing vs Service
Some definitions of OM
• Operations Management: Business function responsible for planning, co-

ordinating and controlling the resources needed to produce products and
services for a company.
• Operations Management is the management of systems or processes that
create good and/or provide services.
• Operations Management is the science and art of ensuring goods and
services are created and delivered successfully to customer.
Remember:
Operations Management is
 a systematic approach to
 address all the issues pertaining to
 the transformation process that converts some inputs into output that are useful,
and
 could fetch revenue to the operations system
Remember:
Operations is and has always been what gives an organization the power to act:
to create value for its customers; to capture value for its shareholders; and to
share value with its ecosystem.
Source: https://hbr.org/2015/06/the-history-and-future-of-operations
Create value for customer
Capturing value for shareholders
Sharing value with ecosystem
OM: A systems perspective
Forecasting
PROCESSING
INPUT
OUTPUT
Labour Process & Purchasing & Goods
Product Inventory
Design Control
Material
Capital Operations Material & Services

Planning & Capacity
Control Planning
Feedback
Quality Maintenance Process
Management Management Improvement
OM: Functions
•Design issues in Operations Management lay down overall constraints under which
the operations system functions
•Operational Control issues focuses on optimizing the use of available resources in
the short-term while delivering goods and services as per plan under the given
design constraints
Goods and Services Continuum
A Brief History of Operations
Eli Whitney Musket Rifle
• Notion of interchangeable parts were

applied to design of muskets
• This enabled a industrialists to invent and

hone a modular system of production
• This gradually led to the concepts of

logistics, supply chains, and assembly
lines, and formed the foundations of the
“American System of Manufacturing”
peaked during the 1950s and 60s.
• In the 1960s, the field of operations

research exploded.
• Use of these methods spread beyond

manufacturing to a variety of service
contexts, ranging from banks to
electric utilities. This led to the
establishment of service management
and service operations as core
subjects in the operations field.
Manufacturing and Service Sector Trends in India
Growth in Gross Value Added in Industry
Source: Economic Survey 2021-2022
Growth in Gross Value Added in Industry
Service Sector Performance
Service Sector Performance
Operations Today
Technology
Product and service technology
Process technology
Information technology
Globalization
Working with fewer resources
Process analysis and improvement
Operations Today
Robustness
Flexibility
Lean Systems
Agility
Resilient
Operations Today
Robustness: This refers to the ability of a system to continue functioning in the

face of internal and external challenges
Operations Today
Flexibility: Operational flexibility is the ability to quickly adapt to changes in the

market, customer preferences, or external conditions.
Operations Today
Lean Systems
Operations Today
Agility: Agility refers to the capability of rapidly and effectively adapting to

changes
Operations Today
Resilient: Resilient operations refer to a business's ability to prepare for,

withstand, recover from, and adapt to adverse conditions, disruptions, or changes.
This concept encompasses not just enduring shocks or setbacks, but also
effectively adapting and transforming operational processes in response to these
challenges
Key issues for today’s business operations
• Economic conditions • Optimizing global supply chain and
• Innovating networks
• Quality problems • Managing customer touch points
• Risk management • Raising senior management

awareness of operations as a
• Cyber security
competitive weapon
• Competing in a global economy
• Coordination between mutually

supportive organizations
In this course we will discuss
• Improving productivity
• Location planning
• Capacity planning
• Facility layout
• Inventory management
• Waiting line analysis
• Project management
• Quality management
• Aggregate Planning
Timeline Depicting Major OM Concepts

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Production & Operations

Program: FT MBA Core

Specific 3 AOL CLO 1 CLO2 CLO3 CLO4

Quality Quantity Price Delivery

Marketing Operations Finance

Operations is the core of what an organisation does.

Operations: Converting raw material into usable products using transformation.

Raw material Transformation Usable product

Input Transformation Output

Can you think the same for a service industry?

Operations management involves people from:

Tata majorly focuses on Amazon majorly focuses on

• Designing cars • Purchasing

• Operations Management: Business function responsible for planning, co-

Capital Operations Material & Services

Eli Whitney Musket Rifle

• Notion of interchangeable parts were

• This enabled a industrialists to invent and

• This gradually led to the concepts of

• In the 1960s, the field of operations

• Use of these methods spread beyond

Source: Economic Survey 2021-2022

Source: Economic Survey 2022-2023

Source: Economic Survey 2021-2022

Source: Economic Survey 2022-2023

Working with fewer resources

Process analysis and improvement

Robustness: This refers to the ability of a system to continue functioning in the

Flexibility: Operational flexibility is the ability to quickly adapt to changes in the

Agility: Agility refers to the capability of rapidly and effectively adapting to

Resilient: Resilient operations refer to a business's ability to prepare for,

• Economic conditions • Optimizing global supply chain and

• Quality problems • Managing customer touch points

• Risk management • Raising senior management

• Coordination between mutually

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