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    POM-3.3-Operations Management and Strategy

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    Dhiraj Sharma
    This document discusses operations management and strategy. It defines production as the conversion of materials into products through chemical or mechanical processes to create utility for users. Operations management is studied to understand how goods and services are produced and what operations managers do. The document also outlines some key contributors to the field of operations management throughout history and defines operations strategy and criteria for evaluating operations management systems, including customer satisfaction, effectiveness, and efficiency.

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    POM-3.3-Operations Management and Strategy

    Uploaded by

    Dhiraj Sharma
    34 views16 pages
    This document discusses operations management and strategy. It defines production as the conversion of materials into products through chemical or mechanical processes to create utility for users. Operations management is studied to understand how goods and services are produced and what operations managers do. The document also outlines some key contributors to the field of operations management throughout history and defines operations strategy and criteria for evaluating operations management systems, including customer satisfaction, effectiveness, and efficiency.

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    This document discusses operations management and strategy. It defines production as the conversion of materials into products through chemical or mechanical processes to create utility for users. Operations management is studied to understand how goods and services are produced and what operations managers do. The document also outlines some key contributors to the field of operations management throughout history and defines operations strategy and criteria for evaluating operations management systems, including customer satisfaction, effectiveness, and efficiency.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    34 views16 pages

    POM-3.3-Operations Management and Strategy

    Uploaded by

    Dhiraj Sharma
    This document discusses operations management and strategy. It defines production as the conversion of materials into products through chemical or mechanical processes to create utility for users. Operations management is studied to understand how goods and services are produced and what operations managers do. The document also outlines some key contributors to the field of operations management throughout history and defines operations strategy and criteria for evaluating operations management systems, including customer satisfaction, effectiveness, and efficiency.

    Copyright:

    © All Rights Reserved
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    Download as pdf or txt
    of 16

    HS16101-

    Principles of Management
    POM:3.3- Operations
    Management and Strategy
    Faculty
    Dr. MARXIA OLI. SIGO
    Department of HSS
    NIT SIKKIM
    April 2022
    “thestep-by-step conversionof oneformofmaterialinto anotherform

    through a chemicalormechanicalprocessto createorenhancetheutilityof

    the productto theuser.”

    • Thus production is a value addition process.

    • At eachstageof processing,therewil bevalueaddition.

    •Edward Buffa defines production as‘a process bywhichgoods and

    services are created’.


    Why study Operations Management ?
    ⚫ This Operations Management course wil introduce you to basic

    businessideasandtheir implementations.

    ⚫ Operations and Supply Chain Management wil enable you to solve

    complex business problems related to the journey of products and


    services from the manufacturer or provider to the end customer.

    ⚫ It is suchacostly part of anorganization.

    ⚫ A large percentage of the revenue of most firms is spent in the

    Operations Management function.


    Continue…

    ⚫ OM is oneof the three major functions of any organization, and

    it is integraly related to al the other business functions.

    ⚫ Westudy OM because we want to know how goods and

    servicesare produced.

    ⚫ It is to understand what operations managers do.


    Operations as a
    Transformation Process
    Quality of Quality of
    inputs monitored outputs monitored
    INPUT Random Disturbance OUTPUT
    • Material
    • Machines TRANSFORMATION
    • Goods
    • Labor PROCESS
    • Services
    • Management
    • Capital

    Feedback

    1-9
    Transformation Process
    ⚫ For getting desired output the quality of Inputs has to be
    monitored.
    ⚫ The quality of actual output obtained also has been
    continualy compared with the desired output.

    ⚫ Feedback mechanisms are required to monitor the


    performance of the transformation process.

    ⚫ Random disturbances are unexpected and sometimes not

    planned for. They are mostly due to external environment.


    Transformation Process of Service Industry
    (MBA College/ Business School)
    Transformation Process of a
    Manufacturing Company
    Transformation Process of a
    Restaurant
    Contributions to the field of
    Operations Management
    Year Contribution Contributor
    1776 Specialization of labour in manufacturing Adam Smith
    1799 Interchangeable parts, cost accounting Eli Whitney and others
    1832 Division of labour by skill; assignment of jobs Charles Babbage
    by skill; basics of time study
    1900 Scientific management time study and work Frederick W. Taylor
    study developed; dividing planning and doing
    of work

    1900 Motion of study of jobs Frank B. Gilbreth


    1901 Scheduling techniques for employees, Henry L. Gantt
    machines jobs in manufacturing
    1915 Economic lot sizes for inventory control F. W. Harris
    Year Contribution Contributor
    1927 Human relations; the Hawthorne studies Elton Mayo
    1931 Statistical inference applied to product W. A. Shewart
    quality: quality control charts
    1935 Statistical sampling applied to quality H. F. Dodge and
    control: inspection sampling plans H. G. Roming
    1940 Operations research applications in World P. M. Blacker
    War II and others
    1946 Digital Computer John Mauchlly and
    J. P. Eckert
    1947 Linear Programming G. B. Dantzig, William
    1950 Mathematical programming, on-linear and A. Charnes, W. W.
    stochastic processes Cooper & others
    1951 Commercial digital computer: large-scale Sperry Univac
    computations available.
    Year Contribution Contributor
    1960 Organizational behaviour: continued study L. Cummings,
    of people at work L. Porter

    1970 Integrating operations into overall strategy W. Skinner


    and policy, Computer applications to J. Orlicky and
    manufacturing, Scheduling and control, G. Wright
    Material requirement planning (MRP)

    1980 Quality and productivity applications W. E. Deming and


    from Japan: robotics, CAD-CAM J. Juran
    What is Operations Strategy?
    According to Slack and Lewis,
    ⚫ “Operations strategy is the total pattern of decisions which shape the

    long-term capabilities of any type of operations and their contribution to


    theoveral strategy.”

    ⚫ Operations strategy is the tool that helps to define the methods of

    producinggoodsor a serviceofferedto thecustomer.

    ⚫ It is typicaly driven by the overal business strategy of the organization,

    and is designed to maximize the ef ectiveness of production and


    support elements while minimizing costs.
    Criteria of Performance for the OMSystem
    ⚫ Three objectives / criteria of performance of the operations management

    system are:

    ⚫ 1. Customer satisfaction

    2. Efectiveness
    3. Eficiency
    ⚫ Customer satisfaction refers to the extent to which customers are

    happy with the productsand servicesprovidedby a business.Customer


    satisfactionlevelscanbemeasuredusingmarketsurveytechniquesand
    questionnaires.
    Continue…
    ⚫ Effectiveness is any kind of practice that alows a business or other

    organization to maximize the use of their inputs by


    developing products at a faster pace than competitors or reducing
    defects.

    ⚫ Efficiency is performing in the best possible manner with the least

    wasteof timeandeffort.

    ⚫ Companies usualy seek to increase and improve the efficiency of their

    operations and sales processes. When working with limited resources,


    theywouldpreferto maximizetheuseof eachof the resources.

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