HISTORICAL DEVELOPMENT AND MODERN TRENDS OF OPERATION MANAGEMENT

INTRODUCTION

DEFINITION: Operations Management deals with the design and management of products, processes, services and
supply chains. It considers the acquisition, development, and utilization of resources that firms need to deliver the
goods and services their clients want.

One may generally consider that there are three distinct areas inherent in any business: marketing, finance, and
operations; all other business disciplines fit somewhere under one or more of these areas. For example, finance could
include investing, real estate, insurance or banking. While management is considered an academic discipline unto itself
it is actually a part of all three areas: financial management, marketing management, and operations management.
Operations management is the area concerned with the efficiency and effectiveness of the operation in support and
development of the firm's strategic goals. Other areas of concern to operations management include the design and
operations of systems to provide goods and services. To put it succinctly, operations management is the planning,
scheduling, and control of the activities that transform inputs (raw materials and labor) into outputs (finished goods and
services). A set of recognized and well-developed concepts, tools, and techniques belong within the framework
considered operations management. While the term operations management conjures up views of manufacturing
environments, many of these concepts have been applied in service settings, with some of them actually developed
specifically for service organizations.

Operations management is also an academic field of study that focuses on the effective planning, scheduling, use, and
control of a manufacturing or service firm and their operations. The field is a synthesis of concepts derived from design
engineering, industrial engineering, management information systems, quality management, production management,
inventory management, accounting, and other functions. Another reason for greater awareness of operations
management is the increased application of operations management concepts and techniques to service operations.
Finally, operations management concepts are being applied to other functional areas such as marketing and human
resources.

HISTORICAL DEVELOPMENT OF OPERATIONAL MANAGEMENT

Following the world war II American corporations were dominated by marketing and finance functions. The
united states had just emerged from the war as the undisputed global manufacturing leader due in large part to efficient
operations. At the same time Japan and Europe were in ruins with their businesses and factories destroyed.
US companies were left to fill these markets: the post – world war II period of the 1950’s and 1960’s
represented the golden era for US business. The primary opportunities were in the areas of marketing, to develop the
large potential markets for new products, and in finance, to support the growth. Since there were no significant
competitions, the operations functions became of secondary importance, because companies could sell what they
produced. Over the distinguished economics John Kenneth Galbraith was noted as saying “the production problem
have been solved”.
Then in the 1970’s and 1980’s things changed. Ameri can companies experienced large declines in
productivity growth, international competition began to be a challenge in many markets. In some markets such as the
auto industry, American corporations were being pushed firms, had become lax with lack of competition in the 1950’s
and 1960’s. They had forgotten about improvi ng their methods and processes, partly due to the lack of competitive
challenge.
In the mean time, foreign firms were rebuilding their facilities and designing new production methods. By the
time foreign firms had recovered, many US firms found themselves unable to compete. To regain their competitioners
companies turned to operation management, function they had overlooked and almost forgotten about.

The new focus on operations and competitioners has been responsible for the recovery of many corporations
and US business experience a resurgence in the 1980’s and 1990’s. operation became the fu nction at the core
organizational competitiveness.

Although US firms have rebounded, they are fully aware of continued global competition. Companies have
learned that to achieve long – run success they mus t place much importance on their operations.
THE INDUSTRIAL REVOLUTION
The IR had a significant impact on the way goods are products today. Pride to this movement, products were
made by hand by skilled crafts people in their shops or homes. Each product was unique, pain stakingly made by one
person.
The Industrial revolution change all that it started in the 1770’s with the development of a number of
inventions that relied on machine power instead of human power. The most important of these was the steam engine,
which was invented by James watt in 1764. The steam engine provided new source of power that was used to replace
human labour in textile mills, machine – ma king plants and other facilities. The concept of the factory was emerging.
In addition, the steam engine led to advances in transportation, such as railroads, that allowed for a wider distribution of
goods.
About the same time, the concept of division of labour was introduced. First described by Adam smith in
1776 in the wealth of nations, this important concept would become one of the building blocks of the assembly line.
Division of labour means that the production of a good is broken down into a series of small, elemental task, each of
which is performed by a different worker. The reception of the task allows the worker to become highly specialized in
that task. Division of labour allowed higher volumes to be produced. This, coupled with advance in transportation,
enabled different markets to be reached by steam – powered boats and railroads.
A few years later in 1790, Eli Whitney introduced the concept of interchangeable parts. Prior to that time,
every part used in the production process was unique with interchangeable parts, parts are standardized so that every
item in a batch of item fits equally. This concept meant that we could move from one – at – a – time p roduction to
volume production, for example in manufacture of watches, clocks and similer items.
SCIENTIFIC MANAGEMENT
Scientific management was an approach to management promoted by Frederick w Taylor at the turn of the 20 th
century. Taylor was an engineer with an eye for efficiency. Through scientific management he sought to increase
worker productivity and organizational output. This concept has two key features. First, it is assumed that workers are
motivated only by money and are limited only by their physical ability.
Taylor believed that worker productivity is governed by scientific laws, and that it is upto management to discover
those laws, and that it is upto management, analysis, and observation. Workers are to be paid in direct proportion to
how much they produce. The second feature of this approach is the separation of the planning and doing functions in a
company, which means the separation of management and labour. Management is responsible for designing productive
systems and determining acceptable worker output.
Workers have no input into this process- they are permitted only to work. Many people did not like the scientific
management approach. This was especially true of workers , who thought that management used these methods to
unfairly increase output without paying them accordingly. Still, many companies adopted the scientific management
approach. Toay many see scientific management as a major milestone in the field of operation management, and it has
had many influence on operations management.
The scientific management approach was popularized by Henry Ford, who used the techniques in his factories.
Combining technology with scientific management, Ford introduced the scientic management concepts with division of
labour and interchangeable parts to develop the concept of man production. These concepts and innovations helped him
increase production and efficiency at his factories.

THE HUMAN RELATIONS MOVEMENT

The early 20 th century was dominated by the scientific management movement and its philosophy. However, this
changed with the publication of the results of the Hawthrone studies. The Hawthrone studies were conducted at the
western electric plant in Hawthrone, Illinosis in the 1930’s;. The purpose was to study the effects of environmental
changes, such as changes in lighting and room temperature, on the productivity of assembly line workers. The findings
from the study were unexpected, the productivity of the workers continued to increase regard less of the environmental
changes made. Elton mayo, a sociologist from Harvard, analysed the results and concluded that the workers were
actually motivated by the attention they were given. The idea of workers responding to the attention they are given
came to be known as the Hawthrone effect.
Many sociologists and psychologists went to Hawthrone to study these findings, which led to the human
relations movement, an entirely new philosophy based on the recognition that factors other than money can contribute
to worker productivity.
The impact of these findings on the development of operations management has been tremendous. The
influence of this new philosophy can be seen in the implementation of a number of concepts that motivate workers by
making their jobs more interesting and meaningful. For example, the Hawthrone studies, showed that scientific
management had made jobs too repetitive and boring. Job enlargement is an approach in which workers are given a
large portion of the total task to do. Another approach used to give more meaning to jobs is job enrichment, in which
workers are given a greater role in planning.

MANAGEMENT SCIENCE
While one movement was focusing on the technical aspects of job design and another on the human aspects of
operations management, a movement called management science was developing that would make its own unique
contribution. Management science focused on developing quantitative techniques for solving operations problems. The
first mathematical model for inventory management was developed by F.N.Harris in 1913. Shortly thereafter,
procedure were developed for statistical sampling theory and quality control.

THE COMPUTER AGE

The 1970s witnessed the advent of the widespread use of computers in business. With computers, many of the
quantitative models developed by management science would be used on a larger scale. Data processing was made
easier, with important effects in area such as forecasting, scheduling and inventory management. A particularly
important computerized system, material requirements planning(MRP) was developed for inventory control and
scheduling. Material requirements planning was able to process huge amounts of data to compute inventory
requirements and develop schedules for the production of thousand sof items. This type of processing was impossible
before the age of computers. Today the exponential growth in computing capability continues to import operations
management.

TODAYS OM ENVIRONMENT
Todays OM environment is very different from what it was just a few years ago. Customers demand better quality,
greater speed and lower costs. Inorder to succeed, companies have to be master of the basics of operations
management. To achieve this many companies are implementing a concept called lean systems. Lean systems take a
total system approach to creating an efficient operation and pull together best practice concepts. This includes concepts
such as( Just in Time(JIT)), total quality management(TQM), Continuous improvement, resource planning, and supply
Chain management(SCM). The meed for increasing efficiency has also led many companies to implement large
information systems called Enterprise Resource Planning(ERP). .

KEY FACTORS IN OPERATIONS

As an organization develops plans and strategies to deal with the opportunities and challenges that arise in its particular
operating environment, it should design a system that is capable of producing quality services and goods in demanded
quantities in acceptable time frames.

Designing the system begins with product development. Product development involves determining the characteristics
and features of the good (or service if engaged in a service-oriented industry) to be sold. It should
begin with an assessment of customer needs and eventually grow into a detailed product design. The facilities and
equipment that will produce the product, as well as the information systems needed to monitor and control performance,
are part of this system design process. In fact, manufacturing process decisions are integral to a system's ultimate
success or failure. "Of all the structural decisions that the operations manager faces, the one with the greatest impact on
the manufacturing operation's success is the process/technology choice, " said Thomas S. Bateman and Carl P. Zeithaml
in Management: Function and Strategy. "This decision addresses the question 'How will the product be made?' "
Product development should be a cross-functional decision making process that relies on teamwork and communication
to install the marketing, financial, and operating plans needed to successfully launch a product.

Product design is a critical task because it determines the characteristics and features of the product, as well as how the
product functions. Product design determines a product's cost and quality, as well as its features and performance.
These are important factors on which customers make purchasing decisions. In recent years, new design models such as
Design for Manufacturing and Assembly (DFMA) have been implemented to improve product quality and lower costs.

DFMA focuses on operating issues during product design. This can be critical even though design costs are a small part
of the total cost of a product, because, procedures that waste raw materials or duplicate effort can have a substantial
negative impact on a business's operating profitability. Another innovation similar to DFMA in its emphasis on design
is Quality Functional Deployment (QFD). QFD is a set of planning and communication routines that are used to
improve product design by focusing design efforts on customer needs.

Process design describes how the product will be made. The process design decision has two major components: a
technical (or engineering) component and a scale economy (or business) component. The technical component includes
selecting equipment and selecting a sequence for various phases of operational production.

The scale economy or business component involves applying the proper amount of mechanization (tools and
equipment) to make the organization's work force more productive. This includes determining: 1) If the demand for a
product is large enough to justify mass production; 2) If there is sufficient variety in customer demand so that flexible
production systems are required; and 3) If demand for a product is so small or seasonal that it cannot support a
dedicated production facility.

Facility design involves determining the capacity, location, and layout for the production acility. Capacity is a measure
of an organization's ability to provide the demanded services or goods in the quantity requested by the customer in a
timely manner. Capacity planning involves estimating demand, determining the capacity of facilities, and deciding how
to change the organization's capacity to respond to demand.

Facility location is the placement of a facility with respect to its customers and suppliers. Facility location is a strategic
decision because it is a long-term commitment of resources that cannot easily or inexpensively be changed.
When evaluating a location, management should consider customer convenience, initial investment necessary to secure
land and facilities, government incentives, and operating transportation costs. In addition, qualitative factors such as
quality of life for employees, transportation infrastructure, and labor environment should also be taken under
consideration.

Facility layout is the arrangement of the work space within a facility. It considers which departments or work areas
should be adjacent to one another so that the flow of product, information, and people can move quickly and efficiently
through the production system.

Planning the system describes how management expects to utilize the existing resource base created as a result of the
production system design. One of the outcomes of this planning process may be to change the system design to cope
with environmental changes. For example, management may decide to increase or decrease capacity to cope with
changing demand, or rearrange layout to enhance efficiency.

Decisions made by production planners depend on the time horizon. Long-range decisions could include the number of
facilities required to meet customer needs or studying how technological change might affect the methods used to
produce services and goods. The time horizon for long-term planning varies with the industry and is dependent on both
complexity and size of proposed changes. Typically, however, long-term planning may involve determining work force
size, developing training programs, working with suppliers to improve product quality and improve delivery systems,
and determining the amount of material to order on an aggregate basis. Short-term scheduling, on the other hand, is
concerned with production planning for specific job orders (who will do the work, what equipment will be used, which
materials will be consumed, when the work will begin and end, and what mode of transportation will be used to deliver
the product when the order is completed).

Managing the system involves working with people to encourage participation and improve organizational
performance. Participative management and teamwork are an essential part of successful operations, as are leadership,
training, and culture. In addition, material management and quality are two key areas of concern.

Material management includes decisions regarding the procurement, control, handling, storage, and distribution of
materials. Material management is becoming more important because, in many organizations, the costs of purchased
materials comprise more than 50 percent of the total production cost. Questions regarding quantities and timing of
material orders need to be addressed here as well when companies weigh the qualities of various suppliers.
MODERN TRENDS IN OPERATIONS MANAGEMENT AND COMPUTER AIDED
TECHNOLOGIES

Computer-aided technologies is a broad term describing the use of computer technology to aid in the design,
analysis, and manufacture of products.

Advanced Computer Aided technology tools merge many different aspects of the product lifecycle
management (PLM), including design, analysis using finite element analysis (FEA), manufacturing, production
planning, product testing using virtual lab models and visualization, product documentation, product support, etc.

The term CAD/CAM (computer-aided design and computer-aided manufacturing) is also often used in the context of a
software tool covering a number of engineering functions.

List of computer-aided technologies

Computer-aided design (CAD)

Computer-aided architectural design (CAAD)
Computer-aided design and drafting (CADD)
Computer-aided process planning (CAPP)
Computer-aided quality assurance (CAQ)
Computer-aided reporting (CAR)
Computer-aided requirements capture (CAR)
Computer-aided rule definition (CARD)
Computer-aided rule execution (CARE)
Computer-aided software engineering (CASE)
Component information system (CIS)
Computer-integrated manufacturing (CIM)
computer numerical controlled (CNC)
Computational fluid dynamics (CFD)
Electronic design automation (EDA)
Enterprise resource planning (ERP)
Finite element analysis (FEA)
Knowledge-based engineering (KBE)
Manufacturing process management (MPM)
Manufacturing process planning (MPP)
Material requirements planning (MRP)
Manufacturing resource planning (MRP II)
Product data management (PDM)
Product lifecycle management (PLM)
Computer-aided manufacturing (CAM)

Computer-aided design (CAD), also known as computer-aided design and drafting (CADD) , is the use of
computer technology for the process of design and design-documentation. Computer Aided Drafting describes the
process of drafting with a computer. CADD software, or environments, provides the user with input-tools for the
purpose of streamlining design processes; drafting, documentation, and manufacturing processes. CADD output is
often in the form of electronic files for print or machining operations. The development of CADD-based software is in
direct correlation with the processes it seeks to economize; industry-based software (construction, manufacturing, etc.)
typically uses vector-based (linear) environments whereas graphic-based software utilizes raster-based (pixelated)
environments.

CAD may be used to design curves and figures in two-dimensional (2D) space; or curves, surfaces, and solids in three-
dimensional (3D) objects.

CAD is an important industrial art extensively used in many applications, including automotive, shipbuilding, and
aerospace industries, industrial and architectural design, prosthetics, and many more. CAD is also widely used to
produce computer animation for special effects in movies, advertising and technical manuals. The modern ubiquity and
power of computers means that even perfume bottles and shampoo dispensers are designed using techniques unheard of
by engineers of the 1960s. Because of its enormous economic importance, CAD has been a major driving force for
research in computational geometry, computer graphics (both hardware and software), and discrete differential
geometry.

Uses

Computer-aided design is one of the many tools used by engineers and designers and is used in many ways depending
on the profession of the user and the type of software in question.

CAD is one part of the whole Digital Product Development (DPD) activity within the Product Lifecycle Management
(PLM) process, and as such is used together with other tools, which are either integrated modules or stand-alone
products, such as:

Computer-aided engineering (CAE) and Finite element analysis (FEA)

Computer-aided manufacturing (CAM) including instructions to Computer Numerical Control (CNC) machines
Photo realistic rendering
Document management and revision control using Product Data Management (PDM).

CAD is also used for the accurate creation of photo simulations that are often required in the preparation of
Environmental Impact Reports, in which computer-aided designs of intended buildings are superimposed into
photographs of existing environments to represent what that locale will be like were the proposed facilities allowed
to be built. Potential blockage of view corridors and shadow studies are also frequently analyzed through the use of
CAD..

Computer-aided manufacturing (CAM) is the use of computer software to control machine tools and related
machinery in the manufacturing of workpieces. This is not the only definition for CAM, but it is the most
common;CAM may also refer to the use of a computer to assist in all operations of a manufacturing plant, including
planning, management, transportation and storage. Its primary purpose is to create a faster production process and
components and tooling with more precise dimensions and material consistency, which in some cases, uses only the
required amount of raw material (thus minimizing waste), while simultaneously reducing energy consumption.

CAM is a subsequent computer-aided process after computer-aided design (CAD) and sometimes computer-aided
engineering (CAE), as the model generated in CAD and verified in CAE can be input into CAM software, which then
controls the machine tool.

Traditionally, CAM has been considered as a numerical control (NC) programming tool, wherein two-dimensional (2-
D) or three-dimensional (3-D) models of components generated in CAD software are used to generate G-code to drive
computer numerically controlled (CNC) machine tools. Simple designs such as bolt circles or basic contours do not
necessitate importing a CAD file.

As with other “Computer-Aided” technologies, CAM do es not eliminate the need for skilled professionals such as
manufacturing engineers, NC programmers, or machinists. CAM, in fact, leverages both the value of the most skilled
manufacturing professionals through advanced productivity tools, while building the skills of new professionals
through visualization, simulation and optimization tools.

Typical areas of concern:

High Speed Machining, including streamlining of tool paths

Multi-function Machining
5 Axis Machining
Feature recognition and machining
Automation of Machining processes
Ease of Use
COMPUTER INTEGRATED MANUFACTURING

Computer-integrated manufacturing (CIM) is the manufacturing approach of using computers to control the entire
production process. This integration allows individual processes to exchange information with each other and initiate
actions. Through the integration of computers, manufacturing can be faster and less error-prone, although the main
advantage is the ability to create automated manufacturing processes. Typically CIM relies on closed-loop control
processes, based on real-time input from sensors. It is also known as flexible design and manufacturing.

The term "computer-integrated manufacturing" is both a method of manufacturing and the name of a computer-
automated system in which individual engineering, production, marketing, and support functions of
a manufacturing enterprise are organized. In a CIM system functional areas such as design, analysis, planning,
purchasing, cost accounting, inventory control, and distribution are linked through the computer with factory floor
functions such as materials handling and management, providing direct control and monitoring of all the operations.

As a method of manufacturing, three components distinguish CIM from other manufacturing methodologies:

Means for data storage, retrieval, manipulation and presentation;

Mechanisms for sensing state and modifying processes;
Algorithms for uniting the data processing component with the sensor/modification component.

CIM is an example of the implementation of information and communication technologies (ICTs) in manufacturing.

CIM implies that there are at least two computers exchanging information, e.g. the controller of an arm robot and a
micro-controller of a CNC machine.

Some factors involved when considering a CIM implementation are the production volume, the experience of the
company or personnel to make the integration, the level of the integration into the product itself and the integration of
the production processes. CIM is most useful where a high level of ICT is used in the company or facility, such as
CAD/CAM systems, the availability of process planning and its data.

MODERN TRENDS USED IN OPERATING SYSTEMS FOR HIGH SPEED

COMPUTING APPLICATIONS
A. Process Manager
Operating system manages the process on hardware level and user level. To create, block, terminate, request for
memory, Forking, releasing of memory etc. in multi tasking operating system the multiple processes can be handle and
many processes can be create ,block and terminate ,run etc. it
allow multiple process to exist at any time and where only one process can execute at a time. The other process may be
performing I/O and waiting. The process manager implements the process abstraction
and creating the model to use the CPU. It is the major part of operating system and its major goal is scheduling, process
synchronization mechanism and deadlock strategy

B. File Manager
Is a computer program and provide interface with file system. it manage the file like creation, deletion, copy, rename
etc files typically display in hierarchical and some file manager provide network connectivity like ftp, nfs, smb or
webdav.

C. Memory Manager
Is a way to control the computer memory on the logic of data structure? It provides the way to program to allocate in
main memory at their request. The main purpose of this manager is it allocates the process to main memory;
minimize the accessing time and process address allocate in a location of primary memory. The feature of memory
manager on multi tasking is following.

-Relocation
-Protection
-Sharing
-Logical organization
-Physical organization

D. Device Manager
Allow the user to view its capability and control the device through operating system. Which device may be enabling or
disable or install or ignore the functionality of the device. In Microsoft windows operating system the control panel
applet is the device manager .it also built on web application server model. Device Manager provides three graphical
user interfaces (GUIs). Device manager manage the. -Device configuration

-Inventory collection
-s/w distribution
-initial provisioning

E. Resource manager
Is a way to create, manage and allocate the resources? Operating system is a responsible to all activities which is done
in computer. Resource manager is the major part of operating system .the main concept of operating system is
managing and allocate the resources. The resources of the computer are storage devices, communication and I/O
devices etc. these all resources manage and allocate or de allocate by resource manager.

-COMPUTERS IN QUALITY CONTROL

Many computer software packages are available for use in the broadly defined area of quality management.
A simple categorization of application is as follows:

!) DATA ACCUMULATION on item an process properties, ie, the collection organization and filling of data on
quality levels reject ratios, breakdown rates, customer complaints etc. for use in decision making on design, equipment
replacement, pricing, etc.
2)DATA REDUCTION, ANALYSIS AND REPORTING, ie deriving from the above the analysis of data for
presentation for example graphical form.
3) REAL TIME PROCESS CONTROL, ie, direct process monitoring and control to ensure the achievement of given
quality requirement.
4)AUTOMATED INSPECTION AND TESTING; perhaps associated with © above, but also to replace the manual
monitoring of incoming or outgoing items.
5) STATISTICAL ANALYSIS of data, eg of sample data to construct control charts and to make accept/reject
decisions.

CLASSIFICATION OF PROCESS TECHNOLOGIES

There are a number of ways to clarify process technologies. For example, we could classify in terms of the nature of
the process that is, processes to change shape or form, chemical processes, information processes, assembly processes,
and also so on. But we choose to focus on a classification that highlights the historical progression of processes. This
classification will also be useful in comparing how each affects the competitive priorities of cost, flexibility, quality and
the ability of the enterprise to perform on time.
Thus we have a three part classification of process technologies.

- manual
- mechanized
- automated
Manual Technology
Manual technology has been the basis for measuring productivity, and throughout the period since the industrial
revolution, we have measured much of the economic progress of companies, industries, and even countries based on
overall output relative to labour input; that is, on output per worker hour.Yet in many instances, manual technology
may be quite appropriate even in today’s high-tech environment. Its advantages are low cost for low volume, percaps
custom, processes, since little or no capital is generally required, and its inherent flexibility.

Relation and Development of Manual and Mechanized and Automated processes:

 Mechanical Technology
Substitutions of machines for human labour began almost as soon as the factory system came into being at the
dawn of the industrial revolution, and until a few years ago, mechanized technology of choice. Substitutions for the
power requirements for all kinds of physical labour inputs. General purpose machines were the first to de developed,
and the distinction between general and special purpose machines is important for both mechanized and automated
technologies. As the volume of standardized products grew, as occurred in the automobile industry and many others,
it became more economical to design machines that were special purpose in nature, dedicated to the production of a
single part or product.

Automated Technology:
Although automation is now in the sense that its principle have been applied to mechanical and assembly
types of process only recently, the basic ideas are not new. Such automatic processes as the thermostatic control of
room temperature have been used for many years, and the common float valve used in toilets automatically fills the
tank to a given level and shuts off. The process industries have used the principles of automation for some time to
control chemical process. But applications of robotics, NC (Numerical Control of Machines), FMS (Flexible
Manufacturing Systems) and the coupling of computer aided design (CAD) and Computer Aided Manufacturing
(CAM) are quite new and have considerable significance for potential productivity increases in industry.

WHAT DO OPERATIONS MANAGERS DO?

Today's operations manager must have knowledge of advanced operations technology and technical knowledge
relevant to his/her industry, as well as interpersonal skills and knowledge of other functional areas within the firm.
Operations managers must also have the ability to communicate effectively, to motivate other people, manage projects,
and work on multidisciplinary teams. Sunil Chopra, William Lovejoy, and Candace Yano describe the scope of
operations management as encompassing these multi-disciplinary areas:

· Supply Chains—management of all aspects of providin g goods to a consumer from extraction of raw
materials to end-of-life disposal.
· Operations Management/Marketing Interface—determini ng what customers' value prior to product
development.
· Operations Management/Finance Interface—Capital equ ipment and inventories comprise a sizable portion of
many firms' assets.
· Service Operations—Coping with inherent service cha racteristics such as simultaneous
delivery/consumption, performance measurements, etc.
· Operations Strategy—Consistent and aligned with fir m's other functional strategies.
· Process Design and Improvements—Managing the innova tion process.

Mark Davis, Nicolas Aquilano and Richard Chase (1999) have suggested that the major issues for operations
management today are:
 · reducing the development and manufacturing time for new goods and services
· achieving and sustaining high quality while controlling cost
· integrating new technologies and control systems into existing processes
· obtaining, training, and keeping qualified workers and managers
· working effectively with other functions of the business to accomplish the goals of the firm
· integrating production and service activities at multiple sites in decentralized organizations
· working effectively with suppliers at being user-friendly for customers
· working effectively with new partners formed by strategic alliances

As one can see, all these are critical issues to any firm. No longer is operations management considered subservient to
marketing and finance; rather, it is a legitimate functional area within most organizations. Also, operations management
can no longer focus on isolated tasks and processes but must be one of the architects of the firm's overall business
model.

CONCLUSION

In today's business environment, a key component of operational flexibility in many industries is technological
knowledge. Advances in technology make it possible to build better products using fewer resources. As technology
fundamentally changes a product, its performance and quality often increases dramatically, making it a more highly
valued commodity in the marketplace. But the growth in high-tech business applications has created new competitiors
as well, making it important for businesses to try to register advantages in any and all areas of operations management.

Over time, operations management has grown in scope and increased in importance. Today, it has elements that are
strategic, it relies on behavioral and engineering concepts, and it utilizes management science/operations research tools
and techniques for systematic decision-making and problem-solving. As operations management continues to develop,
it will increasingly interact with other functional areas within the organization to develop integrated answers to
complex interdisciplinary problems. Indeed, such interaction is widely regarded as essential to long-term business
success for small business establishments and multinational corporations alike.

REFERENCES
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2) R.B.Khanna, Production And Operation Management,2008
3) Jack.R.Meredith, Scott.M.Shafer, Operation Management For MBA’s.
4) Ray Wild, Operation Management With CD_ROM,2004
5) Elwood s Buffw, Rakesh K Sarin, Operation Management,2009.