Project Report On Om

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Project Report on OM
Operations Management (SVKM's NMIMS)
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PROJECT REPORT
ON
“A STUDY ON OPERATION MANAGEMENT”

At
TATA CONSULTANCY SERVICES LTD.
Submitted in partial fulfillment of requirements for

the award of the Master of Business Administration (OM)
SUBMITTED BY:
PRANAV LAL
SAP ID: 77121250360
SEPTEMBER 2023
NMIMS GLOBAL ACCESS SCHOOL FOR CONTINUING EDUCATION

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Acknowledgment
The project of this nature is arduous task stretching over a period, completing a project like
this one takes the effort and cooperation of many people.
Although this project report is being brought in my name, it bears an imprint of guidance and
cooperation of many individuals. Several persons with whom I integrated have contributed
significantly to the successful completion of the project study. In the successful & trouble-
free completion of my final term project titled “OPERATION MANAGEMENT”, I am
graceful to Narse Monjee Institute of Management and Studies (NMIMS), Mumbai for
helping us towards the completion of the project.
I extend my deepest and sincere thanks to my project guide, Mr. Sudeep Bisht and other HR
Executives, Tata consultancy services Ltd. for the unflinching support and guidance
throughout the project.
I would also like to thank all the executives who shared their precious time and experience
with me.
Last but not the least, I extend my sincere thanks to all the staff members of Tata consultancy
services Ltd. for their cooperation.

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Table of Contents
Acknowledgment 2
1. INTRODUCTION 7
1.1.TCS an overview 7
1.2.TCS DNA 7
1.3. Employer spotlight 8
TCS in India: 8
1.4. About TCS 10
1.5. Strong SAP Capabilities: 10
1.6. VISION STATEMENT 10
1.7. MISSION STATEMENT 10
1.8. QUALITY POLICY STATEMENT 10
1.9.OUR OBJECTIVE 10
OUR MANAGEMENT OBJECTIVE 11
OUR PEOPLE OBJECTIVE 11

1.10. CORE VALUES 11
1.11.A SNAPSHOT OF Tata consultancy services Ltd. 11
FRONTLINE DIVISION 11
2.Literature Review 12
Four Types of Focus Dimensions Used in Operations Management 12

Finance 12
Customers 12
Internal Processes 12
Learning and Innovation 12
2.1. An Introduction of Operation Management 13

2.1.1. What is Operation management? 13
2.1.2. Why is it important? 15
2.1.3. Critical factors for success 18
2.1.4. Who is involved? 19
2.1.5. Principles 19
2.1.6. Managing for results 24
2.2. Levels of Operation management 24
2.3. Value for money 24
2.4. Measures and metrics 25

2.4.1. Business processes can be distinguished by 25
2.5. Processes 25

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2.6. Basic Steps 27
2.7. Operation management mainly include following things: 28

2.7.1. Planning 28
2.7.2. Monitoring 29
2.7.3. Developing Employees 29
2.7.4. Rating 29
2.7.5. Rewarding 30
2.8. Managing Operation Effectively 30
3.PROJECT 30
3.1. Objective of the Project – Introduction of the Problem 30

3.1.1. Secondary objective 30
3.2. Significance of the Project 31
3.3. Definition - A Theoretical Perspective 31
3.4. Preparation and Planning for Operation management 31
3.5. Operation Management and Development 31
3.6. Operation Assessment and Development Plan in Tata consultancy services LTD. 32
3.6.1. Prior to filling the form, please carefully read Instructions to the Appraiser 32
3.6.2. Operation appraisal guidelines 32
3.6.2.1. Appraisal procedure 32
3.6.2.2. The Form and Its Contents 32
4.RESEARCH METHODOLOGY 34
Introduction 34
What approach should I take - qualitative or quantitative? 35
Can my dissertation be entirely literature-based? 36
What is case study research? 37
What's an empirical study? 38
What is secondary analysis? 39
Where do I find existing research data? 41
Collecting you own data - primary research 43
Will my research be inductive or deductive? 46
What's all this about research design? 47
Summary 49
4.1. Research Design 50
4.2. Data Collection Method 50
4.3. Analysis of PMS – Processes & Components 50

4.3.1. Planning 50

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4.3.2. Monitoring 51
4.3.3. Developing Employees 51
4.3.4. Rating 51
4.3.5. Action Based Operation 51
4.3.6. Analysis 51
4.3.7. Effectiveness 51
5.RECOMMENDATIONS 52
5.1. Recommendations 52
6.CONCLUSION 52
7.BIBLIOGRAPHY 53

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Executive summary
Operation management is the process of bringing people into the organization making very
sure that new entrants have the potential and willingness to contribute to organizational
success. In today’s scenario without effective Operation management the organization will
meet the considerable resistance when introducing change. Without organizational change
and development survival become very uncertain so in order to make the industry survive it is
very important to adopt the different Operation management practices in all organizations to
understand the employees or workers need and satisfy them. There should be effective people
utilization in every industry. All these practices in an organization will make the organization
to grow at a faster speed. The study will be empirical and primary research will be done by
using the questionnaire which will administer to sales, service and support function
employee. The date will be collected and assimilated by using statistical tool like median and
date will be analyzed by using Bar Chart. The analysis will be to find the effectiveness of
current PMS.

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1. INTRODUCTION
1.1. TCS an overview
Tata Consultancy Services (TCS) is an Indian multinational information technology (IT)

services and consulting company with its headquarters in Mumbai, Maharashtra. It is a
part of the Tata Group and operates in 150 locations across 46 countries. In July 2022, it
was reported that TCS had over 600,000 employees worldwide. TCS is the second largest
Indian company by market capitalization and is among the most valuable IT service
brands worldwide and is the top Big Tech (India) company. In 2015, TCS was ranked
64th overall in the Forbes "World's Most Innovative Companies" ranking, making it one
of the highest-ranked IT services companies and a top Indian company.
As of 2018, it is ranked eleventh on the Fortune India 500 list. In September 2021, TCS
recorded a market capitalization of US$200 billion, making it the first Indian IT tech
company to do so. In December 2022, the market cap was Rs. 11,71,481.89 crore. In
2016–2017, parent company Tata Sons owned 72.05% of TCS and more than 70% of Tata
Sons' dividends were generated by TCS.
1.2. TCS DNA
DNA chose TCS HOBS for the platform’s plug-and-play service-oriented architecture
(SOA). TCS HOBS enabled seamless channel experience and digitalization across DNA
customer journeys. The solution facilitated hassle-free data migration with a specifically
designed toolkit. Furthermore, the platform was backed by a catalog-centric architecture,
which enabled it to deliver the transformation program in 11 months by splitting it into
manageable value streams. This helped realize incremental outcomes in every program
increment (PI).
Key highlights of this engagement were:
 HOBS Customer Relationship Management System (CRMS), Enterprise Product

Catalogue (EPC), Order Management (OM), and AIMS were deployed to meet
DNA’s business requirements. These included customer onboarding, automated
end-to-end product release management, and automated orchestration. The
solution also provided provisioning and network platform management without
manual intervention.
 The transformation adopted TCS’ enterprise-wide location-independent agile
delivery methodology.
 Leveraged AWS Cloud for non-production environments and used AWS services
such as AWS Direct Connect, VPC, EC2, Amazon RDS, etc.
Digitalize legacy IT stack to strengthen market leadership.
DNA needed to increase its business agility and maintain market leadership in the
rapidly evolving telecommunication landscape. However, owing to the increasing
complexity of its legacy stack, any addition of services was leading to the stack
becoming heavy, impacting customer experience. As part of its digital

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transformation, DNA wanted to deliver a unified customer experience through a

platform that provided an omnichannel experience for sales and service. The Finnish
telco partnered with TCS to implement its HOBS platform on cloud and on premise,
backed by a catalog-centric architecture to drive growth.
1.3. Employer spotlight
TCS is one of the largest private-sector employers in India, and the fourth-largest
employer among listed Indian companies (after Indian Railways, Indian Army, and
India Post). TCS has crossed more than 600,000 employees as of 8 July 2022. The
number of non-Indian nationals was 21,282 as of 31 March 2013 (7.7%). The
employee costs for the FY 2012–13 was US$4.38 billion, which was approx. 38% of
the total revenue of the company for that period. In the fiscal year 2012–13, TCS
recruited a total of 69,728 new staff, of whom 59,276 were based in India and 10,452
were based in the rest of the world. In the same period, the rate of attrition was 10.6%.
The average age of a TCS employee is 28 years. The employee utilization rate,
excluding trainees, for the FY 2012–13 was 82%. TCS was the fifth-largest United
States visa recipient in 2008 (after Infosys, CTS, Wipro, and Mahindra Satyam). In
2012, the Tata Group companies, including TCS, were the second-largest recipient of
H-1B visas. As of Jan 2020, TCS has over 400,000+ employees. It is the world's third-
largest IT employer behind IBM and HP.
Former CEOs of TCS

 F. C. Kohli, co-founder and first CEO and MD of TCS from 1968 to 1996,
known as "Father of Indian IT Industry."
 Subramaniam Ramarao, CEO and MD of TCS from 1996 to 2009, and Vice -
Chairman till 6 October 2014
 Natarajan Chandrasekaran, COO, Executive Director, and CEO of TCS from
2009 to 2017
 Rajesh Gopinathan,CEO and MD of TCS from 2017 to 2023
1.4. About TCS
1968–2005
Tata Consultancy Services Limited, initially started as Tata Computer Systems, was
founded in 1968 by a division of Tata Sons Limited. Its early contracts included punched
card services to sister company TISCO (now Tata Steel), working on an Inter-Branch
Reconciliation System for the Central Bank of India, and providing bureau services to
Unit Trust of India.
In 1975, TCS delivered an electronic depository and trading system called SECOM for a
Swiss company SIS SegaInterSettle; it also developed System X for the Canadian
Depository System and automated the Johannesburg Stock Exchange. TCS associated
with a Swiss partner, TKS Pensoft, which it later acquired.
In 1980, TCS established India's first dedicated software research and development
center, the Tata Research Development and Design Centre (TRDDC) in Pune. In 1981, it
established India's first client-dedicated offshore development center, set up for clients
Tandem.

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In anticipation of the Y2K bug and the launch of a unified European currency (Euro), Tata
Consultancy Services created the factory model for Y2K conversion and developed
software tools which automated the conversion process and enabled third-party developer
and client implementation. Towards the end of 1999, TCS decided to offer Decision
Support System (DSS) in the domestic market under its Corporate Vice President and
Transformation Head Subbu Ayer. The company also registered its first tagline "Beyond
the Obvious" in 1999.
2005 to 2021
On 25 August 2004, TCS became a publicly listed company.
In 2005, TCS became the first India based IT services company to enter the
bioinformatics market, and in the same year TCS changed the tagline from "Beyond the
Obvious" to "Experience Certainty". In 2006, it designed an ERP system for the Indian
Railway Catering and Tourism Corporation. By 2008, its e-business activities were
generating over US$500 million in annual revenues.
TCS entered the small and medium enterprises market for the first time in 2011, with
cloud-based offerings. On the last trading day of 2011, it overtook RIL to achieve the
highest market capitalization of any India-based company. In the 2011–12 fiscal year,
TCS achieved annual revenues of over US$10 billion for the first time.
In May 2013, TCS was awarded a six-year contract worth over ₹11 billion (US$140
million) to provide services to the Indian Department of Posts. In 2013, the firm moved
from the 13th position to 10th position in the League of top 10 global IT services
companies and in July 2014, it became the first Indian company with over ₹5 trillion
(equivalent to ₹6.8 trillion or US$85 billion in 2020) market capitalization.
In Jan 2015, TCS ends RIL's 23-year run as India's most profitable firm.
In Jan 2017, the company announced a partnership with Auras, Inc., a payments
technology company, to deliver payment solutions for retailers using TCS Omni Store, a
first of its kind unified store commerce platform. In the same year, TCS China was
associated as a joint venture with the Chinese government.
In March 2018, Tata Sons sold stocks of TCS worth $1.25 billion in a bulk deal.
TCS received the 2019 American Business Awards from Four Stevie’s.
On 8 October 2020, TCS surpassed Accenture in market capitalization to become the

world's most-valuable IT company with a market cap of $144.73 billion. On 25 January
2021, TCS again surpassed Accenture briefly, in market capitalization to become the
world's most-valuable IT company with a market cap of $170 billion. The same day, TCS
became India's most valuable company, surpassing Reliance Industries with a market cap
of ₹12.55 trillion (US$160 billion). In 2021 Tata is also one of the largest job providers in
India hiring 43,000 individuals in H1 FY22. In October 2021, N Ganapathy
Subramaniam, the COO of TCS, stated that its platforms and products business is worth
approximately $3 billion. The company's platforms and products business include TCS'
SaaS-based platforms, and according to Subramaniam, between October 2020 and
October 2021, 95% of the deals won by TCS have been for its cloud platforms and SaaS

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platforms. Also, in 2021 TCS got a millennial makeover. Under the leadership of Rajshree
R, TCS Chief Marketing Officer (CMO), the company changed the tagline from
"Experience Certainty" to "Building on Belief".
In May 2021, alongside consortium partner Neurotechnology, TCS was selected by the
Unique Identification Authority of India (UIDAI) to provide biometric technology for the
Aadhaar digital ID program. The Aadhaar program has been described by the World Bank
Chief Economist Paul Romer as the "most sophisticated ID programmer in the world"
owing to the existing database of over 1.3 billion citizens.
1.5 Strong SAP Capabilities:

TCS Technologies is one of the largest global SAP service providers in India,
providing a spectrum of SAP services. TCS Technologies has developed strong
capabilities on the SAP Net Weaver platform and drives market demand in the SAP
world through unique market propositions and upgrade offerings to my SAP ERP.
TCS is a value-added reseller and services partner across multiple geographies. With a
track record of successful engagement in this space, TCS has received prestigious
awards from SAP - distinguished partner award 2005, best my SAP HCM
implementation award 2005, Sap’s "outstanding partner” award for
implementation/upgrade project 2004, and more. Forrester has lauded TCS
Technologies is one of several firms in this space and is a viable candidate for
multinational firms that are contemplating global outsourcing and are interested in
SAP implementation and maintenance services.
1.6. VISION STATEMENT

TCS Group’s mission is to provide value-added construction services to our clients by
creating successful partnership with them throughout the construction process and to
establish lasting relationship by exceeding their expectations and gaining their trusts.
Our goal is to ensure the continuance of our company through repeat and referral business
achieved by Clients’ satisfaction in all areas including timeliness and quality of work.
We strive to maintain the highest levels of professionalism, integrity, honesty and fairness
in our relationships with our suppliers, sub-contractors, associates and Clients.
TCS vision is to decouple business growth and ecological footprint from its operations to
address the environment bottom-line. The green approach is embedded in our internal
processes and services offerings. From green buildings to green IT to a green supply
chain, our mantra is to grow sustainably and help our customers achieve sustainable
growth through our green solutions and service offerings.
1.7. MISSION STATEMENT

To help customers achieve their business objectives by providing innovative, best-in-
class consulting, IT solutions and services. To make it a joy for all stakeholders to
work with us.
1.8. QUALITY POLICY STATEMENT

“We will deliver defect-free products, service and solutions to meet the requirements of our
external and internal customers the first time, every time.’
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1.9.OUR OBJECTIVE
OUR MANAGEMENT OBJECTIVE
•To fuel initiative and foster active by allowing individuals freedom of action and innovation
in attaining defined objectives.
OUR PEOPLE OBJECTIVE

•To help TCS people share in the company’s success, which they make possible to provide
job security based on their operation; to recognize their individual achievements and to help
them gain a sense of satisfaction and accomplishment from their work.
1.10. CORE VALUES

•We shall uphold the dignity of individual
•We shall honor all commitments.
•We shall be committed to Quality. Innovation and growth in every endeavor.
•We shall be responsible Corporate Citizens.
1.11.A SNAPSHOT OF Tata consultancy services Ltd.

 India’s leading IT company TCS In say is India’s largest information technology (IT),
transnational conglomerate. With its-depth expertise in developing solution spanning
diverse technologies.
 TCS Ansys aims to propel its course on to the high growth Path total Technology
Integration. Towards capturing two Ends of market spectrum - enterprise solution and
PCs. TCS Ansys has made significant strategic infrastructure investments in the
professional services Organization (PSO), the Support Services Organization (SSO)
and its manufacturing plant at Pondicherry. Thus, it is the manufacturer of general-
purpose computer and provides services in the areas of IT Consultancy, system
integration, Software Development and Training.
 It makes true technology integration possible across multiple platforms, this was
possible because of the in-depth expertise in developing state-of-the-art indigenous
hardware solution; thorough understanding of networking technology.
 As a part of this plan to market more and more technology integration services world-
wide, TCS in sys has already taken a step in the direction of export by localizing its
service comprising software, hardware design and development, value added support
service networking abs repair services and overseas integration projects to meet the
demands of the global clients. Company’s continuous and consistent anticipation of
the requirement of the IT Industry has led it to undertake the acquisition of the
business of Tata consultancy services limited (now known as Frontline Division),
TCS Peripherals Limited (now known the acquisition of Customer Support
Organization (CSO) activities of TCS Office Automation Limited (now known as
office Automation Division)
FRONTLINE DIVISION
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Frontline Division, formerly Tata consultancy services Ltd. (TCS) started with the aim of
increasing market penetration by handing segments not covered by TCS Ansys and creating
new niches. Today it specializes.
2. Literature Review
Operations management is an area of management concerned with overseeing, designing, and

controlling the process of production and redesigning business operations in the production of
goods or services.
Four Types of Focus Dimensions Used in Operations Management
Every business operates along four basic focus dimensions: finance, customers, internal
processes, and learning and innovation. These theoretical divisions of operations management
come from the research of Robert S. Kaplan and David P. Norton. The dimensions aren’t
mutually exclusive. For example, employees who become more competent through learning
can improve the functioning of internal processes, according to “Management Principles: A
Contemporary Edition for Africa,” by P. J. Smit.
Finance
The heart of the financial dimension for most businesses is profit, though short-term financial
goals might entail sacrificing current profits to increase future capacity. For example, a
company might decide to reinvest all its profits into new and better machinery to increase
production capacity and efficiency, but the goal remains greater profit. Managers must
control the flow of money through the organization to ensure short-term goals align with
long-term goals.
Customers
Customers are the foundation of your business. Without the flow of their money through your
organization, everything grinds to a halt. Managers aim to maximize the flow of customer
money, but that doesn’t always mean securing as many customers as possible. A boutique
hotel, for example, might focus on serving relatively few high-paying customers, while a
chain hotel focuses on the wide swath of people who are unwilling to pay high prices.
Though each business targets customers who have different needs, meeting those needs is
equally vital to their profitability.
Internal Processes
Optimization of internal processes leads to greater profitability and customer satisfaction. For
example, a manager might focus on developing efficient communications within an
organization to ensure orders travel quickly from the customer service department to the
production line. The manager further expedites the order by ensuring the production
department syncs with the shipping department to get the order to the customer quickly. Fine-
tuning the process to make it maximally efficient keeps operating costs low and pleases
customers, leading to greater profits.
Learning and Innovation
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Technology progresses and so must businesses. An invention that improves a manufacturing

process, for example, might be a game changer that forces factories to upgrade their
processes or lag competitors. A good manager stays abreast of technological shifts; a great
manager anticipates, and initiates change by encouraging her organization to focus on
learning and innovation. Practically, this can mean anything from having a well-funded
research-and-development team to paying for continuing education for employees. An
organization that surmounts cognitive limitations stays one-step ahead of its competitors.
Understanding operations management
Consider the ingredients of your breakfast this morning. Unless you live on a farm and
produced them yourself, they passed through several different processing steps between the
farmer and your table.
Every organization has an operations function, whether it is called ‘operations. The goal or
purpose of most organizations involves the production of goods and/or services. Operations
in some form has been around as long as human Endeavour itself but, in modern
manufacturing and service industry at least, it has changed dramatically over time.
To some (especially those professionally involved in operations management!) operations

management involves everything an organization does. In this sense, every manager is an
operations manager.
2.1. An Introduction of Operation Management

2.1.1. Operations management definitions
There are many differing definitions of operations management; we have picked a range for
you to look at below. Depending on your specific area of operations management, some may
suit your role or understanding better, but overall, they all make a similar point.
 The efficient and effective implementation of the policies and tasks necessary to
satisfy an organization’s customers, employees, and management (and stockholders, if
a publicly owned company)
 The management of systems or processes that create goods and/or provide services.
"The on-going activities of designing, reviewing and using the operating system, to achieve
service outputs as determined by the organization for customers" (Wright, 1999)
 Management of main business activity: the organizing and controlling of the

fundamental business activity of providing goods and services to customers
 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.
 The purvey of operations management ranges from strategic to tactical and

operational levels. Representative strategic issues include determining the size and
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location of manufacturing plants, deciding the structure of service or

telecommunications networks, and designing technology supply chains.
 Tactical issues include plant layout and structure, project management methods, and
equipment selection and replacement. Operational issues include production
scheduling and control, inventory management, quality control and inspection, traffic
and materials handling, and equipment maintenance policies.
 Operations management is an area of management concerned with

overseeing,designing, controlling the process of production and redesigning business
operations in the production of goods and/or services. It involves the responsibility of
ensuring that business operations are efficient in terms of using as few resources as
needed, andeffective in terms of meeting customer requirements. It is concerned with
managing the process that converts inputs (in the form of materials, labor and energy)
into outputs (in the form of goods and/or services).
IOM would like to thank Derek Thomason FIOM, Unipart Expert Practices, for
sharing examples and information contained in this section for the benefit of IOM
members and those interested in learning more about what operations managements.
So, what does it means?

 What exactly does this mean in real terms? What kinds of tasks, roles and
responsibilities do people working in operations management have?
Forecast demand.
 Market product
 Adapt to comply with customer demand.
 Understand what the customer wants.
 Understand how much the customer wants.
 Set targets (timescales)
 Know product demand.
 Measuring standards
 Produce sales invoices / solve customer disputes.
 Measure outputs
 Plan production and timescales
Sourcing and procurement

 Order materials
 Negotiate price.
 Check delivery with order.
 Reconcile invoice with correct supplier statement.
 Pay on time.
 Buy supplies.
 Order materials
 Stock control
 Buying resources and allocating
 Inventory / stock control
 Schedule suppliers
 Managing stock (getting it in the right place at the right time)
 Locating and procuring supplies
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 Pay suppliers.
Creation of output
 Managing budgets
 Cost implications
 Buy cost effective materials.
 Replenish inventories.
 Arrange for necessary equipment.
 Schedule material / staff / equipment to produce goods and services.
 Plan ‘work order’
 Produce product.
 Produce goods.
 Converting supplied materials (adding value)
 Quality control
 Measure conformance / quality
Delivery
 Customer satisfaction
 Deliver finished products.
 Consider logistics / delivery.
 Arrange delivery to customer.
 Dispatching the goods or service to the customer
 Arrange packaging / presentation.
Managing people <subheading>

 Employ people.
 Train people
 Implementing and timescales
 Outsource
 Delegation
 Managing people
 Recruit and train staff
 Schedule labor
2.1.2. Why is it important?
Brief history of operations management

Pre 18th century
Agriculture was the predominant industry in every country.
Industrial Revolution 1770–1830
Economy based on manual labor was replaced by one dominated by industry and the
manufacture of machinery – The development of all-metal machine tools in the first two
decades of the 19th century facilitated the manufacture of more production machines
powered by steam or water(James Watt, 1785)
Second Industrial Revolution (around 1850)
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Development of steam-powered ships, railways, and later in the nineteenth century with the
internal combustion engine and electrical power generation – Introduction of Frederick W.
Taylor's systematic approach to scientific management at the beginning of the twentieth
century (1911) – Henry Ford, father of the moving assembly line, brought the world into an
age Centre around the mass production of goods (1920).
Operations management
Although productivity benefited considerably from technological inventions and division of

labor, the problem of systematic measurement of performances and the calculation of these
using formulas remained somewhat unexplored until Frederick Taylor, whose early work
focused on developing what he called a "differential piece-rate system" and a series of
experiments, measurements and formulas dealing with cutting metals and manual labor. The
differential piece-rate system consisted in offering two different pay rates for doing a job: a
higher rate for workers with high productivity (efficiency) and who produced high quality
goods (effectiveness) and a lower rate for those who fail to achieve the standard. One of the
problems Taylor believed could be solved with this system, was the problem of soldiering:
faster workers reducing their production rate to that of the slowest worker. In 1911 Taylor
published his "The Principles of Scientific Management", in which he characterized scientific
management (also known as Taylorism) as:
 The development of a true science.

 The scientific selection of the worker.
 The scientific education and development of the worker.
 Intimate friendly cooperation between the management and the workers.
Taylor is also credited for developing stopwatch time study, this combined with Frank and
Lillian Gilbreth motion study gave way to time and motion study which is centered on the
concepts of standard method and standard time. Frank Gilbreth is also responsible for
introducing the flow process chart in 1921. Other contemporaries of Taylor worth
remembering are Morris Cooke (rural electrification in the 1920s and implementer of Taylor's
principles of scientific management in the Philadelphia's Department of Public Works), Carl
Barth (speed-and-feed-calculating slide rules ) and Henry Gantt (Gantt chart). Also, in 1910
Hugo Diemer published the first industrial engineering book: Factory Organization and
Administration.
In 1913 Ford Whitman Harris published his "How many parts to make at once" in which he
presented the idea of the economic order quantity model. He described the problem as
follows:
"Interest on capital tied up in wages, material and overhead sets a maximum limit to the
quantity of parts which can be profitably manufactured at one time; "setup costs" on the job
fix the minimum. Experience has shown one manager a way to determine the economical size
of lots."
This paper inspired a large body of mathematical literature focusing on the problem of
production planning and inventory control.
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In 1924 Walter Shewhart introduced the control chart through a technical memorandum while
working at Bell Labs, central to his method was the distinction between common cause and
special cause of variation. In 1931 Shewhart published his Economic Control of Quality of
Manufactured Product, the first systematic treatment[20] of the subject of Statistical Process
Control (SPC). He defined control:
"For our present purpose a phenomenon will be said to be controlled when, through the use of
past experience, we can predict, at least within limits, how the phenomenon may be expected
to vary in the future. Here it is understood that prediction within limits means that we can
state, at least approximately, the probability that the observed phenomenon will fall within
the given limits."
In the 1940s methods-time measurement (MTM) was developed by H.B. Maynard, J.L.
Schwab and G.J. Segmented. MTM was the first of a series of predetermined motion time
systems, predetermined in the sense that estimates of time are not determined in loco but are
derived from an industry standard. This was explained by its originators in a book they
published in 1948 called "Method-Time Measurement".
The methods-time measurement may be defined as follows:
Methods-time measurement is a procedure which analyzes any manual operation or method

into the basic motions required to perform it and assigns to each motion a predetermined time
standard which is determined by the nature of the motion and the conditions under which it is
made.
Thus, it may be seen that methods-time measurement is basically a tool of method analysis
that gives answers in terms of time without the necessity of making stop-watch time studies.
Up to this point in history, optimization techniques were known for a very long time, from the
simple methods employed by Wharry’s to the more elaborate techniques of the calculus of
variations developed by Euler in 1733 or the multipliers employed by Lagrange in 1811, and
computers were slowly being developed, first as analog computers by Sir William Thomson
(1872) and James Thomson (1876) moving to the electromechanical computers of Konrad
Zusi (1939 and 1941). During World War II however, the development of mathematical
optimization went through a major boost with the development of the Colossus computer, the
first electronic digital computer that was all programmable, and the possibility to
computationally solve large linear programming problems, first by Kantorovich in 1939
working for the Soviet government and later in 1947 with the simplex method of Dantzig.
These methods are known today as belonging to the field of operations research.
From this point on a curious development took place: while in the United States the
possibility of applying the computer to business operations led to the development of
management software architecture such as MRP and successive modifications, and ever more
sophisticated optimization techniques and manufacturing simulation software, in post-war
Japan a series of events at Toyota Motor led to the development of the Toyota Production
System (TPS) and Lean Manufacturing.
In 1943, in Japan, Taiichi Ohno arrived at Toyota Motor company. Toyota evolved a unique
manufacturing system centered on two complementary notions: just in time (produce only
what is needed) and autonomation (automation with a human touch). Regarding JIT, Ohno
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was inspired by American supermarkets: workstations functioned like a supermarket shelf

where the customer can get products they need, at the time they need and, in the amount,
needed, the workstation (shelf) is then restocked. Autonomation was developed by Toyoda
Saki chi in Toyoda Spinning and Weaving: an automatically activated loom that was also
foolproof, that is automatically detected problems. In 1983 J.N Edwards published his "MRP
and Kanban-American style" in which he described JIT goals in terms of seven zeros: zero
defects, zero (excess) lot size, zero setups, zero breakdowns, zero handling, zero lead time
and zero surging. This period also marks the spread of Total Quality Management (TQM) in
Japan, ideas initially developed by American authors such as Deming, Joran and Armand V.
Feigenbaum. TQM is a strategy for implementing and managing quality improvement on an
organizational basis, this includes participation, work culture, customer focus, supplier
quality improvement and integration of the quality system with business goals. Schonberger
identified seven fundamentals’ principles essential to the Japanese approach:
1. Process control: SPC and worker responsibility over quality

2. Easy able -to-see quality: boards, gauges, meters, etc. and poka-yoke.
3. Insistence on compliance: "quality first"
4. Line stops the line to correct quality problems.
5. Correcting one's own errors: worker fixed a defective part if he produced it.
6. The 100% check: automated inspection techniques and foolproof machines
7. Continual improvement: ideally zero defects
Meanwhile, in the sixties, a different approach was developed by George W. Pluss and Oliver
W. Wight, this approach was continued by Joseph Rollicky as a response to the TOYOTA
Manufacturing Program which led to Material Requirements Planning (MRP) at IBM, latter
gaining momentum in 1972 when the American Production and Inventory Control Society
launched the "MRP Crusade". One of the key insights of this management system was the
distinction between dependent demand and independent demand. Independent demand is
demand which originates outside of the production system, therefore not directly controllable,
and dependent demand is demand for components of final products, therefore subject to being
directly controllable by management through the bill of materials, via product design.
Rollicky wrote "Materials Requirement Planning" in 1975, the first hard cover book on the
subject. MRP II was developed by Gene Thomas at IBM and expanded the original MRP
software to include additional production functions. Enterprise resource planning (ERP) is the
modern software architecture, which addresses, besides production operations, distribution,
accounting, human resources and procurement.
Dramatic changes were occurring in the service industries, as well. Beginning in 1955
McDonald's provided one of the first innovations in service operations. McDonald's is
founded on the idea of the production-line approach to service. This requires a standard and
limited menu, an assembly-line type of production process in the backroom, high customer
service in the front-room with cleanliness, courtesy and fast service. While modeled after
manufacturing in the production of the food in the backroom, the service in the front-room
was defined and oriented to the customer. It was the McDonald's operations system of both
production and service that made the difference. McDonald's also pioneered the idea of
franchising this operation system to rapidly spread the business around the country and later
the world.
2.1.3. Critical factors for success

Steps to achieve the Key Success Factors
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The company needs to be aware that it is essential to pull together the team that will be
working with the CSFs, its necessary to have employees submit their ideas or give feedback.
Never forget to have multiple frameworks to examine the key elements of your long-term
goals. Before implementing your company-wide strategic plan with your critical success
factors in mind, determine which factors are key in achieving your long-term organizational
plan.
Skills
The leader needs to be trained and prepared to put the company in the line of success. Some
of the skills that can be learned are financial management, marketing sales, and customer
service, communication and negotiation, project management and planning, leadership,
problem-solving and, lastly, but one of the most important skills, networking.
Communication
The company needs to put together all the staffs, all the giving opinions about what could be
better to achieve their goal. The company needs to pay attention in two parts of the
communication process: the Initial Launch Communications, which will set the plan to be
achieved and the Ongoing Communications, which will be the part where the KSF progress
(Contact us is a way to know if the KSF is working well).
Planning
To use the CSFs everything needs to be planned, how employees will do it and why. Tools
can be used to make planning work faster and easier. A strategy for each department can be
planned separately.
Teamwork
A good teamwork is the key to success, when all the staff collaborate more ideas and opinions
can be discussed to find the best way to achieve success.
2.1.4. Who is involved?

Process
A business process or business method is a collection of related, structured activities or tasks
by people or equipment which in a specific sequence produce a service or product (serves a
particular business goal) for a particular customer or customers. Business processes occur at
all organizational levels and may or may not be visible to the customers. A business process
may often be visualized (modeled) as a flowchart of a sequence of activities with interleaving
decision points or as a process matrix of a sequence of activities with relevance rules based
on data in the process. The benefits of using business processes include improved customer
satisfaction and improved agility for reacting to rapid market change.
2.1.5. Principles
Principles of Operations management
Operations management keeps processes running smoothly within organizations. Think of

your company as an airport. Each team is an airplane taking off in different directions with
their projects and ideas. As an operations manager, you’re the air traffic controller keeping
everyone and everything on track.
Similarly, there are seven functions of operations management.
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1. Operational planning
2. Finance
3. Product design
4. Quality control
5. Forecasting
6. Strategy
7. Supply chain management
1. Operational planning
Operational planning is the foundational function of operations management. Your duties
within this function may include:
 Monitoring daily production of goods
 Managing and controlling your inventory
 Keeping tabs on team member performance and well being
 Production planning
The role of operations management is to uphold operational efficiency. Always be on the

lookout for new advancements to remove bottlenecks and improve your operations strategy.
Skill needed: Resourcefulness.

When you’re resourceful, you’ll have an easier time maintaining business processes. As an
operations manager, you’ll have to manage your team and keep the company’s wellbeing
front of mind. To handle these changes, you need to be fast on your feet. In situations when
you don’t have the tools you need at your disposal, it’s critical to think quickly and use what
you must come up with solutions.
2. Finance
Finance is an essential—and universal—function of operations management because every
company strives to reduce costs and increase profits. As an operations manager, you’ll ensure
company leaders keep the budget in consideration when they make important decisions.
Some of your tasks may include:
 Creating budgets to meet production goals.
 Finding investment opportunities
 Allocating budgets and managing resources
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You may wonder how the financial duties of the operations team differ from those of the
finance department. The finance department will handle everything from revenue to salaries.
Meanwhile, you should limit your financial participation to things relevant to the production
process.
Skill needed: Financial planning.
Financial planning happens when you determine if your business has the budget to achieve
strategic objectives and goals. To push your company leaders toward financial success, you’ll
need to plan.
Keep production costs low by finding high-quality vendors with low prices. You want to
create a top-notch product that stays within your customer’s budget.
3. Product design
Product designers may be the creatives of the team, but the operations team is the eyes and
ears that gathers information from the market. Once you identify customer needs and
marketing trends, you'll relay what you've learned back to the designers so they can make a
strong product.
Specific tasks your team may handle in this function include:
 Consolidating market research into digestible results
 Communicating results to a product design team
 Offering design direction to help designers devise a product.
Without the operations team, the product design team would have trouble knowing what to
create. The market is always changing, and creating a successful finished product requires
extensive research.
Skill needed: Data interpretation.

The ability to interpret data is a key skill for this function of operations management. As the
operations manager, you must turn data into understandable directions. Your goal should be
to clearly communicate how you want your product to match or exceed other products on the
market.
Once you have a plan in place, streamline communication across teams by using one platform
or tool. Create a central project plan to track action items, information, and feedback. Then,
share it in a project management tool so everyone can access it and view changes in real time.
4. Quality control
Quality control goes hand in hand with product design. After the production team creates a
product, the operations team will ensure it meets quality standards. You’ll need to test the
product to guarantee there are no defects before releasing it to the public. Your tasks for
quality control may include:
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 Performing risk analysis to identify potential problems.
 Inspecting products to make sure they meet quality standards.
 Creating tests to control your product quality.
 Documenting any defects or deficiencies of products
The level and standards of quality control vary by industry—one of the first things your team
should do during the quality control process is to perform market research to determine what
quality standards should be in your industry. Once you’ve outlined a set of quality standards,
use them as a benchmark for quality management moving forward.
Skill needed: Conflict management.

Not every product will be top quality after one round through the production process. It may
take many rounds of design and a few trips back to the drawing board to create a quality
product up to standards.
This type of feedback will ultimately make your product the best version of itself, but it can
be hard to hear in the moment. In order to excel at this function of operation management,
build strong conflict management strategies. That way, you can weather these times of
uncertainty and create products that wow customers.
5. Forecasting
Forecasting isn't just a term for the weather—operations teams also use forecasting to predict
the demand for a product. Your team can master forecasting by trying to answer hypothetical
questions like:
 What will the demand for this product be in the future?
 What marketing and promotions should we plan for this product?
 What sales initiatives should we plan for this product?
 Can we estimate the storage costs we’ll need for inventory?
 Can we determine the cost of sourcing and raw materials?
Skill needed: Data driven decision making.
Data driven decision making will serve you well in many functions of operations
management. The only way to make accurate predictions is to base your predictions on facts.
Start by forecasting product demand by analyzing past trends. Then, communicate forecast
results to department leaders so they can adjust future accordingly.
6. Strategy
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Strategy is a broad function of operations management that can involve operational planning,
monitoring, and analysis. The goal of strategic management is to make sure production
decisions align with business goals. Your company’s business objectives may include:
 Prioritizing customer satisfaction
 Improving the production system
 Controlling costs while maintaining a competitive edge
Your job as operations manager is to find ways to meet the business objectives of your
company. Some strategies you could use for the examples above include:
 Analyzing your inventory: To prioritize customer satisfaction, start by analyzing your

inventory. This can increase customer satisfaction by ensuring you’re always able to
meet customer demand.
 Collaborating among teams: More collaboration among teams will improve the
production system because communication will increase, resulting in less room for
error.
 Prioritizing green processes: Switching to more environmentally friendly processes

can save money in the long run and keep customers invested in your brand.
Skill needed: Critical thinking.
Critical thinking is important for the strategic function of operations management because it’s
how you create thoughtful ideas and tie them back to fundamental points. When you logically
think through concepts, you’re able to develop strong strategies. You can use research and
data to support your ideas and then use what you’ve learned to make well-supported
decisions for your team.
7. Supply chain management
If your company produces products or services, your company will need supply chain
management for sourcing, producing, and shipping. You may have a separate department for
the supply chain, but supply chain issues related to internal production will be yours to
handle. The supply chain should flow in a cyclical fashion as follows:
 Raw materials
 Supplier
 Production/manufacturer
 Distributer
 Retailer
 Consumer
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The supply chain is cyclical because once you analyze consumer demand, you'll source more
raw materials and go down the chain again.
You don’t necessarily have to follow each of these steps. For example, if you work at a small
company, you may send products or services directly to consumers. This cuts out distribution
and retail costs, but you’ll still need to keep the supply chain intact. If there’s a bottleneck in
one stage of the supply chain, it can wreak havoc on every other stage.
Skill needed: Problem-solving.

As an operations manager, you'll need to organize, plan, and delegate. But to take your skills
a step further, you must be a good problem-solver as well. There are many problem-solving
strategies you can study and keep in your toolbox—and your team members will appreciate
your quick solutions when things get tough.
2.1.6. Managing for results
Management by results involves empowering team members within agreed guidelines and
agreed working patterns to decide how best to do their work.
2.2.Levels of Operation management
1.The effective Operation of your organization depends on the contribution of activities at all
levels - from top management policy development through to efficiently run operations.
There are three or four levels of Operation management in the model framework below, some
organizations may combine the strategic level with the organization’s priorities level.
2.Organization’s priorities: at the highest-level Operation management is rooted in the

organization’s long term business strategy. Measures at this level are of impact, resource
utilization and public service improvement.
3.Strategic level Operation management: at this level the management concern is frogman
"outside in" as well as an internal perspective. Measures are of outcome, such as volume and
value of service take-up, upward trends for inclusion, staff and users ‘satisfaction.
4.Program level Operation management: Operation management at this level is focused on

the desired results of programs of change, to demonstrate what has been accomplished. The
measures used would include those stated in individual business cases. Benefits management
would help to determine if these are achieved.
5.Tactical or operational service level Operation management: here the management focus is
concerned with service delivery and outputs, using conventional service level agreement
approaches and related measures of aspects such as volumes and quality. Although Operation
measures and indicators may be different at each level, they will need to be.
 Directional - to confirm that you are on track to reach the goals.

 Quantitative - to show what has been achieved and how much more is to be done.
 Worthwhile - adding more value to the business than they cost to collect and use.
2.3.Value for money
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You must be able to demonstrate that you have achieved value for money in your operations.
Value for money is taken to cover three measures of Operation:
 Economy - Minimizing the cost of resources used for an activity, having regard to
appropriate quality.
 Efficiency - the relationship between outputs, in terms of goods, services or other
results and the resources used to produce them.
 Effectiveness - the extent to which objectives have been achieved, and the relationship
between the intended impacts and actual impacts of an activity.
2.4.Measures and metrics
You should use these evaluation criteria for measures and metrics:
 Are you measuring the right thing?

 Do you have the right measures?
 Are the measures used in the right ways?
 Do you determine the quality of a particular Operation metric using the SMART
test(Specific, Measurable, Attainable, Relevant, Timely)?
The procedures and measures used in Operation management will depend, among other
factors, on the type of business process which is being measured. A business process is
assumed to be made up of several activities which transform inputs into outputs and
contribute to the realization of outcomes. The customers for a process may be external(for
example, members of the public) or internal, within the same organization or elsewhere in the
public sector.
2.4.1.Business processes can be distinguished by:
 The extent to which the activities involved are people oriented as opposed to
automated.
 Whether the activities are primarily 'front-office' or 'back-office' - that is, the amount
of direct contact which the staff have with the customers or recipients of the process.
 Whether the process itself is the important feature of the activity - for example, in
delivering consultancy - or whether the activities are concerned primarily with the
generation of defined outputs.
 The extent to which the activity is customized or tailored to the needs of each
customer, as opposed to being routine and procedural.
 The amount of discretion which needs to be exercised in the activities.

 The duration of the contact with the customer.
2.5.Processes
You will need to review the effectiveness of your procedures for:

 Setting Operation targets
 Designing measures of Operation relevant to the targets
 Systematically and accurately measuring outcomes
 Assessing the Operation of external service providers
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 Using results for informed decision-making

 Improving Operation. Research shows that most organizations have the components
of Operation management in place, but they are not always used to overall advantage.
A possible five-step approach that could help organizations in improving the
operation management of the IS/IT contribution is outlined below, with suggested
techniques.
Step 1: Identify your level of maturity in Operation management.
 Look at how the organization is performing in all its aspects of operation management
- from direction setting through to review and measurable improvement.
 Do an assessment; this will help to identify your organization’s maturity and the
strengths and weaknesses.
 Establish where you are now as a series of baselines, looking at operation
management at strategic program, tactical and operational levels.
 Bottom-up measures of economy and efficiency are likely to be reasonably strong and
have good management. This may not be so well developed for effectiveness
measures.
 Innovation, process improvement, customer satisfaction, and contribution to policy
objectives. Most organizations have a good understanding of financial measure; this
level of understanding needs to be developed for other measures.
 Techniques: Assessment; baseline
Step 2: Identify where Operation management is important to your organization.
 Is it in setting direction or ensuring the delivery of required benefits or improving the

alignment, Operation and contribution of the internal and external resources used byte
organization?
 Identify the values for your organization.
 Key values for safety critical operational services are speed and integrity of
information. A different organization might place high value on information flows or
on single points of access to information at a contact/call center.
 Techniques: Value chain analysis; benchmarking with other organizations (which may
identify things you had not thought of)
Step 3: Resolve any mismatch between steps 1 and 2.

•Review Operation management at each of the four levels - (organization, strategic, program
and tactical). Are there weaknesses in areas that are important to your organization?
•Techniques: to become more outward looking and customer-focused, use the well-
established balanced scorecard and EFQM® techniques.
•To answer questions about where IT contributes, use Goals, Questions and Metrics (GQM)
to identify and define measures.
Step 4: Establish where you want to be and begin to build Operation management into
business processes and into the culture.
 The aim is to have target, measurement and review processes for those things that the
business considers important such as product, process, service and staff.
 You will have lots of measures which need to be prioritized against your particular
perspective on effectiveness, efficiency and economy and against your values.
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•establish benefits management as a norm

 Use databases to collect Techniques Operation information and analyze trends.
 Include Operation management in the business, programmer and project lifecycle.
Step 5 : Feed information back into Operation improvement
Monitor and act on:

•We achieve what we set out to do?
•Where are the opportunities to improve?
•What can we do to improve? You are seeking answers to:
•What is achievable?
•What is important for our organization?
•What was achieved?
Objectives of an Operation Management System
Operation Management is an integral part of a comprehensive human resources management

strategy. Its objective is to maximize individual’s operation and potential with a view to
attaining organizational goals and enhancing overall effectiveness and productivity.
2.6.Basic Steps
Various authors propose various steps for Operation management. The typical operation
management process includes some or all the following steps, whether in operation
management of organizations, subsystems, processes, etc. Note that how the steps are carried
out can vary widely, depending on the focus of the operation efforts and who oversees
carrying it out. For example, an economist might identify financial results, such as return on
investment, profit rate, etc. An industrial psychologist might identify more human-based
results, such as employee productivity.
The following steps are described more fully in the topics Operation Plan, Operation
Appraisal
and Development Plan, including through use of an example application. The steps are
generally followed in sequence, but rarely followed in exact sequence. Results from one step
can be used to immediately update or modify earlier steps. For example, the operation plan
itself may be updated as a result of lessons learned during the ongoing observation,
measurement and feedback step.
NOTE: The following steps occur in a wide context of many activities geared towards
Operation improvement in an organization, for example, activities such as management
development, planning, organizing and coordinating activities.
1.Review organizational goals to associate preferred organizational results in terms of units of

Operation, that is, quantity, quality, cost or timeliness (note that the result itself is therefore a
measure)
2.Specify desired results for the domain -- as guidance, focus on results needed by other
domains (e.g., products or services need by internal or external customers)
3.Ensure the domain's desired results directly contribute to the organization's results
4.Weight, or prioritize, the domain's desired results.
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5.Identify first-level measures to evaluate if and how well the domain's desired results were
achieved
6.Identify more specific measures for each first-level measure if necessary
7.Identify standards for evaluating how well the desired results were achieved (e.g., “below
expectations", "meets expectations" and "exceeds expectations")
8.Document an operation plan -- including desired results, measures and standards
9.Conduct ongoing observations and measurements to track Operation
10.Exchange ongoing feedback about Operation
11.Conduct an operation appraisal (sometimes called Operation review)
12.If Operation meets the desired Operation standard, then reward for Operation (the nature
of the reward depends on the domain)
13.If Operation does not meet the desired Operation standards, then develop or update
operation development plan to address the operation gap* (See Notes 1 and 2)
14.Repeat steps 9 to 13 until Operation is acceptable, standards are changed, the domains
replaced, management decides to do nothing, etc.
Note 1: Inadequate Operation does not always indicate a problem on the part of the domain.
Operation standards may be unrealistic, or the domain may have insufficient resources.
Similarly, the overall strategies or the organization, or its means to achieving its top-level
goals, may be unrealistic or without sufficient resources.
Note 2: When Operation management is applied to an employee or group of employees, a

development plan can be initiated in a variety of situations E.g.
a. When an operation appraisal indicates Operation improvement is needed, that is, that there
is an "Operation gap."
b. To "benchmark" the status of improvement so far in a development effort
c. As part of a professional development for the employee or group of employees, in which
case there is not an operation gap as much as a "growth gap.”
d. As part of succession planning to help an employee be eligible for a planned change in role
in the organization, in which case there also is not an operation gap as much as an
"opportunity gap."
e. To "pilot", or test, the operation of a new Operation management system.
2.7.Operation management mainly include following things:
Operation management is the systematic process by which an agency involves its employees,
as individuals and members of a group, in improving organizational effectiveness in the
accomplishment of agency mission and goals.
 Planning work and setting expectations,

 Continually monitoring Operation,
 Developing the capacity to perform,
 Periodically rating Operation in a summary fashion, and
 Rewarding good Operation.
The revisions made in 1995 to the Government wide Operation appraisal and awards
regulations support sound management principles. Great care was taken to ensure that the
requirements those regulations establish would complement and not conflict with the kinds of
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activities and actions practiced in effective organizations as m after of course. Additional

background information on Operation management can be found in the following.
2.7.1.Planning
In an effective organization, work is planned out in advance. Planning means setting

Operation expectations and goals for groups and individuals to channel their efforts towards
achieving the organizational objectives. Getting employees involved in the planning process
will help them understand the goals of the organization, what needs to be done, why it needs
to be done, and how well it should be done.
The regulatory requirements for planning employees' Operation include establishing the
elements and standards of their operation appraisal plans. Operation elements and standards
should be measurable, understandable, verifiable, equitable, and achievable. Through critical
elements, employees are held accountable as individuals for work assignments or
responsibilities. Employee Operation plans should be flexible so that they can be adjusted for
changing program objectives and work requirements. When used effectively, these plans can
be beneficial working documents that are discussed often, and not merely paperwork that is
filed in a drawer and seen only when ratings of record are requirement?
2.7.2.Monitoring
In an effective organization, assignments and projects are monitored continually. Monitoring

well means consistently measuring Operation and providing ongoing feedback to employees
and work groups on their progress toward reaching their goals.
Regulatory requirements for monitoring Operation include conducting progress reviews with
employees where their operation is compared against their elements and standards. Ongoing
monitoring provides the opportunity to check how well employees are meeting predetermined
standards and to make changes to unrealistic or problematic standards. And by monitoring
continually, unacceptable Operation can be identified at any time during the appraisal period
and assistance provided to address such Operation rather than wait until the end of the period
when summary rating levels are assigned.
2.7.3.Developing Employees
In an effective organization, employee developmental needs are evaluated and addressed.

Developing in this instance means increasing the capacity to perform through training, giving
assignments that introduce new skills or higher levels of responsibility, improving work
processes, or other methods. Providing employees with training and developmental
opportunities encourages good Operation, strengthens job-related skills and competencies,
and helps employees keep up with changes in the workplace, such as the introduction of new
technology.
Carrying out the processes of Operation management provides an excellent opportunity to

identify developmental needs. During planning and monitoring of work, deficiencies in
Operation become evident and can be addressed. Areas for improving good Operation also
stand out, and action can be taken to help successful employees improve even further.
2.7.4.Rating
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From time to time, organizations find it useful to summarize employee Operation. This can
be helpful for looking at and comparing Operation over time or among various employees.
Organizations need to know who their best performers are.
Within the context of formal Operation appraisal requirements, rating means evaluating
employee or group Operation against the elements and standards in an employee's Operation
plan and assigning a summary rating of record. The rating of record is assigned according to
procedures included in the organization's appraisal program. It is based on work performed
during an entire appraisal period. The rating of record has a bearing on various other
personnel actions, such as granting within-grade pay increases and determining additional
retention service credit in a reduction in force.
Note: Although group Operation may have an impact on an employee's summary rating,
aerating of record is assigned only to an individual, not to a group.
2.7.5.Rewarding
In an effective organization, rewards are used well. Rewarding means recognizing

employees, individually and as members of groups, for their operation and acknowledging
their contributions to the agency's mission. A basic principle of effective management is that
all behavior is controlled by its consequences. Those consequences can and should be both
formal and informal and both positive and negative.
Good Operation is recognized without waiting for nominations for formal awards to be
solicited. Recognition is an ongoing, natural part of day-to-day experience. A lot of the
actions that reward good Operation like saying "Thank you" don't require a specific
regulatory authority. Nonetheless, awards regulations provide a broad range of forms that
more formal rewards can take, such as cash, time off, and many no monetary items. The
regulations also cover a variety of contributions that can be rewarded, from suggestions to
group accomplishments.
2.8.Managing Operation Effectively
In effective organizations, managers and employees have been practicing good operation
management naturally all their lives, executing each key component process well. Goals are
set and work is planned routinely. Progress toward those goals is measured and employees
get feedback. High standards are set, but care is also taken to develop the skills needed to
reach them. Formal and informal rewards are used to recognize the behavior and results that
accomplish the mission. All five-component processes working together and supporting each
other achieve natural, effective Operation management.
3. PROJECT
3.1.Objective of the Project – Introduction of the Problem
Primary Objective
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To understand the basic features of Operation management plan or Operation assessment in

TCS and their contribution in the success of TCS consultancy services Ltd. within a short
span of previous years.
3.1.1 Secondary objective
To identify which of the functional aspects/ Parameters are low and which dysfunctional
aspects/ Parameters are high in order to put some suggestion for increasing the former and
reducing the latter in other words to move from dysfunctional to functional Operation
assessment.
3.2.Significance of the Project
The six weeks of summer training at TCS consultancy services Ltd. gave me a complete
exposure to the organizational work life. It was unique opportunity to explore the realities of
India’s leading companies as a researcher and gather knowledge from its vast repertoire of
experience.
It was great learning experience to know the duties performer, responsibilities taken, and the
skill regained by the executives of the organization to reform their jobs effectively and
efficiently. The project not only helps me to enhance my practical knowledge, but it also
helps me to understand how Operation management work into the organization and how
executives assess their own employee into the organization.
The summer project also made me realize the worth of an HR manager. I got to know the
importance of employee assessment and communication and interpersonal skill in getting
things done from other. In a net shell, it was a very fulfilling and fruitful period of my life as
a management student.
3.3.Definition - A Theoretical Perspective
Operation Management is the process of creating a work area setting in which people are
enabled to perform to the best of their abilities. Operation Management is a whole work
system that begins when a job is defined as needed. System includes the flowing actions-
1.Development job description
2.Select appropriate people with an apply selection process.
3.Negotiate requirement and accomplishment-based Operation standards
4.Outcomes measures.
5.Provide effective orientation training.
6.Provide ongoing coaching and feedback.
7.Conduct quarterly Operation development discussions.
8.Design effective compensation and recognition systems that reward people for their
contribution.
9.Provide promotional/crier contributions.
10.Assist with exit interviews to understand why valuable employees leave the organization.
3.4.Preparation and Planning for Operation management
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Much work is invested, on the front end, to improve a traditional employee appreciate
process, infect managers can feel as if the new process is too time-consuming ones the
function of developmental goal is in place however time to an administrator the system
decreases. Each of these steps to taken with the participation and cooperation of the employee
for best results.
3.5.Operation Management and Development
 Define the purpose of the job, job duties.

 Define the Operation goals with measurable outcomes.
 Define each job responsibilities a goal.
 Define the Operation standards for key components of the job,
 Hold interim discussions and provide feedback abuts employee Operation.
 Maintain a record of Operation through critical incident reports.
 Provide opportunity for broaden feedback. Use 360` Operation feedback system.
 Develop administer a coaching and implement plan if the employee is not meeting
expectation.
3.6.Operation Assessment and Development Plan in Tata Consultancy Services LTD.
3.6.1. Prior to filling the form, please read carefully Instructions to the Appraiser
 Appraise the employee in related to the positions held during the period under
appraisal.
 Be objective, Avoid any personal prejudice.
 Do not evaluate based on isolated incidents but base your judgment on the entire
period under review.
 Consider each independently, uninfluenced by the rating given for other factors.
 This from will not be treated as complete and processed further until all selections a
refilled up.
3.6.2.Operation appraisal guidelines
3.6.2.1.Appraisal procedure
Operation appraisal encompasses the on-going work-related discussions, which take place
between appraisals and appraisees throughout the year. The formal Operation appraisal
meeting is normally attended by the employee and manager only; but when relevant, another
manager will also participate (e.g., functional head / HR person).
3.6.2.2.The Form and Its Contents
The guide for the operation / achievement rating is as follows.

Outstanding – Consistently exceeds the requirement of job.
Exemplary Operation - Far exceeds the requirement of job. Growth potential unlimited.
Very good: - Handle assignments with thoroughness and perfection, effective discharge of
responsibilities to the satisfaction of superiors completes assignment in time. With a little
more initiative could have performed better.
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Good: - Just meets the normal requirements of the job, needs substantial improvement in all
areas of work to meet requirement of complete employee.
Not Up to the Expectation - Not likely to meet the requirements of complete employee.
Section 1 : Quarterly Self appraisal forms:

a)General notes on goals /target setting.
Key responsibility areas relate to the key result area on going and inherent in the
achievements and Operation again each one. Targets and achievements are also to be filled
after discussing with the manager. Target related to the priority activates normally are within
the key responsibility areas. Target must be agreed between the manager and the subordinate.
Each target should be specified in such a way that it will be clear when itis met and must
include the time frame in which its elements to ensure consistence as summarized in the
acronym SMART (S-specific, M-measurable, A-achievable, R-relevant, T-timer related).
Although it is anticipated the operation against the target will be assessed quarterly, it is
responsibilities are reviewed at appropriate in travels every quarterly. The manager should
always ensure that the subordinate has a clearly defined set of agreed Target.
Target for the period under review: -

In section 1 KRA/ assignment for the period under review should be stated. In some cases, it
will be necessary for the objective to be amplified on a separate sheet and this document
should be referenced on the form.
b)Achievement against Target

Were the target / expectations for the period under review achieved? Comments and reasons
for the success or failure should be given at the end of the review quarter period.
c)Target for the next quarter

At the beginnings of the quarter the target should be decided in Section –1. The aim is to
achieve sustainable improvement in the subordinate’s Operation. Enter the date by which the
target should be achieved.
d)Overall View of Operation

This is the Appraisee/manager’s view of the overall Operation. Assessment must be made on
the overall rating listed above and in terms of the trend in Operation.
Section – 2 : Annual Appraisal Form
To the filled up by the appraisee at the end of the annual review year.
Section – 3 : Potential and Qualitative Assessment
The objective is to provide an opportunity to the employee and the manager to discuss the
strengths that the individual brings to the job and examine the limitations, which may require
attention. The aim is to improve Operation and development of the individual.
Section – 4 : Overall Operation / Potential Assessment
Space for other comments by the manager (if required for any issues regarding constraints to
effective Operation and / or supporting actions to achieve target).
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a)Ratings / Final Recommendation

Rating must be given by the Regional Manager / General Manager / Functional Head after a
through appraisal of the operation of the employee and in accordance with the parameters
given. Mention if any promotion / salary discrepancy / rewards / movement is recommended.
b)Signature
The managers and employees should sign the form at the end of the discussion
acknowledging that the objectives of the appraisal have been achieved and emphasizing a
joint commitment to implement and actions agreed upon. Signatures are to confirm that the
form has been read and the key points have been noted.
Section- 5 : Assessment for Development and Growth

Training for improvement and career development the training plan for the employee for the
coming year should be discussed.
The training identification form must be filled and returned to the HR department. In the
month of the April for the preparation of the training calendar for the forth coming year.
The manager should return the complete field form within ten days hence from the
completion of the Annual Review period to the HRD Dept. in order to attain consistency of
the appraisal standards and relevant follow – up action.
4.RESEARCH METHODOLOGY
This project requires a detailed understanding of the concept – “Operation Management”.

Therefore, firstly we need to have a clear idea of what is Operation Management, how it is
managed in Tata consultancy services Pvt. Ltd., what are the different ways in which the
financing of Operation is done in the company.
The management of Operation Management involves managing inventories, accounts

receivable and payable and cash. Therefore, one also needs to have astound knowledge about
cash management, inventory management and receivables management.
Then comes the financing of Operation Management requirement, i.e., how the Operation
Management is financed, what are the various sources through which itis done. And, in the
end, suggestions and recommendations on ways for better management and control of
Operation are provided.
Introduction
Quantitative modeling has been the basis of most of the initial research in operations, labeled
as operational research in Europe, and was also the basis of initial management consulting
and operations research (OR) in the USA. Initially, quantitative modeling in operational
research was oriented very much towards solving real-life problems in operations
management (OM) rather than towards developing scientific knowledge. Especially in the
USA, a strong academic research line in OR emerged in the 1960s, working on more
idealized problem sand thus building scientific knowledge in operations management. During
that same period, however, much of this research lost its empirical foundations, and research
methods have been primarily developed for these theoretical research lines, leaving the more
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empirically oriented research lines for more than 30 years in the blue about research
methodology.
Recently, this tide has however turned, and the need to develop explanatory and predictive
theory regarding operational processes and OM has become apparent. Articles have been
published that formulate requirements for theory development in OM (Schenker and Swink,
1998; Amundson, 1998; Wacker,1998) or that try to connect the knowledge generated along
the various research lines into a more general theoretical framework (Melnyk and Handfield,
1998a).
In this article, we will give an overview of quantitative model-based researching OM,

focusing on research methodology. OM is defined as the process of design, planning,
controlling and executing operations in manufacturing and service industries. Our emphasis
will be on model-based quantitative research. i.e., research where models of causal
relationships between control variables and performance variables are developed, analyzed or
tested. Performance variables can be either physical variables such as inventory position or
utilization rate, or economic variables such as profits, costs or revenues. We will distinguish
between empirical and axiomatic research, and furthermore between descriptive and
normative research. We address the problem of assessing the academic quality of research
work in this arena and present guidelines for doing so. In this paper, academic quality is
defined as the rigor with which the standard for good academic research for the type of
research conducted has been adhered to. To distinguish these types, we present a typology of
model-based quantitative OM research, and present research guidelines for each of these
types. In constructing our arguments, we will build on learnings from OR and OM research
from the past century and on research from a selected number of other academic disciplines.
In our article, we will use the following working definition to distinguish quantitative model-
based research in OM from another research in OM:
Quantitative models are based on a set of variables that vary over a specific domain, while
quantitative and causal relationships have been defined between these variables.
The rest of this article is organized as follows. In the next section we will give a short
overview of the history of quantitative model-based research in OM, highlighting the strong
and weak points of this type of research. Next, we give the major characteristics of model-
based empirical and axiomatic research. The following section gives an overview of the
literature that has addressed the methodology issue of this type of research. In the penultimate
section, we discuss how to assess the quality of research articles in this area, while the final
section concludes the article.
History of quantitative model-based OM research

Scientific management (Taylor, 1911) can be considered as the root of the development of
quantitative OM, although not only the root of quantitative OM. In fact, scientific
management was not a science, but the application of systematic methods to the study of
managerial problems on the shop floor. In line with the dominant mindset in the scientific
arena in those days, scientific management applied analytic techniques to operational
processes, analyzing the activities needed, identifying the smallest building blocks needed to
achieve desired results, eliminating unnecessary activities, and grouping and sequencing
activities such that maximum use of resource was achieved. There cent hype around business
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process re-engineering can be considered as a revival of scientific management, but now

applied to a wider set of processes.
The essence of scientific management was the analysis of instances of real-life operational
processes, based on systematic observations admeasurements of these process instances, and
the redesign of these processes in order to improve quality and productivity. As such,
scientific management did not produce generic scientific knowledge about real-life
operational processes.
Its claim was that applying the methods of scientific management to existing operational
processes would improve their performance. Scientific management, therefore, was not a
science but an engineering profession; it was a systematic working method to achieve
something. However, unlike engineering professions such as mechanical engineering and
chemical engineering, scientific management lacked the underlying generic scientific
knowledge about operational processes. Nevertheless, despite this lack of scientific
foundations, the scientific management approach was extremely successful in improving
operational processes. This illustrates the power of learning by doing and copying; a method
of working facilitated by the emergence of the consultancy profession. Scientific
management laid the basis of the profession of management consultancy in the USA between
the First World War and the Second World War. In the same period, courses in industrial
management were introduced at the major industrial engineering colleges in the USA. For the
purpose of teaching the applied methods and techniques at these colleges, the type of
problems encountered in real life were simplified and formulated in general terms, that is:
 Only those aspects of the problems were included that were assumed tube relevant
from the perspective of the method and technique dealt with,
 the problem was formulated independently of any instance of the problem in industry.
These are what we call idealized problems. Examples of such idealized operations
management problems are inventory control problems, sequencing and scheduling problems,
routing problems, statistical quality control problems and maintenance problems. Note that a
model is always an abstraction from reality in the sense that not the complete reality is
included. An idealized model is a model where, in addition, the abstraction from reality has
been further extended so that essential trade-offs become very explicit, functions become
one- or two-dimensional, differentiable, etc. in order to make the model tractable for
mathematical analysis.
It will be clear from this description that these idealized OM problems were not intended as
scientific models of real-life managerial problems, in the sense that the models could be used
to explain or predict the behavior or performance of real-life operational processes. They
were just partial models of problems that operations managers may encounter. The models
were partial because all aspects of the problem that were not related to the method or
technique used were left out, the implicit assumption being that these aspects would not affect
the effectiveness of the problem solutions based on these models. It was left tithe practitioner
to include these aspects into the solution based on his knowledge of reality and of the partial
model of the problem. Operational processes can be very complex systems that are difficult to
model scientifically from a performance point of view. This is because the performance of an
operational process ± generally measured in terms such as in product quality, production
efficiency, cost, and in delivering speed and flexibility ± can be affected by many different
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elements in the process. For instance, machine conditions in a factory may affect quality and
volume of output; however, the actual impact of machine conditions on the factory output
may also depend on the knowledge, motivation and training of the personnel, and on the
information systems and performance measurement systems used by management. An
important shortcoming of the idealized problems is therefore that the effect of the human
factor on the performance of the operational process is largely neglected. As a result,
implementing problem solutions based on these models soften turned out to be a tedious
process, and frequently failed.
Up to now OM research has not been very successful in developing explanatory or predictive
scientific models of operational processes, that is, models that can be used to explain or
predict the output or performance of the process as a function of process characteristics,
process states and inputs to the process. This is a major roadblock for the development of the
field, since the development of effective methods to improve performance assumes that
scientific knowledge of the process is available.
At this point it is clear why the idealized operational management problems used for teaching
OR cannot be considered as predictive scientific models of operational processes. In fact,
they are idealized models of certain aspects of operational processes, which only serve to
identify the aspect of the problem that can be dealt with by specific methods and techniques.
Nevertheless, analysis of these idealized operational management problems has generated
valuable knowledge about and insight into its solution. Starting from small-scale simple
problem formulations, research has been performed on analyzing the problem and finding
optimal or near optimal solutions. The problems were formulated in mathematical terms, and
mathematical techniques were used for analysis and solution. Gradually the complexity of the
problem formulations studied was increased, making use of progress made in mathematics,
statistics and computing science, leading to the development of OR as a branch of applied
mathematics and computer science. These idealized models have provided us with valuable
insights in basic trade-offs, at a managerial level, but cannot be characterized as explanatory
or predictive models of operational processes.
OR can be considered as part of the quantitative research in operations management.

However, the scientific aspect of OR does not pertain to the modeling of operational
processes, but to the analysis of the mathematical aspect-model of the process and the quality
of the mathematical solutions. Inorb hardly any attention is paid to the scientific modeling of
operational processes, that is, describing the statics and dynamics of the processes that are the
object of study in OM. Instead, an OR methodology has been developed mainly dealing with
technique-oriented modeling of real-life problem instances and implementing of solutions
derived from the model. An example of this OR methodology is the well-known hierarchical
planning approach (Hex and Meal,1975), where the problem is formulated in terms of a set of
hierarchically positioned mathematical programming models.
Independent from the development of OR in the USA, during the Second World War in the
UK operational research developed as another branch of quantitative modeling in OM (e.g.,
Keys, 1991). In operational research, teams of researchers with different disciplinary
backgrounds, in close co-operation with the problem owner, work on developing a simple but
sufficiently valid model of the problem, derive solutions to the problem based on this simple
model, and test and implement the solution under problem-owner leadership. The operational
research approach intends to include all aspects of operational processes that are relevant for
explaining the behavior and actual performance of the process, including the knowledge,
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views and attitudes of the people at the operational level and the managerial level (see, e.g.,
Lakoff (1957) for an explanation of this phenomenon). However, also the operational
research approach does not produce scientific knowledge about operational processes, since it
is only interested in explaining and improving the performance of one specific operational
process instance. Operational research studies are rich inters of modeling the various aspects
and details that are considered relevant for the problem at issue, but only to the opinion of the
team consisting of problem owner(s) and researchers. Operational research studies generally
lacking construct validity (for definitions and a discussion on construct validity in OM, we
refer to O'Leary-Kelly and Okura (1998) and Yin (1994, p. 34)).Operational research can be
viewed as a straightforward extension of the scientific management approach to solving
operational process problems. The extension that operational research provides is the concept
of working in multidisciplinary teams in close cooperation with and reporting to the problem
owner(s).
As a result of the developments described above, which roughly took place between 1920 and
1960, quantitative scientific models of operational processes were virtually nonexistent. With
scientific models we mean models which cane used to predict the behavior or performance of
operational processes, and which can be validated empirically in an objective way. That does
not mean, however, that the knowledge reported in the OR and operational research literature
is of no value. In fact, the OR literature contains valuable knowledge about aspects of
operational processes and OR literature contains valuable knowledge about problem
instances. At this place, two important achievements from OR must be mentioned. The first
achievement is the development of powerful short-term forecasting techniques, based on
statistical analyses of historical data of the variables to be forecasted. These results have been
consolidated in the work of Box and Jenkins (1976). It is interesting to note that their
approach is based on discerning patterns in historical data that can bemused to predict future
data. This approach does not seek causal relationships to explain past behavior or predict
future behavior but considers the process that generates the data as a black box. The second
achievement is in the area of inventory control, where a large amount of idealized inventory
control problems has been studied and solved to optimality or good approximate solutions
have been found. This work has been consolidated in the work by Silver et al. (1998).
Inventory control theory may well be the most frequently applied part of idealized models in
operations research.
OR and operational research did not provide a sufficient basis for the development of
explanatory and predictive models of operational processes. Two important exceptions must
be mentioned. The first exception is the achievement obtained by Forrester (1961), who
developed a theoretical model of the interactions between flows of resources, materials and
information in operational processes, which was able to explain the dynamic behavior of
these processes. The industrial dynamics models of Forrester (1961) are scientific theoretical
models of operational processes, as they can explain and predict the dynamic behavior and
performance of the processes and can be validated empirically. In this respect the work of
Forrester was a breakthrough, which has led to a general methodology for modeling dynamic
systems known as system dynamics (Starman, 2000). The second important major
achievement in theoretical model-based research in OR is queuing theory (Buzzcut and
Shanti Kumar, 1993). Queuing theory provides us with affirm basis for understanding the
performance of an operational process from its resource structure and the variability in order
arrivals and resource availability (e.g., Hop and Spearman, 1996). Just like industrial
dynamics provides a theoretical framework for understanding the dynamic orlon-stationary
behavior of industrial systems from the feedback characteristics of the system, queuing
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theory provides a theoretical framework for understanding the steady-state or stationary

behavior of the system from the variability in orders and resources. In addition to these two
exceptions, we should also mention the work around the so-called ``learning curve'' (see
Yelled (1979) for a review) and the modeling efforts by operations researchers of this
phenomenon. The learning curve models the empirical finding that frequent repetition of an
operation leads to a decrease in the time needed for the execution of the operation. The basic
learning curve asserts that the relation of unit labor hours or production costs to the total
number of items produced is linear in the logarithms of these variables. Note that the learning
curve was discovered when observing data from real-life processes(Wright (1936) as referred
to by Moth (1986)). As such, it was not a causal model, but a phenomenon that occurred in a
systematic way. Later, efforts have been made to develop explanatory and predictive models
(e.g., Muth,1986). These models relate existing theory from areas such as psychology and
organizational behavior to the observed power function in empirical learning curve studies
and describe causal quantitative relationships.
Despite the rather underdeveloped scientific state of the field, in the last decades methods and
techniques developed by OR have been starting to make serious impact on the design and
control of operational processes. This especially pertains to highly automated operational
processes, or operational processes and operational decision problems where the impact of
the human factor is negligible. A prominent field of successful application of mathematical
optimization techniques is in the general area of static allocation problems where the
objective is to optimize the allocation of a resource, such as in cutting stock problems (see
Cheng et al., 1994, for an overview) and vehicle routing problems (see Ball et al. (1995) for a
comprehensive overview and Leenstra et al.(2001) for recent additions). In the 1970s and
1980s OR was already an established field as far as mathematical analysis was concerned.
Major achievements have been achieved in the field of mathematical programming and other
areas of discrete optimization. However, in those days, apart from the exceptions discussed
above, its impact on the design and control of real-life operational processes was very
limited. In the early 1970s, articles were published stating that OR research society was
mainly talking to itself. In the late 1970s, one of the founding fathers of OR, Lakoff, wrote an
article stating that ``the future of OR is past'' (Lakoff, 1979), expressing his frustration over
the tremendous amounts of resources spent on analysis of problems that had only weak
relation to real-life operational processes. Their lack of impact on the management of
operational processes could be attributed to the fact that many of the models and solutions
provided were not recognized by managers as having close correspondence to the problems
they struggled with. Therefore, the real breakthrough developments took place in industry
and were not driven by theoretical findings. We will give three examples to elaborate on this
statement.
In the 1970s, in industry much time was spent on introducing information technology for the
control of manufacturing processes, especially material requirements planning (MRP)
systems (Wight, 1974). At the first instance, theory research community did not consider
these systems to be of any importance. However, the MRP systems evolution was a carrying
wave for the American Production and Inventory Control Society (APICS) to start a real
crusade to reduce inventories, increase efficiency, and increase delivering performance in US
industry. The Society organized professional education, launched its own journals, and was
highly successful in terms of membership and getting the profession (production and
inventory control) to a higher level. Initially, scientists did not play an important role in this
development. Eventually, however, the MRP system was adopted as a ``way of working''
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and/or theorists started to analyze MRP-related problems, thereby creating insights into the
working of MRP systems, but again without much impact on the profession.
A similar phenomenon was observed in response to the introduction of Japanese

manufacturing techniques, as in the Toyota Production System(Schonberger, 1982). In the
Toyota factories in Japan, in the 1950s and 1960s away of organizing manufacturing
processes had evolved which was quite different from the processes used in the West. The
Japanese put emphasis unreliable machines, reliable products (quality) and flexibility, both in
terms of machine set-ups and resource flexibility. The result was a manufacturing system that
was not only more efficient than those used in the West, but at the same time more flexible,
easier to control, and which could deliver high quality product. In short, their operational
processes were superior to those used in the West. Studying the Toyota production system,
the West has learned the lessons, and consequently also used just-in-time techniques, total
quality management, and total productive maintenance. In response, the OR research
community has shifted its attention to new operational process problems, including inter alia
elements of just-in-time manufacturing, and started to analyze these new problems, producing
insight into the characteristics of these new manufacturing techniques.
Another example is the use of workload control to control throughput

timeincomplexproductionsystems.Workloadcontrolwasalreadyadvocatedas`ìnput-output
control'' by Wight (1974) in his book on MRP and is now widely known as CONWIP (Hop
and Spearman, 1996). In the 1970s and1980s, two research groups involved in empirical
research in industry observed independently that workload control dramatically improved
both throughput and throughput time (Bertrand and Wortmann, 1981; Wiendahl,1987). The
observed improvements could not be explained by conventional OR models. The
conventional way for OR to model a complex production system is an open queuing network
model. Analysis of open queuing network models reveals no improvement when applying
workload control; on the contrary, the performance deteriorates if workload control is
applied. However, in many real-life productions situations workload control was adopted as
an effective management tool and eventually OR theorists have picked it up as a research
topic. Later research showed that workload control does improve performance under the
assumption that management can influence the arrival of new orders to the system (Hop and
Spearman, 1996),thus closing the queuing network. However, the improvements observed in
industry by Wien dahl (1987) were obtained without such control on new customer orders.
Recent survey and field study research (Schenker, 1988;HolstroÈm, 1994; Lieberman and
Demister, 1999) contains indications that one of the assumptions underlying the conventional
queuing network models might be wrong. Other types of queuing network models might
explain what is observed in real-life operational processes (Bertrand and Vanrooyens, 2002).
The discussion above shows how OR research can become more effective. OR should study
models that are closer to real-life operational processes. Infect, models should be studied
which can be validated as real-life processes, and the results of the analysis should be tested
in real life. In such a way, feedback is obtained regarding the quality of the model used for
and the quality of the solutions obtained from the analysis. Thus, theoretical quantitative
research should be combined with empirical quantitative research. For a fine example of such
research see Inman (1999) adenomatous and Raman (2000). In the next section, both
theoretical quantitative research and empirical quantitative research are discussed more
extensively and explicitly and are positioned in a general quantitative modeling OM research.
Overview of OM research methodologies using quantitative modeling
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Quantitative model-based research can be classified as a rational knowledge generation

approach (see Meredith et al., 1989). It assumes that we can build objective models that
explain (part of) the behavior of real-life operational processes or that can capture (part of)
the decision-making problems that are faced by managers in real-life operational processes. It
is important to stress that the relationships between the variables are described as causal,
meaning that it is explicitly recognized that a change of value intone variable will lead to a
change of fin another variable. In other types of quantitative research, such as survey
research, also relationships are defined between the variables that are under study. However,
generally in survey research the range over which the variables vary is not always defined
explicitly, and the relationship between the variables is usually not causal, Andin most cases
not quantitative. With ``quantitative'' in this observation we mean that the extent to which the
dependent variable changes when a specified change in the independent variable occurs is
quantitative. An important consequence of the fact that relationships are causal and
quantitative is that the models can be used to predict the future state of the modeled processes
rather than be restricted to explaining the observations made. Within the model, all claims are
therefore unambiguous and verifiable. It is important to realize that this is not valid for claims
that pertain to the world outside the model. For the world outside, unambiguous and
verifiable predictions are very hard to make, and we will show that this issue has hardly been
addressed in the academic literature. Therefore, we see in the literature a clear distinction
between empirical quantitative modeling research and axiomatic quantitative modeling
research.
We may classify model-based OM research into two distinct classes. The first-class of these
is primarily driven by the (idealized) model itself. We will denote this type of research as
axiomatic, in line with the terminology introduced by Meredith et al. (1989). In this class of
research, the primary concern of the researcher is to obtain solutions within the defined
model and make sure that these solutions provide insights into the structure of the problem as
defined within the model. Axiomatic research produces knowledge about the behavior of
certain variables in the model, based on assumptions about the behavior of other variables in
the model. It may also produce knowledge about how to manipulate certain variables in the
model, assuming desired behavior of other variables in the model, and assuming knowledge
about the behavior of still other variables in the model. Formal methods are used to produce
this knowledge. These formal methods are developed in other scientific branches, mainly
mathematics, statistics and computer science. In fact, theoretical model-based OM research
heavily leans on results obtained in mathematics, statistics and computer science. As a result,
the types of models that are studied in this research line are to a large extent determined by
the available methods and techniques in mathematics, statistics and computer science, such as
combinatorial optimization and queuing theory. In fact, the researchers look at the operational
process or the operational decision problem through the Lookingglass of the mathematical
models that can be analyzed. Researchers in this line are trained in, for instance, decision
theory, dynamic programming, mathematical optimization, Markov processes or queuing
theory.
Typically, axiomatic research is normative, although descriptive research, aimed at

understanding the process that has been modeled, is also present. Normative research is
primarily interested in developing policies, strategies, and actions, to improve over the results
available in the existing literature, to find an optimal solution for a newly defined problem, or
to compare various strategies for addressing a specific problem. Almost all articles in the(US-
based) OR domain fall into this normative area (e.g., allocation theory and inventory theory).
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Research in the area of queuing and game theory typically is descriptive in nature and in most
cases model driven. Descriptive research is primarily interested in analyzing a model, which
leads to understanding and explanation of the characteristics of the model.
The axiomatic model-based research line has been very productive and Avast body of model-
based knowledge has been developed over the last 50 years. Regularly this knowledge is
consolidated in monographs and books. Good recent examples of such books are:
 Stochastic models of manufacturing systems (Buzzcut and Shanti Kumar, 1993)
 Logistics of production and inventory (Graves et al., 1993)
 Factory physics ( Hop and Spearman, 1996)
 Quantitative models for supply chain management (Tayer et al., 1998)
 Local search in combinatorial optimization (Arts and Leenstra, 1997).
The second class of model-based research is primarily driven by empirical findings and
measurements. In this class of research, the primary concern of the researcher is to ensure
that there is a model fit between observations and action sin reality and the model made of
that reality. This type of research can be both descriptive and normative. Descriptive
empirical research is primarily interested in creating a model that adequately describes the
causal relationships that may exist, which leads to understanding of the processes going on.
Examples of this type of research is the industrial dynamics research conducted by Forrester
in the 1950s (e.g., Forrester, 1961) and the research unclasped in industrial systems by Fine,
Mendelson and Pillai in the 1990s(Fine, 1998; Mendelson and Pillai, 1998). Normative
empirical quantitative research is primarily interested in developing policies, strategies and
actions to improve the current situation. This area of research is very small. Some normative
claims have been made within quantitative empirical articles (e.g., Blocher et al., 1999), but
the verification procedure is usually not very strong. As with any research with a longitudinal
design where a change action is made during the research, it is very hard to assess which
changes in performance are due to the specific action and which are due to other changing
circumstances. In empirical OM research, controlling all relevant variables is impossible.
In contrast with axiomatic quantitative research, empirical quantitative model-based research
has not been very productive. Empirical model-based research reports on the applications of
theoretical research results in real-life operational processes. Researchers working in this line
should have much knowledge about the relevant characteristics of the operational process
understudy. However, OM still lacks a well-defined, shared methodological framework for
identifying and measuring the relevant characteristics of real-life operational processes. For
instance, important factors in a queuing model of an operational process are the capacity of
the resources, the processing times of the operations, and the arrival rate of work orders.
There is no objective, situation independent and generally accepted procedure that, observing
a specific operational process by means of a queuing model, is used for measuring the
capacity of the resources, the processing times of the operations and the arrival rate of the
orders. Of course, in each application in a real-life situation, this construct problem is dealt
with in some way or another; however, this is always done in a subjective, situation-
dependent way that is seldom explicitly reported in publications. For that reason, it is difficult
to judge the scientific value of the results reported in these publications. However, given that
the fact the quantitative model-based research is a rational, objective, scientific approach, it
must develop an objective, rational way to deal with the problems encountered when doing
empirical research.
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The discussion above leads to a classification as shown in Table I. Each of these four research
types leads to different contributions to the general research questions in OM. Note that in
large-scale research projects various of these research types could be combined.
Review of relevant methodological literature
Research methodology in quantitative modeling in OM has traditionally not been perceived

as an issue. There are a couple of explanations for this. The main point is that most of the
reported work on methodology in OM has been on empirical research methodology. We refer
to the special issue of the Journal of Operations Management (Melnyk and Handfield, 1998b)
for an extensive setoff article on OM research methodology, and to Meredith et al. (1989) for
an extensive discussion on methodology in OM research in a general way.
Midriff et al.'s (1974) model is based on the initial approaches used when operational
research emerged as a field. In his model, the operational research approach consists of
several phases:
(1) conceptualization
(2) modeling
(3) model solving
(4) implementation
In the conceptualization phase, the researcher makes a conceptual model of the problem and
system he/she is studying. The researcher makes decisions about the variables that need to be
included in the model, and the scope of the problem and model to be addressed. In the next
phase, the researcher builds the quantitative model, thus defining causal relationships
between the variables. After this, the model solving process takes place, in which the
mathematics usually play a dominant role. Finally, the results of the model are implemented,
after which a new cycle can start. Midriff et al. (1974) argue that a research cycle can
arguably begin and end at any of the phases in the cycle, provided that the researcher is aware
of the specific parts of the solution process that he/she is addressing and, consequently, of the
claims he/she can make based on the results of his/her research.
Additionally, they put forward the notion of shortcuts in the research cycle that are often
applied and that lead to less than desirable research designs. For instance, they distinguish the
``modeling ± model solving ± narrow feedback’ ‘cycle, and comment that many researchers
following this cycle tend to mistake the model solving process for implementation.
Alternatively, they name the` `conceptualization ± narrow feedback ± implementation'' cycle,
which tends to mistake conceptualization for modeling, and thus distinguishing a flaw that
characterizes some of the non-quantitative research. Midriff et al.'s (1974) modelist very
helpful in identifying a specific methodological path that a specific article is following and
relating it to the validity of the claims that are made in the article.
As such, each of the four research types identified in the previous section cane positioned in
this model. Since we are discussing quantitative model-based research, the ``scientific model''
is a central issue in all four types.
In AD research, the modeling process is central. The researcher takes a conceptual model ±
mostly from the literature ± and makes a scientific model of this. Further, the researcher does
some analyses on this scientific model to gain insight into the behavior of this model. The
researcher typically does not move into the model solving phase. This extension is made in
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Research, where the model solving process is the central research process reported. In many
AN article the modeling process is also included, and the results of the model a refed back to
the conceptual model. This leads to the ``modeling ± model solving’ ‘shortcut. Midriff et al.
(1974) call this feedback in the narrow sense and cite as the most common flaw that the
researcher mistakes this feedback for implementation and puts forward the scientific claim
accordingly.
In ED research, the researcher typically follows a cycle of ``conceptualization± modeling ±

validation''. It is interesting to note that the main risk that Midriffed al. (1974) notice is an
overconcern with validation, i.e., the researcher wants to make a perfect fit between the
model and reality. Earlier in this article, we noticed that reality in operations management
cannot be fully captured and an over-axiomatic approach in empirical research should
therefore be avoided. Finally, the most complete form of research is EN, where the entire`
`conceptualization ± modeling ± model solving ± implementation'' cycle is conducted. As
discussed above, in many cases, this research builds upon earlier published research that is in
the AD category and has already developed paths for the ``modeling ± model solving'' stages.
How to conduct quantitative research OM
This section we will discuss more specifically how to conduct good axiomatic quantitative
research and how to conduct good empirical quantitative researching OM.
Axiomatic quantitative research
Axiomatic quantitative OM research starts with a condensed description of the characteristics

of the operational process or the operational decision problem that is going to be studied. This
corresponds with the conceptual model in Figure 1. The conceptual model description should
use as much as possible concepts and terms that are accepted as standards published in
scientific OM literature on the subject under study. Generally, what is studied is a variant of a
process or a problem that has been studied before. Therefore, in the conceptual model
description reference is given to generally accepted anchor articles which contain
descriptions of the general characteristics of the process or problem studied in the research
line in which the current research fits (e.g., Economic lot sizing, queuing, or inventory
control) and to the recent articles which study processes or problems that are closely related
to the process or problem under study. In this way the process or problem under study is
clearly positioned in the scientific literature. Note that studying a process can be considered
as descriptive, whereas studying a problem can be considered as normative research.
The scientific relevance of the research is mainly determined by what the research intends to
contribute by the existing literature. We can distinguish two types of contribution. The first
type of contribution is the study of a new variant of the process or problem, using well-
known solution techniques the second type of contribution is to study a process or problem
that has been studied before, but provides a new, or in some respects better, solution to the
problem, either by applying new types of solution techniques to the problem, or by achieving
better results with accepted solution techniques.
The second phase in axiomatic quantitative research is specification of the scientific model of
the process or problem. The scientific model must be presented in formal, mathematical
terms, such that either mathematical or numerical analysis is possible, or computer simulation
can be carried out. Thus, researchers in this field must be well educated in mathematical
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analysis, numerical analysis or computer science. In case computer simulation is used as

research tool, knowledge is also needed about experimental design and statistical analysis.
The scientific quality of the research is mainly determined by the `òptimality'' of the result,
given the scientific model. In case of normative research, `òptimality'' pertains to the extent
to which the result can be proven tube the best possible solution for the problem given. In
case of descriptive research, `òptimality'' pertains to the extent to which the results can be
proven to give the exact characteristics of the process given.
Proofs generally can only be delivered with mathematical analysis. Therefore, in axiomatic
research a strong mathematical background is needed for doing high quality research. This is
also needed to be able to judge which scientific problem formulations, given the current state
of mathematical knowledge, are good problems, that is, problems for which high quality
results can be obtained. High quality solutions result from insight into what might be
absolution, in combination with a mathematical proof of the quality of the solution. Criteria
for the correctness of the proof are found in the branch of mathematics used in the research.
This is not discussed in this article. Both in finding a solution and in proving the correctness
of the solution, intuition paysan important role. Thus, good research is not just the result of
analytic skills or applying a methodology, but the result of good intuition in combination with
analytical skills and a good methodology.
From the above discussion it follows that the main body of a theoretical quantitative OM
article generally contains sections that cover the subjects outlined below:
 Conceptual model of the process or the problem.
 Scientific model of the process or the problem.
 solution.
 proof of the solution.
 Insights relating the solution to the conceptual model.
Sometimes the order is slightly different, and the authors find it more convenient to present a
mathematical analysis of the problem that uniquely leads to solutions or to characteristics of
the process.
Axiomatic quantitative research using simulation.
A slightly different approach is taken when the result is not obtained with mathematical
analysis but with computer simulation. This technique is used in case the model or problem is
too complex for formal mathematical analysis. This type of research generally leads to lower
scientific quality results than research using mathematical analysis, but the scientific
relevance of the process or problem studied may be much higher. This is because computer
simulation can deal with a much wider variety of scientific models than can mathematical
analysis. So, the trade-off here often is between scientific relevance of the process or problem
studied and scientific quality of the result.
Research that uses computer simulation requires several additional steps. A very important
step in simulation research is the justification of this research method. Since the scientific
quality of the results generally will bellower ± rather than mathematical proofs, only results
with some statistical significance can be reached, it is only justified to use this method if it
can be shown that it is not possible to solve the problem in an analytical way. A well-known
example here is use of computer simulation to test heuristic methods for solving
combinatorial optimization problems. Articles that report on this research always contain a
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section in which it is demonstrated that the problem cannot be solved to optimality in

polynomial time of the problem parameters. This is an accepted standard for justifying
research on heuristics.
The second step is the justification of the solution or hypothesis to be tested. In research
based on mathematical analysis, it is acceptable to just present the solution and the related
proof. There the solution is justified by the proof. In simulation research no proof is possible,
so we need to be very careful in selecting our heuristic solution or hypothesis. Generally,
articles of this kind contain a section where evidence from previous research is used to reason
why this heuristic might perform well, or why this hypothesis regarding the characteristics of
the process might come close to the true characteristics.
The third step is the set-up of the experimental design. This needs to be done very carefully
and in accordance with accepted standards (Kleiner and VanGroenendaal, 1992). All factors
in the scientific model that can have an impaction the quality of the solution or results must
be identified and must be varied in the simulation over a sufficiently large range of values
with sufficient detail. Thus, computer simulation articles always contain a section in which
the experimental design is presented and justified. Justifications are often based on results of
existing research, either analytical or simulation based, which provide information about
what is already known with certainty about related problems. Since we are dealing with
theoretical research on a computer model of the scientific model, there are ± apart from
storage, space and computer time± no limits to size and detail of the model. Simulation-based
theoretical research therefore is only limited by computing power. However powerful
computers ardor will be, their limitations urge us to decide carefully on the complexity of the
model to be investigated. Further, the number of factors to be considered in the experimental
design should be kept sufficiently low so that efficient simulation and effective data analysis
is possible.
The fourth step concerns the statistical analysis of the results of the computer simulations.
There is a wide spectrum of statistical techniques available for this purpose, and the choice
must be based on the type of research question to be answered. For performance testing, the t-
statistic could be used to test the statistical significance of the difference between the
performance obtained in the simulation with some benchmark, i.e., the performance of the
best heuristic found in literature. For testing the sensitivity of the performance for parameter
values in the model, analysis of variance could be used. Researchers involved in simulation-
based theoretical research should be well-trained in experimental design and statistical
analysis, since the state of knowledge in this field determines what research questions can be
approached with these techniques.
The fifth step concerns the interpretation of the results of the analysis related to the research
questions in the conceptual model. In this step the results are considered in the context of the
conceptual problem description and the researchers derive conclusions about the extent to
which the original questions are answered and what new questions emerge from these results.
The main body of a computer simulation based theoretical research article in OM therefore
contains sections dealing with the issues shown below:
 conceptual model of the process or the problem
 justification of the research method
 scientific model of the process or the problem
 justification of the heuristic or hypothesis
 experimental design
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 analysis of results
 interpretation of results.
Empirical model-based quantitative research

Quantitative model-based empirical research is concerned with either testing the (construct)
validity of the scientific models used in quantitative theoretical research, or with testing the
usability and performance of the problem solutions obtained from quantitative theoretical
research, in real-life operational processes. In Figure 1, these core processes are identified as
implementation and validation. Quantitative empirical research is still in its infancy and there
therefore exists much less consensus about what is good quantitative empirical research than
about what is good quantitative axiomatic research.
Empirical scientific research tests and challenges the validity of theoretical models, and tests
and challenges the usability and performance of the solutions of theoretical problems.
Empirical scientific research should be carefully distinguished from the use of axiomatic
research results in improvement projects. These latter projects aim at improving the
performance of an operational process by either changing its structure or its control. The use
of theoretical research results in such projects is based on the belief that the underlying
process models are valid and the theoretical solutions are useable and will perform well.
However, this belief is seldom tested during the project, although the methodological rules
for the practice of operational research prescribe that the model assumptions should be
checked (e.g., Lakoff and Assini, 1968). It is not surprising that the assumptions in
operational research projects are seldom checked, because doing so would be very time
consuming and costly, due to the effort involved in collecting all the data needed
forechecking all the underlying model assumptions. This explains why real-life operational
process improvement projects seldom produce scientific knowledge about operational
processes.
As stated before, quantitative empirical research must be designed to test the validity of
quantitative theoretical models and quantitative theoretical problem solutions, with respect to
real-life operational processes. This is in linewidth the more general concept of theory-driven
empirical research in OM(Melnyk and Handfield, 1998a; Handfield and Melnyk, 1998).
Model-driven empirical research takes advantage of the large body of axiomatic quantitative
research in OM and designs the empirical research accordingly. Examples are the work by
Fisher and Raman (1999), by Inman (1999), and by Schaller et al.(2000). The essence of their
work is validating the conceptual model orthel solution proposed by axiomatic research
results. Fisher and Raman (1999)analyze the accuracy of inventory records in retail and,
using available models, assess the consequences of these inaccuracies on the results that have
been obtained in the axiomatic studies. Inman (1999) validates the assumptions commonly
made in axiomatic research about the processing times and order arrival times in production
systems. Schaller et al. (2000) analyze the decision modeling process in advanced planning
software and compare the theoretical assessment to the empirical observations they make.
Their empirical observations are driven by hypotheses that are based on the theories
developed earlier in primarily axiomatic research settings.
A major problem here is that real-life operational processes are all different, although there
are structural similarities within classes of operational processes. The similarities are often
caused by the type of manufacturing technology used. Well-known classes of operational
processes are, for instance, the continuous flow shop (e.g., assembly line), for high volume
production of similar products, and the job shop for low volume production of a large variety
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of different products. However, depending on the work organization, the information system
used, the level of education of the workforce, etc., different flow lines and different job shops
may have different operational process characteristics, and these characteristics may evolve
over time. Therefore, empirical quantitative research should aim at validating the basic
assumptions about the operational processes and problem characteristics for well-defined
classes of operational processes, underlying the theoretical models and problems.
From these observations, we can derive the steps that need to be taken when doing empirical
quantitative research. The first step is the identification of the basic assumptions regarding
the operational process underlying the theoretical models or problems. In the OM literature,
we can distinguish different research streams that share common assumptions about the
operations process or operational decision problem. For instance, there is a research stream
that is based on a queuing model view on the production process. We call this a basic
assumption.
The second step is that researchers should identify the type of operational process and the
type of decision problem regarding this operational process, to which the basic assumptions
are assumed to apply. For instance, it is assumed that decisions about the resource structure of
a job shop production system should be based on a queuing model of the flow or orders along
the work centers.
The third step is that operational, objective criteria must be developed for deciding whether a
real-life operational process belongs to the class of operational processes considered (i.e., a
job shop) and for identifying the decision system in the operational process that represents the
decision problem considered. These criteria should be objective, that is, each researcher in
Musing these criteria would come to the same decision regarding the process and the decision
system.
The fourth step is to derive, from the basic assumptions, hypotheses regarding the behavior of
the operational process. This behavior refers to variables or phenomena that can be measured
or observed at the operational process in an objective way. The more different testable
hypotheses are derived from the basic assumptions, the stronger the research is.
The fifth step is to develop an objective way to do measurement or to make the observations.
This is a very crucial step that requires documentation. The reason for this is that, in
operational process research, there exists nonformalized construct for variables such as
processing time, machine capacity, production output, production throughput time, etc., nor
do generally accepted ways of measuring their variables exist. This illustrates the weak
position of quantitative empirical research in OM. The situation being as it is, empirical OM
researchers must develop their own way of measuring and document this carefully. This
requires that the researcher knows how to identify the relevant characteristics of the
operational process and knows how to change or influence and measure the relevant
characteristics of the process. Thus, model based empirical research cannot be done without a
systematic approach for identifying and measuring real-life operational processes. This is
what is called, by Midriff et al. (1974), the conceptual modeling of a system. Conceptual
models define the relevant variables of a system under study, the nature of their relationships
and their measurements.
The sixth step consists of applying the measurement and observation systems and collecting
and documenting the resulting data.
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The seventh step is the interpretation of the data, which generally will include the use of
statistical analysis. Here special techniques are needed since the data are not the result of an
experimental design where variables in the system can be manipulated at will but result from
observations on a real-life system that cannot be manipulated in an arbitrary way. Sophistical
statistical techniques have been developed for this type of research in some branches of
research in social sciences (e.g., Herzog, 1996; Macrolides and Schumacker,1996). When
developing the hypotheses regarding the behavior of the operational process in step 4, it
should be considered what type of behavior can be expected of the process under the given
real-life circumstances, within the time frame that the process can be observed; the
hypotheses should be restricted to behavior in the expected range and time frame. It makes,
for instance, no sense to develop the hypothesis that a job shop will have an average order
throughput time of 60 weeks under a steady state capacity utilization of 95 per cent, if a
reliable measurement of the work order throughput time under a capacity utilization of 95 per
cent requires that the process is measured for 10,000 years. Thus, developing effective
hypotheses and an efficient operational measurement system requires that the researcher is
quite familiar with the type of operational process and the type of decision problem
concerned, and is very familiar with the statistical techniques available for analysis of field
data.
Finally, the eighth step in quantitative empirical research consists of the interpretation of the
research results related to the theoretical models or problems that gave rise to the hypotheses
that were tested. This step completes the validation process and may result in confirmation of
(parts of) the theoretical model in relation to the decision problem and in relation to the
operational process considered but may also lead to (partial) rejections and suggestion for
improving the theoretical models.
The main body of a research article on model-based quantitative empirical research therefore
contains sections dealing with the issues outlined below:
 Identification of process or problem assumptions.
 Identification of types of operational process and decision problems considered.
 Developing operational definitions of the operational process and the decision system;
Derivation of hypothesis regarding process behavior.
 Development of measurement system.
 Results of measurements and observations.
 Interpretation of data and observations in relation to the hypotheses.
 Confirmation and/or rejection of the theoretical model assumptions.
Relevance
In OM, relevance is generally justified by referring to real-life situations to which the model
or problem might apply. Assessing relevance has had a long history in the OR journals. The
main debate addresses the so-called ``gaps’ ‘between OR theory and OR practice, basically
bringing forward two issues:
(1) Why do researchers not address more practically relevant problems inters of complexity,
design and definitions
(2) Why do practitioners not make more use of all available tools and results that have been
developed by the OR research community?
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In this article, we will not go into this debate, but refer to other articles, such as Corbett and
Van Cazenove (1993), Ormerod (1997), and Reisman antistick (1995). An important
observation in these articles is that progress in operations research seems to develop along a
line that Reisman and Kirschnickdenote as ``ripple research''. With this, they refer to research
that is conducted on small extensions of previous axiomatic research, and thus cannot bridge
the gap that, according to these articles, apparently exists between the results of axiomatic
research and the real-life need of decision makers. It should be noted that in some areas, e.g.,
allocation theory and inventory theory, series of small extensions have led to very useful
models that have been applied in business practice at a large scale.
The relevance issue cannot be seen apart from the fact that mathematics, statistics and
computer science do not (yet) provide us with sufficiently powerful methods of analysis to
address problems that come close to the complexity that is observed in most real-life
operational processes. The type of model studied in OR is therefore restricted to those models
that allow the researcher to do analysis and to make scientific claims. This leads to the fact
that for the axiomatic research the relevance criterion (about the validity of the model versus
reality) is usually applied very lightly. In many cases, relevance is motivated by referring to
earlier articles addressing similar issues, or by referring to general trends in the industry,
rather than tying the relevance to actual observations. The model is considered `àcceptably
relevant'' if the modeled problem can be recognized, possibly as an aspect model of reality.
We would like to add an important criterion for relevance, apart from the validity issue. This
is the question whether the solution of the model assists managers in making decisions in the
real world. This is the case if the aspect-model-based solution covers the most important part
of the solution, and the context factors (not included in the model) are less relevant tithe
actual solution.
Conclusions
In this article, we have discussed research methodologies used in quantitative modeling-based

OM literature. We have distinguished this set of literature from the OR and operational
research domain. Further, we have presented a typology which analyses the subject matter,
methodology and scientific claims for various types of articles in the domain reviewed in his
article.
We may conclude that the methodology issue has not received an abundance of explicit
attention in the literature. Especially in the axiomatic research lines, methodological issues
appear to be restricted to the narrow-scoped mathematical rigor concept. We have argued that
a more broad-sensed methodological rigor needs to grow as a concept in the OM literature,
such theta common frame of reference about rigor and relevance can be developed.
A major opportunity for quantitative, model-driven, empirical research has-been identified,

where the rich pond of axiomatic results, based on advances in mathematics over the past
decades, is fished to create more rigorous empirical scientific knowledge in the field of OM.
In such exemplary articles, given axiomatic models from OR is validated empirically in real-
life operational processes, giving way to a real theory-building process.
4.1.Research Design
In general terms research methodology is the process of carrying out research in a formalized
and scientific way. It is one way one proceeds with his research design adopted. The research
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done is exploratory and analytical in nature. The major emphasis in studies was on discovery
of new ideas and insights. Research is done as-
 Firstly, to understand the concept of Operation management.
 What is the area of Operation management?
 How it is being implemented in TCS?
 What is the assessment process of Operation management?
 Did questionnaire survey with the sample size of 30.It was conducted for three main
departments-Sales, Support and Service?
 Did analysis and prepared Column charts according to the questionnaire survey
response? The assessment is then done to bring out what is the process being followed
in TCS consultancy services Ltd. regarding Operation management.
4.2.Data Collection Method

a. Secondary Data - It refers to the data that has already been collected, the secondary data,
which has been used to carry out this study, are as follows:
* Operation assessment and development plan manual.

* Company’s Internet site (www.tcs.com)
* Other relevant study materials and websites.
evidence, in the form of a hypothesis test, indicates otherwise — that is, when researcher has
a certain degree of confidence, usually 95% to 99%, that the data does not support the null
hypothesis. It is possible for an experiment to fail to reject the null hypothesis.
H0 = the null hypothesis
Assumption : The Operation Management TCS consultancy services System in is not

effective.
4.3.Analysis of PMS – Processes & Components
4.3.1.Planning
In an effective organization, work is planned. This includes setting Operation expectation and
goals for individual in order to channel effort towards achieving the organizational objectives.
Involving employee in planning process is essential to their understanding of the goals of the
organization, what needs to be done, why it needs to be done, and expectation of
accomplishing the goals.
The PMS in terms of planning in TCS fairs around average, where they need to put planning
system in a very scientific way. They need to design the entire planning session taking into
consideration the aspiration and need of the people whose operation needs to be planned.
4.3.2.Monitoring
Designing effective feedback into an operation management programmer will improve

individual and team Operation and will make your organization more effective. With
effective feedback process, employees can see their progress and that motivates them to reach
their operation goals effectively.
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The PMS of TCS stand in between for monitoring, where they need to develop a feedback
channel into the system, which will capture the feedback in holistic way and must be part of
organizational culture.
4.3.3.Developing Employees
Providing employees with training and development opportunities encourages the good
Operation, strengthen job related skills and competencies , and help employee keep up with
changes in the workplace.
The Employee development in TCS is better, where the feedback from PMS is implemented
by the way of training and development. Where the organization equips people with the skill
which will be required in future.
4.3.4.Rating
Within the context of formal appraisal Operation requirement, rating means evaluating the
employee Operation against the element and standard in an employee Operation appraisal
plan and assigning a rating of record.
The rating of Operation appraisal system in TCS is satisfactory , ratings are more objective
for sales , which people in service and support don’t view as more subjective.
4.3.5.Action Based Operation
A Basic principle of effective management is that all behavior is controlled by its

consequences. Those consequences should be both formal and informal and both positive and
negative. Positive consequences include rewards and recognition, promotion. Negative
consequences mean may include counseling, reassigning, removing or downgrading.
The PMS in TCS fairs in terms of action-based Operation. TCS administers positive and
negative consequences with apt.
4.3.6.Analysis
If we look at the following graph, which measures the effectiveness of PMS in TCS, we find
out that it is quite effective and are continually achieving the purpose of enhanced operation.
4.3.7.Effectiveness
Sign of a good system is that it achieves what it has been designed to achieve. The principle
of execution achieves the end with best means and delivers the best result.
The effectiveness score of TCS is high where the employees seem to be happy with current
PMS system. TCS need to work for sales, where they need to design the news system. The
PMS of TCS is very effective on action-based Operation and developing employees, which
clearly shows that as an organization TCS is highly progressive organization which
continually develop people and provides negative and positive feedback. While it needs to
work in the area of planning, monitoring and rating , where they must get into more
systematic and have a separate session on planning , mid-year review , and need to teach
appraiser how to provide rating objectively. They need to plan and deviser sessions for each
52

lOMoARcPSD|14812207
employee by taking an objective of getting all the KRA in Month ,which need to discuss
jointly and must be agreed between the Appraiser and Appraisee.
5.RECOMMENDATIONS
5.1.Recommendations
1. Though the employees are free in all respects, there should be more Employee
Empowerment.
2. Employees should be encouraged to do work creatively and innovate to improve the

growth rate of organizations.
3. While posting employee in different departments their personal choices should also be
taken into consideration.
4. Executives must be given jobs where they are creative rather than following orders of
the boss and obeying them willingly.
5. The career growth of employees should be planned on the long-term basis.
6. The (candidates) not considered for promotion, should be informed about their
weaknesses so that they can work on it.
7. Separate session on planning the KRA should be taken up and must be discussed and
signed jointly between the appraiser and the appraisee.
8. TCS should introduce mid-year review into the system and must rate the employee
and provide them with necessary training and development.
6.CONCLUSION
TCS consultancy services Ltd. though seems to be an open organization but has a
conservative approach towards its operation management policies. There are many worker
policies provided for them. Besides this, their policies are quiet rigid. There is no proper
formation of grievance cell. Only basic amenities are being provided to workers. Thus, the
strengths and weaknesses of the organization can be listed below.
Strengths
 High concern for excellence in Operation.
 Continuous development of workforce.
 No place for displacing personnel power.
 A strong desire for making an impact on others for the well-being of the organization.
 A good teamwork.
 A desire to change adverse situations.
Weaknesses
 Underutilization of decision-making power.
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lOMoARcPSD|14812207
 Rigid hierarchy level.
7.BIBLIOGRAPHY
Web sites
 www.google.com
 www.hrmguide.net
 www. asana.com/resources/functions-of-operation-management
 www.managementscience.org
 www.londonexternal.ac.uk
 www.hr.com
 www.wikipedia.com
 https://en.wikipedia.org/wiki/Operations_management
 http://www.iomnet.org.uk/Home/WhatisOperationsManagement
 Arts, E.H. and Lenstra, J.K. (1997), Local Search in Combinatorial

Optimization, Wiley, New York, NY.
 Lakoff, R.L. (1957), `À comparison of OR in USA and Great Britain'',

Operational Research Quarterly, Vol. 8, pp. 88-100.
 Schenker, R.W. and Swink, M.L. (1998), `Òn theory in operations

management'', Journal of Operations Management, Vol. 17, pp. 97-113.
 Schonberger, R. (1982), Japanese Manufacturing Techniques: Nine Hidden

Lessons in Simplicity, Free Press, New York, NY.
 Silver, E.A., Pyke, D.F. and Peterson, R. (1998), Inventory Management and
Production Planning and Scheduling, 3rd ed., Wiley, New York, NY.
 Starman, J.D. (2000), Business Dynamics: Systems Thinking for a Complex

World, Irwin/McGraw-Hill, Boston, MA.
 Taylor, F.W. (1911), The Principles of Scientific Management, Harper & Row,
New York, NY, reprinted as part of a collection, Scientific Management, Harper
& Row, 1947.
 Tayer, S., Ganesan, R. and Magazine, M. (1999), Quantitative Models for Supply
Chain Management, Kluwer Academic Publishers, Boston, MA.
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 Wacker, J.G. (1998), `À definition of theory: research guidelines for different
theory-building research methods in operations management'', Journal of
Operations Management, Vol. 16,pp. 361-85.
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Operations Management (SVKM's NMIMS)

Scan to open on Studocu

Studocu is not sponsored or endorsed by any college or university

“A STUDY ON OPERATION MANAGEMENT”

Submitted in partial fulfillment of requirements for

SAP ID: 77121250360

NMIMS GLOBAL ACCESS SCHOOL FOR CONTINUING EDUCATION

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OUR MANAGEMENT OBJECTIVE 11

OUR PEOPLE OBJECTIVE 11

Four Types of Focus Dimensions Used in Operations Management 12

2.1. An Introduction of Operation Management 13

2.2. Levels of Operation management 24

2.3. Value for money 24

2.4. Measures and metrics 25

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2.6. Basic Steps 27

2.7. Operation management mainly include following things: 28

2.8. Managing Operation Effectively 30

3.1. Objective of the Project – Introduction of the Problem 30

3.2. Significance of the Project 31

3.3. Definition - A Theoretical Perspective 31

3.4. Preparation and Planning for Operation management 31

3.5. Operation Management and Development 31

4.1. Research Design 50

4.2. Data Collection Method 50

4.3. Analysis of PMS – Processes & Components 50

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1.1. TCS an overview

Tata Consultancy Services (TCS) is an Indian multinational information technology (IT)

1.2. TCS DNA

Key highlights of this engagement were:

 HOBS Customer Relationship Management System (CRMS), Enterprise Product

Digitalize legacy IT stack to strengthen market leadership.

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transformation, DNA wanted to deliver a unified customer experience through a

1.3. Employer spotlight

Former CEOs of TCS

1.4. About TCS

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On 8 October 2020, TCS surpassed Accenture in market capitalization to become the

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1.5 Strong SAP Capabilities:

1.6. VISION STATEMENT

1.7. MISSION STATEMENT

1.8. QUALITY POLICY STATEMENT

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OUR PEOPLE OBJECTIVE

1.10. CORE VALUES

1.11.A SNAPSHOT OF Tata consultancy services Ltd.

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Operations management is an area of management concerned with overseeing, designing, and

Four Types of Focus Dimensions Used in Operations Management

Learning and Innovation

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