Scribd
Upload
5 views

Introduction of Operations Management

Operations management is the administration of business practices aimed at enhancing efficiency and maximizing profit, serving as the foundation of a business's supply chain and logistics. Its objectives include ensuring production meets customer demand, maximizing efficiency, minimizing costs, improving quality, and enhancing flexibility. The field has evolved through historical milestones such as the introduction of the assembly line, scientific management, and the influence of Japanese manufacturers, impacting various business functions including marketing, human resources, and finance.

Uploaded by

arjoedeguzman
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
5 views

Introduction of Operations Management

Operations management is the administration of business practices aimed at enhancing efficiency and maximizing profit, serving as the foundation of a business's supply chain and logistics. Its objectives include ensuring production meets customer demand, maximizing efficiency, minimizing costs, improving quality, and enhancing flexibility. The field has evolved through historical milestones such as the introduction of the assembly line, scientific management, and the influence of Japanese manufacturers, impacting various business functions including marketing, human resources, and finance.

Uploaded by

arjoedeguzman
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 46

Operation

Managem
ent
Reported By: Arjoe S. de Guzman, MM, MBA
What is
it and
why
does it
matter?
Operations management
executes backend business
functions.
What is operations
management?

• Operations
management is the
administration of
business structure,
practices, and
processes to
enhance efficiency
and maximize profit.
Why is operations
management
important?

• Operations are the


foundation of a
business, including
how it deals with
supply chain and
logistics. Profits rely
on lean, efficient
operations.
Objectives of
Operations
Management
• Operations management is
a field concerned with
designing, planning,
controlling, and operating
an organization’s
production systems.
Objectives of
Operations
Management
1. Ensure that the
organization’s production
systems can meet customer
demand.
Objectives of
Operations
Management
2. Maximize the efficiency of the
organization’s production
systems.
Objectives of
Operations
Management
3. Minimize the cost of
producing goods and services.
Objectives of
Operations
Management
4. Improve the quality of the goods
and services made by the
organization.
Objectives of
Operations
Management
5. Increase the flexibility of the
organization’s production systems.
Objectives of
Operations
Management
6. Reduce the risk of disruptions to
the organization’s production
systems.
Objective
s of
Operation
s
•7. Improve communication and

Managem
coordination among all parties
involved in operating an
organization’s production

ent
systems.
Scope Of Operations
Management

• It is the process of planning,


organizing, directing, and
controlling the resources needed
to produce goods and services.
The scope of operations
management includes all the
activities necessary to plan,
design, and manage the
production and distribution
process.
8 Scope of
Operation
Manageme
nt
1. Facility layout
planning
8 Scope of
Operation
Manageme
nt
2. Workforce planning
and management
8 Scope of
Operation
Manageme
nt
3. Inventory
management
8 Scope of
Operation
Manageme
nt
4. Scheduling
8 Scope of
Operation
Manageme
nt
5. Quality Control
8 Scope of
Operation
Manageme
nt
6. Transportation and
Logistics
8 Scope of
Operation
Manageme
nt
7. Maintenance
8 Scope of
Operation
Manageme
nt
8. Project Management
Historical
Evolution
and Key
Milestone
in the
Operations
Manageme
nt
• Management Industrial Evolution
Operations Management began in
the 1770s at England and spread at
the rest of Europe and to the
United States during the 19th
century. It substituted machine
power for human power wherein
the most significant machine used is
the steam engine.
Scientific Management
• Scientific Management widely changed
the management of factories. It was
developed by Frederick Winslow Taylor,
the father of scientific management. This
management is hugely based on
observation, measurement, analysis and
improvement of work methods and
economic incentives wherein different
procedures were studied to identify the
best method in doing each job.
Human Relations Movement
• Human Relations generally deals with the way
on how managers interact with their employees,
it is invented to increase the satisfaction of the
workers without sacrificing the quality of a
service or product. This originated from the
belief that a satisfied employee will do work
more efficiently. The Human Relations
Movement attempted to approach the subject of
organizational management psychologically.
Elton Mayo’s work on human behavior at The
Hawthorne Works of The Western Electric
Company in Chicago (1924-1927) produced
many conclusions in respect of human relations
and motivation theory.
Decision Models and Management
Science
• This period is accompanied by the development of
several quantitative techniques. In this period, F.W.
Harris developed a mathematical model for inventory
order size in 1915. During this movement, W.A.
Shewart applied statistical inference to product quality
and made use of quality control charts. H.F. Dodge and
H.G. Roming applied statistical sampling to quality
control wherein the sampling plans were inspected.
L.H.C. Tippott conducted studies that provided the
groundwork for statistical sampling theory in 1935.
P.M. Blacker and his companions also involved
themselves by doing operations research applications
in World War II.
The Influences of Japanese
Manufacturer
• Japanese Manufacturers played a huge role
in the evolution of operations management.
They developed management practices that
increased productivity and quality. Because
these practices were seen as effective and is
considered as a good approach, companies
outside Japan became interested towards
them. Different quality and productivity
applications from Japan robotics were also
developed which made arose towards W.E.
Deming and J. Juran’s names in the world of
management.
Historical Milestone on
Operation Management
• Henry Ford's invention of the assembly line in
the early twentieth century, which significantly
increased productivity and enabled mass
production of automobiles, making them more
affordable to the general public, was a
watershed moment in operations management;
this marked a significant shift toward
standardized manufacturing processes.
Other
Historical
Milestone
:
Division of Labor by Adam Smith-
Adam Smith’s discussion in The Wealth
of Nations united two key concepts:
division of labor as a motor for
generating prosperity, and market
systems based on self-interest as a fuel
for that motor.
Other
Historical
Milestone
:
Interchangeable Parts by Eli Whitney-
Interchangeable parts are components of
manufactured goods that are standardized
and are easily replaced with new parts.
The concept of interchangeable parts
allows for manufactured goods to be mass-
produced rather than individually crafted.
Other
Historical
Milestone
:
Gantt Chart by Henry Gantt- A Gantt
chart is a commonly used graphical
depiction of a project schedule. It’s a type
of bar chart showing the start and finish
dates of a project’s elements, such as
resources, planning, and dependencies.
Responsibilities in Operations management is a field of business that
involves managing the operations of a business to
Operations Management ensure efficiency in the execution of projects.
Product
Design
Product design involves
creating a product that will be
sold to the end consumer. It
involves generating new ideas
or expanding on current ideas
in a process that will lead to
the production of new
products.
Forecasting

Forecasting involving
making predictions of
events that will occur
in the future based on
past data.
Supply Chain
Management
• Supply chain management
involves managing the
production process from raw
materials to the finished
product. It controls everything
from production, shipping,
distribution, to delivery of
products.
Delivery
Management
• The operations manager is in
charge of delivery
management. The manager
ensures that the goods are
delivered to the consumer in a
timely manner.
Transformation CONVERTING
Process INPUTS TO OUTPUTS
• A transformation process is any activity or
group of activities that takes one or more
inputs, transforms and adds value to them,
and provides outputs for customers or
clients. Where the inputs are raw
materials, it is relatively easy to identify
the transformation involved, as when milk
is transformed into cheese and butter.
Where the inputs are information or
people, the nature of the transformation
may be less obvious.
• Often all three types of input – materials,
information and customers – are
transformed by the same organization.
For example, withdrawing money from a
bank account involves information about
the customer's account, materials such as
cheques and currency, and the customer.
Treating a patient in hospital involves not
only the ‘customer's’ state of health, but
also any materials used in treatment and
information about the patient.
The Interplay between
Operational and Other Business
Functions
The role of operations
management impacts on
all functional areas of a
business organization
including Marketing,
Human Resources (HR)
and Finance.
How is operations
management linked
with other business
functions?
Impact of Production on
Marketing

Production affects quantity,


uniqueness and quality of
products.
Impact of Production on
Human Resources (HR)

•Different production methods


require workers to possess
different expertise.
Impact of Production
on Finance
•Capital-intensive production or labor-
intensive production affects the sources
and amount of finance differently.
End of
Report
Thank You!

You might also like