NOTES ON OPERATIONAL MANAGEMENT.doc - *6COURSE CODE BSE 313...

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*6COURSE CODE BSE: 313 OPERATION MANAGEMENT INTRODUCTION Operation is that part of an organization, which is concerned with the transformation of a range of inputs into the required output (services) having the requisite quality level. Management is the process, which combines and transforms various resources used in the operations subsystem of the organization into value added services in a controlled manner as per the policies of the organization. The set of interrelated management activities, which are involved in manufacturing certain products, is called as production management . If the same concept is extended to services management, then the corresponding set of management activities is called as operations management. Definition of operations management This is an area of management concerned with overseeing planning, analysis, design control, and evaluate the process of production and redesigning business process in the production of goods and services. SCOPE OF OPERATIONS MANAGEMENT Operations Management concern with the conversion of inputs into outputs, using physical resources, so as to provide the desired utilities to the customer while meeting the other organizational objectives of effectiveness, efficiency and adoptability. It distinguishes itself from other functions such as personnel, marketing, finance, etc. by its primary concern for ‘conversion by using physical resources’. Following are the activities, which are listed under Production and Operations Management functions: 1. Location of facilities. 2. Plant layouts and Material Handling. 3. Product Design. 4. Process Design. 5. Production and Planning Control. 6. Quality Control. 7. Materials Management. 8. Maintenance Management. LOCATION OF FACILITIES Location of facilities for operations is a long-term capacity decision, which involves a long-term commitment about the geographically static factors that affect a business organisation. It is an important strategic level decision-making for an organisation. It deals with the questions such as ‘where our main operations should be based?’ The selection of location is a key-decision as large investment is made in building plant and machinery. An improper location of plant may lead to waste of all the investments made in plant and machinery equipments. Hence, location of plant should be based on the company’s expansion plan and policy, diversification plan for the products, changing sources of raw materials and many other factors. The purpose of the location study is to find the optimal location that will results in the greatest advantage to the organization. PLANT LAYOUT AND MATERIAL HANDLING Plant layout refers to the physical arrangement of facilities. It is the configuration of departments, work centers and equipment in the conversion process. The overall objective of the plant layout is to design a physical arrangement that meets the required output quality and
quantity most economically. James More ‘Plant layout is a plan of an optimum arrangement of

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