OM Unit 1.pptx - OPERATIONS MANAGEMENT UNIT 1 INTRODUCTION...

OPERATIONS MANAGEMENT
UNIT 1
INTRODUCTION
Dr A. Kalyani

Operations
Definition
Inputs are converted into outputs.
Conversion of raw material into the final product using any transformation process.
Transformation can be
1. Physical
(example Chopping Wood, Crushing a can, Breaking a glass, Mixing sand and
water)
2. Chemical
(example Burning of coal, wood, paper, kerosene, etc., Formation of curd from
milk, Rusting of iron)
3. Thermal
(example Conversion of water into steam by burning the coal)

Operations
A Transformation Process

Examples of Transformation
Physical
Transformation
Chemical
Transformation
Thermal
Transformation

Operations Management
Definition
1. Operations Management is a systematic approach to addressing issues in the
transformation process that converts inputs into useful, revenue-generating
outputs .
2. The business function responsible for planning, coordinating and controlling the
resources needed to produce products and services for a company.
•
OM Deals with the design & management of
1. Products
2. Processes
3. Services
4. Supply Chains

Operations Management
Objectives
- Main Objectives
•
Right Quality
•
Right Quantity
•
Right Time
•
Pre established cost (Manufacturing Cost)
- Intermediate Objectives
•
Optimum utilization of various inputs like men, material and machine .

Manufacturing Sector Trends in India

Service Sector Trends in India

Services
A Part of OM
Salient Features of Services
1. Intangibility : Services are performances and actions rather than objects,
therefore having poor tangibility.
2. Heterogeneity: High variability in the operation system performance.
3. Simultaneous Production & Consumption: Degree of customer contact is
very high.
4. Perishability: Services cannot be inventoried as in the case of manufactured
products.

Manufacturing & Service
Similarities & Differences

Operations
A Key Functional Area
The basic functions of an organization

Operations function and its linkages in an organization

Operations Management
A Systems Perspective

Operations Management
Functions
1.Design issues and control issues
2.Long-term issues and short-term issues