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Lecture 03 Operations Management Function and Scope

The document discusses operations management, which involves converting resources into goods and services. The operations department is responsible for production planning, quality control, and cost management. Operations personnel forecast demand, procure resources, and utilize production facilities. The scope of operations management includes strategic decisions around new products, processes, facilities, and capacity as well as tactical decisions regarding production planning and control. Operations management framework focuses on the 5 Ps: product, plant, program, processes, and people.

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Sanskar Agrawal
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93 views14 pages

Lecture 03 Operations Management Function and Scope

The document discusses operations management, which involves converting resources into goods and services. The operations department is responsible for production planning, quality control, and cost management. Operations personnel forecast demand, procure resources, and utilize production facilities. The scope of operations management includes strategic decisions around new products, processes, facilities, and capacity as well as tactical decisions regarding production planning and control. Operations management framework focuses on the 5 Ps: product, plant, program, processes, and people.

Uploaded by

Sanskar Agrawal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Lesson 03

Operations Management
Operations Management: Functions and Scope

Dr. Inderdeep Singh


Department of Mechanical and Industrial Engineering

1
Basic Functions of the Business Organization

Organization

Finance Operations Marketing

Source:-https://s3.amazonaws.com/ppt-download/chap001
Activities of Operation Department

 Convert available capital into physical resources

 Convert the physical resources into saleable goods and


services

Source:-https://s3.amazonaws.com/ppt-download/chap001
Activities of Operation Department
Additional activities required to fulfill the previous
activities
 Production of goods at the right time and sufficient
quantity to meet the demand
 Production of goods at minimum cost
 Production of goods of acceptable quality

Source:-https://s3.amazonaws.com/ppt-download/chap001
Function of Operation personnel

• Forecasting the demand for the products


• Arranging for the procurement of required factors of
production
• Arranging for the services such as maintenance, store
keeping material handling, inspection and quality
control etc.
Source:-https://s3.amazonaws.com/ppt-download/chap001
Function of Operations personnel

• Utilizing effectively the factors of production


and service facilities available to produce the
product.

Source:-https://s3.amazonaws.com/ppt-download/chap001
Scope of Operations Management
• Scope of operations management depends on
decisions (strategic and tactical decision)
• The strategic level decisions are:
- New product identification and design
- Process design and planning
- Facilities location and layout planning
- Design of material handling system
- Capacity planning
• The tactical (operational) level decisions are:
- Production planning
- Production Control
- Other activities such as Inventory control, maintenance and
replacement cost reduction and cost control and work system
design
Operations Management Frame Work
• Operations Management framework is
divided into 5p’s
- Product
- Plant
- Programme
- Processes
- People
Product
- It is link between production and marketing.
A product must have:
- Performance
- Quality and reliability
- Aesthetics and ergonomics
- Quantity and selling price
- Delivery schedule
Plant
• The plant accounts for major investment (fixed assets)
• The plant is concerned with;
- Design and layout of building and offices
- Reliability and maintenance of equipment
- Safety of operations
• Plant layout must allow smooth movement of men and
material.
• Type of layout dependent on production type, volume of
demand etc.
Process
• Methods used to create a product
Selection of a particular process depends on following factors;
- Available capacity
- Manpower skills available
- Type of production
- Layout of plant
- Safety
- Maintenance required
- Manufacturing cost
Programme
• Programme refers to the timetable of production.

• Programme prepares schedule for;


- Purchasing
- Transforming
- Maintenance
- Cash
- Storage and transport
People
• People are part of organization. Progress of organization
depends on attitude and skills of working people
• Job satisfaction of people depends on good match between
people and jobs
It is possible by:-
- Motivation
- Training of employees
- Condition of work/safety
- Proper wages/salary

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