INTRODUCTION TO

OPERATIONAL
MANAGEMENT
CLASS 1 – INTRODUCTION

SCIENTIA ET
PRATIQUE
COURSE AGENDA
Your Journey in Operations
Management •
Class 6 – Project Management
Introduction to Project Management
Class 1- Introduction
• Project Life Cycle
• Overview of Operations Management • Project Planning
• Gantt Charts and CPM/PERT
• Why Operations Management Matters Class 3 – Process Design and Analysis • Resource Allocation
• Definitions and Core Concepts
• Timeline of Operations Management • Introduction to Process Design • Risk Management
• Aligning Operations with Business • Process Types • Project Execution: Monitoring and
• Lean Manufacturing Controlling
Strategy
• Six Sigma
• Bottleneck Analysis
• Process Improvement

Class 4 – Supply Chain Management

Class 2 Operations Strategy Class 5- Quality Management
• Introduction to Supply Chain • Introduction to Quality Management
• Cost, Quality, Flexibility, and Delivery
Management • Total Quality Management (TQM)
• Productivity: Measures and Improvements
• Supply Chain Components • Quality Tools
• Sustainability in Operations Technology in
• Inventory Management • ISO Standards
Operations
• Demand Forecasting • Continuous Improvement
• Supply Chain Integration • Quality Audits
• Logistics Management
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OVERVIEW OF OPERATIONS MANAGEMENT

Operations Management (OM) is the branch

of management focused on designing,
overseeing, and controlling the process of
production and redesigning business
operations in the production of goods or
services.

It encompasses a broad range of activities and

responsibilities that include ensuring that
business operations are efficient in terms of
using as few resources as needed and
effective in meeting customer requirements.

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OVERVIEW OF OPERATIONS MANAGEMENT

OM involves the responsibility of ensuring that

the business operations are conducted in the
most efficient manner possible by making use of
the minimum resources needed while effectively
meeting customer needs.

This includes managing the process of

transforming inputs (materials, labor, and
energy) into outputs (goods and services).
Operations managers deal with several aspects
such as production, manufacturing, and services.
They are tasked with managing the entire
process flow, improving efficiency, reducing costs,
and enhancing quality

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WHY OPERATIONS MANAGEMENT MATTERS

Operations Management is crucial for several reasons. First and foremost, it directly impacts the efficiency
and effectiveness of a company. Effective OM ensures that resources are used optimally to produce goods and
services that meet customer expectations. This, in turn, leads to customer satisfaction and loyalty, which are
critical for the long-term success of any business.
OM also plays a significant role in cost management. By streamlining processes and eliminating waste,
companies can reduce their production costs, leading to higher profit margins. Furthermore, good operations
management can improve a company's ability to compete in the market. In today's highly competitive
business environment, companies that can produce high-quality products at lower costs will have a
competitive advantage.
Additionally, OM supports strategic planning and decision-making. By providing detailed insights into the
operations, it helps managers make informed decisions about resource allocation, capacity planning, and
process improvements. This strategic alignment ensures that operational capabilities support business
objectives and contribute to achieving strategic goals.

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DEFINITIONS AND CORE CONCEPTS

Several core concepts are central to understanding Operations Management and will detailed along this short
course:

1. Product Design: This involves developing new products or improving existing ones to meet customer
needs and preferences. Effective product design is crucial for creating products that are not only functional
but also appealing to customers.
2. Process Design: This refers to the planning and designing of the processes involved in the production and
delivery of goods and services. Efficient process design ensures that operations run smoothly and
efficiently.
3. Quality Management: This involves ensuring that products and services meet certain standards and are
free from defects. Techniques such as Total Quality Management (TQM) and Six Sigma are commonly
used to improve quality.

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DEFINITIONS AND CORE CONCEPTS

4. Supply Chain Management: This involves managing the flow of goods, information, and finances from
suppliers to manufacturers to wholesalers to retailers and finally to consumers. Effective supply chain
management ensures that products are delivered to customers in a timely and cost-effective manner.
5. Inventory Management: This involves managing the inventory of raw materials, work-in-progress, and
finished goods. The goal is to minimize inventory costs while ensuring that there is enough stock to meet
customer demand.
6. Lean Manufacturing: This is a systematic method for waste minimization without sacrificing
productivity. Lean principles focus on improving efficiency by eliminating non-value-adding activities.
7. Just-In-Time (JIT): This is an inventory management strategy that aims to increase efficiency and
decrease waste by receiving goods only as they are needed in the production process.

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TIMELINE OF OPERATIONS MANAGEMENT
A little bit of history…

The field of Operations Management has evolved significantly over time. Here's a brief timeline highlighting some
key milestones:

• Industrial Revolution (1760 - 1840): The advent of machinery and mass production marked the beginning of
modern operations management. Factories and assembly lines were introduced, leading to significant increases in
production efficiency.
• Scientific Management (Early 20th Century): Frederick Taylor's time and motion studies led to the
development of scientific management principles. His work focused on improving labor productivity through
standardized work practices and efficiency improvements.
• Human Relations Movement (1930s - 1950s): This movement emphasized the importance of human factors in
the workplace. Elton Mayo's Hawthorne Studies highlighted the impact of social relations and employee well-
being on productivity.
TIMELINE OF OPERATIONS MANAGEMENT

• Operations Research (WWII): During World War II,

operations research emerged as a field, using mathematical
models and statistical analysis to optimize military logistics
and resource allocation.
• Lean Manufacturing (Late 20th Century): The Toyota
Production System introduced lean manufacturing principles,
focusing on waste reduction, continuous improvement, and
just-in-time production.
• Modern OM (21st Century): The integration of advanced
technologies, such as automation, artificial intelligence, and
data analytics, has transformed operations management.
Globalization has also influenced supply chain management
and strategic operations planning.
ALIGNING OPERATIONS WITH BUSINESS STRATEGY

Aligning Operations with Business Strategy

Aligning operations with business strategy is crucial for achieving
organizational goals and maintaining a competitive edge. This alignment
ensures that operational activities support the overall business objectives
and contribute to the company's success.
1. Capacity Planning: This involves determining the production
capacity needed to meet changing demands for products or services.
Effective capacity planning ensures that the company can meet
customer demand without overproducing or underproducing.
2. Facility Location and Layout: Choosing the right location for
facilities and designing efficient layouts can significantly impact
operational efficiency and cost-effectiveness. Strategic location
decisions consider factors such as proximity to suppliers, customers,
and transportation networks.
ALIGNING OPERATIONS WITH BUSINESS STRATEGY

3. Technology and Innovation: Integrating new technologies can enhance operational efficiency and support business
strategy. For example, implementing automation and robotics can improve production speed and accuracy, while data
analytics can provide insights for informed decision-making.
4. Supply Chain Integration: Aligning the supply chain with business strategy ensures that all elements, from
procurement to distribution, work together seamlessly to meet customer needs. This includes developing strong
relationships with suppliers and using technology to improve supply chain visibility and coordination.
5. Sustainability and Corporate Social Responsibility (CSR): Incorporating sustainability and CSR into operations can
support long-term business strategy by addressing environmental and social concerns. This includes adopting green
manufacturing practices, reducing waste, and ensuring ethical sourcing.
ALIGNING OPERATIONS WITH BUSINESS STRATEGY

By focusing on these areas, companies can ensure that their

operations are aligned with their strategic goals, leading to
improved performance and a stronger competitive position in the
market.
In conclusion, Operations Management is a vital aspect of any
business that significantly impacts efficiency, cost management,
and customer satisfaction. Understanding its core concepts,
historical evolution, and the importance of aligning operations
with business strategy is essential for managers and business
leaders aiming to optimize their operations and achieve long-term
success
CLASS MAIN TAKE-AWAYS

Operations Management (OM) is the branch of management focused on

designing, overseeing, and controlling the process of production and
redesigning business operations in the production of goods or services.

Several core concepts are central to understanding Operations

Management, and encompass Product Design, Process Design, Quality
Management, Supply Chain Management, Inventory Management,
Lean Manufacturing and Just-In-Time (JIT):

In conclusion, Operations Management is a vital aspect of any business

that significantly impacts efficiency, cost management, and customer
satisfaction.

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SCIENTIA ET
PRATIQUE