Subject: Operations & Project

Management
Course Code: 23MBACC302
Course Credit: 3
Contact Hours: 45
Dr. Shashi Kant Dikshit

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Course Outcomes
At the end of the course, learners will be able to:
CO 1 Understand the concepts and tools of operations
management.
CO 2 Choose appropriate models in forecasting based upon
demand and supply of organization.
CO 3 Develop models and frameworks in capacity planning,
production planning and facility management
CO 4 Explain the steps and process involved in project
management.
CO 5 Examine insights in risk analysis and control processes of
projects.
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Module 1 : Introduction to Operations

Management
Operations Management: definition-nature and context of
operations management, introduction to Operations
strategy, productivity & performance measurement in
operations, decision making-Tradeoffs and gaining
competitive edge in Operations management- Operations
as a key functional area in an organization, prioritization,
updating the techniques used by competitors, training-
Concept of Operations Globally- Trends in Operations
Management*

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Module2: Facility, Capacity and Quality

Management
Forecasting and types, its use in Operations Management-
Process, Different types- Manufacturing Process and
Service Process, Product & Process matrix, Introduction to
Facility & Capacity planning- Facility location and Facility
layout: Designing product and process layouts & types.
Capacity Management in Operations, Capacity Planning
Concepts, Planning Service Capacity Aggregate Sales and
Operations Planning: Overview Of Sales And Operations
Planning Activities, The Aggregate Operations Plan-.
Concepts of Quality Management-TQM and Six Sigma-
*Trends in Quality Management
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Module 3: Production Planning& Control&

Material Management
Production Planning Functions –Routing, Scheduling-
Production, Control Functions & Benefits of Production
Planning and Control-Material Management-Inventory
Control-Models of inventory Management-Material
requirement Planning-
Integration of materials and other resources with
operations strategy*
(*These topics are categorized as ‘Self- learning’ topics
are subjected to testing).

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Module 4: Introduction to Project Management

Introduction to Project Management-Project life cycle

understanding-Forms of project organization, project
planning, project control, human aspects of project
management, prerequisites for successful project
implementation- Generation of ideas*, monitoring the
environment, corporate appraisal, tools for identifying
investment opportunities, scouting for project ideas,
preliminary screening, project rating index, sources of
positive NPV

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Module 5: Implementation of Project

Financing of Projects, Implementation and Budgetary

Control -Estimation of risk and its sensitivity analysis,
Scenario analysis, Break even analysis, - managing risk,
project selection under risk. Constraints In Project
Management *- Methods of ranking. Quality definition,
Stakeholder identification, analysis and communication
planning- Project closure, Project Control

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Text & References and Evaluation Pattern

Basic Text:
1. Mahadevan B(2015) Operations Management for Competitive Advantage, 3RD edition,
Pearson India.
2. F. Robert Jacobs; Richard B. Chase (2015) Operations and Supply Chain
Management,15th Edition: McGraw-Hill Education.
3. N. Chary. (2013). Production & Operations Management,5th edition: Mc Graw Hill India
Private Limited.
4. Krajewski/Srivastava (2015) .Operations Management,11th Edition: Pearson
Reference Books:
1. Michael Shulver, Graham Clark, Nigel Slack, Robert Johnston (2021). Service
Operations Management: Pearson Education India.

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Evaluation Pattern
Continuous Evaluation Semester End Total
Exam
Class Participation:10 Marks

Individual Assessment :10 Marks

Group Assignement:10 Marks

50 Marks 50 marks 100 Marks
Group Presentation:10 Marks

Block End Test:10 Marks

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 Module 1
Introduction to
Operations Management

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To illustrate a service organization’s operations system. The system consists of

the airplanes, airport facilities, and maintenance facilities, sometimes spread out
over a wide territory. The activities include:

Forecasting- weather
Capacity planning- right number of planes
Locating facilities- major hubs, service and maintenance
Facilities and layout- effective use of employees and equipment.
Scheduling-flights, maintenance, pilots, attendants, crew.
Managing inventories-food and beverages, first aid, life preservers.
Assuring quality- flying, safety, reservations and check-ins
Motivating and training employees-all phases of operations.
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Operations Management-Definition
• An operations system is defined as one in which
• several activities are performed
• to transform a set of inputs into useful output
• using a transformation process
• Operations Management is
• a systematic approach to
• address all the issues pertaining to
• the transformation process that converts some inputs into output
that are useful, and
• could fetch revenue to the operations system

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Why to study OM?

Exchange of information and cooperative decision making

PR
Operations
Accounti
ng
MIS
Operations
Finance Marketing

Legal HR

Three major functional areas overlap in every Operations interfaces with supporting
business organizations. functions
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Resource Courtesy:, Chase, Aquilano & Jacobs, Operations Management for competitive advantage, 11th Edition, Chapter 1,P-10.

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Philosophy : Focusing on…..

⚫Efficiency
⚫Effectiveness
⚫Value

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World Today……Current scenario of OM

⚫Automated inventory control

⚫Continuous customer feedback
⚫Customized products
⚫Personalized services

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Operations Management (OM) Salient Aspects

• OM is a systematic approach
• using scientific tools & techniques and solution methodologies to
analyze problems
• OM is about addressing several issues
• varying in terms of time horizon, nature of decisions
• Transformation processes are central to Operations
• Focusing on keeping costs to the minimum
• Developing a set of measures to assess performance of the
system

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Video Insight
Operations Management Issues in a Healthcare System

• Right click on the URL below to open the hyperlink in

the web browser…

• http://www.youtube.com/watch?v=Or9dvnuST-g

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Doing something a little inefficiently one time is no big deal,

but when you do something inefficiently over and over,
hundreds or even millions of times per year, even little
mistakes can add up to very expensive amounts of waste.
Mistakes in an operation that result in defective products, even
if they represent only 1 percent of total output, can alienate
millions of customers. Similarly, if poorly designed operations
result in habitually serving customers late, a company will
eventually lose customers to better-functioning competitors.
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Objectives of OM

Right Right Cost

Right
Right Right Time (Pre- (Pre- Right
Informatio
Quality Quantity determine establishe Place
n
d time) d cost)

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Scheduling planes, cargo, and flight

and ground crews is an operations
function for an airline.
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Scope of Operations Management

To illustrate a service organization’s operations system. The system consists
of the airplanes, airport facilities, and maintenance facilities, sometimes
spread out over a wide territory. The activities include:

Forecasting- weather
Capacity planning- right number of planes
Locating facilities- major hubs, service and maintenance
Facilities and layout- effective use of employees and equipment.
Scheduling-flights, maintenance, pilots, attendants, crew.
Managing inventories-food and beverages, first aid, life preservers.
Assuring quality- flying, safety, reservations and check-ins
Motivating and training employees-all phases of operations.
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Functions of Operations Management

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Functions categorized based on design & control

issues, and long term & short term issues
Design issues Control issues
◦ Product design and ◦ Forecasting
development ◦ Production and planning
◦ Process design control
◦ Quality management ◦ Supply chain management
◦ Capacity planning ◦ Materials management
◦ Location and layout of ◦ Continuous improvement of
facilities operations
• Decisions based on time horizon perspective
• Long time decisions made once every 5-10 years
• Short time decisions made in fixed cycles in a year, even for a week or
less.
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TPS -Transformation Process System

(Input – Throughput- Output)

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TPS – continued…

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Source: Operations Management by William J

Stevenson. 2018 13th edition

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Process Model – Examples…

(Resource Courtesy:, Chase, Aquilano & Jacobs, Operations Management for competitive advantage,
11th Edition, Chapter 1,P-11.)

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