IntroductiontoOM - Atmtn.PLC - SVSM

Operations
management &
tqm
OPERATIONS
MANAGEMENT
Operations Management is the management of an
organization's productive resources or its production
system, which converts inputs into the organization's
output – products and services.
PRUDUCTION
▸ Conversion of inputs into output through a transformation process.
PRUDUCTION
▸ Is a primary business function along with marketing and finance,
other management areas.
Provides the Manages

capital and personnel.
equipment
Establishes the
demand for
goods and Makes goods
services. or services.
Functions and responsibilities of production management
Planning Organizing Controlling

Includes all activities that Includes all activities that Includes all activities that ensure
establish a course of action. establish a structure of tasks and that actual performance is in
These activities guide future authority. Thus, it determines accordance with planned
decision-making. the activities required to achieve performance. This is done by
It involves : the operations, sub-systems developing standards and
goals and assign authority and communication networks
▸ product planning, necessary to ensure that the
responsibility for carrying them
▸ facility planning; and out. organizing, staffing and directing
▸ designing of the conversion functions are pursuing
process. appropriate plans and achieving
objectives.
MAJOR OBJECTIVE OF PRODUCTION MANAGEMENT ?
To produce quality goods and services. This can be achieved through:
1. Optimal use of resources (men, machines and materials).

2. By maximizing use of manpower and machines, or minimizing wastage of
materials.
3. Ensuring quality of goods at minimal cost through use of statistical quality
control techniques.
4. Contributing towards all round productivity through decision-making and
quantitative technique.
ACTIVITIES RELATING TO ANALYSIS AND CONTROL
OF PRODUCTION
Production planning : Production control :

Preparation of short term production Regulate work assignment, service work progress
schedules, plan for maintaining the and check and remove discrepancies, if any, in
records of raw material and finished and the actual and planned performances. A
semi-finished stock; specifying how the production manager has to look after the
production resources of the concern are production control activity through control:
to be employed over some future time in (a) On inventory.
response to the predicted demand for
products and services. (b) On work in progress.
(c) Of quality.
Relating prodct’n mgt w/ other mgt functions
1
Production Marketing
Management Interface
Marketing is responsible for understanding customer needs, generating and maintaining demand
for the firm's products, ensuring customer satisfaction, and developing new markets and product
potential.
The interface between these two functions offers wide leverage in most organizations – increased
understanding and trust between production and marketing propels many organizations to higher
levels of effectiveness.
2
Production Finance
Capital equipment, cost-control policies, price-volume decisions and inventories constitute the
interface with financial decision making. The effectiveness of operational planning and budgeting
is often driven by the level of co-operation between these two areas.
3
Production Design
Initiatives such as simultaneous engineering and early supplier involvement in the product design
process not only add to the role of production but also improve the perception of value provided in
the product and service concept design process.
Process development and engineering is responsible for production methods necessary to make
the products. This function has a great impact on production.
Co-operation between these three functions, i.e., process engineering, design and production,
leads to improved organizational performance.
4
Production Human Resource
Human resource function includes operation's approaches such as continuous improvement and
total quality that rely mainly on human inputs.
Production Management and Human Resource departments have to co-operate for recruiting and
training employees, enhancing employee well-being and development, and fostering motivation
that are vital to the success of management policies in practice.
5
Production Information
Management Systems
Information systems provide, analyse, and co-ordinate the information needs of production.
It allows organizations to generate relevant information and make appropriate information

available when needed.
PRODUCTION MGT vs. OPERATION MGT
PRODUCTION MGT OPERATIONS MGT
 The organizational lifecycle operation inside a firm  The field of management that deals with the
that deals with the forecasting, planning or supervision, planning and redesigning business
marketing of products or a particular product at operations in the manufacture of services as well
all stages of the life cycle of that product. as goods.
 Is the planning, organization, staffing, leading,
control and coordinating of human and material  Refers to the ongoing management of daily works
resources for execution of the facility in a specific of a company, such as technical support, network
function to meet predetermined objectives in the management, etc.
constraints of time cost and quality.
automation
Automation is the self-controlling operation of machinery that
reduces or dispenses with human communication or control
when used in normal conditions.
ADVANTAGES OF
AUTOMATION
1. Replacing human operators in tedious tasks.
2. Replacing humans in tasks that should be done in dangerous environments (i.e.
fire, space, volcanoes, nuclear facilities, under the water, etc.)
3. Making tasks that are beyond the human capabilities such as handling too heavy
loads, too large objects, too hot or too cold substances or the requirement to
make things too fast or too slow.
4. Economy improvement. Sometimes and some kinds of automation implies
improves in economy of enterprises, society or most of humankind.
DISADVANTAGES OF
AUTOMATION
1. It faces technology limits. Technology is not able to automate all the desired
tasks.
2. The cost of automation is difficult to predict.
3. The initial costs involved are relatively high..
COMPARISON BETWEEN
SERVICES & MANUFACTURING
Thanks!
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QUESTIONS
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Operations

Provides the Manages

Planning Organizing Controlling

To produce quality goods and services. This can be achieved through:

1. Optimal use of resources (men, machines and materials).

Production planning : Production control :

It allows organizations to generate relevant information and make appropriate information

PRODUCTION MGT OPERATIONS MGT

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