Operations Mangement(OM) is defined as the design ,

Operation & Improvement of the system that create and deliver the firm’s primary products and Services

Operations Management is the conversion of inputs into outputs, using physical resources, so as to provide the desired utility/utilities of form, place, possession or state or a combination there of to the customer while meeting the other organizational objectives of effectiveness, efficiency and adaptability.

OM is field of Management As OR/MS is the application of quantitative Methods to decision makingIt is concerned with management of the entire system that produces goods or delivers a product.

Operations as Services include Core services Value added services

◦ Information◦ Problem Solving◦ Sales Support◦ Field Support

Operations Strategy is concerned with setting broad polices and plans for using the resources of the firm to best support its long term competitive strategyIt involves the decision about related to design of a process & infrastructure to supportFirm’s operations strategy is through its integration with corporate strategy.

Product Design Include• Selection of Technology• Sizing the process over Time• Role of Inventory

Infrastructure Decisions Include• Logic associated with planning & control System• Quality Assurance• Control Approaches• Work Payment Structures

Financial Perspective Customers Perspective Internal Perspective Learning & Growth Perspective

Conversion Process

Input Output

Control

Manufacturing System

Intermittent Continuous

Goods manufactured specially on Orders Products produced in small quantities Work load is unbalanced In Process inventory is large Flexible to produce variety of products

Intermittent System

Job production Batch

Production

Continuity of Demand Product must be standardized Material should be as per specifications Appropriate plant & equipment must be

provided

Continuous System

Mass Production

Process Production

Product design deals with its form and function.

Form implies the shape and appearance of

the product Function is related to the working of the

product.

Profit Generation In long Term

To achieve the desired product

Reduce development time & Cost to be

minimum

Reduce the cost of product

Ensure producibility or manufacturability

Customer requirements Tradeoff between form & functions Types of material used Work methods and Equipments Cost/Price ratio Product Quality Packaging

Appearance

Performance

Reparability

Modular Design

Redesigning Capability

Miniaturization

Wires and Tubing Design by Computers

Drawings and specifications

Simplification

Standardization

Specifications

Reliability

Maintainability

Needs Identification

Advance product planning

Advance design

Detailed engineering design

Production process design and development

Product evaluation and implementation

Product use and support

Once a product idea surfaces, it must be demonstrated

that the product fulfils some consumer need, and that

existing products do not already fulfill that need.

It includes: Preliminary market analysis;

Creating alternative concepts for the product;

Clarifying operational requirements;

Establishing design criteria and their priorities;

Estimating logistics requirements for producing,

distributing, and maintaining the product in the

market.

Promising design alternatives are evaluated according to critical parameters to determine whether design support such as

Analytical testing, Experimentation, Physical modeling, Prototype testing will be required.

This stage is a series of engineering activities to

develop a detailed definition of the product, including its

subsystems and components, materials, sizes, shapes, and so

on.

Working with the detailed product design, engineers

and manufacturing specialists prepare plans for materials

acquisitions, production, warehousing, transportation, and

distribution.

Field performance and failure data, technical

breakthroughs in materials and equipment, and formal

research all are used to monitor, analyze, and redesign

the product.

Support systems might

Educate users on specific applications of the product

Provide warranty and repair service

Distribute replacement parts; or

Upgrade the product with design improvements.

Standardization Simplification Specialization Diversification

Fixation of Appropriate size Shape Manufacturing Process Product of desired variety & utility

Simplification in an enterprise connotes the elimination

of excessive and undesirable or marginal lines of

product to hammer out waste and to attain economy

coupled with the main object of improving quality and

reducing costs and prices leading to increased sales

Specialization implies expertise in some particular area

or field. Specialization implies reduction in the variety

of products manufactured by the organization.

It implies policy of producing different types of

products by an enterprise. Diversification can be

adopted for the purpose of

Utilization of idle/surplus resources

Stabilization of sales

To cope with demand fluctuations and

For survival of the organization.

Start Up Rapid Growth Maturation Decline

Sal

es V

olum

e

Plant Location may be understood as “The function

determining Where the plant should be located for

Maximum Operating Economy & effectiveness.”

Within the country or Outside

Selection of the Region

Selection of Community

Selection of Exact Site

Availability of Raw Material Nearness to Potential Market Availability of Power Transport Facilities Government Policies Competition Between States

Availability of Labour Civic Amenities for workers Finance and Research Facilities Availability of water Local Taxes & Restrictions Personal Factors

Soil, Size Disposal of water

The Preliminary Screening Detailed Analysis Factor Ratings Break Even Analysis Qualitative Factor Analysis Method

Labor skills and productivity

Land availability and cost

Raw materials Subcontractors Transportation

facilities Utility availability

and rates

ResourcesResources

Community receptivity to business

Construction cost Organized industrial

complexes Quality of life:

climate, housing, recreation, schools

Taxes

Local ConditionsLocal Conditions

After identifying key location requirements,

management undertakes a search to find alternative locations that are consistent with these requirements.

Once the preliminary screening narrows alternative sites to just a few, more detailed analysis begins

Steps in using Factor Rating List the most relevant factors in the location decision

(column 1) Each factor is rated , say from 1 (very low) to 5 (very

high),according to its importance (column 2) Each location is rated, say from 1 (very low) to 10

(very high), according to its merits on each characteristic (column 3)

The factor rating is multiplied by the location rating for each factor

The sum of the product yields the total rating score for that location

Factor Factor Rating

Location Rating

Product of Rating

Tax advantages 4 8 32

Suitability of labor skills 3 2 6

Proximity to Customers 3 6 18

Proximity to suppliers 5 2 10

Adequacy of water 1 3 3

Receptivity of community

5 4 20

Quality of educational system

4 1 4

Access to rail and air transp.

3 10 30

Suitability of climate 2 7 14

Availability of power 2 6Total Score

12149