Operations management

OPERATIONS MANAGEMENTMR. YASIR ANWAR

WHAT IS MANAGEMENT?

Organization and coordination of the activities of an enterprise in accordance with certain policies and in achievement of clearly defined objectives

PROCESS OF MANAGEMENT

Designing Planning Organizing Directing Controlling

WHAT IS OPERATIONS MANAGEMENT?

Design, execution and control of a firm’s operations that convert its resources into desired goods and service for consumers and implement its business strategy.

TYPES OF OPERATIONS Manufacturing Supply Transport Service

MANUFACTURING

Physical materials are converted into a product.

The process includes extraction of raw material to the supply of the product.

SUPPLY

Change of ownership of physical goods is the main activity

TRANSPORT

The movement of goods or people from one place to another without any physical change taking place.

SERVICE

Changing the condition of the customer. The change could be emotional, physical, entertainment etc.

ROLE OF OPERATIONS MANAGER

Designing the system of value adding process (called value chain)

Designing and managing process that support the value chain.

Controlling and improving the value chain and support process to achieve and sustain high level of performance

Managing the interface with other functional areas of business such as marketing, finance, and HR in way that enables the organization to derive competitive leverage from the operations function.

WHAT IS VALUE CHAIN?

A value chain is a chain of activities.

The goal is to analyze the activities through which firms can create a competitive advantage, it is useful to model the firm as a chain of value-creating activities.

FOCUS OF OPERATIONS MANAGEMENT

OM is fundamental to an organization’s achievement of its mission and competitive goals

OM LINK WITH OTHER FUNCTIONS

FINANCE

Financial decisions affect the choice of equipment, use of overtime, cost-control policies and price-volume decisions.

Operations functions are often dictated by economics.

MARKETING

It is important for understanding customer needs and developing new markets and product potential

Understanding between marketing and operations takes organizations to higher levels

ACCOUNTING

It provides data on product and service costs that help evaluate operational performance.

Budgeting and operational planning depend on accuracy of accounting data.

DESIGN

Product design ensures that the end products meet customer needs.

The design process includes process development and engineering.

New initiatives in design elevate the role of operations in this process.

HUMAN RESOURCES

It includes the recruitment of employees, their training and enhancing their well being

This depends on operations approaches. Flexible design of operations is needed to

accommodate all employees.

INFORMATION SYSTEMS

Information systems provide the means for capturing and analyzing, and coordinating the information needs of all of the preceding areas as well as operations.