OPERATION MANAGEMENT

SUBMITTED TO:-PROF. k. kansana

SUBMITTED BY:-Somesh,saket,shubham,vaivabh,naman,pravesh,Nitisha (2 tri. Simon section)

WHAT IS OPERATION MANAGEMENT?

• OM is the set of activities that creates value in the form of goods and services by transforming inputs into output.

Inputs

Labour,capital,

management

Transformation

Economic system transforms inputs to

outputs /CONVERSITION PROCESS

Outputs

Goods and

services

CHARACTERISTICS OF GOODS Tangible product Consistent product definition Production usually separate from consumption Can be inventoried Low customer interaction

CHARACTERISTICS OF SERVICE

Intangible product Produced and consumed at same time Often unique High customer interaction Inconsistent product definition Often knowledge-based Frequently dispersed

NEW TRENDS IN OM• Ethics• Global focus• Environmentally sensitive production• Rapid product development• Mass customization• Empowered employees• Supply-chain partnering• Just-in-time performance

PRODUCTIVITY CHALLENGE• Productivity is the ratio of outputs (goods

and services) divided by the inputs (resources such as labour and capital)

• The objective is to improve productivity!The objective is to improve productivity!

PRODUCTIVITY

Productivity =Units produced/Input used

Measure of process improvementRepresents output relative to inputOnly through productivity increases

can our standard of living improve

PAYAL BIDI CO.• Founder:- Lt. Jeewandas ji chauda• Founded:- 1980’s• Manufacturing plant :- chandrawani naka

gwalior• Head office :- chandrawani naka gwalior

Raw material

Cleaning of tobacco(5 sec)

Packing(5 sec)

Wrapping(3 sec)

Cleaning of leaf(5 sec)

Quality test(2 sec)

Low heating(2 min)

output

* The process time can be depend upon human man power(labour)

PROBLEMS• Quality Quality may change while the quantity of

inputs and outputs remains constant.• Productivity mat be change due to labour

workforce.

• Total working time:- 32400 sec/day• Throughput time:-140 sec• Productivity :-231.42 approx.• Bottleneck:- it is on heating process

because its take 2 min(120sec) in complete that part of process.

SOLUTION• Basic education appropriate for the labour

force.• Social overhead that makes labor

available such as transportation.

SWOT AnalysisSTRENGTHS

Distribution network well in place.Addictive in nature.

WEAKNESS Hazardous Product.

Causes various forms of cancer.

OPPORTUNITIES.

Women’s market.Cigrattes to bidi making which is bigger. 

THREATS.Declining market.Heavy taxes and duties.

Growing anti-smoking movement..New government restrictions.World Health Organisation

Thank you