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Key Decisions of Operations Managers
What What resources/what amounts
When
Needed/scheduled/ordered
Where
Work to be done
How
Designed
Who
To do the work
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Responsibilities of Operations Managers
Planning
Capacity
Location
Products and services Make or buy
Layout
Projects
Controlling
Inventory Control
Quality Control
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Organizing Degree of Centralization
Subcontracting
Staffing Hiring
Use of Overtime
Directing
Incentive Plans
Issuance of work orders
Job assignments
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5 Ps of Operation Management
Plants Factories or service branches where production is
carried out
Adding and locating new plants
Expanding, contracting, or refocusing facilities
Parts
Materials or the supplies that go through the
system Make or buy decisions
Vendor selection decisions
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Processes Equipment and steps by which production is
accomplished
Technology evaluation
Process improvement and reengineering
People
Direct and indirect workforce
Quality improvement Setting/revising work standards
Learning curve analysis
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Planning and Control Systems
Procedures and information management uses
to operate the system
Supply chain management MRP
Shop floor control
Warehousing and distribution
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Inter relationship of production management
with other areas of management
A. Marketing
Identifying customer requirements
Product Life Cycle
Distribution
Product
Price
Customer Feedback on Products
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B. Finance The Operation Budget
Break Even Point Analysis
Working Capital
Provision of finance for improvements
Provision of info. on general condition of firm
C. Accounting- Cost Data
- Special Reports
- Data Processing Services
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D. Industrial Engineering
Work Measurement Information
Plant Layout & Material Handling Info.
E. Materials Management
- Determination of Items to be Purchased
- Delivery Schedules
- Updating info. On new products, materials andprocess
Inventory planning & Control
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F. Personnel Recruitment, hiring and firing of people
Training
Labour relations Motivation to workers & Safety factors
G. Research & Development
For ideas concerning new products, process andnew tools for
production
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Techniques and Procedures in OM
Forecasting
Location and Layout Techniques
Product design and analysis, work study
Production control techniques
Aggregate Planning Master Production Schedule
Materials Requirement Planning
Capacity Planning
Scheduling and control
Maintenance management Feedback and control techniques
Quality Control
Inventory Control
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Operations Strategy
Four Dimensions of competitiveness thatmeasures effectiveness of
operationfunctions..
Cost
Quality
Time
Flexibility
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Major Components to Operations Strategy
Strategic implications of operating
decisions
Matching the productive systems design to
market needs
Capacity and location
Technological choices The work force and job design
Suppliers and vertical integration
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The Operations Strategy would consider the
following:
Additional machinery or sub-contracting
Methods to improve productivity Revamping assembly lines
Measures to improve motivation
Promoting existing employees or hire new ones
Identifying & developing new suppliers
Look for opportunities to reduce costs
