Table of Content Page

Unit I OPERATIONS MANAGEMENT CONCEPTS 3

1.0 Learning Outcomes 4

1.1 Introduction 4
1.2 The concept of operations management 4
1.3 The role of the operations manager 5
1.4 Historical Development 7
1.5 Concept of Production 11
1.6 Production System 12
1.7 Classification of Production System 12
1.7.1 Job-Shop Production 13
1.7.2 Batch Production 13
1.7.3 Mass Production 14
1.7.4 Continuous Production 15
1.8 Production Management 15
1.9 Operations System 15
1.10 Operations Management 19
1.11 Operations Management Objectives 25
1.12 The Trend: Information and Non Manufacturing System 27
1.13 Productivity 28
1.13.1 Modern Dynamic Concept of Productivity 28
1.13.2 Factor Productivity and Total Productivity 28
1.13.3 Productivity Analysis 29
1.13.4 Factors Affecting Productivity 29
1.14 International Dimensions of Productivity 29
1.15 The Environment of Operations 31
1.16 Scope of Operations Management 31
 Summary 33
 Key points
 Self assessment questions 35
 References
UNIT TWO OPERATIONS, STRATEGY AND
OPERATION S STRATEGY 37
2.0 Learning Outcomes 38
2.1 Introduction 38
2.2 The nature of strategy 39
2.3 Operations and strategy 43
2.4 Operations strategy 43
2.4.1 Operations strategy – Process 43
2.4.2 Operations strategy – Context 46
2.5 The Strategic Role of Operations 48
2.6 Strategic Planning 50
2.6.1 Strategic Planning for Production and Operations 50
2.6.2 Strategic Planning Approaches for Production/Operations 50
2.6.3 Strategic Planning Models 51
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 2.6.3.1 The Forced Choice Model 51
2.6.3.2 A Strategic Planning Operations Model 51
2.6.3.3 Framework for Decision Making 52
 Summary 53
 Key points
 Self assessment questions 54
 References

UNIT THREE PODUCTION SYSTEM DESIGN 56

3.0 learning Outcomes 57

3.1 Introduction 57
3.2 Product and Service Design 57
3.2.1 Reasons for product or service design or redesign 57
3.2.2 Trends in product and service design 58
3.3 Objectives of product and service design 58
3.4 Sources of Ideas for New or Redesigned Products and Services 59
3.4.1 Key design concerns 59
3.4.2 Product Design Issues 60
3.4.3 Service Design Issues 62
3.4.4 A Product and Service Design Example 63
3.4.5 Reliability 65
3.4.6 Operations Strategy in Product and Service Design 68
3.5 Process Selection 68
3.5.1 Make or Buy 69
3.5.2 Type of Operation 69
3.5.3 Automation 70
3.6 Capacity Planning 72
3.6.1 Decision Making in Capacity Planning 74
3.6.2 Cost-Volume Analysis 75
3.6.3 Linear Programming 77
3.7 Facility Layout 82
3.7.1 Basic types of Layouts 82
3.7.2 Layout Design 86
3.8 Design of Work Systems 90
3.8.1 Job Design 90
3.8.2 Work Measurement 97
3.8.3 Compensation 103
3.8.4 Learning Curves and Analysis 104
3.9 Location Planning and Analysis 107
3.9.1 Location Planning 107
3.9.2 Evaluating Location Alternatives 110
 Summary 121
 Key points
 Self assessment questions 122
 References

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 UNIT FOUR OPERATIONS PLANNING CONTROL 124

4.0 Learning Outcomes 125

4.1 Introduction 125
4.2 Objectives of operations planning and control 126
4.3 Planning and Control Activities 128
4.4 Enterprise Resource Planning(ERP) 134
4.5 Material Resource Planning (MRP II) and the closed loop 136
4.6 Aggregate Production Planning 137
4.6.1 Techniques of Aggregate Planning 139
4.6.2 Aggregate Planning Strategies 140
4.6.3 Master Production Schedule(MPS) 143
4.7 Material Requirement Planning (MRP), Product Structure,
Gross Requirements, Net Requirement Plan and Lot Sizes 145
• Summary 160
• Key points
• Self assessment questions 160
• References

UNIT FIVE QUALITY MANAGEMENT 162

5.0 Learning Outcomes 163

5.1 Introduction 163
5.2 Total Quality Management 164
5.2.1 Quality Management Evolution 165
5.2.2 The Dimensions of Quality 166
5.2.3 The Determinants of Quality 167
5.2.4 The Consequences of Poor Quality 168
5.2.5 Quality Gurus 169
5.2.6 Quality Awards 173
5.2.7 Quality Certification 173
5.3 Quality Control 174
5.3.1 Inspection 174
5.3.2 Statistical Process Control 176
5.3.3 Variations and Control 177
5.3.4 Control Charts 178
5.3.4.1 Control Charts for Variables 180
5.3.4.2 Range Control Chart (R-Chart) 182
5.3.4.3 Control Charts for Attributes 185
5.3.4.4 Managerial Considerations Concerning

Control Charts 192

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 5.3.4.5 Process Capability 194
5.3.4.6 Acceptance Sampling 196
5.4 Six Sigma 203
5.5 Maintenance Management 208
5.5.1 The concept of Maintenance and

Maintenance management 208

5.5.2 Importance and objective of

Maintenance management 210

5.5.3 Scope of Maintenance 211

5.5.4 Types/forms of Maintenance 212
 Summary 224
 Key points
 Self assessment questions 225
 References

UNIT SIX INNOVATION NANAGEMET 227

6.0 Learning Outcomes 228

6.1 Introduction 228

6.2 Technology 229

6.3 Technological innovation 230

6.4 Types of Innovation 231

6.4 Importance of Innovation 233

6.5 Sources of technology innovation 234

6.6 Risks of the Innovation Process 236

6.7 Innovation Process 237

6.7.1 Steps of Innovation Process 240
6.7.2 Innovation Models 244
6.7.3 Tips for a Successful Innovation Process

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6.8 Technology and innovation strategy 249

6.8.1 A typology of innovation strategies 249

6.8.2 Formulation and implementation of a technology

and innovation strategy 252

6.8.3 Technology and structure 254

6.8.4 Staffing the organization for innovation 257

 Summary 260
 Key points
 Self assessment questions 261
 References