Lesson 01

Operations Management
Operations Management: Basics

Dr. Inderdeep Singh

Department of Mechanical and Industrial Engineering

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 Operations Management (OM)

• What are operations?

– The part of a business organization that is responsible for
producing goods or services.
– A function or system that transforms inputs into outputs
of greater value.

Student Slides
 Operations Management
Deals with :
The design and management of;
– Products
– Processes
– Services
– Supply chains

Student Slides
 What is Operations Management?
The business function responsible for planning, coordinating,
and controlling the resources needed to produce products and
services for a company.

“The Science and the Art of ensuring, goods and services are
created and delivered successfully to customers”

Student Slides
 The Transformation Process
Value-Added
Inputs
• Land Transformation/ Outputs
• People • Goods
• Capital
Conversion
• Services
• Information Process
• Materials

Measurement
and Feedback
Measurement Measurement
and Feedback and Feedback
Control
Control = The comparison of feedback Feedback = Measurements
against previously established standards to taken at various points in the
determine if corrective action is needed. transformation process

Student Slides
 Why Operations Management?
• OM is an integrative body of knowledge; whose skills are needed in
industries as diverse as health care, education, telecommunications,
lodging, food service, banking, consulting and manufacturing.

• OM is one of the three major functions of any organization, and its

integrally related to all the other business functions.

• To know how goods and services are produced.

• To understand what operations managers do.

Student Slides
 Product
Design and
Production Development
Models Sales
(JIT, Kanban, Forecasting
MRP, ERP )

Materials
Management Facility
Planning and
(Inventory Plant Location
Control, EQQ)
Operations
Quality
Management
(TQM, TPM, Facility
SQC, Six Layout and
Sigma) Plant Layout

Project
Scheduling Production Production
(CPM, PERT) Control Planning
(Scheduling,
Sequencing)