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

Transformation

Outputs

Labour,
capital,
management

Economic system transforms

inputs to outputs
/CONVERSITION PROCESS

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!

PRODUCTIVITY
Productivity =Units produced/Input used
Measure of process improvement
Represents output relative to input
Only through productivity increases
can our standard of living improve

PAYAL BIDI CO.

Founder:- Lt. Jeewandas ji chauda
Founded:- 1980s
Manufacturing plant :- chandrawani naka
gwalior
Head office :- chandrawani naka gwalior

Cleaning of tobacco
(5 sec)
Wrapping
(3 sec)

Raw material
Cleaning of leaf
(5 sec)

Low heating
(2 min)

output

Packing
(5 sec)

Quality test
(2 sec)

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

PROBLEMS
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 Analysis
STRENGTHS
Distribution network well in place.
Addictive in nature.

WEAKNESS
Hazardous Product.
Causes various forms of cancer.
OPPORTUNITIES.
Womens 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

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