Operations Management

PGPSM-I
Term II, 2017-18
A Few First Class Glimpses of
Operations Management
 5.First Class *
No one skipped Cherians first class. The head of
the mechanical engineering department of the
best engineering college in the country. They said
that he was a perfect 10 in his IIT student days.

He turned around and banged a duster on the

table. No one talks for the next sixty minutes, he
pronounced in a no-nonsense tone that would
make Saddam Hussein shudder, is that clear?

* In the subject Indem: Industrial Engineering &

Management, a compulsory Operations course at IITD/K
 Operations Management:
A Snapshot ..
.. Operations, the core course devoted to
Manufacturing: to reflect upon one of the chief
characteristics that distinguished man from animal,
the ability to use tools to create and to build.

This was fascinating, important material, and I was

eager to learn more.

(From Snapshots from Hell by Peter Robinson, a

book on the Stanford Business School, late 1980s)
 Major Topics in Operations Core Course
Pre-Midterm
(Prof. Rajiv K. Srivastava)
Operations Management
Introduction & Strategic Role
Product Design &
Development
Process Design & Analysis
Scale & Capacity Planning
Facility Layout
Post-Midterm
(Prof. S. Venkat)
Forecasting Approaches
& Techniques
Operations Planning
Operations Scheduling
& Control
Quality Management
Project Management
 Evaluation Components
Pre-Midterm:
1 announced quiz, approximately after 6-8 sessions:
no make-ups
One Term Assignment (groups of 3), due week after
midterm
Total of pre-midterm quiz and assignment: 15%
Midterm Examination (30%)

Post-midterm (to be announced by Prof. SV):

Quizzes and assignments 15%
Final Examination (40%)
Other Opening Remarks
Operations Management:
Introductory Concepts

Heizer & Render Text Chapter 1

 Terminology
Operations:
Creation, Production, Delivery, and Service of the
goods/ services provided by an organisation
through value-adding transformation of a set of
inputs into a set of outputs for internal/ external
customers.

Operations Management:
Systematically managing the activities and
resources required to design, perform and improve
the Operations carried out by the organisation.
Draws Upon, but not Synonymous with:
Operations Research: Use of mathematical models,
statistics and algorithms to aid in decision-making and
problem-solving

Industrial Engineering: Analysis and synthesis of

integrated systems of people, equipment, materials, and
other resources

Tools & techniques: MRP, SQC, 6 etc.

Technologies: CAD/CAM, Robotics, ERP etc.

Methodologies: Lean, Six Sigma etc.

 Operations Evolution
Societal evolution:
Pre-Industrial Industrial Post-Industrial

Epochs in Operations Management:

Industrial Taylor Ford Computers Toyota

Revolution System System & OR System

TQM/
Craft
BPR/
System
SCM
Refer Text Figure
1.4 (p. 11) etc. etc.
 Basic Structure of Operations

Trans-
Input Output
formation

Resources

Exact combination of I/R/T/O varies with nature of operation.

Some may be Primary; others could be Secondary or
Facilitating
 For Example ..

Inputs Resources Transformations Outputs

In a Factory

In a Hospital
 More Types of Transformations
In Other Services

Food:

Transport:

Retail:

Broadcasting:

Education & Training:

The Goods Services Continuum
Automobile
Computer
Installed carpeting
Fast-food meal
Restaurant meal/auto repair
Hospital care
Advertising agency/
investment management
Consulting service/
teaching
Counseling
100% 75 50 25 0 25 50 75 100%
| | | | | | | | |

Percent of Product that is a Good Percent of Product that is a Service

Service vs. Manufacturing Operations
Intangibility
Non-inventoriability/ Perishability
Simultaneous Production and Consumption
Customer Presence/ Participation
Variability
Service Worker Capabilities
Everybodys an Expert
 Why Understand Operations?
Making functional (Operations) decisions with
management/ business point of view

Incorporating Operations perspectives in

management thinking

Appreciating complexities and intra- & cross-

functional linkages

Almost every organisation has operations,

whether formally called that or not.
 Consulting Services Profile
% of world revenues of 40 largest firms

Financial Marketing/sales
6 2

Organizational
design
11 Operations and process
management
31

Benefits
16

IT strategy Corporate strategy

17 17

Source: Slack & Lewis, 2005