WELCOME TO OPERATION

MANAGEMENT
TRIMESTER II
Prof. Lalatendu Sahoo

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Three Basic Function of an
Organisation

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 These three functions overlap each other..
Collaboration of functions leads to business success.
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 BASICS OF
Operation Management
Transformation – Value Addition

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Production
• Converting or transforming INPUT to OUTPUT
in a plant is production.
• Input: resources:
a) Material.
b) Men.
c) Money/Capital.
d) Land
e) Information.
f) Facilities: Equipment & Infrastructure
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OSCM - Russel & Taylor
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 operations function
involves the conversion of
inputs into outputs
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What is Operations?
a function or system that transforms
inputs into outputs of greater value.

Transformation process is a series of

activities along a value chain
extending from supplier to customer.

Role of operation is to create value. Activities

that do not add value are superfluous and
should be eliminated.

Inputs PROCESS Outputs

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 Forms of Production Process
• Production by assembly: Final or finished
product produced by assembling various
components, which themselves are processed
from raw materials: Car, Computers.
• Production by extraction or separation: By
separating/segregating contents of a mixture:
Crude oil to Petrol, Diesel.
• Produced by improvement or modification:
Mechanical/Physical and Chemical properties
are changed without physical change:
Annealing, Heat Treatment.
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Operations Management?
design, operation, and improvement of productive
systems
Operations management (OM) is the set of
activities that creates value in the form of goods
and services by transforming inputs into outputs
efficiently with value addition.
OPERATION MANAGEMENT
Organising work
Process finalisation
Layout & facility location
Job design
Quality Control
Planning & work scheduling
On Time Delivery
Inventory control
People management

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 Performance Objectives
• Quality: 1. Specification: Product & Objective.
2. Capability to produce goods & services to
specification.
• Speed: Time taken to deliver, ordering to delivery.
Queuing.
• Dependability: Honouring delivery time & product
quality.
• Flexibility: Adept to customer ethical needs. Cost.
• Cost: Operating, Capital & Working
Functional departments of a company

Administrati
on
Sales & Finance &
Marketing Accounting

Research &
Human
Developme
Resources
nt
Company

Informatio
Public
n
Relations
Technology
Production
&
Operations
Manufactur
ing
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Components of Operations Management
Location
Of
Plant Layout
Facilities
Productio &
n Material
Handling

Maintenan
ce Product
Managem Design
ent Operations
Management

Material
Process
Managem
Design
ent

Product
Quality
Planning &
Control
Control
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