MEDICAPS INSTITUE OF TECHNOLOGY AND

MANAGEMENT

RESPONSIBLITIES & CHALLENGES OF

OPERATIONS MANAGER

PRESENTED TO: PRESENTED BY:

Mr. Deepak Buddhirajan Nikita Jain
Shyam Sundar
Saroj Barar
 OPERATION MANAGEMENT
It is the science and art of ensuring that goods and
services are created & delivered successfully to
customers.

It is Organization’s core function. Every organization has

OM function
Service or Manufacturing

For profit or Not for profit

 NATURE & PURPOSE
The fundamental purpose of O.M. is to deliver
ever-improving value to the customers through
the continuous improvement of overall company
performance & capabilities .

O.M. is the only means by which managers can

directly affect the value provided to all
stakeholders- customers, employees, investors &
society.
 Operations as a System
Production System

Conversion
Inputs Outputs
Subsystem

Control
Subsystem
 Operations function
The Transformation Model

Input
Input
Transformed
Transformed
resources
resources
Materials Environment
Materials
Information
Information
Customers
Customers

THE Goods
Goods
TRANSFORMATION OUTPUT
OUTPUT And
And
INPUT
INPUT PROCESS services
services

Facilities
Facilities
Staff
Staff
Environment
Input
Input
Transforming
Transforming
resources
resources
 RESPONSIBILITIES OF
OPERATION MANAGER

 Designing the operations system

 Managing the operations system
 Improving the operations system.

These three decisions are taken on the basis of other

five key points, that are called Pillars or Parameters.
 FIVE PARAMETERS

The processes by which goods and services are

produced.
The quality of goods or services
The quantity of goods or services (the capacity of
operations)
The stock of materials (inventory) needed to
produce goods or services
The management of human resources.
 PROCESS
PROCESSMANAGEMENT
MANAGEMENT
8

Planning the activities necessary to achieve high quality

in business processes;

Identifying opportunities for improving quality.

Process simplification reduces opportunities for errors

and rework.

A process must be repeatable and measurable.

 PROCESS IMPROVEMENT

Customer loyalty is driven by delivered value.

Delivered value is created by business processes.

Sustained success in competitive markets require a

business to continuously improve delivered value.

To continuously improve value creation ability, a

business must continuously improve its value creation
processes.
 EXAMPLE OF PROCESS IMPROVEMENT

The Toyota Production System—had been widely

credited for Toyota's sustained leadership in
manufacturing performance.

Toyota implemented Just-In-Time which relies on zero

defects and hence continuous improvement! . What
they deduced from this system is that it can be
placed into five groups called the five zeros. These
five zeros are, zero paper, zero inventories, zero
downtime, zero defects and zero delay.
 QUALITY TRILOGY
11

 Quality planning: Meeting quality goals. Involves

understanding customer needs and developing product
features.

 Quality control: Meeting quality goals during operations.

Control parameters. Measuring the deviation and taking
action.

 Quality improvement: Identify areas of improvement and get

the right people to bring about the change.
 Quality perspectives
12

Typical responses about the definition of quality would include:

1. Perfection
2. Consistency
3. Eliminating waste
4. Speed of delivery
5. Compliance with policies and procedures
6. Doing it right the first time
7. Delighting or pleasing customers
8. Total customer satisfaction and service
 Example of Quality perspectives
13

Judgmental perspective

 “Goodness of a product.”
 Examples of products attributing to this image: Rolex watches,
Lexus cars.

Product-based perspective

 “Function of a specific, measurable variable and that differences

in quality reflect differences in quantity of some product
attributes.”
 Example: Quality and price perceived relationship.
 Example of Quality perspectives
14

User-based perspective
 “Fitness for intended use.”
 Individuals have different needs and wants, and hence different
quality standards.
 Example – Nissan offering ‘dud’ models in US markets under the
brand name Datson which the US customer didn’t prefer.

Value-based perspective
 “Quality product is the one that is as useful as competing
products and is sold at a lesser price.”
 US auto market – Incentives offered by the Big Three are
perceived to be compensation for lower quality.
 Quality perspectives
15

Manufacturing-based perspective

 “The desirable outcome of a engineering and manufacturing

practice, or conformance to specification.”

 Engineering specifications are the key!

 Example: Coca-cola – “quality is about manufacturing a product

that people can depend on every time they reach for it.”
 QUANTITY/CAPACITY MANAGEMENT

The capacity of a production unit (e.g. machine, factory) is its ability to produce or do
that which the customer requires. In operations management, three types of capacity
are:

Potential Capacity
The capacity that can be made available to influence the planning of senior
management (e.g. in helping them to make decisions about overall business growth,
investment etc).

Immediate Capacity
The amount of production capacity that can be made available in the short-term. This
is the maximum potential capacity - assuming that it is used productively

Effective Capacity
Not all productive capacity is actually used or usable. It is important for production
managers to understand what capacity is actually achievable.
 INVENTORY MANAGEMANT

An organization's buildings, facilities, equipment and

stock are directly involved in or support the
operations function.

 Procurement.
 Re-order time.
 Supply chain management.
 HUMAN RESOURCE MANAGEMENT

Creating a high performance workplace by

motivating & developing the skills of employees.

Continually learning from co-workers, competitors

& customers.

Adapting the organization to global & environmental

changes.
 COST MANAGEMENT
Most of the costs of producing goods or services are
directly related to the costs of acquiring resources,
transforming them or delivering them to customers.
For many organizations, driving down costs through
efficient operations management gives them a critical
competitive edge.
 Creating more value with lower cost.
 CHALLENGES FACED BY OPERATION MANAGER

To remain competitive, industrial organizations are

continually faced with the challenges to improve
product quality, reduce product development time,
reduce production costs and lead-times.
Increasingly, these challenges cannot be effectively
met by isolated changes to specific organizational
units.
 Changing Challenges for the
Operations Manager
Past Causes Future
Local or Low-cost, reliable worldwide Global Focus
national communication and
focus transportation networks
Batch (large) Cost of capital puts pressure on Just-in-time
shipments reducing investment in shipments
inventory
Low-bid Quality emphasis requires that Supply-chain
purchasing suppliers be engaged in product partners
improvement
Lengthy Shorter life cycles, rapid Rapid product
product international communication, development,
development computer-aided design, and alliances,
international collaboration collaborative
designs
 Changing Challenges for the
Operations Manager
Past Causes Future
Standardized Affluence and worldwide markets; Mass
products increasingly flexible production customization
processes
Job Changing sociocultural milieu. Empowered
specialization Increasingly a knowledge and employees,
information society. teams, and lean
production
Low cost Environmental issues, ISO 14000, Environmentally
focus increasing disposal costs sensitive
production,
Green
manufacturing,
recycled
materials,
remanufacturing
THANK YOU