Operations Mangement(OM) is defined as the design, Operation & Improvement of the system that create and deliver the firm’s primary products and Services

Operations Management is the conversion of inputs into outputs, using physical resources, so as to provide the desired utility/utilities of form, place, possession or state or a combination there of to the customer while meeting the other organizational objectives of effectiveness, efficiency and adaptability.

OM is field of Management As OR/MS is the application of quantitative Methods to decision making It is concerned with management of the entire system that produces goods or delivers a product.

Operations as Services include  Core services  Value added services ◦ Information ◦ Problem Solving ◦ Sales Support ◦ Field Support

 Operations Strategy is concerned with setting broad polices and plans for using the resources of the firm to best support its long term competitive strategy  It involves the decision about related to design of a process & infrastructure to support  Firm’s operations strategy is through its integration with corporate strategy.

 Product Design Include Selection of Technology Sizing the process over Time Role of Inventory  Infrastructure Decisions Include Logic associated with planning & control System Quality Assurance Control Approaches Work Payment Structures

 Financial Perspective  Customers Perspective  Internal Perspective  Learning & Growth Perspective

Conversion Process InputOutput Control

Manufacturing System IntermittentContinuous

 Goods manufactured specially on Orders  Products produced in small quantities  Work load is unbalanced  In Process inventory is large  Flexible to produce variety of products

Intermittent System Job productionBatch Production

 Continuity of Demand  Product must be standardized  Material should be as per specifications  Appropriate plant & equipment must be provided

Continuous System Mass Production Process Production

Product design deals with its form and function.  Form implies the shape and appearance of the product  Function is related to the working of the product.

 Profit Generation In long Term  To achieve the desired product  Reduce development time & Cost to be minimum  Reduce the cost of product  Ensure producibility or manufacturability

 Customer requirements  Tradeoff between form & functions  Types of material used  Work methods and Equipments  Cost/Price ratio  Product Quality  Packaging

 Appearance  Performance  Reparability  Modular Design  Redesigning Capability  Miniaturization  Wires and Tubing Design by Computers

 Drawings and specifications  Simplification  Standardization  Specifications  Reliability  Maintainability

Needs Identification Advance product planning Advance design Detailed engineering design Production process design and development Product evaluation and implementation Product use and support

Once a product idea surfaces, it must be demonstrated that the product fulfils some consumer need, and that existing products do not already fulfill that need.

It includes:  Preliminary market analysis;  Creating alternative concepts for the product;  Clarifying operational requirements;  Establishing design criteria and their priorities;  Estimating logistics requirements for producing, distributing, and maintaining the product in the market.

Promising design alternatives are evaluated according to critical parameters to determine whether design support such as  Analytical testing,  Experimentation,  Physical modeling,  Prototype testing will be required.

This stage is a series of engineering activities to develop a detailed definition of the product, including its subsystems and components, materials, sizes, shapes, and so on.

Working with the detailed product design, engineers and manufacturing specialists prepare plans for materials acquisitions, production, warehousing, transportation, and distribution.

Field performance and failure data, technical breakthroughs in materials and equipment, and formal research all are used to monitor, analyze, and redesign the product.

Support systems might  Educate users on specific applications of the product  Provide warranty and repair service  Distribute replacement parts; or  Upgrade the product with design improvements.

 Standardization  Simplification  Specialization  Diversification

 Fixation of Appropriate size  Shape  Manufacturing Process  Product of desired variety & utility

Simplification in an enterprise connotes the elimination of excessive and undesirable or marginal lines of product to hammer out waste and to attain economy coupled with the main object of improving quality and reducing costs and prices leading to increased sales

Specialization implies expertise in some particular area or field. Specialization implies reduction in the variety of products manufactured by the organization.

It implies policy of producing different types of products by an enterprise. Diversification can be adopted for the purpose of  Utilization of idle/surplus resources  Stabilization of sales  To cope with demand fluctuations and  For survival of the organization.

Start Up Rapid Growth Maturation Decline Sales Volume

Plant Location may be understood as “The function determining Where the plant should be located for Maximum Operating Economy & effectiveness.”

 Within the country or Outside  Selection of the Region  Selection of Community  Selection of Exact Site

 Availability of Raw Material  Nearness to Potential Market  Availability of Power  Transport Facilities  Government Policies  Competition Between States

 Availability of Labour  Civic Amenities for workers  Finance and Research Facilities  Availability of water  Local Taxes & Restrictions  Personal Factors

 Soil, Size  Disposal of water

 The Preliminary Screening  Detailed Analysis  Factor Ratings  Break Even Analysis  Qualitative Factor Analysis Method

 Labor skills and productivity  Land availability and cost  Raw materials  Subcontractors  Transportation facilities  Utility availability and rates Resources  Community receptivity to business  Construction cost  Organized industrial complexes  Quality of life: climate, housing, recreation, schools  Taxes Local Conditions

After identifying key location requirements, management undertakes a search to find alternative locations that are consistent with these requirements.

 Once the preliminary screening narrows alternative sites to just a few, more detailed analysis begins

Steps in using Factor Rating  List the most relevant factors in the location decision (column 1)  Each factor is rated, say from 1 (very low) to 5 (very high),according to its importance (column 2)  Each location is rated, say from 1 (very low) to 10 (very high), according to its merits on each characteristic (column 3)  The factor rating is multiplied by the location rating for each factor  The sum of the product yields the total rating score for that location

FactorFactor Rating Location Rating Product of Rating Tax advantages 4832 Suitability of labor skills 326 Proximity to Customers 3618 Proximity to suppliers 5210 Adequacy of water 133 Receptivity of community 5420 Quality of educational system 414 Access to rail and air transp Suitability of climate 2714 Availability of power 26 Total Score