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Introduction to
Operations
Management
Dr. V. Madhusudanan Pillai
Professor
NIT Calicut
Operations Management -
Defined
Operations Management is defined as
the design, operation, and improvement
of the production systems that create the
firm’s primary products or services
It
is a business function like HRM, Finance,
and Marketing
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Seemingly similar terms
Itis usually confused with Operations
Research and Management Science
(OR/MS) and Industrial Engineering (IE)
OR/MS is the application of quantitative
methods to decision making in all fields
IE is an engineering discipline
What is operations
management?
Operations management deals with the design and
management of products, processes, services and
supply chains
It considers the acquisition, development, and
utilization of resources that firms need to deliver the
goods and services their clients want
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Defining Operation
An operation is the process by which a
company or organization converts raw
materials, labor and capital into a final
product or service.
or
Operation refers to processes that are
used to transform the resources employed
by a firm into products and services
desired by customers
Examples for operation
In an automobile company, materials and
labor are transformed by manufacturing
operations into cars.
In a hospital, nurses and doctors use
medicines, care and equipment to help sick
patients become healthy.
In a bank, staff members use computers and
systems to manage the flow of money among
accounts and provide customers with
statements and other banking services.
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Some development in the
book Title
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• See 14e
Cover
page
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Association for Supply Chain
Management
https://en.wikipedia.org/wiki/Association_for_S
upply_Chain_Management
Certifications from ASCM
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Why Operations Management
is important?
Ifyou are interested to become a great
manager, the topics of Operations
Management is important for achieving
this goal
A rupee saved in how a product is
produced or distributed results directly in
an extra rupee of profit
Operations Management
Decisions
Whatever the operation, decisions have
to be made to establish production rates,
work schedules for employees, forecast
demand for products and services,
improve and maintain quality, ensure
adequate inventory, transport and store
products and materials, and order
materials and parts.
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Operational Decision
techniques
ManagerialTechniques
Computing Technologies
Realm of Operations
Management
Broadclassification based on OSM by
chase et al. edn: 12
➢ Strategy
➢ Processes
➢ Supply chain design
➢ Planning and controlling the supply chain
➢ Scheduling
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Strategy Domain
Operations and supply strategy
➢ Subsection: Linear programming
Projectmanagement
Product and service design
Process Domain
Strategic capacity management
➢ Learning curves
Process analysis
➢ Job design and work measurement
Manufacturing processes
➢ Facility layout
Service processes
➢ Waiting line analysis
Six-sigma quality
➢ Process capability and SPC
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Supply chain Design Domain
Supply chain strategy
Logistics and facility location
Lean manufacturing
Operations consulting and reengineering
Planning and Controlling the
supply chain Domain
Enterprise resource planning system
Demand management and forecasting
Aggregate sales and operations planning
Inventory control
Material requirements planning
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Scheduling Domain
Scheduling
Simulation
Constraint management
Any questions?
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