“
Operations are processes that add value to
?
inputs through a transformation that results in
outputs. …
Operations transform these inputs by adding
value to them (and sometimes wasted effort)
2
and make them available to others as outputs.
B
A
INPUTS OUTPUTS
INPUTS
▪️Can come in conventional forms as direct labor,
direct materials, and other direct costs.
▪️Can also be capital items that are not consumed in
the operation.
Capital items
a. Human capital (labor)
b. Intellectual capital (knowledge)
c. Social capital (reputation, brand equity,
customer loyalty, etc)
OUTPUTS
▪️ Can be classified as tangible or intangible
▪️ Tangible if it can be perceived by touch
▪️ Intangible outputs tend to be emotional or
experiential results such as satisfaction, relaxation,
convenience, and ambience
WHAT IS THE ROLE OF OPERATIONS MANAGEMENT?
OM PM
OPERATIONS PURCHASING
MANAGER MANAGER
Responsible for all activities related to the Head of a team that works to procure
production of whatever goods or services a materials necessary for the production of a
company produces service or product that the company
produces.
Their job deals with formulating operational
strategy, improving performance, procuring Their job is to get the best quality
materials and other resources and securing materials for the lowest prices. They also
compliance. evaluate suppliers, negotiate contracts
and review product quality.
WHAT IS THE ROLE OF OPERATIONS MANAGEMENT?
HR
PM
PRODUCTION HUMAN M
RESOURCE
MANAGER MANAGER
Oversees the production process, HR managers plan, coordinate and direct the
coordinates all related activities and administrative functions of a company. This
ensures that there are enough resources on includes the hiring processes and onboarding
hand when they’re needed. of new employees
They also act as a liaison between the
Their responsibilities includes planning company’s management and its employees.
workers’ schedules, estimating costs and They will advise executives in strategic
preparing budgets to make sure that the planning as it relates to staffing.
workflow meets required deadlines.
TYPICAL ORGANIZATION CHART
DIFFERENT TYPES OF OPERATION
OM in the retail industry ensures
that stores run smoothly and
efficiently.
It includes tasks such as stocking
shelves, managing inventory, and
providing customer service.
RETAIL
DIFFERENT TYPES OF OPERATION
It is the process of managing the
day-to-day operations of a
business.
Operations managers look after
all aspects of the business to run
smoothly and ensure that the
company’s goals are met.
HOSPITALITY
DIFFERENT TYPES OF OPERATION
Logistics entails planning,
implementing, and controlling the
flow of products and services
from the point of origin to the
point of consumption.
Logistics is critical to operations
management because it
determines how efficiently a
company can produce and deliver
its products or services.
LOGISTICS
DIFFERENT TYPES OF OPERATION
The process that takes place from
acquiring raw materials to
delivering the finished product to
the customer.
It is the set of activities that
transforms inputs into outputs
that includes managing resources,
information, and finances.
SUPPLY CHAIN
SKILLS & QUALITIES OF OPERATIONS MANAGER
LEADERSHIP SKILLS ANALYTICAL SKILLS
OMs need to have strong leadership skills to OMs need strong analytical and critical thinking
manage and motivate staff members and skills to analyze data, identify trends and
drive the entire workforce toward achieving patterns, and make informed decisions to drive
the company's goals. operational improvements.
The responsibilities of an operations They’re also required to spot inefficiencies and
manager also include making decisions that bottlenecks in their organization's processes,
will affect the entire company forecast demand based on data, and optimize
resources based on metrics and key
performance indicators.
SKILLS & QUALITIES OF OPERATIONS MANAGER
PROJECT MANAGEMENT SKILLS COMMUNICATION SKILLS
Operations managers are project managers at heart. Communication skills involve the methods used in
In fact, they’re often responsible for managing conveying, receiving, and processing information
multiple, complex projects at one time. through verbal and non-verbal meanings.
Planning, executing, and monitoring project 1. Speaking and listening effectively
progress is all part of an operation manager’s job, as 2. Interpreting gestures, body language, and emotions
well as setting project goals, collaborating with 3. Using the right communication on the right occasion
stakeholders, managing project resources, and 4. Conveying messages without misinterpretation
developing mitigation strategies. 5. Effectively communicating with a range of people
SKILLS & QUALITIES OF OPERATIONS MANAGER
PROBLEM-SOLVING SKILLS INTERPERSONAL SKILLS
Being able to identify and analyze problems OMs need great interpersonal skills since their
in the best way possible. role involves interacting with people from all
levels of the organization, including executives,
Implementing solutions based on the team members, customers, and vendors.
company’s best interests without disrupting
the flow of business Successful collaborations, project outcomes,
and operational efficiencies all depend on an
operations manager’s ability to interact with
others.
SKILLS & QUALITIES OF OPERATIONS MANAGER
FINANCIAL MANAGEMENT
ORGANIZATIONAL SKILLS SKILLS
OMs need to have strong organizational and Responsible for managing resources and
time-management skills, as well as be able to ensuring that the organization operates
prioritize tasks in a way that bolsters within its financial constraints, operations
operational efficiency. managers need strong financial acumen.
They’re familiar with financial management
principles, including budgeting, forecasting,
supply chain management, ensuring
profitability, and cost management.
SKILLS & QUALITIES OF OPERATIONS MANAGER
PEOPLE MANAGEMENT SKILLS STRATEGIC PLANNING SKILLS
Responsibilities includes building strong OMs must be able to adapt quickly when
teams, encouraging teamwork, fostering a things change unexpectedly, identify root
positive workplace, and engaging causes and optimization strategies, and
employees. develop contingency plans to ensure the
health of the business.
Managing by performance, planning,
mentoring and problem-solving
OPERATIONS
MANAGEMENT
DEFINITION
Is the activity of managing the resources which produce and deliver goods
and services.
Is the administration of business structure, practices, and processes to
enhance efficiency and maximize profit.
It entails overseeing, designing, and controlling the production of goods or
services. It involves managing the resources that are necessary for the
creation of a product or service.
OM is the administration of business practices to create the highest level of
efficiency possible within an organization. It is concerned with converting
materials and labor into goods and services as efficiently as possible to
maximize the profit of an organization.
KEY CONCEPTS OF OPERATIONS
MANAGEMENT
KEY CONCEPTS OF OM
All businesses have processes that
need to be managed to produce
their products or services.
Operations managers are
responsible for ensuring all the
processes are efficient and
effective.
PROCESSES
KEY CONCEPTS OF OM
The amount of work a company
can do in a given period.
Operations managers must be
aware of a company’s capacity to
ensure that it is being used
effectively.
CAPACITY
KEY CONCEPTS OF OM
This measures how much of a
company’s capacity is being used.
Operations managers strive to
ensure that utilization is high to
maximize efficiency.
UTILIZATION
KEY CONCEPTS OF OM
The movement of resources
through a company’s production
process.
Operations managers need to
ensure that resources flow
smoothly to avoid bottlenecks.
FLOW
PROCESS OF OPERATIONS MANAGEMENT
PROCESS OF OPERATIONS MANAGEMENT
This is the process of determining
what needs to be done and when
it needs to be done.
With OM, you create a plan that
will guide the operations of your
business.
PLANNING
PROCESS OF OPERATIONS MANAGEMENT
It decides when each task will be
completed.
In operations management, you
create a schedule to ensure all
tasks are completed on time.
SCHEDULING
PROCESS OF OPERATIONS MANAGEMENT
It is about carrying out the plan.
In operations management, you
execute the plan by ensuring that
all resources are used efficiently
and effectively.
EXECUTION
