what is operations[1]

8/7/2019 What is Operations[1]

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What is Operations?What is Operations?What is Operations Management?What is Operations Management?



All the whites good productsAll the whites good products

such as washing machine,such as washing machine,

fridge, TV, all kitchenfridge, TV, all kitchen

appliances like mixer, grinder,appliances like mixer, grinder,chopper, are all delivered tochopper, are all delivered to

customers through out the globecustomers through out the globe

through Operationsthrough Operations

Management.Management.



The whole of transport sector beThe whole of transport sector be

it railways, buses, airplanesit railways, buses, airplanesheavily depend on operationsheavily depend on operations

for success. What takes placefor success. What takes place

on a day to day basis acrosson a day to day basis across

any organisation including IT,any organisation including IT,

ITES, hospital, entertainmentITES, hospital, entertainmentindustry, oil industry, mining andindustry, oil industry, mining and

the whole lot of its operations.the whole lot of its operations.



NO CEO CAN AFFORD TONO CEO CAN AFFORD TO

IGNORE OPERATIONSIGNORE OPERATIONS

MANAGEMENT AS IT ISMANAGEMENT AS IT IS

CRITICAL TO THE SUCCESSCRITICAL TO THE SUCCESS

OF THE ENTERPRISE.OF THE ENTERPRISE.



All operations managers manageAll operations managers manage

processes which transforms inputs intoprocesses which transforms inputs into

outputs.outputs. The processes in different operations haveThe processes in different operations have

different characteristicsdifferent characteristics

The operations managers have a similar The operations managers have a similar

set of responsibilities and activities.set of responsibilities and activities.



Operations managers have particular Operations managers have particular

responsibility for managing some or all theresponsibility for managing some or all the

resources which comprise operationsresources which comprise operationsfunction.function.

Operations managers are called byOperations managers are called by

different names ³different names ³Administrative Manager Administrative Manager´́

in a hospital, µin a hospital, µstore manager store manager¶ in a super ¶ in a super market etc.market etc.



Why operations management isWhy operations management is

importantimportantOperations functions, if it is to contribute toOperations functions, if it is to contribute to

the success of the enterprise, it must usethe success of the enterprise, it must use

its resources effectively, producing goodsits resources effectively, producing goods

and services in a way that satisfies theand services in a way that satisfies the

customers.customers.

To do this it must be creative, innovativeTo do this it must be creative, innovative

and energetic in improving its processes,and energetic in improving its processes,products and services.products and services.



How operations can contributeHow operations can contribute

In can reduce costs by producing goods and servicesIn can reduce costs by producing goods and serviceswith practically zero wastage consuming minimum of with practically zero wastage consuming minimum of resources.resources.

In can augment revenue by increasing customer In can augment revenue by increasing customer

satisfaction through excellent quality and servicesatisfaction through excellent quality and service(dependable & reliable)(dependable & reliable)

It can reduce the investment necessary to produceIt can reduce the investment necessary to producegoods and services by increasing the capacitygoods and services by increasing the capacityinnovatively.innovatively.

Operations can enhance innovation by building solidOperations can enhance innovation by building solidbase of operations skills and knowledge within businessbase of operations skills and knowledge within business

It can deliver products and services in a timely fashion.It can deliver products and services in a timely fashion.



OperationsOperations ±± the only corethe only core

function?function? OperationsOperations of an organisation produces goods &of an organisation produces goods &

servicesservices ±± which is the reason for its existence.which is the reason for its existence.

The marketingThe marketing including sales operations isincluding sales operations is

responsible for communicating about theresponsible for communicating about theproducts and services to its markets so thatproducts and services to its markets so thatcustomers request products & services.customers request products & services.

R & D / Engineering / Product DevelopmentR & D / Engineering / Product Development

function which is responsible for operating new /function which is responsible for operating new /modified products and services which takes caremodified products and services which takes careof most of customer needs.of most of customer needs.



OperationsOperations ±± the only corethe only core

function?......Contdfunction?......ContdThere are three important support functions toThere are three important support functions toenable these core functions to operateenable these core functions to operateeffectively, they are:effectively, they are:

a)a) Accounting / financeAccounting / finance function which managesfunction which managesthe financial resources and help in makingthe financial resources and help in makingeconomic decisions on projects / operations.economic decisions on projects / operations.

b)b) Human resourcesHuman resources function which helps to getfunction which helps to getthe right people for the right job in time andthe right people for the right job in time and

keep up their morale.keep up their morale.c)c) Information / technical IT functionInformation / technical IT function which helpswhich helps

to get necessary information through ITto get necessary information through ITinfrastructure and maintain the ERP system.infrastructure and maintain the ERP system.



Operations processes haveOperations processes have

different characteristicsdifferent characteristics Volume dimensionVolume dimension

±± high volume / standardisation / low costhigh volume / standardisation / low cost

±± low volume / specialised skilled / higher costlow volume / specialised skilled / higher cost

[Suzuki car Vs Rolls Royce][Suzuki car Vs Rolls Royce] Variation dimensionVariation dimension ±± High demand duringHigh demand during

summer vacation / holidays and low demandsummer vacation / holidays and low demandduring school days for railwaysduring school days for railways

Visibility dimensionVisibility dimension ±± High contact withHigh contact withcustomers as in hotel operations. Compare themcustomers as in hotel operations. Compare themwith low contact internet based purchases.with low contact internet based purchases.



Operations processes haveOperations processes have

different characteristics«..Contddifferent characteristics«..Contd

Variety dimensionVariety dimension ±± Higher variety resultsHigher variety results

in high unit cost with high load of in high unit cost with high load of complexitycomplexity. Low contact internet based. Low contact internet based

purchases.purchases.



Direct responsibility of OperationsDirect responsibility of Operations

Management (OM)Management (OM) Planning and controlling the operations.Planning and controlling the operations.

Plan sequence / processes of productsPlan sequence / processes of products

and services.and services.Develop operations standardisation andDevelop operations standardisation and

operational excellence.operational excellence.

Develop operations strategy for theDevelop operations strategy for theenterprise.enterprise.



Indirect Responsibility of OMIndirect Responsibility of OM

Support marketing efforts / emphasis onSupport marketing efforts / emphasis on

ads by keeping up these attributesads by keeping up these attributesWork together with other core functionsWork together with other core functions

and support functions to take theand support functions to take the

enterprise to next orbit.enterprise to next orbit.



Broad responsibilities of OMBroad responsibilities of OM

GlobalisationGlobalisation ±± A (Nissan¶s small car A (Nissan¶s small car production in India)production in India)

Environmental ProtectionEnvironmental Protection

Social ResponsibilitySocial Responsibility

Technology AwarenessTechnology Awareness

Knowledge ManagementKnowledge Management

Managing the workforce in productive wayManaging the workforce in productive waythrough better communication and loftythrough better communication and loftypersonnel policies.personnel policies.



Thrill of Operations ManagementThrill of Operations Management

Phenomenal job satisfaction next only toPhenomenal job satisfaction next only to

farmers.farmers. Phenomenal learningPhenomenal learning

Can help country to break into theCan help country to break into the

manufacturers to the globe.manufacturers to the globe.

what is operations[1]

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