introduction top om

8/4/2019 Introduction Top Om

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Production & OperationsManagement

Module 1

Sathish Rajamani

[email protected]

09940667419
mailto:[email protected]:[email protected]


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What are the 3 Primary functions in any

Organization ?

1. Finance

2. Marketing ( Distribution )3. Production / Operations

Production : Refers to Manufacturing Processes

Operations :Used to describe Service ProcessesIn Standard Usage it refers to Both


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What is Operations Management?

DefinedOperations management (OM) is

defined as the design, operation, andimprovement of the systemsthatcreate and deliver the firms primary

products and services


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What is Production & Operations

Management (POM) ?

POM is about Transformation of Production and

Operational INPUTS into OUTPUTS that , whendistributed, meet the needs of the customer thereby

achieving the required level of Profits / Service


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Transformation or Conversion System

Inputs TransformationProcess

Outputs


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Outputs

Labour

Materials

Money .

Machines

Technology

Procedures.

Goods

Services


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Outputs

Labour

Materials

Money .

Machines

Technology

Procedures...

Goods

Services

Feedback


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Types of Transformation Processes

1. Physical

2. Locational

3. Physiological

4. Psychological

5. Informational

6. Exchange


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Types of Transformation Processes

Examples..

1. Physical Manufacturing, Process industries

2. Locational Transportation , Storage

3. Physiological Health care

4. Psychological- Entertainment, Advertising?

5. Informational Communication, Software

6. Exchange Retailing, Financing ?


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Lets look at some examples of

different Transformation Systems1. An Automobile Manufacturing Unit

2. An Hospital

3. An Educational Institution

4. A Bank/Financial institution

5. Software development company

6. Mobile Service provider

7. Social Service Organization

8. A Super Market

9. Garment Manufacturing Unit

10. Film Production Unit

11. Government Treasury Department

12. Internet Service Provider


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Lets look at some examples of

different Transformation Systems


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Operations is a Basic Function..

MARKETING FINANCE

OPERATIONS


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Organization Chart- An example

Facilities

Production &

Inventory Control

Quality Assurance

& Control

Procurement

Engineering Design

Industrial Engineering

Process Engineering

Operations

Disbursements &

Credits

Funds Management

Capital Requirements

Finance/Accounting

Sales Promotion

Advertising

Sales

Market Research

Marketing

Manufacturing Organization

HR, IS & other

support fns.


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Why Study OperationsManagement?

Business Education

Systematic Approachto Org. Processes

Career Opportunities

Cross-FunctionalApplications

OperationsManagement


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So, a thorough understanding of the

Production and Operations Process isrequired for the Success of any

Management Professional irrespective of

their function in an organization


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Introduction to POM

22


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Evolution of POM

Sakichi Toyoda receives a patent for a wooden loom

philosophy of KAIZEN is born out of the need to

compete.

Henry Ford invents themoving assembly line

Toyoda Motor Company Ltd. is created.

Kiichiro Toyoda builds a plant at Koromo

and through the imbalance caused by piece

work, hangs a sign in his new production

shop that reads JUST IN TIME.

Taichi Ohno moves to the Toyota

Motor Company Ltd.

Ohno begins to perfect the Just-in-

Time concepts introduced by Kiichiro

Toyota brings the ToyotaProduction System to theUnited States in collaboration

with GM

Womack and Jones publish The

Machine that Changed the

World

1890 Late 1890s

Central figures who originated the idea of "EliminatingWaste",

Lillian Gilbreth brings psychology into the mix by studying themotivations of workers and how attitudes affected the outcome of

a process.

Frank Gilbreth develops Motion Study and invented ProcessCharting.

Frederick W. Taylor develops the principles of Time Study andstandardized work.

1937 1943908 1980 1990

Before: cars were built in onespot and the workers movedfrom car to car. This was calledthe gypsy production system.

After: Ford used a big ropeand winch to pull the cars

along the assembly line andkept the workers stationary

1990


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Relevance of POM in todays Global

Business ..There is a great need to

Compete on Differentiation

Compete on Cost

Compete on Response

Compete regardless of the Basis


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Relevance of POM in todays Global Business ..

Compete on DifferentiationUniqueness can go beyond both the physical

characteristics and service attributes to encompass everything

that impact customers perception of value

Compete on Cost

Provide maximum VALUE as perceived by CUSTOMER

Compete on Response

Flexibility, Reliability & Timeliness

Compete regardless of the Basis

Institutionalization of Ability to CHANGE & to ADAPT

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