NATURE AND SCOPE OF OPERATION MANAGEMENT

Ø  NATURE AND SCOPE OF OPERATION MANAGEMENT
LECTURE 1
(PLAYLIST PRODUCTION AND OPERATION MANAGEMENT ON YOU TUBE)

• OPERATION MANAGEMENT

Ø  OPERATION MANAGEMENT

• OPERATION MANAGEMENT IS A SYSTEMATIC APPROACH TO ADDRESS ALL THE ISSUES PERTAINING TO THE TRANSFORMATION PROCESS THAT CONVERTS SOME INPUTS INTO OUTPUT THAT ARE USEFUL AND COULD FETCH REVENUE TO THE ORGANIZATION.
• PRODUCTION CAN BE DEFINED AS THE VALUE ADDITION BY CONVERSION AND OR TRANSFORMATION OF INPUTS RAW MATERIAL INTO FINISHED PRODUCT WITH THE DEPLOYMENT OF MEN AND MACHINES OR TOOLS.
• PRODUCTION LEADS TO VALUE ADDITION TO INPUT RAW MATERIAL
• THE HARD FACTORS OF PRODUCTION ARE MEN.MATERIALS AND MACHINES
• THE SOFT FACTORS OF PRODUCTION ARE MANAGEMENT,MONEY AND TECHNOLOGY

Ø  DIFFERENCE BETWEEN PRODUCTION AND OPERATION MANAGEMENT

• PRODUCTION

1.     MAINLY DEALS WITH THE MANUFACTURING OF ANY PRODUCT

2.     CONVERSION OF RAW MATERIAL INTO FINISHED PRODUCT

3.     OLD CONCEPT OF MANAGEMENT

4.     APPLICABLE ONLY IN MANUFACTURING INDUSTRY

• OPERATION MANAGEMENT

1.     OPERATION MANAGEMENT IS AL TOGETHER NEW SUBJECT

2.     UNIVERSALLY APPLICABLE TO ALL FUNCTIONS INCLUDING PRODUCTION,MATERIALS,HUMAN RESOURCES ETC

3.     IS THE KNOWLEDGE ABOUT THE MANAGEMENT OF HANDLING OF PROCESS IN ANY FUNCTION EFFICIENTLY]

4.     MORE FREQUENTLY USED WHERE THE INPUTS ARE TRANSFORMED INTO INTANGIBLE SERVICES

• MEANING AND DEFINITION OF OPERATION MANAGEMENT
• OPERATION MANAGEMENT CAN BE DEFINED AS THE OPERATION OF EFFECTIVELY AND EFFICIENTLY CARRYING OUT A BUSINESS PROCESS OR AN ACTIVITY WHICH LEADS TO THE ACCOMPLISHMENT OF THE GOALS AND OR OBJECTIVE NORMALLY RELATED TO AN ORGANIZATION WITH THE CREATION OF MAXIMUM POSSIBLE SURPLUS IN TIME.
• OPERATION MANAGEMENT IS THE MANAGEMENT OF PROCESS OR A SUB PROCESS CONSISTING OF A DISTINCTIVE INPUT AND VALUE ADDITION BY CONVERSION LEADING TO A VALUE ADDED OUTPUT.
• PRINCIPLES ARE UNIFORMLY APPLIED TO BOTH MANUFACTURING AND THE SERVICE SECTOR
• FEATURES OF OPERATION AMNAGEMENT

1.     IS THE MANAGEMENT OF A BUSINESS PROCESS

2.     THE MANAGEMENT OF BUSINESS PROCESS SHOULD BE BOTH EFFECTIVE AND EFFICIENT

3.     THE CONCEPT OF OPERATION MANAGEMENT HAS BEEN INTRODUCED TO THE INDUSTRY WITH THE ADVENT OF CWQA( COMPANY WIDE QUALITY ASSURANCE)

4.     OPERATION MANAGEMENT HELPS IN TAKING DECISIONS REGARDING ORGANIZATIONAL PROFITABILITY,SURVIVAL AND GROWTH

5.     FOR THE MANAGEMENT OF ANY OPERATION THERE IS ALWAYS A GOAL OR OBJECTIVE TO BE ACCOMPLISHED WITH IN CERTAIN FRAMEWORK

6.     THE CONCEPT OF OPERATION MANAGEMENT CAN BE EQUALLY AND EFFECTIVELY APPLICABLE TO ALL FUNCTIONS AND ALSO TO BOTH MANUFACTURING AND SERVICE SECTOR.

·         OBJECTIVE OF OPERATION MANAGEMENT

1.     HIGH LEVEL OF PRODUCTIVITY

2.     COMPETITIVE COST AND QUALITY

3.     TIMELY DELIVERY

4.     PRODUCING GOODS AS PER THE REQUIREMENTS OF CUSTOMERS

5.     FLEXIBILITY AND RESPONSIVENESS IN THE PRODUCTION OF GOODS AND SERVICES.

• SCOPE OF OPERATION MANAGEMENT

1.     PRODUCT SELECTION AND DEVELOPMENT:-SELECT RIGHT PRODUCT KEEPING THE MISSION AND OBJECTIVE OF THE ORGANIZATION AND ALSO SUITABLE DESIGN TO MAKE US COMPETITIVE

2.     PROCESS SELECTION AND PLANNING:-DECISIONS ABOUT TECHNOLOGY,MACHINES AND EQUIPMENTS. NEED TO OPTIMIZE THE OUTPUT FROM THE PROCESS. PROCESS PLANNING DETAILING THE STAGES OF PROCESS.

3.     FORECASTING:_THE OPERATION MANAGER HAS TO FORECAST THE DEMAND IN ADVANCE FOR TAKING THE DECISIONS TO PRODUCE

4.     CAPACITY PLANNING:-IN CAPACITY PLANNING THE PLANNER HAS TO PLAN ABOUT THE PRESENT CAPACITY,FORECAST FUTURE NEEDS AND IDENTIFICATION OF RESOURCES AND SELECTING THE BEST SOURCE OF CAPACITY PLANNING

5.      LOCATION FACILITIES:-LOCATION OF A PLANT IS VERY SIGNIFICANT DECISIONS. THE SUCCESS OF THE ORGANIZATION DEPENDS UPON THE PROPER LOCATION OF THE PLANT. WRONG DECISIONS CAN PROVE TO FATAL TO THE ORGANIZATION.THE OPERATION MANAGER HELPS THE MANAGER TO TAKE THE RIGHT DECISION

6.     PLANT LAYOUT:-LAYOUT MEANS THE POSITIONING OF A MACHINERY. THE MACHINES SHOULD BE SO ARRANGED THAT THE FLOW OF PRODUCTION REMAIN SMOOTH. AND THERE SHOULD BE PROPER CHOICE OF MATERIAL HANDLING EQUIPMENT.

7.     QUALITY CONTROL:-QUALITY CONTROL IS THE PROCESS WHICH HELPS IN ENSURING THAT EVERY PRODUCT WHICH IS MANUFACTURED CONFORMS TO PREDETERMINED STANDARD. VARIOUS QUALITY CONTROLS TECHNIQUES ARE AVAILABLE LIKE ACCEPTANCE SAMPLING.QUALITY CONTROL CHARTS

8.     INVENTORY MANAGEMENT:-REFERS TO THE PLANNING,DIRECTING,CONTROLLING AND COORDINATING ALL THE ACTIVITIES RELATING TO INVENTORY.

9.     OPERATION RESEARCH:-VARIOUS TECHNIQUES OF OPERATIONS RESEARCH TECHNIQUES HAVE USES IN THE FIELD OF INDUSTRY,AGRICULTURE,MARKETING ETC

10. SUPPLY CHAIN MANAGEMENT:-IS THE MANAGEMENT OF ALL THE ASPECTS OF PROVIDING GOODS TO CUSTOMERS FROM EXTRACTION OF RAW MATERIAL TO PRODUCTION,DISTRIBUTION AND TO FINAL CONSUMER.