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RESPONSIBLITIES & CHALLENGES OF OPERATIONS  MANAGER PRESENTED TO:                                   PRESENTED BY: Mr. Deepak BuddhirajanNikitaJain                                                                 Shyam Sundar                                                                 Saroj Barar MEDICAPS INSTITUE OF TECHNOLOGY AND MANAGEMENT
OPERATION  MANAGEMENT It is the science and art of ensuring that goods and services are created & delivered successfully to customers.  It is Organization’s core function. Every organization has OM function ,[object Object]
For profit or Not for profit,[object Object]
Operations as a System Production System Conversion Subsystem Inputs Outputs Control Subsystem
Operations function The Transformation Model Input Transformed resources Environment Materials Information Customers Goods And services THE  TRANSFORMATION PROCESS OUTPUT INPUT Facilities Staff Environment Input Transforming resources
RESPONSIBILITIES  OF OPERATION MANAGER   Designing the operations system   Managing the operations system   Improving the operations system.     These  three decisions are taken on the basis of other five key points, that are called Pillars or Parameters.
FIVE   PARAMETERS The processes by which goods and services are produced. The quality of goods or services The quantity of goods or services (the capacity of operations) The stock of materials (inventory) needed to produce goods or services The management of human resources.
8 PROCESS MANAGEMENT Planning the activities necessary to achieve high quality in business processes;  Identifying opportunities for improving quality. Process simplification reduces opportunities for errors and rework. A process must be repeatable and measurable.
PROCESS IMPROVEMENT Customer loyalty is driven by delivered value. Delivered value is created by business processes. Sustained success in competitive markets require a business to continuously improve delivered value. To continuously improve value creation ability, a business must continuously improve its value creation processes.
EXAMPLE OF PROCESS IMPROVEMENT The Toyota Production System—had been widely credited for Toyota's sustained leadership in manufacturing performance. Toyota implemented Just-In-Time which relies on zero defects and hence continuous improvement! . What they deduced from this system is that it can be placed into five groups called the five zeros. These five zeros are, zero paper, zero inventories, zero downtime, zero defects and zero delay.
11 QUALITY TRILOGY ,[object Object]
Quality control: Meeting quality goals during operations. Control parameters. Measuring the deviation and taking action.
Quality improvement: Identify areas of improvement and get the right people to bring about the change.,[object Object]
13 Example of Quality perspectives Judgmental perspective “Goodness of a product.” Examples of products attributing to this image: Rolex watches, Lexus cars. Product-based perspective “Function of a specific, measurable variable and that differences in quality reflect differences in quantity of some product attributes.” Example: Quality and price perceived relationship.
14 Example of Quality perspectives User-based perspective “Fitness for intended use.” Individuals have different needs and wants, and hence different quality standards. Example – Nissan offering ‘dud’ models in US markets under the brand name Datson which the US customer didn’t prefer. Value-based perspective “Quality product is the one that is as useful as competing products and is sold at a lesser price.” US auto market – Incentives offered by the Big Three are perceived to be compensation for lower quality.
15 Quality perspectives Manufacturing-based perspective “The desirable outcome of a engineering and manufacturing practice, or conformance to specification.” Engineering specifications are the key! Example: Coca-cola – “quality is about manufacturing a product that people can depend on every time they reach for it.”
QUANTITY/CAPACITY MANAGEMENT      The capacity of a production unit (e.g. machine, factory) is its ability to produce or do that which the customer requires. In operations management, three types of capacity are: Potential Capacity      The capacity that can be made available to influence the planning of senior management (e.g. in helping them to make decisions about overall business growth, investment etc).  Immediate Capacity      The amount of production capacity that can be made available in the short-term. This is the maximum potential capacity - assuming that it is used productively Effective Capacity       Not all productive capacity is actually used or usable. It is important for production managers to understand what capacity is actually achievable.
INVENTORY  MANAGEMANT    An organization's buildings, facilities, equipment and stock are directly involved in or support the operations function. ,[object Object]
Re-order time.
Supply chain management.,[object Object]
COST  MANAGEMENT     Most of the costs of producing goods or services are directly related to the costs of acquiring resources, transforming them or delivering them to customers.  For many organizations, driving down costs through efficient operations management gives them a critical competitive edge.  ,[object Object],[object Object]
Changing Challenges for the Operations Manager
Changing Challenges for the Operations Manager

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R & s of o.m.

  • 1. RESPONSIBLITIES & CHALLENGES OF OPERATIONS MANAGER PRESENTED TO: PRESENTED BY: Mr. Deepak BuddhirajanNikitaJain Shyam Sundar Saroj Barar MEDICAPS INSTITUE OF TECHNOLOGY AND MANAGEMENT
  • 2.
  • 3.
  • 4. Operations as a System Production System Conversion Subsystem Inputs Outputs Control Subsystem
  • 5. Operations function The Transformation Model Input Transformed resources Environment Materials Information Customers Goods And services THE TRANSFORMATION PROCESS OUTPUT INPUT Facilities Staff Environment Input Transforming resources
  • 6. RESPONSIBILITIES OF OPERATION MANAGER Designing the operations system Managing the operations system Improving the operations system. These three decisions are taken on the basis of other five key points, that are called Pillars or Parameters.
  • 7. FIVE PARAMETERS The processes by which goods and services are produced. The quality of goods or services The quantity of goods or services (the capacity of operations) The stock of materials (inventory) needed to produce goods or services The management of human resources.
  • 8. 8 PROCESS MANAGEMENT Planning the activities necessary to achieve high quality in business processes; Identifying opportunities for improving quality. Process simplification reduces opportunities for errors and rework. A process must be repeatable and measurable.
  • 9. PROCESS IMPROVEMENT Customer loyalty is driven by delivered value. Delivered value is created by business processes. Sustained success in competitive markets require a business to continuously improve delivered value. To continuously improve value creation ability, a business must continuously improve its value creation processes.
  • 10. EXAMPLE OF PROCESS IMPROVEMENT The Toyota Production System—had been widely credited for Toyota's sustained leadership in manufacturing performance. Toyota implemented Just-In-Time which relies on zero defects and hence continuous improvement! . What they deduced from this system is that it can be placed into five groups called the five zeros. These five zeros are, zero paper, zero inventories, zero downtime, zero defects and zero delay.
  • 11.
  • 12. Quality control: Meeting quality goals during operations. Control parameters. Measuring the deviation and taking action.
  • 13.
  • 14. 13 Example of Quality perspectives Judgmental perspective “Goodness of a product.” Examples of products attributing to this image: Rolex watches, Lexus cars. Product-based perspective “Function of a specific, measurable variable and that differences in quality reflect differences in quantity of some product attributes.” Example: Quality and price perceived relationship.
  • 15. 14 Example of Quality perspectives User-based perspective “Fitness for intended use.” Individuals have different needs and wants, and hence different quality standards. Example – Nissan offering ‘dud’ models in US markets under the brand name Datson which the US customer didn’t prefer. Value-based perspective “Quality product is the one that is as useful as competing products and is sold at a lesser price.” US auto market – Incentives offered by the Big Three are perceived to be compensation for lower quality.
  • 16. 15 Quality perspectives Manufacturing-based perspective “The desirable outcome of a engineering and manufacturing practice, or conformance to specification.” Engineering specifications are the key! Example: Coca-cola – “quality is about manufacturing a product that people can depend on every time they reach for it.”
  • 17. QUANTITY/CAPACITY MANAGEMENT The capacity of a production unit (e.g. machine, factory) is its ability to produce or do that which the customer requires. In operations management, three types of capacity are: Potential Capacity The capacity that can be made available to influence the planning of senior management (e.g. in helping them to make decisions about overall business growth, investment etc). Immediate Capacity The amount of production capacity that can be made available in the short-term. This is the maximum potential capacity - assuming that it is used productively Effective Capacity Not all productive capacity is actually used or usable. It is important for production managers to understand what capacity is actually achievable.
  • 18.
  • 20.
  • 21.
  • 22. Changing Challenges for the Operations Manager
  • 23. Changing Challenges for the Operations Manager
  • 24. THANK YOU