BY
AMAR P. NARKHEDE

INTRODUCTION
Operation management refers to the planning, coordination and control of all the activities concerned with the conversion of inputs into output. Inputs consist of raw material, energy, labour, machinery and other productive resources.
These inputs are transformed into output through appropriate system design planning and control. output comprises products and services.
For example:- in manufacturing organization like a steel plant, inputs are materials like iron ore, coke, lime stones etc, labour, machine and capital whereas outputs are steel section like rods, bars, channels, sheets.
in service organization like bank, inputs are customers and outputs are serviced customer.

“Operations management is the set of activities that creates goods and services by transforming inputs into outputs.”
Production or manufacturing is the creation of goods and services.

OBJECTIVES AND SCOPE OF OPRATIONS
MANAGEMENT
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Maximizing output of goods and services with minimum resource inputs.
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Producing right kind of goods and services that satisfy customers needs.
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Ensuring that goods and services produced conform t preset quality specifications.
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Minimizing throughput time – time that elapse in conversion process by reducing delays, waiting and idle time.
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Maximizing utilization of manpower and machines.
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Minimizing cost of producing goods or rendering a services.

• PLAN ( Prepare production plan, planning for extra capacity for rush)
• ORGANIZE ( Allocating activities to men and machine.
Avoiding under loading and overloading of facilities)
• STAFF (Staffing with workers with required skilled sets in adequate numbers)
• LEAD (Directing and motivating the team.)
• CONTROL (Monitoring the planned versus actual performance)

TEN CRITICAL DECISIONS IN OPRATIONS
MANAGEMENT
• Quality management
1. Who is responsible for quality?
2. How do we define quality?
• Service and product design
1. What product or service should we offer?
2. How should we design theses products and services
• Process and capacity design
1. What process will these products require and in what order?
2. What equipment and technology is necessary for these processes?

TEN CRITICAL DECISIONS IN OPRATIONS
MANAGEMENT
• Location
1. Where should we put the facility?
2. On what criteria should we base this location decision?
• Layout design
1. How should we arrange the facility?
2. How large the facility is required?
• Human recourse and job design
1. How do we provide reasonable work environment?
2. How much we can expect our employees to produce?

TEN CRITICAL DECISIONS IN OPRATIONS
MANAGEMENT
• Supply chain management
1. should we make or buy the item?
2. Who are our good suppliers and how many should we have?
• Inventory, material requirements planning,
JIT “Just in Time” inventorty
1.How much inventory of each item should we have?
2. We do we reordered?

TEN CRITICAL DECISIONS IN OPRATIONS
MANAGEMENT
• Intermediate, short term and project scheduling
1. Is subcontracting production a good idea?
2. Are we better of keeping people on payroll during slowdowns?
• Maintenance
1. Who is responsible for maintenance?

FUNCTIONS OF MANUFACTURING
MANAGEMENT
• Production planning
• Production control
• Quality control
• Method analysis
• Inventory control
• Plant layout and material handling
• Work measurement
• Cost control
• Price analysis

• INPUTS
• CONVERSION PROCESS
• OUTPUTS
• STORAGE
• TRANSPORTATION
• INFORMATION