IEM-241 – Operations Management
BSc Industrial Engineering and Management – Batch 2021 – 3rd Semester (Fall 2022)
Department of Industrial Engineering and Management (DIEM)
University of the Punjab, Lahore.
Instructor: Zahid Shah
zahid.iqtm@pu.edu.pk
Operations Management
DIEM, University of the Punjab, Lahore.
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Module 01
Types of Organizations and Processes
Operations Management
DIEM, University of the Punjab, Lahore.
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01-01
Introduction to Operations
Management
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DIEM, University of the Punjab, Lahore.
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Learning Objectives
At the end of this lecture, you should be able to understand
• What is an operation what is operations (function)
• What is operations management and its focus
• Operations as a value adding function
• Difference between manufacturing and service organizations
Operations Management
DIEM, University of the Punjab, Lahore.
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Introduction
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Operations and Operations Management
• Operation: A job or task, consisting of one or more work elements, usually
done essentially in one location
• Operations: A function or system that transforms inputs into outputs of
greater value
Operations Management
DIEM, University of the Punjab, Lahore.
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Operations and Operations Management…
• Operations management focuses on how organizations produce goods and
services efficiently and effectively. It concerns the improvement of business
operations and the transformation process through which goods and
services are created
• Operations (management) is the business function that plans, organizes,
coordinates, and controls the resources needed to produce a company’s goods and
services
• It involves managing people, equipment, technology, information, and other
resources
Operations Management
DIEM, University of the Punjab, Lahore.
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Operations as a Transformation Process
• The role of operations management is to transform a company’s inputs into the finished goods or
services
• For operations management to be successful, it must add value during the transformation process
• The greater the value added, the more productive a business is
• Operations management helps eliminate the activities that do not add value (waste)
Operations Management
DIEM, University of the Punjab, Lahore.
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Operations as a Transformation Process…
Transformation Processes:
• Physical: as in manufacturing operations
• Locational: as in transportation or warehouse operations
• Physiological: as in health care
• Informational: as in communication
Operations Management
DIEM, University of the Punjab, Lahore.
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Operations as a Transformation Process…
Transformation
Processes:
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DIEM, University of the Punjab, Lahore.
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Operations as a Transformation Process…
Transformation Processes:
Canned Vegetables
Hospital
Inputs
Processing
Output
Metal sheets
Making cans
Raw vegetables
Cleaning
Canned
vegetables
Water
Cutting
Energy
Cooking
Labor
Packing
Building
Labeling
Equipment
Operations Management
Inputs
Processing
Output
Doctors
Examination
Treated patients
Nurses
Surgery
Space
Monitoring
Medical supplies Medication
Equipment
Therapy
Laboratories
DIEM, University of the Punjab, Lahore.
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Manufacturing and Service Processes
Operations Management
DIEM, University of the Punjab, Lahore.
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Manufacturing and Service Organizations
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DIEM, University of the Punjab, Lahore.
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Food for Thought
• No organization is purely manufacturing or purely service organization
• Manufacturing organizations also provide services
• Service organizations also produce ‘products’
Moreover:
• Manufacturing organizations need services to make products
• Service organizations need products to deliver services
Operations Management
DIEM, University of the Punjab, Lahore.
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Food for Thought…
• Having the oil changed in your car is a service, but the oil that is delivered is a
good (product).
• Similarly, house painting is a service, but the paint is a good (product).
• Teaching is a service, that is accomplished using different products, e.g.,
multimedia, whiteboard, marker, etc.
• Making cars is manufacturing, but it needs services to make it (e.g., electricity),
and to deliver it (e.g., transportation service)
• Transportation is a service accomplished using a product, i.e., a vehicle
Operations Management
DIEM, University of the Punjab, Lahore.
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Food for Thought…
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DIEM, University of the Punjab, Lahore.
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Operations and Operations Management…
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DIEM, University of the Punjab, Lahore.
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Operations and Operations Management…
Operations: A function or system that transforms inputs into outputs of greater value
Operations Management
DIEM, University of the Punjab, Lahore.
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Recap
• What is meant by operation
• What is meant by operations
• What is operations management
• What is meant by value
• What is value addition
• Difference between manufacturing and service processes
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DIEM, University of the Punjab, Lahore.
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Any Questions !
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DIEM, University of the Punjab, Lahore.
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