OM_1.1 Management- the attainment of organizational goals in an effective manner through planning, organizing, leading and controlling organizational resources. Functions of management Planning and decision making- organizing- leading- controlling Effectiveness- the degree to which the organization achieves a stated goal Efficiency- producing desired results with little or no waste of resources (raw materials, money, people) Doing the right things - effectiveness Doing things right - efficiency Operation - is that part of a business organization that is responsible for producing goods and services Goodsare physical product that you can see, touch or possibly consume Services- activities that provide a combination of time, location, form and psychological value Operation Management- is the set of activities that creates value in the form of goods and services by transforming inputs into outputs Hence, operation management is the management of system and processes that creates goods and provide services SCOPE OF OPERATIONS MANAGEMENT The operation functions include many interrelated activities, also called operations management decisions such as: 1.Design of goods and service -determining what good or service to be offered and how products and services are designed 2.Process of selection and facilities layout- determining what type of process will the products or service require and what equipment and technology are necessary for these processes Facility layout -is determining the best configuration of machines, storage, offices, and departments to provide the highest level of efficiency and customer satisfaction 3.Design of work systems- deciding how to provide a reasonable work environment and the best way to assign people to work tasks and responsibilities 4.Capacity planning- involves deciding on how much to produce and determining the optimum level of production. 5.Location- involves decisions on where to locate the facility and on what criteria should location decision be based 6.Managing inventories- involves determination of the quantity and timing of order (EOQ and ROP models) -Includes decisions on whether inventory buffers are necessary and how much 7.Management of quality- ensure that goods, services and processes will meet customer expectations and requirements.
8.Scheduling- determining when resources such employees and equipment should be assigned at work 9.Supply chain management- involves choosing between make or buy decisions, determining the appropriate suppliers and how to manage them well. 10.Motivating and training employees 11.Management of waiting lines RULES OF THE OPERATIONS MANAGERS The primary function of the operations manager is to guide the system by decision making. SYSTEM DESIGN DECISION- usually, but not always, require long term commitments, typically strategic decision SYSTEM OPERATION DECISIONS- tactical / operational decision or they relate to the day to day operations SCOPE OF OPERATIONS MANAGEMENT System design decisions 1.Product or service design 2.Location 3.Capacity planning 4.Process selection and facilities layout 5.Design of work system System operations decisions 1.Management of quality 2.Inventory management 3.Supply chain management 4.Scheduling 5.Management of waiting lines 6.Motivating and training employees