RESPONSIBLITIES & CHALLENGES OF OPERATIONS MANAGER

PRESENTED TO: PRESENTED BY:

Mr. Deepak Buddhirajan Nikita Jain 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

Service or Manufacturing

For profit or Not for profit

NATURE & PURPOSE

The fundamental purpose of O.M. is to deliver ever-improving value to the customers through the continuous improvement of overall company performance & capabilities .

O.M. is the only means by which managers can directly affect the value provided to all stakeholders- customers, employees, investors & society.

Operations as a System

Inputs OutputsConversionSubsystem

Production System

ControlSubsystem

Operations function The Transformation Model

Input

Transformedresources

InputTransformed

resources

MaterialsInformationCustomers

MaterialsInformationCustomers

FacilitiesStaff

FacilitiesStaff

InputTransforming

resources

InputTransforming

resources

INPUTINPUT OUTPUTOUTPUTGoods

Andservices

GoodsAnd

services

Environment

Environment

THE TRANSFORMATION

PROCESS

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 servicesThe quantity of goods or services (the

capacity of operations)The stock of materials (inventory) needed

to produce goods or servicesThe management of human resources.

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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.

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QUALITY TRILOGY

Quality planning: Meeting quality goals. Involves understanding customer needs and developing product features.

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.

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Quality perspectives

Typical responses about the definition of quality would include:

1. Perfection2. Consistency3. Eliminating waste4. Speed of delivery5. Compliance with policies and procedures6. Doing it right the first time7. Delighting or pleasing customers8. Total customer satisfaction and service

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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.

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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.

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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.

Procurement.Re-order time.Supply chain management.

HUMAN RESOURCE MANAGEMENT

Creating a high performance workplace by motivating & developing the skills of employees.

Continually learning from co-workers, competitors & customers.

Adapting the organization to global & environmental changes.

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.

Creating more value with lower cost.

CHALLENGES FACED BY OPERATION MANAGER

To remain competitive, industrial organizations

are continually faced with the challenges to improve product quality, reduce product development time, reduce production costs and lead-times. Increasingly, these challenges cannot be effectively met by isolated changes to specific organizational units.

Changing Challenges for the Operations Manager

Past Causes Future Local or national focus

Low-cost, reliable worldwide communication and transportation networks

Global Focus

Batch (large) shipments

Cost of capital puts pressure on reducing investment in inventory

Just-in-time shipments

Low-bid purchasing

Quality emphasis requires that suppliers be engaged in product improvement

Supply-chain partners

Lengthy product development

Shorter life cycles, rapid international communication, computer-aided design, and international collaboration

Rapid product development, alliances, collaborative designs

Changing Challenges for the Operations Manager

Past Causes Future Standardized products

Affluence and worldwide markets; increasingly flexible production processes

Mass customization

Job specialization

Changing sociocultural milieu. Increasingly a knowledge and information society.

Empowered employees, teams, and lean production

Low cost focus

Environmental issues, ISO 14000, increasing disposal costs

Environmentally sensitive production, Green manufacturing, recycled materials, remanufacturing

THANK YOU