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Operations Management
For PGDM Program NMANTEC Ghaziabad Function and Strategy Module
By Prof. S. S. Sharma

Operations Management

Function and Strategy

Production Systems
1. Continuous Flow production system

- Assembly lines
- Chemical Operations etc.

2. Intermittent or Customized Flow production system - Job shop type machine shops
- Fabrication shops - Batch type chemical operations.

Functions of Production & Operations Manager

1. Production & Operations Planning and control
2. Production/Operations as per plans 3. Inspection/quality assurance 4. Engineering: Support of Design and Development 5. Industrial Engineering 6. Plant & Facilities Maintenance. 7. Interdepartmental Co-ordination

Operations Strategy
Strategy is the:
1. 2. Direction and scope of an organization over long term, Matching the activities of an organization to the environment in which it Operates

3.
4. 5.

Concerns with resource allocation

Affected by the values and expectations of stakeholders Affects operational decision

Operations Management
Levels of Strategy :
1. Corporate Level strategy 2. Business Strategy 3. Operational Strategy

Operations Management
Levels of Strategy :
1. Corporate Level strategy - Covers overall scope of the organization

- Concerns with operations in structural and financial terms

- Decides criterion for allocation of resources to different operations

- Influence by Vision and Mission of the organization

Operations Management
Levels of Strategy :
2. Business Strategy - How to compete in a market - Which products and services to be developed and offered to which market - To what extent products and services meets customer needs - Does it achieve the objectives of the company w.r.to Long term profitability, Market growth etc

Business Strategies
Product leadership:
Developing & Delivering innovative products and services,

Operational Efficiency:
Deliver more efficiently at lower cost

Customer Intimacy:
Provide experience for customers.

Operations Management
Levels of Strategy :
3. Operations Strategies: - Adopted at functional levels.

- The success at the operational levels ultimately enables an organization to achieve the corporate level and competitive/Business strategies.

Operations Strategy
Factors to consider for adopting operations Strategy :
1. The number, type, size and location of operations facility.

2. Type of equipments to be utilized

a. Specific function or general purpose machineries and equipments. b. Automated or manual

3. Make or buy decision

4. Organization structure 5. Work force selection, employment security, compensation methods and management style.

Operations Strategy
Factors to consider for adopting operations Strategy contd. :
6. Management Information System to be used for collection, analysis and distribution of information on:
Production, Purchasing, Inventory, Quality, personnel etc.

7. Production planning, scheduling and control, system and inventory policy. 8. Methods of quality control and improvements to be used 9. Methods of productivity improvements to be used for process, manpower and machinery.