Description
This is a PPT describes about Operations Management.
Input
Output
Processes
Processes
? ? ? ? ?
The physical distribution of products to the customers. Collection of marketing information. Recruitment and selection process. Paper flow and conversion of accounting information in an accounts office. Paper flow and conversion of data into information usable by the judge in a court of law.
A Conceptual Model of Operations System
Adjustment needed Inputs •Labour •Materials •Equipment •Capital •Management Conversion process Monitor output Outputs Goods and Services
Comparison •Actual v/s Planned
4
Basis for Competition: Product is available when needed by the customer
Old Approach New Approach Keep/increase buffer stocks of Reduction of operations lead finished goods and other materials times, delivery times through strategic alliances. Invest in more machinery, hire Improvements in quality, more people, get more materials producing right first time, self and thus increase the production inspection and certification capacity. thereby leading to elimination of wastage of time and reduction in operations/process time. Improved machinery maintenance, improved design of products and processes, so that expenditure due to breakdowns, rejects and rework is avoided.
5
Basis for competition: Cost Leadership
Traditional Approach
Modern Approach
Control on costs especially related to Eliminate only the non-value adding direct labour activities Reduction in budgetary allocations on Improve design thereby reducing costs training, human resources. of inputs materials and costs of processing and packaging. Defer investment in machines, Reduce set up time and save on the including the necessary replacements attendant costs. Reduction in support activities Reduce the need to have inventories by reducing lead times and uncertainties through better management and control.
Reduce inventories of raw materials, Use technology to simplify processes, bought out items and other supplies procedures thereby reducing the resultant wastages.
6
?The resultant effects are
Traditional Approach Modern Approach
Depletion of skills of the manpower.
Reduction in manpower. the motivation
Lean and flexible operations
of Better product/service quality
Vendors feel alienated and increase in Enhanced responsiveness to customers vendor related problems. Higher wear and tear of machinery. Improved market performance
Delivery and quality taking back seat.
Improved profits to plough back in improved machines, training of manpower.
Dissatisfied customers delay payments Better support to vendors and dealers on one pretext or the other. and hence better services to customers.
7
? ? ?
Customer satisfaction
Effectiveness Efficiency
8
1.
Technology selection and management Capacity management
2.
3.
Scheduling/ Timing/ Time allocation
System maintenance
4.
9
P r o d u c t i o n
V o l u m
e
Continuous Flow type Mass production type
Production/ Operations flexibility
Production/ Operations capacity Batch type Job-shop type
Output/ product variety
10
?
Product Centric Vs People Centric Quantity Vs Quality
?
?
Meaningful Differentiation
Cost Leadership
?
? ?
?
Changing conditions Being responsive, responsible, reliable, accessible, communicative and empathetic to the customer. Flexibility involves not only manufacturing and supplies but also the design and development, the project execution, the marketing and servicing functions.
? ? ? ? ?
?
Product design Product range or product mix Volumes Quick deliveries Quick introduction of new product/ design Quick Response and services
? ? ? ? ?
Product performance Technology leadership New product introduction. Access to key decision-makers.
Delivery service
? ? ?
Reducing Non-Value adding elements Continuous process Does not include man power reduction
?
Make or Buy – Short term decision Outsourcing – Long term
?
doc_872840292.pptx
This is a PPT describes about Operations Management.
Input
Output
Processes
Processes
? ? ? ? ?
The physical distribution of products to the customers. Collection of marketing information. Recruitment and selection process. Paper flow and conversion of accounting information in an accounts office. Paper flow and conversion of data into information usable by the judge in a court of law.
A Conceptual Model of Operations System
Adjustment needed Inputs •Labour •Materials •Equipment •Capital •Management Conversion process Monitor output Outputs Goods and Services
Comparison •Actual v/s Planned
4
Basis for Competition: Product is available when needed by the customer
Old Approach New Approach Keep/increase buffer stocks of Reduction of operations lead finished goods and other materials times, delivery times through strategic alliances. Invest in more machinery, hire Improvements in quality, more people, get more materials producing right first time, self and thus increase the production inspection and certification capacity. thereby leading to elimination of wastage of time and reduction in operations/process time. Improved machinery maintenance, improved design of products and processes, so that expenditure due to breakdowns, rejects and rework is avoided.
5
Basis for competition: Cost Leadership
Traditional Approach
Modern Approach
Control on costs especially related to Eliminate only the non-value adding direct labour activities Reduction in budgetary allocations on Improve design thereby reducing costs training, human resources. of inputs materials and costs of processing and packaging. Defer investment in machines, Reduce set up time and save on the including the necessary replacements attendant costs. Reduction in support activities Reduce the need to have inventories by reducing lead times and uncertainties through better management and control.
Reduce inventories of raw materials, Use technology to simplify processes, bought out items and other supplies procedures thereby reducing the resultant wastages.
6
?The resultant effects are
Traditional Approach Modern Approach
Depletion of skills of the manpower.
Reduction in manpower. the motivation
Lean and flexible operations
of Better product/service quality
Vendors feel alienated and increase in Enhanced responsiveness to customers vendor related problems. Higher wear and tear of machinery. Improved market performance
Delivery and quality taking back seat.
Improved profits to plough back in improved machines, training of manpower.
Dissatisfied customers delay payments Better support to vendors and dealers on one pretext or the other. and hence better services to customers.
7
? ? ?
Customer satisfaction
Effectiveness Efficiency
8
1.
Technology selection and management Capacity management
2.
3.
Scheduling/ Timing/ Time allocation
System maintenance
4.
9
P r o d u c t i o n
V o l u m
e
Continuous Flow type Mass production type
Production/ Operations flexibility
Production/ Operations capacity Batch type Job-shop type
Output/ product variety
10
?
Product Centric Vs People Centric Quantity Vs Quality
?
?
Meaningful Differentiation
Cost Leadership
?
? ?
?
Changing conditions Being responsive, responsible, reliable, accessible, communicative and empathetic to the customer. Flexibility involves not only manufacturing and supplies but also the design and development, the project execution, the marketing and servicing functions.
? ? ? ? ?
?
Product design Product range or product mix Volumes Quick deliveries Quick introduction of new product/ design Quick Response and services
? ? ? ? ?
Product performance Technology leadership New product introduction. Access to key decision-makers.
Delivery service
? ? ?
Reducing Non-Value adding elements Continuous process Does not include man power reduction
?
Make or Buy – Short term decision Outsourcing – Long term
?
doc_872840292.pptx