PGP: 2008-2010 Office: Room No: 224, Ext-828 & 851
TERM: II e-mail: winfred@ximb.ac.in
Operations management is concerned with the production of goods and the delivery of services to meet customers’ demand. A major challenge, facing the companies today, is how to deliver high quality products/services to meet ever-changing customer demands in a timely and cost-effective manner. It has also been realized that the operations function must integrate into the overall corporate planning and strategy to achieve such an advantage. Therefore, a sound understanding of operations management is important for all managers.
The objective of this course is to develop a general managerial perspective on the role of operations management at both the tactical and strategic level. The course is designed to provide an understanding of manufacturing and operations as a major functional area of business. In this function, the five major decision areas are PROCESS, CAPACITY, INVENTORY, WORKFORCE and QUALITY. Operations Management gets as close as we can in business life to the act of creation. Since the creation of products and services is the very reason for any organization’s existence, Operations Management should be at the heart of its affairs.
Within operation function, management decisions can be divided into three broad areas:
Strategic (long –term) decisions.
Tactical (intermediate-term) decisions.
Operational planning and control (short –term) decisions.
The strategic issues are usually broad, addressing such questions as: How will we make the product? Where do we locate the facility or facilities? How much capacity do we need? When should we add more capacity? Thus, by necessity the time frame for strategic decisions is typically long – usually several years or more, depending on the specific industry.
Operations management decisions at the strategic level impact the company’s long range effectiveness in terms of how it can address its customer’s needs. Thus, for the firm to succeed, these decisions must be in alignment with the corporate strategy. Decisions made at the strategic level become the fixed conditions or operating constraints under which the firm must operate in both the intermediate and short term .
At the next level in the decisions-making process, tactical planning primarily address how to efficiently schedule material and labor within the constraints of previously made strategic decisions. Issues on which operation management concentrates on this level include: How many workers do we need? When do we need them? Should we work overtime or put on a second shift? These tactical decisions, in turn, become the operating constraints under which operational planning and control decisions are made. One of the key parts of an operation manager is to constantly find ideas for operations improvement. This subject also deals with tools and techniques for such improvements.
In POM-I the focus is on designing products and processes, allocating scarce resources to strategic alternatives, and long-range capacity and facility planning. These operations functions help in achieving the long-range broader organizational objectives. Later on, in POM-II, we will concentrate on the operational aspects of manufacturing and service systems. Our focus would then be on short and medium term planning and control.
This course is divided into five modules which are:
1. OPERATIONS MANAGEMENT: CONCEPTS
2. OPERATIONS STRATEGY: CONCEPTS & COMPETENCIES
3. SIMULATION MODELING FOR PROCESS DECISIONS
4. DECISION MAKING IN OPERATIONS
5. MANAGING SERVICES OPERATIONS
MODULE –I
OPERATIONS MANAGEMENT: CONCEPTS [4 Classes]
· Describe need for operations management in managing organizational processes.
· Determine the reasons behind the existence of different perspectives on operations management
· Explain productive systems and differentiate between different types of productive systems
· Identify relationship among operations, marketing, human resource and strategic management.
· Examine the external and internal relationship among the five operations performance objectives – quality, speed, dependability, flexibility and cost.
Session -1
Tracing the past of the Operations Management
Ø Operations Management- a Historical perspective
Ø Operations Management – The Present day context.
Ø Why Study OM?
Ø The concept of OM
Ø What Operations Managers do?
Session -2
Productive Systems and Operations Management
Ø What is a productive systems ?
Ø Types of productive systems
Ø How operations are different from each other
Ø Some examples of productive systems
Session -3
The Strategic Roles of Operations
Ø What is a process?
Ø How to identify a good process?
Ø What are the roles of operations functions? Who are the stakeholders?
Ø What are Operations competitive dimensions?
Ø Types of operations decisions.
Session -4
Case study (To be announced later)
Text Books:
T1: Chapter-1, 3
T2: Chapter-1, 4
Module –II
OPERATIONS STRATEGY: CONCEPTS & COMPETENCIES [3Classes]
By the end of this module, you should be able to:
· Explain relationship between operations strategy and corporate strategy
· Justify importance of operations strategy in today’s business environment
· Identify frameworks and models for analyzing companies' operations strategies.
· Identify types of simulation software
· Apply simulation software in process decisions
Sessions- 8
Simulation for Decision Making
Ø Introduction to simulation
Ø Types of simulation software
Sessions- 9
Process simulation using Innov8
Ø Application of simulation software in process decisions
Text Book:
T1: Chapter-5
· Learn various types of forecasting models
· Describe various methods of solving a location problem
· Explain the factors affecting location decisions
· Understand how to achieve a good layout for the process facilities
· Evaluate capacity of a productive systems
· Identify the critical decisions in a job design.
· List types of recording techniques and its appropriate use
Session –10
Forecasting for Operations Decisions
Ø Basic Categories of Forecasting Methods
Ø Components of Demand
Ø Extrapolative Methods
Ø Casual or Explanatory Methods
Session –11
Product design and Process selection
Ø Goods and Services Selection
Ø Generating New Products
Ø Product Development
Ø Issues in Product Design
Ø Services Design
Session –12
Capacity Assessment and Planning