2. Operations ManagementIn Supply Chain Management Presented By : Skierians

3. End of this presentation we will come to know about : What operation management is? Business Functions . Important business functions for OM. Location of Operations In Organizational Chart. Difference B/w manufacturers and service organization. Classification of OM Transformation process. Relation of SCM And OM Examples For SCM And OM Conclusion References

4. Operations Management

5. what is operation Management? The business function responsible for planning, coordinating, and controlling the resources needed to produce a company’s products and services.

6. what is operation Management? (cont:) It is a management function Organization’s core function Every organization has OM function Service or Manufacturing For profit or Not for profit

7. Business functions Marketing Sales Target market Product line Finance and control R&D Labor Purchasing Production Distribution

8. Typical Organization Chart

10. Product can be inventoried

11. Low customer contact

12. Longer response time

13. Capital intensiveServices: Intangible product Product cannot be inventoried High customer contact Short response time Labor intensive

14. Similarities-Service/Manufacturers All use technology Both have quality, productivity, & response issues All must forecast demand Each will have capacity, layout, and location issues All have customers, suppliers, scheduling and staffing issues

15. Classifications of Operation Management As we know that Operation management deals with two things that is Product and services so to work with these two individually there is a separate system these are: Productive System Service System

16. Productive System If we are talking about the goods or products then we have to discuss about productive system. And these are types of productive system. Process Focused System Product Focused System Production to stock/order

17. Process Focused System

18. Product Focused System

19. Production to stock/order

20. Service System On contrast when we talk about services there is service system and there kinds which are: Stagnant personal services Substitutable personal Services Progressive services Explosive services

21. Stagnant personal services

22. Substitutable personal Services

23. Progressive services

24. Explosive services

25. Transformation Process

26. OM’s Transformation Role To add value Increase product value at each stage Value added is the net increase between output product value and input material value Provide an efficient transformation Efficiency – perform activities well at lowest possible cost

27. What is the connection b/w scm & om Go to Transformation process slide

28. Cont: Yes each of these elements in transformation process is connected with SCM . HOW? This can be explained with decision making in operation management and some of the calculations which will make all of us to understand that how SCM is Connected with OM.

29. Decisions All organizations are based on decisions Decisions follow a similar path First decisions very broad – Strategic decisions Strategic Decisions – set the direction for the entire company; they are broad in scope and long-term in nature Following decisions focus on specifics - Tactical decision

30. Cont: Tactical decisions focus on Specific day-to-day issues Resource needs, schedules, & quantities to produce Tactical decisions are very frequent Strategic decisions less frequent Tactical decisions must align with strategic decisions

31. Example of Raw material calculation for cookies manufacturer

32. Calculation Formula: Forcasted Demand + ending stock percent of Amount Example : If the forecast demand per month is 50,000 units of cookies. If the amount of stock at the end of the month is 5% of the amount.

33. The materials required for the month:

34. Cost per unit calculation

35. How production is Going on? The productivity index (P.I) can be more or less than 1. P.I > 1 = business running efficiently P.I < 1 = business running inefficiently

36. This All Calculations Decisions shows that SCM is playing a vital roll in OM because it is being used in each and every portion of Operation management

37. Further Explanation

38. Conclusion As we know that SCM works with the whole Organization and if we say that Operations management is one which works in between the whole organization that will not wrong because , All business functions need information from OM in order to perform their tasks

39. References : R. Dan Reid & Nada R. Sanders 3rd Edition © Wiley Elwood S. Buffa & Rakesh K. Sarin 3rd Edition © Wiley Internet Sir Abdullah Alamin