1. OPERATIONS
MANAGEMENT
MR. YASIR ANWAR

2. WHAT IS MANAGEMENT?
Organization and coordination of
the activities of an enterprise in
accordance with certain policies
and in achievement of clearly
defined objectives

3. PROCESS OF MANAGEMENT
 Designing
 Planning
 Organizing
 Directing
 Controlling

4. WHAT IS OPERATIONS
MANAGEMENT?
Design, execution and control of a firm’s
operations that convert its resources into
desired goods and service for consumers and
implement its business strategy.

6. TYPES OF OPERATIONS
 Manufacturing
 Supply
 Transport
 Service

7. MANUFACTURING
 Physical materials are converted into a product.
 The process includes extraction of raw material
to the supply of the product.

8. SUPPLY
 Change of ownership of physical goods is the
main activity

9. TRANSPORT
 The movement of goods or people from one place
to another without any physical change taking
place.

10. SERVICE
 Changing the condition of the customer. The
change could be emotional, physical,
entertainment etc.

11. ROLE OF OPERATIONS MANAGER
 Designing the system of value adding process
(called value chain)
 Designing and managing process that support
the value chain.
 Controlling and improving the value chain and
support process to achieve and sustain high level
of performance
 Managing the interface with other functional
areas of business such as marketing, finance, and
HR in way that enables the organization to
derive competitive leverage from the operations
function.

12. WHAT IS VALUE CHAIN?
 A value chain is a chain of activities.
 The goal is to analyze the activities through
which firms can create a competitive advantage,
it is useful to model the firm as a chain of value-
creating activities.

13. FOCUS OF OPERATIONS
MANAGEMENT
 OM is fundamental to an organization’s
achievement of its mission and competitive goals

14. OM LINK WITH OTHER
FUNCTIONS

15. FINANCE
 Financial decisions affect the choice of
equipment, use of overtime, cost-control policies
and price-volume decisions.
 Operations functions are often dictated by
economics.

16. MARKETING
 It is important for understanding customer needs
and developing new markets and product
potential
 Understanding between marketing and
operations takes organizations to higher levels

17. ACCOUNTING
 It provides data on product and service costs that
help evaluate operational performance.
 Budgeting and operational planning depend on
accuracy of accounting data.

18. DESIGN
 Product design ensures that the end products meet
customer needs.
 The design process includes process development and
engineering.
 New initiatives in design elevate
the role of operations in this process.

19. HUMAN RESOURCES
 It includes the recruitment of employees, their
training and enhancing their well being
 This depends on operations approaches.
 Flexible design of operations is needed to
accommodate all employees.

20. INFORMATION SYSTEMS
 Information systems provide the means for
capturing and analyzing, and coordinating the
information needs of all of the preceding areas as
well as operations.