This document summarizes key points from a webinar on operations presented by Dixit Aggarwal. It defines operations as planning, coordinating, and controlling resources to produce products and services. It discusses the need for operations to transform inputs to outputs and notes key operations functions include inventory management, production, value addition, cost control, materials planning, distribution, logistics, and staffing. The document also compares manufacturing and service operations, provides examples from the telecom industry, and defines important operations terms like inventory, outsourcing, bottlenecks, capacity, lead time, flow time, costs, ERP, lean operations, just-in-time, product life cycle, and determining profitable customers.

1. Operations
Webinar
A Webinar by PR cell for preparation of WAT-PI Admissions process 2016.
Presenter : Dixit Aggarwal (PGP06 Batch)

2. What is Operations ?
• The business function responsible for
- Planning
- Coordinating
- Controlling
the resources needed to produce products and services for a
company.
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3. Need for operations ?
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Transform inputs to output.
Inventory Management
Production management
Incremental Value addition
Cost Control
Materials Planning
Distribution & Logistics
Staffing

4. Importance of operations
IIMRohtak-Operations
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Marketing Finance
HR
Operations
Marketing - Sales
Finance - Operating
capital
HR- Staffing
Operations – Day to
day operations

5. Manufacturing vs Service Industry
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MANUFACTURING
- Tangible Products
- Quantification is easy
- Capital Intensive
- Inventories
SERVICES
- Intangible Products
- Quantification is easy
- Labour Intensive
- No Inventories
SIMILARITIES
- Demand Driven
- Concepts of quality, productivity, capacity, scheduling, staffing

6. Example (Operations in service
industry) – Telecom Industry
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QOS
Peak
Demand
Towers
Require
d
Tower
Location
Load
Distribu
-tion
Cells
Hands-
off
Outsour
-cing

7. Some important terms
• Inventory & its types
• Outsourcing, when to outsource
• Bottleneck and its implications
• Available Capacity and used capacity
• Lead time
• Flow time
• Fixed costs & Variable costs
• ERP (Enterprise resource Planning)
IIMRohtak-Operations
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8. Inventory
Inventory refers to the goods and materials that a
business holds for the ultimate purpose of resale or repair.
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• Chemicals
• Talc
• Silica
Raw Material
• Uncompleted
Products
• Soap Liquid
WIP
• Soap
• Shampoo
• Detergent
Finished Goods
Why
Inventory?
Because
Uncertain demand
Value Appreciation
Time Lags
Economies Of Scale
Types of Inventory

9. Assembly Line
• An assembly line is a manufacturing process in which parts are
added as the semi-finished assembly moves from workstation
to work station where the parts are added in sequence until
the final assembly is produced.
• Introduced by Ford in 1913 for their model T.
• His innovation reduced the time it took to build a car from
more than 12 hours to two hours and 30 minutes.
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10. IIMRohtak-Operations
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Time taken
Between
ordering &
delivering.
= WIP / cycle
time
Lead
Time
Average
time
between
successive
deliveries
Bottleneck
time
Cycle
Time
Time spend
by an item
in WIP
Production
lead time
Flow
Time
Total units
of a
products
that can be
produced in
a given
time period
=Time
available/
Cycle time
Capacity
Order
Placement
Operation
#1
Time = 2
Operation
#2
Time = 3
Operation
#3
Time = 1
Transporta
tion
Time = 2
Delivery

11. Six Sigma
• Implicit goal is to improve all processes.
• Formal Definition : Six Sigma seeks to improve the quality of the
output of a process by identifying and removing the causes of
defects and minimizing variability in manufacturing and business
processes. Below 3.4 defects per million opportunities.
IIMRohtak-Operations
Webinar2016

12. Supply Chain Management
• Supply chain management is a cross-functional approach that includes
managing the movement of raw materials into an organization, certain
aspects of the internal processing of materials into finished goods, and
the movement of finished goods out of the organization and toward the
end consumer
• Activities of SCM-
- Product Development
- Sourcing
- Production
- Logistics
- Synchronising supply & demand.
- IT
IIMRohtak-Operations
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13. Lean operations – Just in time
• Just in time is a method of planning and control and an operations
philosophy that aims to meet demand instantaneously with perfect
quality & no waste.
• Advantages
- Reduced inventory costs.
- Product customisation.
- No need for scheduling.
Example – Toyota – At the Toyota’s San Antonio plant, Toyota has
relations with various with various suppliers with close proximity of
the plant, which supplies components to the assembly line Just In
Time.
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14. Product Life Cycle
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15. Determining profitable
customers
• 80% of a company’s profits come from its top 20% customers.
• Matrices to identify profitable customers-
- Activity Based Costing system
- Customer Management System
- Retention
- Advocacy
- Expanding Purchasing
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16. ERP (Enterprise Resource
Planning)
Enterprise resource
planning (ERP) is an
enterprise-wide
information system
designed to coordinate
all the resources,
information, and
activities needed to
complete business
processes such as order
fulfilment or billing.
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17. Thank You 
• Questions ?
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