This document provides an overview of operations management concepts covered on day 3 of training. It introduces Mintzberg's organizational structure model, Porter's value chain analysis, and the four V's of operations regarding volume, variety, demand variation and visibility. It also discusses systems used for operations management like MRP, MRP II and ERP. Additional topics covered include managing operational capacity, supply chain management, strategic supply management tools, inventory management techniques and sustainability in operations.

1. Operations
Management
Day 3

2. Introduction to Operations Management
• Introduction
• Mintzberg’s effective organisation
• Porter’s Value Chain
• Strategic Issues
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• Systems used in Operations Management
• Managing Operational Policy
• Sustainability in operations management
• Product / Service and Process Design

3. Introduction
• Requirements of customers define operations strategy
• Low-priced product
• High-quality product
• Timely delivery
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• Specific design
• Flexibility at the time of receipt of service / product

4. Mintzberg’s Effective
Organisation
Strategic apex
Techno-
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Support
structure Middle staff
line
Operational core

5. Porter’s value chain
Support
Infrastructure
Human Resources Management
Technology
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Margin
Procurement
Logistics Operations Marketing After
& Sales Sales
Services
Primary

6. Value chain
• The sequences of the processes through which value is added to an
organization’s products and services.
Primary
Support Activities
Activities
Receiving Purchasing of
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material, handling , raw material,
warehousing etc. capital items.
Converting inputs Technology
into output development
Finished goods
warehousing, order HR Management
processing etc.
Accounting and
Marketing finance, quality
management etc.
After sale services

7. Four V’s of operations
• Volume
• Variety
• Variation in Demand
• Visibility
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8. Systems used in Operations Management
• Material Requisition Planning (MRP)
• Identification of firm orders
• Using orders to determine quantity of material required
• Automation in placing orders
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• Scheduling materials for future production
• Manufacturing Resource Planning (MRP II)
• An extension of MRP above
• Enterprise Resource Planning
• Integration of all operations within an organisation
• Optimised Production Technology
• Dealing with constraints and removal thereof

9. Managing operational capacity
• Flexible Manufacturing systems (used in robotics, automobile
industry)
• Able to change from one job to another
• Faster response time
• Small batch production
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• Queuing Theory (used in banking industry)
• Optimisation of the balance between customer waiting time and
idle service capacity
• Forecasting (using customer’s information to prepare budgets)
• Using financial modelling to forecast demand

10. Sustainability in Operations Management
• Meeting the needs of present without compromising the ability
of future generations to meet their own needs
• Process design – to minimise wastage
• Supply chain management – procurement from ethical sources
• High quality management to improve efficiency
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11. Supply Chain Management
• From extracting materials to deliver finished product to end
customer
• Physical
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• Virtual

12. Supply Chain Management
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13. Strategic Positioning Tool – Reck & Long
Stage Particulars
1 (Passive) Administrative task - Emphasis is on processing
transactions efficiently (payroll processing)
2 Financial importance - Emphasis is on price negotiations
(Independent)
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3 (Supportive) Impact on strategic growth – Timely communication
about changes in prices and availability of material
4 (Integrative) Key strategic driver – Developing relationships with
suppliers

14. Strategic Supply Wheel
Org
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Structure Relationship
Performance
Measures Corporate and supply
strategy
Cost /
Competencies Benefit

15. Supply Networks
• Single Sourcing
• Multiple Sourcing
• Delegated Sourcing
• Parallel Sourcing
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16. Inventory Management
• Continuous Inventory System
• Periodic Inventory System
• ABC system
• JIT system
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17. Thanks
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