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MANAGING THE OPERATIONS FUNCTION – Group 8 (12-CAIN)

WHAT IS OPERATIONS MANAGEMENT?

 All about delivering products and services to customers to meet or surpass their
expectations.
 It is designing, developing and executing the Enterprise Delivery System (EDS), from
sourcing of the necessary input to the transformation of these inputs into the final output.
 All operations managers must, therefore, begin with the customers’ want and desires in
mind. These wants and desire can be classified into three customers’ outcome
expectations.
QUALITY, DELIVERY, PRICE (QDP) 2. Operating Work Flow (OWF) - It
EXPECTATIONS is step-by-step process of sourcing
and storing the input, converting this
 Quality Expectation input into output and delivering the
 Delivery Expectation output to the customers.
 Price Expectation a) OWF must be very efficient in
terms of time, movement, and
PROCESS OF EDS utilization of resources.
b) OWF must be balanced capacity-
 Input – resource gathering
wise.
 Throughput – conversion of input
3. Layouting - The OWF must
into output
translate into an appropriately-
 Output – the product
designed and executed physical
SIX M’S OF OPERATION FUNCTIONS layout of the service shop. The
layout should follow four principles:
 Money I. It allows the goods processed to
 Manpower go from one step to another with
 Management limited distance and time.
 Methods II. There should be minimal or no
 Materials crisscrossing of goods
 Machinery III. It should capture the physical and
psychological atmosphere
THE NINE CRITICAL SUBPROCESS desired.
IN THE TRANSFORMATION IV. The layout must be easy to easy,
PROCESS follow, monitor, and control.
4. Production Programming and
1. Technology Application And Scheduling - It is the proper
Utilization - The enterprise determination of 1) what goods or
managers and technicians must services to produce, 2) what sizes
understand how the technology and packaging, 3) what machinery
works and how it should be properly and equipment, 4) how many units,
utilized. and 5) precisely when.
Four critical factors of PPS:
I. Market demand in terms of
volume expectations, trends,
cycles, and seasonality.
II. Capital investment and
financing requirements.
III. Product line profitability and
capacity utilization
IV. Number of products
5. Quality Control - The QPD
expectations must be equivalent to
the QPD measurement, monitoring,
and evaluation system at every stage
of the EPS.
6. Operating Systems and
Procedures – are the enterprise
standards for running the entire
operations of the factory or service
shop. They are “engineered
methods.”
7. Operations Management,
Supervision, and Control -
Operations managers and supervisors
orchestrate and control the entire
EPS. There are three distinct phase
of managing and controlling the
EDS; 1) Pre-operations, 2)
Operations Proper; and 3) Post-
operations.
8. Worker Motivation, Skilling,
Deployment, Compensation and
Control - For service shops, people
are everything, you need good
people to calibrate and maintain the
machines. A good working
environments and professionally-run
establishment is good starting
people, a sense of belonging in the
workplace.
9. Support Services - The Operations
Function cannot perform well
without soliciting and getting the
support of all other units of the
enterprise.