Operations Management

Professor T.T Narendran

25 February 2014 TTN, DoMS, IIT Madras

The Operations System

Energy Materials Manpower Finished Goods

Machinery
Information
Transformation Process

Or Services

Feedback Information
External Information

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TTN, DoMS, IIT Madras

Buyer Power and the Threat of Substitution Both Influence the Price

Porters Model

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TTN, DoMS, IIT Madras

Organizational Network
6 3 1 Primary Raw Material 7 4 Consumers

2 5
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The Value Chain

Firm Infrastructure Human Resource Management
Technology Development Procurement
Inbound Logistics Operations Outbound Logistics Marketing And Sales Service

Production Planning

Process Planning

Facilities Planning

Work Force Planning

TQM

TPM

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TTN, DoMS, IIT Madras

Relationship of Operations Decisions

QUALITY MANPOWER MANAGEMENT

PROCESS DESIGN

INVENTORY MANAGEMENT

CAPACITY PLANNING AND SCHEDULING

25 February 2014

TTN, DoMS, IIT Madras

Relationship of Operations Decisions

QUALITY
Managing quality Quality Control and Improvement

MANPOWER MANAGEMENT
Managing Workforce Job Design Performance Measurement & Improvement

PROCESS DESIGN
Process Selection Service Operations Design Choice of Technology Process Flow Analysis Layout of Facilities

INVENTORY MANAGEMENT
Independent Demand Materials Requirement Planning Just-in-time Manufacturing

CAPACITY PLANNING AND SCHEDULING

Forecasting Aggregate Planning Scheduling Operations Project Planning
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Natural Resources
Mineral / Natural resources are exhaustible No infinite supply

If global warming should slow down Energy consumption must reduce Carbon capping

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Implications for future

Closely audit Global manufacturing capacities vs real demands

Design and manufacture for longer durability/ life

of goods
Growth of service industry More repair shops! Service to upgrade and extend the lives of products Greater stress on optimal use and maintenance to

enable longer lives of products

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Implications for future

Consumption must reduce Servicing hardware will be the way Advantages

Conservation of natural resources Less consumption of energy by reduced manufacturing activity

Greater motivation for workers

Change from routine robot like repetitive work to diagnosing problem with each hardware and generating solutions
Leadership!!!
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What is Leadership

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What to Do?
Leader must look beyond Greater productivity of my department Higher profits/ earnings for my company Higher growth to my company Sustained profit and growth for my company

through
Service to society Care for environment Conservation of resources
Fuel; Electricity; Water

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Caution
Tradeoffs will be required Ecological evaluation of alternatives
Print vs electronic media
Mass transport vs individual use Natural colors vs dyeing

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 Market depression Some general thoughts

Back to basics
What are the basic needs of mankind? Food Clothing Shelter (housing) Health care Security Education These are the sectors that can remain
unaffected by market conditions.
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Food
Source is agriculture What is the status of agriculture today? Mixed acceptance of mechanised farming

Migration of agricultural labour to other jobs

Poor remuneration for land labour Lands not being cultivated Sold as real estate

Questions 1. Can the imbalance between agricultural labor and factory labor be corrected? 2. Warning: Do we want a situation where we have plenty of money and no food to eat?
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Clothing
Not much scope
Supply exceeds demand

A note of caution: Thanks to our colonial hangover, we overdress 1. Leads to overcooling 2. More A/Cs run 3. More damage to environment 4. More energy wastage

Shelter (Housing)
Means to rekindle economic activity - How? Every middle-class citizen wants to have shelter before retirement But inhibited from investments because of high cost

What can government do?

Provide incentive by low interest loan for housing How does it help? Spurt in construction results in spurt in logistics More movement of building materials More trucks required Automobile industry revives Auto ancillary revives Engineering industry revives !

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Health Care [1/2]

Opportunity:
Large population needs it

Adverse doctor patient ratio

Problems:
Unaffordable Heavy dependence on gadgets Poor reach to rural population

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Health Care [2/2]

Questions Should we encourage alternative medicine?
(Why did we wipe them out as quackery when they were the only recourse for rural poor?)

Can we find ways to

Increase the number of people trained in medicine? Spread them out uniformly over the length and breadth of India? Cut costs reduce dependence on gadgets Use technology such as telemedicine?
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Security
Serious threat exists Neither police nor military attracts our people

to join them
Manpower in Quantity and Quality needed
(we love to criticize our police force, dont we?)

Challenge 1. How can this field be made more attractive?

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Success Try Engineering Failure

Success

Try MBA Failure Failure

Failure Try Managerial Job Failure Try Engineer Job

Try BSc

Try IT

Failure

Economics English Try History Local lang

Success

Is teaching the last resort of Success Try MCA the incompetent ?

Failure Failure

Success

Success

Failure Try Programmer Job

Try for Job Success

Teach

Take Job

Failure

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