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Pom Notes-1

POM notes

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3 views

Pom Notes-1

POM notes

Uploaded by

william john
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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UNIT-I

INTRODUCTION TO OPERATIONS MANAGEMENT

 OPERATIONS MANAGEMENT

Operation Management is a way or means through which the listed objectives of an operating
system is achieved. There is always a confusion between the word OM & PM (Production
Management). It is accepted norm that OM includes techniques which are enabling the
achievement of operational objectives in an operation system.

The operation system includes both manufacturing sector as well as service sector, but when you
use the word PM, you should be careful to note that it refers to the manufacturing sector but not
the service sector. Suppose, you are designing a layout for the hospital you should say that you
are applying Operations Management Technique not the Production Management Technique.

When you design a layout for a manufacturing sector you can say that you are applying
Production Technique or Operation Technique or vice versa. From, the above discussion we can
come to a conclusion that production management is a subset of Operations Management.

Operation managers are concerned with planning, organizing, and controlling the activities
which affect human behavior through models.

Planning

Activities that establishes a course of action and guide future decision-making is planning.
The operations manager defines the objectives for the operations subsystem of the organization,
And the policies, and procedures for achieving the objectives. This stage includes clarifying the
Role and focus of operations in the organization’s overall strategy. It also involves product
Planning, facility designing and using the conversion process.

Organizing
Activities that establishes a structure of tasks and authority. Operation managers establish a
Structure of roles and the flow of information within the operations subsystem. They determine
The activities required to achieve the goals and assign authority and responsibility for carrying
Them out.

Controlling
Activities that assure the actual performance in accordance with planned performance. To
Ensure that the plans for the operations subsystems are accomplished, the operations manager
Must exercise control by measuring actual outputs and comparing them to planned operations
Management. Controlling costs, quality, and schedules are the important functions here.

Behavior
Operation managers are concerned with how their efforts to plan, organize, and control affect
Human behavior. They also want to know how the behavior of subordinates can affect
Management’s planning, organizing, and controlling actions. Their interest lies in decision-
making behavior.

OBJECTIVES OF OPERATIONS MANAGEMENT


Objectives of operations management can be categorized into customer service and resource
Utilization.

Customer service
The first objective of operating systems is the customer service to the satisfaction of customer
Wants. Therefore, customer service is a key objective of operations management. The operating
System must provide something to a specification which can satisfy the customer in terms of cost
And timing. Thus, primary objective can be satisfied by providing the ‘right thing at a right price
At the right time’.

Resource utilization
Another major objective of operating systems is to utilize resources for the satisfaction of
Customer wants effectively, i.e., customer service must be provided with the achievement of
Effective operations through efficient use of resources. Inefficient use of resources or inadequate
Customer service leads to commercial failure of an operating system.
Operations management is concerned essentially with the utilization of resources, i.e., obtaining
Maximum effect from resources or minimizing their loss, underutilization or waste. The extent
Of the utilization of the resources’ potential might be expressed in terms of the proportion of
Available time used or occupied, space utilization, levels of activity, etc. Each measure indicates
The extent to which the potential or capacity of such resources is utilized. This is referred as the
Objective of resource utilization.

 ROLE OF OPERATION MANAGEMENT

Operations Management concern with the conversion of inputs into outputs, using physical
resources, so as to provide the desired utilities to the customer while meeting the other
organizational objectives of effectiveness, efficiency and adoptability. It distinguishes itself from
other functions such as personnel, marketing, finance, etc. by its primary concern for ‘conversion
by using physical resources’.

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