Operations
Management
SESSION 1
Introduction
What is Operations Management?
“Designing and executing
_______________ ______________ the process of
transforming raw material into finished
product ____ in ___________
an efficient______
way”.
Basic Process
Process /
Input Transformati Output
on
Physical (Car)
Capital Good Exchange (Retail)
Equipment Location (Courier) Goods (Durable… Non)
Personnel (Labour) Information Services
Raw Material (Mobile/Bank)
….
Product or Service
Process /
Input Transformati Output
on
• Decision Horizon
• RM • Strategic Intent
• Technology • Tactical • Proactive
• Personnel • Operational • Reactive
• Decision Process
• Design
• Execute
• Improve
The Tricky Balance
Decision Decision
Horizon Cycle
Strategic Design
Tactical Execute
Operation
Improve
al
Owner’s
Wish
Competito
Markets
rs
Strategy
Customers
Product / Service Specs
Flexibilit
Quality Cost Delivery
y
Process Analysis Sessions 1-6
• What are the various factors that impact the final product or
service?
• How do these factors interact with each other?
• How to plan and execute?
Inventory Sessions 7-9
• Why do we need inventory?
• How much do we need?
• How to plan?
Supply Chain Sessions 11-12
• How do various stages in supply chain impact the overall
performance?
• How do execute efficiently?
Manf Planning Sessions 13-15
• What are the factors that impact production planning?
• How to take care of all the factors?
Quality Sessions 17-18
• What is Quality?
• What is the big deal?
Other Topics Sessions 10, 16, 19, 20
• Impact of operations on finance and vice versa
• What is project management and why study separately?
• Sustainability: Are we sustainable?
• Long term vision, the need for it.
Sessio Topic
n
2 Process analysis; Concept of Bottleneck, Cycle Time, Resource Interference;
Factors affecting operations performance
3 Analysis of Operating Systems with High Volume and Low Variety; Comparison
between Service and Manufacturing Organizations
4 Capacity Analysis Under Uncertainty
5 Analysis of Operating Systems with Low Volume and High Variety; Product
Process Matrix
6 Queueing systems
7 Inventory Management: Deterministic Model; Cost Structure and Trade-offs;
Uncertain demand: Continuous Review Model; Determining Safety Stocks
8 Inventory Management: Periodic Review; Managing Inventory of Short-Life Cycle
Products: Newsboy model.
9 Efficient versus Responsive supply Chain; Concept of Postponement; Managing
Inventory in a Responsive Supply Chain;
Sessio Topic
n
11 Supply Chain coordination
12 Supply Chain Coordination; Beer game Analysis;
13 Master Operations Scheduling game;
14 Concept of Hierarchical approach to Planning; Cost structure and Planning
strategies; Master production schedule; Material Requirements Planning
15 Just-in-time systems
16 Project Planning and Scheduling: Network Development, Time Cost Trade-Off
17 Total Quality Management
18 Statistical Process Control and Process Capability; Process Improvements;
Concept of Six Sigma;
19 Sustainable Operations Management
20 Operations Strategy: Investment in Flexible versus Dedicated Capacity and
Course Wrap-up
Evaluation
Individua Weighta
Component
l / Group ge
Case G
1 10%
Analysis
2 Assignments G 10%
3 Quizzes I 15%
4 Mid Term I 25%
5 End Term I 40%
Check Moodle for instructions on case
and assignments
An Idea
• You want to do ‘something’.
on the campus.
• Hot sizzling pakodas,
(Enough???)
• Timings: 10 PM to 2 AM.
• You and your friend (lot of learning).
• Found a video to make Bajji…
The process
What next?
• Product Design
• Frying or Baking Marketing
• Number of Varieties
• Process Design
• Identify the steps and time taken for each
• Calculate the output Operations
• Price
• Cost of ingredients
• Value of time
How do we assess?
• How many?
• How fast?
• How good?
The Process times
1. Take order – 1 min
2. Prepare batter (up to 600 gm, sufficient for 3 plates of 200
gm each) – 3 min
3. Cut Vegetables (for 1 plate) – 1 min
4. Mix Vegetables (up to 3 plates) – 1 min
5. Put in Oven– 0 min
6. Fry (per plate, 200 gm at a time) – 6 min
7. Cooling/draining excess oil – 1 min
8. Pack and accept payment – 1 min
After the first week
Customers like the idea, improvements needed
Feedback: Vegetables not cooked enough!
• Why: Not enough frying time.
• Improvement:
• Option 1: Increase Frying Time
• Impact on Operations: Frying time is the ‘bottle-neck’. Decreases output.
• Option 2: Make smaller pieces in vegetables.
• Impact on Operations: Cutting time increases. Output should not
change.
• Improvement choice: Make smaller pieces
The Process times - Roles
1. Take order – 1 min – Friend
2. Prepare batter (up to 600 gm, sufficient for 3 plates of 200
gm each) – 3 min – You
3. Cut Vegetables (for 1 plate) – 2 min – You
4. Mix Vegetables (up to 3 plates) – 1 min – You
5. Drop in the Pan – 0 min – You
6. Deep Fry (per plate, 200 gm at a time) – 6 min – none
7. Cooling/draining excess oil – 1 min – Friend
8. Pack and accept payment – 1 min – Friend
Definitions
• Flow time / Throughput time – Time taken to complete
the entire process
• Cycle time – average time between two consecutive
outputs.
• Bottleneck – The process which has the least capacity
Namaskāram
