Key Decisions of Operations Managers

What

What resources/what amounts

When

Needed/scheduled/ordered

Where

Work to be done

How

Designed

Who

To do the work

Responsibilities of Operations Managers

Planning
Capacity Location Products and services Make or buy Layout Projects

Controlling
Inventory Control Quality Control

Organizing
Degree of Centralization Subcontracting

Staffing

Hiring Use of Overtime

Directing
Incentive Plans Issuance of work orders Job assignments

5 Ps of Operation Management

Plants
Factories or service branches where production is carried out Adding and locating new plants Expanding, contracting, or refocusing facilities

Parts
Materials or the supplies that go through the system Make or buy decisions Vendor selection decisions

Processes
Equipment and steps by which production is accomplished Technology evaluation Process improvement and reengineering

People
Direct and indirect workforce Quality improvement Setting/revising work standards Learning curve analysis

Planning and Control Systems

Procedures and information management uses to operate the system Supply chain management MRP Shop floor control Warehousing and distribution

Inter relationship of production management with other areas of management

A. Marketing
Identifying customer requirements Product Life Cycle Distribution Product Price Customer Feedback on Products

B. Finance
The Operation Budget Break Even Point Analysis Working Capital Provision of finance for improvements Provision of info. on general condition of firm

C. Accounting
-

Cost Data Special Reports Data Processing Services

D. Industrial Engineering

Work Measurement Information Plant Layout & Material Handling Info.

E. Materials Management
-

Determination of Items to be Purchased Delivery Schedules Updating info. On new products, materials and process Inventory planning & Control

F. Personnel

Recruitment, hiring and firing of people Training Labour relations Motivation to workers & Safety factors

G. Research & Development

For ideas concerning new products, process and new tools for production

Techniques and Procedures in OM

Forecasting Location and Layout Techniques Product design and analysis, work study Production control techniques Aggregate Planning Master Production Schedule Materials Requirement Planning Capacity Planning Scheduling and control Maintenance management Feedback and control techniques Quality Control Inventory Control

Operations Strategy
Four Dimensions of competitiveness that measures effectiveness of operation functions..

Cost Quality Time Flexibility

Major Components to Operations Strategy

Strategic implications of operating decisions Matching the productive systems design to market needs Capacity and location Technological choices The work force and job design Suppliers and vertical integration

The Operations Strategy would consider the following:

Additional machinery or sub-contracting Methods to improve productivity Revamping assembly lines Measures to improve motivation Promoting existing employees or hire new ones Identifying & developing new suppliers Look for opportunities to reduce costs