Basic of Operations

By
Rohit Deoghare
 Operation may be defined as the process of
converting inputs into outputs , thereby adding
value to some entity
Operations make an organization competitive
through
Quality product performance
Cost efficiency low product cost
Dependability reliability, timely delivery
Flexibility responding rapidly with new products or
changes in output volume
 Problem solving framework for operations
-Capacity- how much can I produce?
-Scheduling- how am I going to do it?
-Inventory- how much inventory is there and
how can I reduce it?
-Standards- what do I consider efficient
production and quality output?
-Control- Is the production process working?
 Strategy
Mission
The reason for existence for an organization
Mission Statement
States the purpose of an organization
Goals
Provide detail and scope of mission
Strategies
Plans for achieving organizational goals
Tactics
The methods and actions taken to accomplish strategies
 Examples of Operations Strategies
Price Low Cost U.S. first-class postage
Motel-6, Red Roof Inns
Nirma
Quality High-performance design Sony TV
or high quality Consistent Lexus, Cadillac
quality Pepsi, Kodak, Motorola

Time Rapid delivery Express Mail, Fedex,

On-time delivery One-hour photo, UPS

Flexibility Variety Burger King

Volume Supermarkets

Service Superior customer Disneyland

service Nordstroms

Location Convenience Banks, ATMs

 The principle of production planning and
control lies in the statement First Plan Your
Work and then Work on Your Plan. Main
functions of production planning and control
includes planning, routing, scheduling,
dispatching and follow-up.
Thank You