MGT613 Handouts Lectures 1-45

Lesson 01

INTRODUCTION TO PRODUCTION AND OPERATIONS MANAGEMENT

POMA

¾ Previously called Production Management ¾ Then Production and Operations Management ¾ Often called Operations Management ¾ Should not be confused with Operations Research or Production Management which are the domain of Mechanical and Industrial Engineering.

THE COURSE CONTENT

Tentative Course Content Units of Learning wise ¾ Unit I ( Introduction and Productivity, Strategy and Competitiveness) ¾ Unit II ( Forecasting) ¾ Unit III ( Design of Production Systems) ¾ Unit III ( Quality) ¾ Unit V ( Operating and Controlling the System)

Tentative Course Content Lecture wise ¾ Unit I ( 5 Lectures) ¾ Unit II (3 Lectures) ¾ Unit III ( 12 Lectures) ¾ Unit III ( 10 Lectures) ¾ Unit V ( 15 Lectures)

History of Management

¾ Frederick Taylor and Gilbreths (Lillian and Frank Gilbreth) are pioneers of transforming management to scientific domain. ¾ Borrows a lot of information from Engineering and Management to give an overall bigger picture of operating and managing any organization.

Difference between Operations Management and Research

¾ OR relies on mathematical modeling and OM relies on practical scenarios/industrial cases. ¾ OR domain and tool of Engineers while OM is considered to be one of the critical tools of Managers. ¾ OR considered more powerful to improve the whole system where as OM can be applied to a part of the system.

¾ OR relies on mathematical modeling while OM relies on practical scenarios/industrial cases.

Why Study OPERATIONS MANAGEMENT

¾ Operations Management form core of any organization’s senior leadership. ¾ What are organizations ¾ An organization is a business entity that can work for profit or non profit purposes to generate a value added product or service for its customers. ¾ Whether profit or non profit, the role of an OPERATIONS MANAGER is to sustain, protect, and project the company’s operations side. ¾ Why Operations Manager ¾ Every organization must manage processes and operations by which processes are performed. ¾ An operations Manager controls the processes by which value is added from conversion of inputs to outputs. ¾ Why Operations Manager ¾ Inputs include materials, inventory, services, land, and energy, human and capital resources.

Bridge between Management and Engineering

¾ Two Islands named Engineering and Management ¾ Operations management uses foundations of both Engineering and Management. ¾ Bridge Basics , Extension of road from both ends till they meet at the centre and fuse to give strength and allow the foundations to give added strength to the bridge ¾ Bridge between Management and Engineering. The primary responsibility of an Operations Manager working at any level, for production or service based organization, is to help and facilitate the building of walls. It’s a demanding job but at the time takes the same amount of time required by people who are creating hurdles and end up building walls in stead of bridges. ¾ Also, it is important at this point in time to understand that the Strength of the Chain is equal to the strength of the weakest Link, so if your analysis, as an operations manager consists of both Engineering and Management Links. Any weakness of analysis in Engineering or Management Link would lead to an overall weak analysis. A balanced approach would be to make best use of the strength and overcome the weaknesses. As a rule of thumb, problem solving and decision making through Production and Operations Management would entail that both Engineering and Management aspects should be utilized to aim for the powerful systems ( over all big picture) approach.

Lesson 02

INTRODUCTION TO PRODUCTION AND OPERATIONS MANAGEMENT (Contd.)

RECAP OF 1ST Lecture

¾ Course Content, Midterm and Final Exam ¾ Organization Definition ¾ Finance, Marketing and Operations ¾ Productive systems, Production and Service Systems ¾ Operations Management (The management of systems or processes that create goods and/or provide services) ¾ Operation Function ( Consists of all activities directly related to producing goods or providing services)

Manufacturing and Service Definitions

¾ Manufacturing is the transformation of raw materials into finished goods for sale, or intermediate processes involving the production or finishing of semi-manufactures. ¾ It is a large branch of industry and of secondary production. Some industries, like semiconductor and steel manufacturer’s use the term fabrication. ¾ Service is defined as either as

Services are deeds, processes, and performances.

OR

A service is a time-perishable, intangible experience performed for a customer acting in the role of a co-producer

Definition of Service Firms

Service enterprises are organizations that facilitate the production and distribution of goods, support other firms in meeting their goals, and add value to our personal lives.

Role of Services in an Economy

Production and Services Growth in Pakistan

Can be attributed to the following sectors

¾ Private ¾ Public ¾ Public Private ¾ Government

Key Areas of Responsibility for an Operations Manager

Operations Managers job responsibility includes but is not limited to: ¾ Forecasting ¾ Capacity planning