Functions of Operations Management

Operations direction is the concern map Responsible for Planning, Coordinating and commanding the resources needed to bring forth a company ‘s goods and services. It involves pull offing human capital, machineries, engineerings, information and many other resources. Operations direction is the cardinal nucleus map of every company. even though the company is large or little, provides physical goods or services, every company has an operating map, the function of operations direction map is to transform company ‘s natural inputs in to the finished end products such as merchandises or services. Inputs include human capitals, engineering, Materials and Processes such as edifice and equipments. End products are goods and services which the company produces. Operations direction is responsible for uniting and organizing all the available resources required to bring forth a proposed merchandise or services. This include designing, the merchandise, make up one’s minding the whole needed resources, programming, stock list direction, quality control and occupation design,

The Transformation Process Diagram
History of Operations Management
Operationss direction did non emerge as a formal field of survey until the late of 1950s and early 1960s, It was Scholar, who recognize that all productions system face a set of jobs and to emphasize the system attack to sing operations procedure. In 1700s, the industrial revolution had a important impact on the manner Gods are produced today. Prior to this motion merchandises were made by manus by skilled people at their stores or their places. Each merchandise was alone. but industrial revolutions changed all that innovation of machines helped to replace human power to machine power. in 1900s scientific direction were introduced.it is an attack to direction that focused in bettering out puts reconstituting occupations and choosing acceptable degrees of worker out put. Scientific direction brought the constructs of analysis and measuring of the proficient facets of work design.

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In 1980s operations direction saw a immense developments Merely in clip construct were designed by Nipponese to accomplish high volume production utilizing minimal degree of stock list. this is achieved through coordination of flow of stuffs so that the right parts arrives at the right topographic point at right clip in the right measure. As the clients demand in higher quality merchandises and service, companies were forced to concentrate on quality in order to stay competent. Entire Quality Management is a doctrine developed by quality gurus such as W Edwards Deming, that sharply seeks to better merchandise quality by extinguishing defects and doing quality an all- encompassing organisational doctrine. with TQM every one in the company is responsible for the quality.

Supply Chain Management system has been introduced in the same period to pull off the flow of stuff and information from providers and purchasers of natural stuffs al the manner to the concluding client. The aim is to cut down cost and better quality and service bringing by every one in the concatenation.Supply concatenation direction became celebrated with the development of information engineering and E commercialism. electronic Commerce can happen between concern known as Business to Business ( B2B ) , between concern and client ( B2C ) and Customer to Customer ( C2C ) which makes up highest per centum of dealing in between concern and clients.

Today operational direction environment is really different from what it was merely few old ages ago. Customers demands better quality, greater velocity and low cost. In order to win, companies have to be chief s of the rudimentss of operations direction. Advanced information engineering tools and package are being used to place the resources needed to organize all activities involved in bring forthing and presenting merchandises to client s. to derive advantage over their rival companies are continuesly looking for ways to better respond to clients. it needs companies a deep cognition about their clients and to run into their demands. The development of Customer Relationship Management has made it possible for the companies to understand the clients demands. Another feature of today ‘s Operation direction Environment is the increased usage of Cross Functional Decision Making that requires coordinated interaction and determination devising between the different concern maps of the organisations. Employees from each map must interact and organize their determinations. this requires employees to understand the functions of other concern maps and the ends of the concern as a whole, in add-on to their ain expertness

Service Vs Manufacturing Operations
Operationss can be divided in to two chief classs, service operations and fabricating operations. Manufacturing operations bring forthing physical and touchable goods which can be stored in to the ware house before they are required, but in service operations merchandises are intangible merchandises that can non be produced in front of clip. In fabricating operations house clients does n’t hold direct contact with the operations. clients contact will be redirected through traders, distributers and client attention centres. for illustration a client is purchasing a computing machine in a ace market ne’er comes in to reach with the fabrication company. But in service organisation the client will be typically present during the creative activity of the service. Car service centres, Hospitals, fast nutrient centres are some illustrations of service operations.

There are some fabricating organisations provides service as portion of their offering, and some service operations organisations produces physical goods that they deliver to the client during service bringing. A Barber store may sell their ain hair attention merchandises to their clients

Operations direction Decisions
Operations direction determination can be divided in to three degrees. that is Strategic, Tactical and Operational

Strategic Decision Making: this determination are long term determination which set waies for the full company. they faces inquiries such as what will be the vision of the organisations what market the company should concentrate, how the company should vie win the field etc. these degrees of determination are made by company ‘s topple degree executives merely

Tactical Decision Making: short term determinations focus on peculiar sections are being taken in tactical determination doing degree. this is the degree which makes determination of how, and why inquiries, such as how many merchandises should be manufactured and which engineering has to be used, and how will be the quality of the merchandise etc.

Operational Decision Devising: This degree of determinations chiefly used for twenty-four hours to twenty-four hours issues. Such as work programming, replacing, care etc.

Decision devising Levels Hierarchy
OPERATIONAL

Role of an operations director
Operationss directors are responsible for pull offing activities which will be a portion of the production of goods and services. Their duties can be divide in to two classs, Direct and Indirect Responsibilities, Direct Contains pull offing both the operations procedure, encompassing design, planning, control, public presentation betterment, and operations scheme. Their indirect duties are interacting with those directors in other functional countries within the company they have direct or indirect duties on operations. Such countries include selling, finance, accounting, forces and technology.

Operationss directors ‘ duties are:

Human resource direction – the people working in an organisation to make a good or service or supply support to those who do. Man Power and Human Resource Management are a cardinal resource of all organisations.

Asset direction – A Company ‘s edifices, Machinery, stuff and Inventory are straight linking with the operations maps.

Cost direction – most of the costs including fixed and variable cost of bring forthing goods or services are straight related to the costs of geting resources, traveling them or presenting them to the terminal user. For many organisations in the private sector, cost cut through efficient operations direction gives them a critical competitory border. Even organisations in the non-profit sector, the ability to pull off costs is no less of import.

Decision devising is an of import duty of all operations directors. Decisions should be made in:

Planing the operations map

Analyzing the operations map

Bettering the operations map

Controling an Operating

The five chief sorts of determination in each of these relate to:

The procedures, which is used to bring forth merchandises or services

The quality of Products or services

The measure of Products or services

The stock list, which is used to bring forth or back uping the production of goods or services

Human resource direction, including recruiting, programming, Performance Appraisal etc.

A Case Study Maharaja Electricals PVT Ltd
Maharaja Electricals Pvt Ltd is an ISO 9001 company based on Chennai, Tamil Nadu, India. Since its constitution with a individual works at Chennai before 15 old ages they remained the major providers of Sociables in South India. They collect completed spares from local makers with rigorous quality checking and assemble them in their piecing units. They have experienced applied scientists and technicians in both electrical and mechanical subjects. The company now has 20 % of the South Indian sociable market. The major attractive force to Maharaja Mixers is the low monetary values since all constituents are indigenously developed but still with choice confidence. Most of the in-between category households ever prefer Maharaja merely because of their easy low-cost costs.

Now to hook up with the increased client demands from neighbouring provinces, particularly from Kerala, the company is be aftering to put in a new works in Palaghat, the boundary line country between Tamil Nadu and Kerala. They are be aftering for an assembly lne with a conveyer belt to minimise the entire clip required for piecing. They prefer a U-shaped assembly line which may cut down the entire installing infinite. Besides workers at different workstations can be near so that one can assist others or even handle others work when one is absent from the place. The conveyer stops for a specific interval of clip so that each work station can finish its work within that clip piece. This is the clip for which the basic construction of the merchandise is available to a workstation ; called Cycle Time. The chief job here is to place the assorted stairss involved in entire assembly of a sociable. Then the rhythm clip for the conveyer is to be calculated. Determining the minimal figure of workstations and ciphering the efficiency of the line is besides a concern.

The company procures the undermentioned spares from local providers with rigorous quality control in majority.

Electrical motor assembly

Fictile base to repair the assembly

Rubber shrubs to be fixed at the underside of the base

Electrical lead to the power supply

Plastic screen for the motor assembly

On/off switch on plastic screen

Speed regulator

Plastic handbill rotator

Jar fond regards

Cardboard wadding box

Prison guards of assorted sizes

With their ample experience in piecing the company has identified clip demands for each arrested developments and a additive order for piecing procedure. That is tabulated as follows.

Procedure Map
Theoretical Approach of the Problem, Pareto chart, Pareto Theory
A Pareto chart is a saloon graph. The lengths of the bars represent frequence or cost ( clip or money ) , and are arranged with longest bars on the left and the shortest to the right. In this manner the chart visually depicts which state of affairss are more important.

In the undermentioned Pareto diagram compares the available clip, public presentation clip and idle clip comparing of six work Stationss. The diagram clearly shows at work station 1 there is no idle clip for the conveyer belt. So employees with high accomplishments and velocity must be posted here. Workstation 1 is the critical point in this assembly unit since all other assembly works pre requires this assembly.

Presently the piecing units are installed in an collection unit where assembled parts are shifted from one topographic point to another manually. It is observed with clock halt analysis that 15 proceedingss are required entirely for switching constituents to following shifting unit. Clearly here we can use so called Pareto Principle in the state of affairs. This rule is famed with the name of Italian economic expert Vilfredo Pareto who created a mathematical expression to depict the unequal distribution of wealth in his state, detecting that 20 per centum of the people owned 80 per centum of the wealth. The rule is besides known as 20-80 regulation, the Law of Vital Few and rule of factor sparseness. Later the Management mind Joseph M Juran adopted the thought to Management Principles. Juran ‘s premise is that most of the consequences in any state of affairs are determined by a little figure of causes. For illustration 20 % of the clients determine 80 % of the gross revenues in a trade carnival. Here in our job 30 % of the entire clip is required for merely reassigning constituents from one tabular array to another. Reducing this clip well can salvage entire assembling clip and therefore can better efficiency of the entire system. So installing of a conveyer belt in the mill is a better option.

Solution
The precedency demands clearly reference which undertakings are to be completed before get downing a new one. In the above tabular array before covering the motor assembly with an outer screen ( Task D ) the motor assembly must be fixed on a fictile base ( Task A ) and electrical leads must be connected to the assembly ( Task C ) . Similarly certain other undertakings are besides holding precedency demands.

A work station is a topographic point or a tabular array where the conveyer stops for a rhythm clip with the basic construction on it. After that conveyer moves so that the basic construction goes to the following work station where it can execute extra adjustments.

The first thing is to place the undertaking with highest rhythm clip. It is usually called bottle cervix undertaking. The conveyer at least has to halt this much of clip for a workstation. The rhythm clip can non be lupus erythematosuss than the continuance of this undertaking. In Mahararaja ‘s instance linking electrical lead to the power supply to the motor assembly is the bottle cervix operation. The rhythm clip is hence 6 proceedingss as per the tabular array. If the rhythm clip is kept less than this Task C can non be completed.

Then finding the minimal figure of workstations is the following job to be solved. Theoretically the minimal figure of workstations can be calculated by spliting the entire clip demand with rhythm clip. So here as per the tabular array the entire undertaking clip is 30 proceedingss and the rhythm clip is 6 proceedingss. So

Minimal figure of workstations = 30/6 = 5 work Stationss.

Then the following job is to find which undertakings are to be assigned to which work Stationss. Here we have to utilize some heuristics. In this instance the heuristics selected is called the Longest Operation Time ( LOT ) regulation. Harmonizing to this regulation the top precedence is assigned to task with longest operation clip.

In this instance Task C is the longest undertaking with an operations clip of 6 proceedingss. This undertaking has the highest precedence assignment over first workstation. The tabular array besides shows that it has no precedency demands ie no other undertaking demand to be completed to get down Task C. so task C can be assigned to the first workstation. An entry can be made to the following tabular array.

The lone prioritized undertaking for workstation 1 is task C and that is assigned to first workstation. The rhythm clip is 6 proceedingss and that is equal to the clip demand of undertaking C. so no staying clip is left for other undertakings to execute in this work station. So no more undertakings can be assigned to first workstation.

At the following measure the undertakings assigned to the 2nd workstation are to identified. From the tabular array the following undertaking with longest operation clip demand is task A which besides requires no precedent operations. The undertaking is to repair the motor assembly with the electrical lead ( fixed at workstation 1 by undertaking C ) on a fictile base.

Since undertaking A requires merely 5 proceedingss, 1 minute is extra at the 2nd workstation. But since we have no undertakings which require 1 proceedingss merely no other undertakings can be assigned here.

At the following measure we have longest undertakings D, F or H with en executing clip of 3 proceedingss. But F and H have pre demands. For undertaking F undertaking D must be completed. For undertaking H, undertakings B, E, F and G are to be completed. At this point of clip both pre demands are non satisfied. The pre demands of undertaking D are completion of undertaking A and C which is already accomplished. So the penchant goes to task D.

Calciferol

Calciferol

3

3

Bacillus

Here after delegating Task D 3 proceedingss are staying. From the tabular array all undertakings with 3 proceedingss operation clip demand besides have pre demands of completion of other undertakings. So the following preferred occupation is task B whose clip demand is merely 2 proceedingss.

Heuristics Stairss
Workstation
Prioritized Undertaking
Assigned Undertaking
Undertaking Time
Staying Time
Staying Eligible Undertaking
1

1

C

C

6

0

0

2

2

A

A

5

1

0

3

3

Calciferol

Calciferol

3

3

Bacillus

4

3

Bacillus

Bacillus

2

1

0

The following measure is to delegate undertaking in work station 4, here we can see undertaking F and Task H with longest way of 3 proceedingss, .But undertaking H have pre demands so task F can be assigned in work station 4

Heuristics Stairss
Workstation
Prioritized Undertaking
Assigned Undertaking
Undertaking Time
Staying Time
Staying Eligible Undertaking
1

1

C

C

6

0

0

2

2

A

A

5

1

0

3

3

Calciferol

Calciferol

3

3

Bacillus

4

3

Bacillus

Bacillus

2

1

0

5

4

F

F

3

3

Tocopherol, G

In work station 4 undertaking F have used merely 3 minute. to use the staying clip in work station 4, undertaking E, or t ask G can be assign in work station 4, Task E is assigned in work station 4

Heuristics Stairss
Workstation
Prioritized Undertaking
Assigned Undertaking
Undertaking Time
Staying Time
Staying Eligible Undertaking
1

1

C

C

6

0

0

2

2

A

A

5

1

0

3

3

Calciferol

Calciferol

3

3

Bacillus

4

3

Bacillus

Bacillus

2

1

0

5

4

F

F

3

3

Tocopherol, G

6

4

Tocopherol, G

Tocopherol

2

1

Gram

The following measure is to delegate suited undertaking in following work Station. following suited undertaking which can be assigned in workstation 5 is task G.

Heuristic Stairss
Workstation
Prioritized Undertaking
Assigned Undertaking
Undertaking Time
Staying Time
Staying Eligible Undertaking
1

1

C

C

6

0

0

2

2

A

A

5

1

0

3

3

Calciferol

Calciferol

3

3

Bacillus

4

3

Bacillus

Bacillus

2

1

0

5

4

F

F

3

3

Tocopherol, G

6

4

Tocopherol, G

Tocopherol

2

1

Gram

7

5

Gram

Gram

2

4

H, I, J

Task G will take merely 2 proceedingss to finish the undertaking. work station 5 can be assigned for some other undertakings, following available undertakings are Task H, I, J, the longest way among these three undertakings are with task H of 3 minute. So we can delegate undertaking H in work station 5.

Heuristics Stairss
Workstation
Prioritized Undertaking
Assigned Undertaking
Undertaking Time
Staying Time
Staying Eligible Undertaking
1

1

C

C

6

0

0

2

2

A

A

5

1

0

3

3

Calciferol

Calciferol

3

3

Bacillus

4

3

Bacillus

Bacillus

2

1

0

5

4

F

F

3

3

Tocopherol, G

6

4

Tocopherol, G

Tocopherol

2

1

Gram

7

5

Gram

Gram

2

4

H, I, J

8

5

Hydrogen

Hydrogen

3

1

I, J

Here after there are two undertakings left. Undertaking I, Task J, But to make the Task J, Task I must be completed. so Task I can be assigned in to work station 6

Heuristics Stairss
Workstation
Prioritized Undertaking
Assigned Undertaking
Undertaking Time
Staying Time
Staying Eligible Undertaking
1

1

C

C

6

0

0

2

2

A

A

5

1

0

3

3

Calciferol

Calciferol

3

3

Bacillus

4

3

Bacillus

Bacillus

2

1

0

5

4

F

F

3

3

Tocopherol, G

6

4

Tocopherol, G

Tocopherol

2

1

Gram

7

5

Gram

Gram

2

4

H, I, J

8

5

Hydrogen

Hydrogen

3

1

I, J

9

6

I, J

I

2

4

Joule

Undertaking L have used merely 2 proceedingss to finish the undertaking, that is it remains 4 proceedingss in work station 6, so we can delegate Task J in work station 6

Heuristics Stairss
Workstation
Prioritized Undertaking
Assigned Undertaking
Undertaking Time
Staying Time
Staying Eligible Undertaking
1

1

C

C

6

0

0

2

2

A

A

5

1

0

3

3

Calciferol

Calciferol

3

3

Bacillus

4

3

Bacillus

Bacillus

2

1

0

5

4

F

F

3

3

Tocopherol, G

6

4

Tocopherol, G

Tocopherol

2

1

Gram

7

5

Gram

Gram

2

4

H, I, J

8

5

Hydrogen

Hydrogen

3

1

I J

9

6

I, J

I

2

4

Joule

10

6

Joule

Joule

2

2

0

Assignments of Works to the work station

Work Station
1

2

3

4

5

6

Entire
Available Time

6

6

6

6

6

6

36
Performance Time

6

5

5

5

5

4

30
Idle Time

0

1

1

1

1

2

6
The last tabular array shows that at least 6 workstations are required which is different from the deliberate theoretical lower limit.

Efficiency of the assembly line is public presentation time/ available clip X 100

Here 30/36 Ten 100 = 83.33 % .

Ideal efficiency is 100 % .

Recommendations
It is recommended to utilize U shaped Conveyor belt and 3 work Stationss should be in one side and the staying 3 workstations should be in other side so that the idle work station can assist the busy work station. The conveyer belt can be drawn as below

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