2. scope of operations management
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Operations management involves product selection and design, process selection and planning, location of facilities, layout and material handling, and capacity planning. It helps companies select the right products and designs to be competitive, optimize outputs from processes, select locations that minimize costs, arrange layouts for smooth production flow, and plan appropriate capacities using tools like marginal costing and linear programming. It also aids in making short term operational decisions around production planning, control, inventory control, quality control, and cost reduction. There are different types of production systems like mass, batch, job shop and project production.
2. scope of operations management
- 2. Scope of operations management Product selection and design Process selection and planning Location facilities Layout and material handling facilities Capacity planning
- 3. Product selection and design The product mix makes our system efficient or inefficient. So it is very important to select right product keeping the mission and overall objectives in mind. Design is the most important thing as it makes us competitive or non-competitive and we use operations management to find suitable design to fulfill our requirement with controlled cost.
- 4. Process selection and planning Selection of process involves taking decisions about technology, machines and equipment. We have to optimize the output from a given process. Process planning, detailing the stages of the process , gives us the idea of optimum automation and mechanization.
- 5. Location facilities It is the most important facility. As we are looking for a long term decision. So a wrong decision can make us pay a lot. We select that particular location where distribution cost and production cost are minimum. And it is possible only with the help of operations management.
- 6. Layout and material handling facilities Layout means positioning of machinery. The machines should be so arranged that the flow of production remains smooth. There should be a proper choice of material handling equipments.
- 7. Capacity planning Capacity refers to a level of output of the conversion process over a period of time. Process industry pose challenging problems in capacity planning, requiring in the long run, expansion and contraction of major facilities in the conversion process. Some tools that help in capacity planning are marginal costing, linear programming etc.
- 8. Operational or short term decisions (i) production planning (ii) Production control (iii) Inventory control (iv) Quality control (v) Method study (vi) Maintenance and replacement (vii) Cost reduction and control
- 9. Types of production systems 1. Mass production 2. Batch production 3. Job shop 4. project