Operations Management

Operations Management

3

Operations Management

4

CHAPTER – I

OPERATIONS MANAGEMENT

OBJECTIVE

Operations management is an area of business that is concerned with the

production of goods and services, and involves the responsibility of ensuring that

business operations are efficient and effective. It is also the management of

resources, the distribution of goods and services to customers, and the analysis of

queue systems. Operations also refers to the production of goods and services, the

set of value-added activities that transform inputs into many outputs.

Fundamentally, these value-adding creative activities should be aligned with market

opportunity for optimal enterprise performance. Operations Management deals

with the design and management of products, processes, services and supply

chains. It considers the acquisition, development, and utilization of resources that

firms need to deliver the goods and services their clients want.

INTRODUCTION

In 1919, Fredrick Taylor’s classical work entitled “Principles of Scientific

Management” was published. Since then the management of production processes

was never to be the same again.

The major focus of Taylor’s book was in the area of work standards and wage

incentives. He showed that the outcome of both systematically conceived work

standards and wage incentives could improve productivity.

What Taylor succeeded in doing was to link the engineering process of the plant

with human nature. With a well designed plant and a reasonable set of standards,

the worker was motivated to achieve a high level of productivity. The worker got

higher wages while the firm got larger profits. Everyone was happy.

This approach came to be known as scientific management theory since it was

based on the “Science” of engineering and the “Science” of human nature.

The hypothesis was based on actual studies undertaken at Bethlehem steel yards.

He employed ONE of the central ideas of the scientific...