Operations Management

OPERATIONS: Value Addition Functions

An operation may be defined "as the process of changing inputs into outputs thereby adding value to some entity".

 Alteration refers to the change in form or state of inputs. Such a change may be physical as in any machine shop or press shop or assembly shop operation, or psychological as the feeling of comfort after getting cured from illness.

 Transportation refers to the movement of the entity from one place to another. The entity has more value if it is located at somewhere other than where it currently is.

 Storage refers to the process of keeping an entity in a protected environment (i.e. storing food grains in warehouses) for some period of time.

 Inspection refers to the process of verification of entity for its properties and thereby taking more informed decisions concerning their purchase, use repair etc.

Operations Management

• Operations Management is concerned with the production of goods and services, and involves the responsibility of ensuring that business operations are efficient and effective.

• Operations Management deals with the management of resources, for the production of goods and services with the set of value-added activities that transform inputs into many outputs & then distribution of goods and services to customers.

Operations Management

• Operations Management as "the field of study that focuses on the effective planning, scheduling, use, and control of a manufacturing or service organization through the study of concepts from design engineering, industrial engineering, management information systems, quality management, production management, inventory management, accounting, and other functions as they affect the organization" .

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