Input Transformation Output Mode

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Concepts of Managing Operations

Lesson 1: Operations function & evolution of POM

Learning Objectives
After reading this lesson you will be able to understand
▪ Operations system in manufacturing and service organizations ▪ Conversion process
▪ Historical evolution of POM

I welcome you all and hope you have an eminently enjoyable and enriching experience. With that, I seek your permission to get on with the proceedings. Here we go.

An Overview

To put the things in the right perspective, let me start by giving you an overview ( the shape things to come.
At the onset of the 1980s, while Japan's productivity continued its healthy surge the leaders business and government worldwide were alarmed that productivity" stagnating in the United States. What had happened to the giant of commerce and industry?

What led to its lethargy?
What have we learned in the ensuing years?
What can be done to restore its stately posture?
Answers to these questions reside in the way we manage our organizations and their operations.

While U.S. productivity waned, Americans grew increasingly concerned about other related issues: maintaining adequate energy sources, protecting the environment and meeting the demand for goods and services at home and abroad. These facts continue to impose complex demands on our organizations. Today management faces unparalleled challenges from a society more educated, affluent, demanding, and concerned than ever before, and from international competition keen than ever before. Never before have this challenges-and and the cost of failure-been greater.

What is operations system?

Let us now turn our attention to an operating system.

Can you define it?

Well, essentially two characteristics.

Part of an organization.
Produces the organization's physical goods and services

Let us first understand the reasons for what many feel over-emphasis on operations management. The complexities of our contemporary world have heightened our dependence on organizations and the people who manage them, yet often we fail to understand and appreciate the process of management. Moreover, as we've learned from foreign competitors, we have seriously neglected the operations of our organizations. We have taken for granted our preeminence as capable producers. No longer can we afford to do so. We need to reexamine the processes by which goods and services are created and to revitalize the ways that we manage the human and material resources for doing so. This book aims to meet these needs. It presents the concepts, terminology, problems, and opportunities that comprise operations management. What is conversion process?

All of us, I am sure, are aware of the conversion process.
Can we say it is a:
Change process.
Changes/ converts inputs into outputs.
Inputs are- land, labour, capital (Others?)
Output is-well, goods and services, what else?
Time to consider an example.
Can you tell me how the operations system works for let's say a farm? Start thinking, Organize your thoughts and Focus on the components, one by one. (Got it? Good.)
Inputs-what are they going to be?
Well, quite a few i.e.

Farmer labor
Management skills of farmer
On a farm the operations system is the transformation that occurs when the farmer's inputs (land, equipment, labor, etc.) are converted into such outputs as com, wheat, or milk. The exact form of the conversion process varies from industry to industry, but it is an economic phenomenon that exists in every industry. Economists refer to this transformation of resources into goods and services as the production.

Inputs go into what you call, Transformation/conversion process. But there would be something...
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