MMPC 009 - Operations Management Decisions

Operations management can be essentially considered as a process of planning, organizing, directing and control. Hence, the management has to take decisions on behalf of the organization in terms of all these managerial functions. 

These decisions can be grouped and classified in various ways -

On the Basis of Production Management

  • Periodic (Selection, design and updating of products and processes)
  • Continuous (Operating - Controlling decisions like setting targets, cost control, maintenance, inventory control etc)

On the Basis of Time

  • Strategic (Long Term) and Tactical (Intermediate Term)
    • Product selection and planning
    • Process selection and Planning
    • Facility location and layout
    • Material handling
    • Capacity planning etc.
  • Operational (Short Term Decisions)
    • Production planning, schedule and control
    • Inventory planning & control
    • Quality Assurance
    • Work & Job design
    • Maintenance, replacement
    • Cost reduction etc.

On the basis of Functions of Management

  • Planning decisions
  • Organizing Decisions
  • Directing and Controlling decisions

On the Basis of Type

  • Planning and design of production System
  • Operation and control of production system

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