Steps for Operation Management

Use of Modern Tools in the Business Process

1. Selection of Business: TO-WS

2. Initial Feasibility

3. Management Preparation

4. Detailed Feasibility

5. Middle Management Induction and Preparation

6. Initial Forecasting Technique which decides capacity, location and layout

7. Project Management PERT CPM

8. Based on the modern project management, to implement

9. Journey of TQM - SPC

10. Forecasting for continuous operation

11. Modern Tools in Process Strategy:

12. With proper HR, infrastructure and TQM mind set – one has to start the production: JIT Lean Production

13. Pull v/s Push – Kanban PokaYoke

14. Final Destination, Capability Index resulting into 6 Sigma

1. Selection of Business: TO-WS

The industry or service under consideration will have some opportunities and threats.

One has to think if one can overcome the threats in due course and can exploit the opportunities sufficiently.

2. Initial Feasibility

After the T and O has been understood and addressed, the entrepreneur has to make initial feasibility which will cover the following:

The market has to be segmented for products, services, geographies and applications and relevant players have to be selected.

The strength and weakness of various players have to be tabulated for that segment.

Marketing Plan has to be made.

The product differentiation against one of the factor i.e.

• specification,

• cost or

• response time

has to be selected.

The legal structure of the company according to the vision has to be finalized:

• proprietorship

• partnership

• private limited

• public limited

And financial capital structure has to be finalized.

The account relevant to legal structure has to be organized.

The IT needs from MRP I, II and then ERP as per the vision and mission to be determined.

Results:

The results will come out from the legal structure in finance, accounts, and IT.

The main objective of any company is to make profit.

Profit = SP – (CP+COS)

SP = Market Research + Strategy + Product Positioning + Advertising + OGA + Media

CP = All tools of Operational Management to reduce cost, time, and improve efficiency

COS = Freight and Forwarding, Warehousing, Channel Reach, Whole Sale, Retail, Modern Retail, Institution, Sales Management with Trade Push, Merchandizing

We now come to the operations and how to achieve the vision and mission of these operations.

3. Management Preparation

Against the segmented market and its players the company has to benchmark and describe its:

• vision

• mission

• goals

for

• short term

• mid term

• and long term

4. Detailed Feasibility

Once the Vision, Mission, Goals, Short Term, Mid Term and Long Term are defined against the initial feasibility, then the entrepreneur has to get the detailed feasibility made by the consultants so that against the requirement the first level of management can be hired.

They have to select right senior employees who can accomplish the