Operations & Technology Management – Class Notes
1. Production & Operations Management (POM)
Definition: The planning, organizing, directing, and controlling of production activities.
Objectives: To produce goods and services of the right quality, quantity, at the right time
and cost.
Key Concepts:
o Inputs → Transformation Process → Outputs
o Types of production: Job, Batch, Mass, and Continuous production.
o Capacity planning, Facility location & layout, Scheduling, Inventory control.
2. Logistics & Supply Chain Management (SCM)
Logistics: Managing the flow of goods from point of origin to consumption.
Supply Chain Management: Broader – includes logistics, procurement, operations
coordination, and customer service.
Key Components:
o Inbound & Outbound Logistics
o Inventory Management
o Transportation & Warehousing
o Demand Forecasting
o Vendor Relationship Management
Inbound & Outbound Logistics – Class Notes
🔹 Inbound Logistics
Definition: The process of receiving, storing, and handling raw materials and components that
come into a business.
Key Activities:
o Sourcing and procurement
o Supplier relationship management
o Transportation of raw materials to the factory
o Inventory and warehouse management
Goal: Ensure materials arrive on time, in the right quantity and quality, at the lowest cost.
🔹 Outbound Logistics
Definition: The process related to storing and distributing the finished goods to the customers.
Key Activities:
o Order processing
o Packaging and labeling
o Warehousing of finished goods
o Transportation to distributors, retailers, or customers
Goal: Deliver products efficiently, accurately, and cost-effectively to meet customer demand.
Aspect Inbound Logistics Outbound Logistics
Flow Into the organization Out of the organization
Direction
Focus Suppliers & raw materials Customers & finished goods
Key Objective Ensure smooth supply of inputs Ensure timely delivery to end users
Example Receiving steel for car Shipping completed cars to
manufacturing dealerships
3. Total Quality Management (TQM)
Definition: A continuous improvement strategy for long-term success through customer
satisfaction.
Principles:
o Customer-focused
o Employee involvement
o Process-centered
o Integrated system
o Continuous improvement
o Data-driven decision-making
Tools: Pareto charts, Fishbone diagrams, Control charts
What is a Fishbone Diagram?
Also known as: Cause-and-Effect Diagram or Ishikawa Diagram
Purpose: To identify, explore, and display the possible causes of a specific problem or effect.
Visual Structure: Shaped like a fish skeleton, with the problem at the “head” and major cause
categories as “bones.”
Common Cause Categories (6 Ms – for Manufacturing)
1. Man – Human error, lack of training, attitude
2. Machine – Equipment failure, poor maintenance
3. Material – Defective raw materials, shortage
4. Method – Poor procedures, unclear instructions
5. Measurement – Inaccurate data, lack of metrics
6. Mother Nature (Environment) – Temperature, humidity, noise
4. Kaizen & Six Sigma
Kaizen ("Continuous Improvement"):
o Small, ongoing positive changes.
o Involves everyone – from top management to workers.
o Focus on eliminating waste (lean management).
Six Sigma:
o Data-driven approach to eliminate defects.
o Goal: 3.4 defects per million opportunities.
o Uses DMAIC (Define, Measure, Analyze, Improve, Control).
o Roles: Yellow Belt, Green Belt, Black Belt, Master Black Belt
5. Management Information Systems (MIS)
Definition: A system that provides information to manage organizations efficiently and
effectively.
Components:
o People
o Technology
o Processes
o Data
Functions:
o Supports decision-making
o Improves operational efficiency
o Facilitates strategic planning
Types: TPS (Transaction Processing Systems), DSS (Decision Support Systems), ESS
(Executive Support Systems)
