opERATIoNs MANAgEMENT & sTRATEgIc …

1 INTERMEDIATE : pApER -9 INTERMEDIATEsTuDy NoTEsopERATIoNs MANAgEMENT & sTRATEgIc MANAgEMENTThe Institute of cost Accountants of IndiaCMA Bhawan, 12, Sudder Street, Kolkata - 700 016syllAbus - 2016 First Edition : August 2016 Reprint : January 2018 Published by :Directorate of StudiesThe Institute of Cost Accountants of India (ICAI)CMA Bhawan, 12, Sudder Street, Kolkata - 700 at :Jayant Printery LLP352/54, Girgaum Road,Murlidhar Temple Compound,Mumbai - 400 of these Study Notes is reserved by the Institute of Cost Accountants of India and prior permission from the Institute is necessary for reproduction of the whole or any part 9: opERATIoNs MANAgEMENT & sTRATEgIc MANAgEMENT (OMSM)Syllabus StructureThe syllabus comprises the following topics and study weightage.

2 AOperations MANAgEMENT 70%BStrategic Management30%B30%A70%ASSESSMENT STRATEGYT here will be written examination paper of three provide an in depth study of the various business process, analyze opERATIoNs , production planning and sTRATEgIc AimsThe syllabus aims to test the student s ability to: Understand the business process and analyze the opERATIoNs Acquire knowledge of production planning and resource MANAgEMENT Understand the concept of Corporate Vision - Mission and Objectives Understand the concept of SWOT and Portfolio Analysis Understand the different stages in strategy formulation process Understand the concept of sTRATEgIc Business Unit and Business Process re-enginneringSkill Set requiredLevel B.

3 Requiring the skill levels of knowledge, comprehension, application and A : opERATIoNs Management70%1. opERATIoNs MANAgEMENT Introduction2. opERATIoNs Planning 3. Designing of Operational Systems and control 4. Production Planning and control5. Productivity MANAgEMENT and quality management6. Project Management7. Economics of Maintenance and Spares managementSection B : sTRATEgIc Management30%8. sTRATEgIc MANAgEMENT Introduction9. sTRATEgIc Analysis and sTRATEgIc Planning 10.

4 Formulation and Implementation of Strategy Syllabus - 2016sEcTIoN A: opERATIoNs MANAgEMENT [70 MARks]1. operation MANAgEMENT introduction : Scope characteristics of modern opERATIoNs functions - recent trends in production / opERATIoNs opERATIoNs planning: Demand forecasting capacity planning - capacity requirement planning - facility location - facility layout Resource aggregate planning Material requirements planning Manufacturing resource planning Economic Batch Designing of operational systems and control.

5 Product Design, Process design - Selection - Product Life Cycle Process Planning Process production planning and control: introduction Control Measures Time study, Work study, Method study, Job Evaluation, Job Allocation (Assignment Technique), Scheduling Queuing Models, Simulation and Line Balancing Optimum Allocation of resources Lean opERATIoNs JIT Transportation Model and Linear Programming Technique (Formulation of equations only).5. productivity MANAgEMENT and Quality MANAgEMENT : Measurement techniques of productivity index, productivity of employee, productivity of materials, productivity of MANAgEMENT resources, productivity of other factors productivity improving methods TQM basic tools and certification ISO standards project MANAgEMENT : Project planning project life cycle Gantt charts, PERT and Economics of Maintenance and spares MANAgEMENT .

6 Break down Maintenance Preventive Maintenance Routine Maintenance Replacement of Machine Spare Parts b: sTRATEgIc Manangement [30 marks]8. sTRATEgIc MANAgEMENT introduction Vision- Mission and objective9. sTRATEgIc Analysis and sTRATEgIc planning Situational Analysis SWOT Analysis Portfolio Analysis BCG Matrices Stages in sTRATEgIc Planning Alternatives in sTRATEgIc Planning10. Formulation and Implementation of strategy: Strategy formulation function wise (Production Strategy, Marketing Strategy, Man Power Strategy) Structuring of Organisation for implementation of strategy sTRATEgIc Business Unit Business Process Note 1 : operation MANAgEMENT opERATIoNs MANAgEMENT - introduction Production MANAgEMENT vs.

7 Operation MANAgEMENT Characteristic of Modern Operation Function Recent Trends in Production / opERATIoNs MANAgEMENT 4study Note 2 : opERATIoNs Demand Forecasting Capacity Planning Capacity Requirement Facility Location Facility Layout Resource Aggregate Planning Material Requirements Planning Manufacturing Resource Planning Enterprise Resource Planning Economic Batch Quantity 38study Note 3 : Designing of operational system and Production Design Process Design & Selection Process Planning Product Life Cycle Process Selection 51study Note 4.

8 Production planning and Production Planning and Control introduction Time Study, Work Study, Method Study & Job Evaluation Job Allocation Assignment Technique Scheduling Queuing Models Simulation Line Balancing Lean opERATIoNs Just-In-Time (JIT) Transportation Model Linear Programming Technique 114study Note 5 : productivity MANAgEMENT and Quality Measurement Techniques of Productivity Index TQM Basic Tools and Certification ISO Standard Basics 147study Note 6 : project Project Planning Gantt Charts PERT and CPM 160study Note 7 : Economics of Maintenance and spares Break Down Maintenance Preventive Maintenance Routine Maintenance Replacement of Machine Spare Parts MANAgEMENT 181study Note 8 : sTRATEgIc MANAgEMENT Vission, Mission and Objective 209study Note 9.

9 sTRATEgIc Analysis and sTRATEgIc Situational Analysis SWOT Analysis Portfolio Analysis BCG Matrices Stages in sTRATEgIc Planning Alternative in sTRATEgIc Planning 238study Note 10 : Formulation and Implementation of Strategy Formulation Function-wise (Production Strategy, Marketing Strategy, 241 Manpower Strategy Structuring of Organisation for Implementation of Strategy sTRATEgIc Business Unit Business Process Re-engineering 260operations managment & sTRATEgIc MANAgEMENT 1 This Study Note opERATIoNs MANAgEMENT - Production MANAgEMENT vs.)

10 Operation Characteristic of Modern Operation Recent Trends in Production/ opERATIoNs ManagementStudy Note - 1 opERATIoNs MANAgEMENT opERATIoNs MANAgEMENT - introduction opERATIoNs MANAgEMENT is the MANAgEMENT of that part of an organization that is responsible for producing goods and/or services. there are examples of these goods and services all around you. every book you read, every video you watch, every e-mail you send, every telephone conversation you have, and every medical treatment you receive involves the opERATIoNs function of one or more organizations.