OPERATIONS MANAGEMENT & STRATEGIC …

1 INTERMEDIATE : PAPER - 9. 6. 01. -2. US. AB. LL. SY. OPERATIONS . MANAGEMENT &. STRATEGIC . MANAGEMENT INTERMEDIATE. STUDY NOTES. The Institute of Cost Accountants of India CMA Bhawan, 12, Sudder Street, Kolkata - 700 016. First Edition : August 2016. Reprint : April 2017. Reprint : June 2018. Revised Edition : October 2018. Revised Edition : January 2019. Edition : August 2019. Reprint : March 2020. Reprint : August 2020. Reprint : October 2020. Reprint : January 2021. Reprint : March 2021. Published by : Directorate of Studies The Institute of Cost Accountants of India (ICAI). CMA Bhawan, 12, Sudder Street, Kolkata - 700 016. Printed at : M/s. SAP Print Solutions Pvt. Ltd. 28A, Lakshmi Industrial Estate S.

2 N. Path, Lower Parel (W). Mumbai - 400 013, Maharashtra Copyright 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 thereof. Syllabus - 2016. PAPER 9: OPERATIONS MANAGEMENT & STRATEGIC MANAGEMENT (OMSM). Syllabus Structure The syllabus comprises the following topics and study weightage: A OPERATIONS MANAGEMENT 70%. B STRATEGIC MANAGEMENT 30%. B. 30%. A. 70%. ASSESSMENT STRATEGY. There will be examination of three hours. OBJECTIVE. To provide an in depth study of the various business process, analyze OPERATIONS , production planning and STRATEGIC MANAGEMENT . Learning Aims The 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-enginnering Skill Set required Level B: Requiring the skill levels of knowledge, comprehension, application and analysis.

3 Section A : OPERATIONS MANAGEMENT 70%. 1. OPERATIONS MANAGEMENT Introduction 2. OPERATIONS planning 3. Designing of Operational Systems and control 4.. Production planning and control 5.. Productivity MANAGEMENT and quality MANAGEMENT 6.. Project MANAGEMENT 7.. Economics of Maintenance and Spares MANAGEMENT Section B : STRATEGIC MANAGEMENT 30%. 8. STRATEGIC MANAGEMENT Introduction 9. STRATEGIC Analysis and STRATEGIC planning 10. Formulation and Implementation of Strategy SECTION A: OPERATIONS MANAGEMENT [70 MARKS]. 1. Operation MANAGEMENT Introduction: Scope characteristics of modern OPERATIONS functions - recent trends in production / OPERATIONS MANAGEMENT . 2. OPERATIONS planning : Demand forecasting capacity planning - capacity requirement planning - facility location - facility layout.

4 Resource aggregate planning Material requirements planning Manufacturing resource planning Economic Batch quantity. 3. Designing of operational systems and control: Product Design, Process design - Selection - Product Life Cycle Process planning Process Selection. 4. 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 basics.

5 6. Project MANAGEMENT : Project planning project life cycle Gantt charts, PERT and CPM. 7. Economics of Maintenance and Spares MANAGEMENT : Break down Maintenance Preventive Maintenance Routine Maintenance Replacement of Machine . Spare Parts MANAGEMENT . Section B: STRATEGIC Manangement [30 marks]. 8. STRATEGIC MANAGEMENT Introduction Vision- Mission and objective 9. STRATEGIC Analysis and STRATEGIC planning Situational Analysis SWOT Analysis Portfolio Analysis BCG Matrices Stages in STRATEGIC planning Alternatives in STRATEGIC planning 10. 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 re-engineering.

6 Contents SECTION - A : OPERATIONS MANAGEMENT . Study Note 1 : Operation MANAGEMENT Introduction OPERATIONS MANAGEMENT - Introduction 1. Production MANAGEMENT vs. Operation MANAGEMENT 3. Characteristic of Modern Operation Function 4. Recent Trends in Production / OPERATIONS MANAGEMENT 4. Study Note 2 : OPERATIONS planning Demand Forecasting 7. Capacity planning 15. Capacity Requirement 17. Facility Location 21. Facility Layout 24. Resource Aggregate planning 33. Material Requirements planning 36. Manufacturing Resource planning 37. Enterprise Resource planning 38. Economic Batch Quantity 38. Study Note 3 : Designing of Operational System and Control Production Design 47. Process Design & Selection 50.

7 Process planning 50. Product Life Cycle 52. Process Selection 53. Study Note 4 : Production planning and Control Production planning and Control Introduction 55. Time Study, Work Study, Method Study & Job Evaluation 58. Job Allocation Assignment Technique 61. Scheduling 77. Queuing Models 82. Simulation 94. Line Balancing 105. Lean OPERATIONS 110. Just-In-Time (JIT) 111. Transportation Model 111. Linear Programming Technique 129. Study Note 5 : Productivity MANAGEMENT and Quality MANAGEMENT Measurement Techniques of Productivity Index 153. TQM Basic Tools and Certification 161. ISO Standard Basics 163. Study Note 6 : Project MANAGEMENT Project planning 169. Gantt Charts 174. PERT and CPM 180.

8 Study Note 7 : Economics of Maintenance and Spares MANAGEMENT Break Down Maintenance 195. Preventive Maintenance 195. Routine Maintenance 196. Replacement of Machine 198. Spare Parts MANAGEMENT 201. SECTION - B : STRATEGIC MANAGEMENT . Study Note 8 : STRATEGIC MANAGEMENT Introduction Vission, Mission and Objective 227. Study Note 9 : STRATEGIC Analysis and STRATEGIC planning Situational Analysis 243. SWOT Analysis 245. Portfolio Analysis 247. BCG Matrices 249. Stages in STRATEGIC planning 255. Alternative in STRATEGIC planning 258. Pestel Framework 260. Porter's Five Forces Framework 261. Structural Drivers of Change 264. Diversification Strategy 264. Study Note 10 : Formulation and Implementation of Strategy Strategy Formulation Function-wise (Production Strategy, Marketing Strategy, 267.)

9 Manpower Strategy Structuring of Organisation for Implementation of Strategy 281. STRATEGIC Business Unit 285. Business Process Re-engineering 286. Core Competence and Critical Success Factors 290. Section : A. OPERATIONS MANAGEMENT (Syllabus - 2016). Study Note - 1. OPERATIONS MANAGEMENT INTRODUCTION. This Study Note includes OPERATIONS MANAGEMENT - Introduction Production MANAGEMENT vs. Operation MANAGEMENT Characteristic of Modern Operation Function Recent Trends in Production/ 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.

10 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. So does everything you wear, eat, travel in, sit on, and access the Internet with. However, in order to have a clear idea of OPERATIONS MANAGEMENT , one must have an idea of Operating Systems'. An Operating System is defined as a configuration of resources combined for the provision of goods or services. Retail organizations, hospitals, bus and taxi services, tailors, hotels and dentists are all examples of operating systems. Any operating system converts inputs, using physical resources, to create outputs, the function of which is to satisfy customers wants.