Operation Management Assignment Final

8/10/2019 Operation Management Assignment Final

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Assignment of

Production and Operation Management

The topic is

Objectives and importance of operation management its

practical aspects in Bangladesh for our industrial and economic

development to meet the world market competition.


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N..!anwarul "slam d !aydur #ahaman d !amiul $a%ue(ID: 200606!"# ( ID: 20060$%&) ( ID:20060!' #

MA (e)e#* 2%th atch+choo, of usiness

Asian -ni)ersit. of ang,adesh (A-#

&r. d. 'aliar #ahman.

/ourse Teacher* Production and Operation Management


Date of submission: thApril 2008.


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(etter of )ransmittal

To*

Dr Md 1a,iar ahman

/ourse teacher* Production and Operation Management


-ttara /ampus* Dha3a4&20

Dear +ir*

ef: +u5mission of report on o5ecti)es and importance of Operation Management

and its practica, aspects in ang,adesh for our industria, and economic de)e,opment to

meet the 7or,d mar3et competition

eference is made to .our direction for preparing a report on the topics o5ecti)es

and importance of Operation Management and its practica, aspects in ang,adesh for

our industria, and economic de)e,opment to meet the 7or,d mar3et competition 1e

are the fo,,o7ing students ha)e compi,ed the report for on7ard su5mission

Than3 .ou for gi)ing .our )a,ua5,e time to assess the report

8ours sincere,.

Participants in report preparation

9ame ID atch +ign

Md +a.dur ahaman 20060$%& 2%th (MA4)ening#

9M+an7aru, Is,am 200606!" 2%th (MA4)ening#

Md+amiu, ;a


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The main purpose of this stud. is to find out the practica, aspects in ang,adesh for

our industria, and economic de)e,opment as 7e,, as g,o5a, mar3et regarding the

o5ecti)es and importance of production and operation management It is a )ita, part

of an. t.pe of organi?ation 7hich 7i,, co)er the important issues facing 5. operation

manager This fie,d of stud. he,ps to disco)er the e)a,uation of the d.namic fie,d of

operation management It 7i,, a,so he,p to gain understanding of 7hat operation

manager do effecti)e,. and efficient,. as 7e,, as operation management in)o,)ed in

man. 5usiness functions In this regard* this report is 5asica,,. consists of operation

management strateg. through some operationa, too,s

Operation management is a mi@ of managing peop,e and app,.ing sophisticated

techno,og. It entai,s the design and contro, of s.stems responsi5,e for the

producti)e use of ra7 materia,s* human resources* e


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*bbreviations

/IP

/+

PB

PC

DP

+/M IMB

IO

IT

EIT

FD

;D

OM

Gs

-+

1TO

TGM

/ommercia,,. Important Person

@port /redit uarantee +cheme

@port Promotion Bund

@port Processing Cones

ross domestic product

,o5a, +upp,. /hain Management

Internationa, monetar. fund

Internationa, a5our Organi?ation

Information Techno,og.

Eust4in4time

esearch and De)e,opment

;uman esource Department

Operation Management

Guantitati)e estrictions

-nited +tates

1or,d Trade Organi?ation

Tota, Gua,it. Management

/O9T9T+

Page no

& Introduction &


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2 O5ecti)es 2

Operation O5ecti)es '

! Operation Management /,assification &2

$ Importance &$

6 9ature and concept of Operationa, Management &6

" Industria, de)e,opment of ang,adesh &"

% conomic De)e,opment 2$

' Practica, aspects in ang,adesh 2'

&0 /onc,usion &


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+. "ntroduction,

This stud. gi)es us an introduction to the functiona, area of Operation Management

(OM# as practiced in manufacturing industries and the ser)ice sectors It inc,udes

decision4ma3ing* proect managementH faci,it. ,a.out in 5oth manufacturing and

ser)ices industries* 7aiting ,ines


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-. Objectives,

Operation management is the most important topic in the 5usiness 7or,d toda. This

report is the )ita, part for the organi?ation 7hich 7i,, co)er the important issue facing

5. operation manager It 7i,, address the 5asic too,s and techni


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management is in regard to a,, operations 7ithin the organi?ation e,ated acti)ities

inc,ude managing purchases* in)entor. contro,*


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!ociety 0 A,though often ha)ing no direct economic connection 7ith the

compan.* indi)idua,s and groups in societ. at ,arge can 5e impacted 5. the 7a. its

operations managers 5eha)e The most o5)ious e@amp,e is in the en)ironmenta,

responsi5i,it. e@hi5ited 5. operations managers

After ma3ing this genera, point a5out operations o5ecti)es* the rest of the chapter

goes on to ,oo3 at the fi)e performance o5ecti)es of


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!peed

+peed is a shorthand 7a. of sa.ing +peed of response It means the time 5et7een an

e@terna, or interna, customer re


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f,e@i5i,it.* and de,i)er. f,e@i5i,it.# It is important to understand the difference

5et7een these different t.pes of f,e@i5i,it.* 5ut it is more important to understand

the affect f,e@i5i,it. can ha)e on the operation

@terna,,. the different t.pes of f,e@i5i,it. a,,o7 an operation to fit its products and

ser)ices to its customers in some 7a. Mi@ f,e@i5i,it. a,,o7s an operation to produce a

7ide )ariet. of products and ser)ices for its customers to choose from

Productser)ice f,e@i5i,it. a,,o7s it de)e,ops ne7 products and ser)ices incorporating

ne7 ideas 7hich customers ma. find attracti)e

/ost

The chapter ma3es t7o important points here The first is that the cost structure of

different organi?ations can )ar. great,. 9ote ho7 the different categories of cost

)ar. in the four e@amp,es gi)en in the chapter +econd* and most important,.* the

other four performance o5ecti)es a,, contri5ute* interna,,.* to reducing cost This has

5een one of the maor re)e,ations 7ithin operations management o)er the ,ast t7ent.

.ears

LIf managed proper,.* high


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6b7 Project anagement

This c,ass presents the specific concepts* techni


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6e7 $ealthcare Operations anagement

The ;ea,thcare Operations is so,iciting papers for presentation that contri5ute to the

ad)ancement of hea,thcare s.stem design* operations* and impro)ement esearch on

Operations in ;ea,thcare can dra7 from di)erse discip,ines* such as operations and

supp,. chain management* industria, engineering* information s.stems* strateg.*

performance management*


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8. "mportance,

Operation Management is critica, importance of organi?ation and 5usiness no7 a da.

It is the management of manufacturing* production* and ser)ices operations

Operation Management is di)erse It ma. 5e defined as the design* operation* and

impro)ement of the production s.stems that create the firmKs primar. products or

ser)ices ;o7e)er* the ro,e of Information Techno,og. (IT# is the most effecti)e too,*

strateg. and techni


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and 5usiness* etc One of the information techno,og. ris3s are the high,. costs of

techno,ogies and the ne7 rapid,. techno,og. Thus* 5usinesses and organi?ations shou,d

consider a5out techno,ogies carefu,,. and reasona5,e* such as pro5,ems* costs*

in)estments* and opportunities in the future* etc

9o7ada.s* Information Techno,og. affected mar3et ,eading to g,o5a, mar3eting Thus*

mar3ets open 7ide,. and rapid,. gro7ing It affects e@ecuti)es and managers to

change the strategies of Management as g,o5a,,.* 5ecause it is not on,. ,oca, mar3et or

domestic mar3et emerge* 5ut a,so g,o5a, mar3et Information Techno,og. he,ps

supporting e@ecuti)es* managers* and decision mar3ets to manage and contro, 5usiness

and en)ironments in man. 7a.s The most common t.pes of information techno,og.

used in 5usiness organi?ations are such as transaction processing s.stems*management information s.stem* decision support s.stems* and e@pert s.stems*

data5ase* and other information techno,og. too,s Together these s.stems he,p

e@ecuti)e* managers* emp,o.ee in organi?ations accomp,ish 5oth routine* and decision4

ma3ing process* and specia, tas3 4 4 from recording sa,es* to processing pa.ro,,s* to

supporting decision in )arious departments* to pro)iding a,ternati)es for ,arge sca,e

proects and opportunities

9. Nature and concept of Operational anagement,

Operations Management is the management of the direct resources re


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& Internationa, competition* especia,,. from the Eapanese has compe,,ed 9orth

American companies to raise the ,e)e, of their game to remain competition in 7or,d

mar3ets Producing high


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currenc. Ta3a is free,. con)erti5,e for current account transactions

(e# IMB consistent counter trade+pecia, Trading Arrangements are a,,o7ed

(f# @port promotion measures are specific and transparent

!mall; /ottage; edium and (arge "ndustries.

&K+ma,, Industr.K means an industria, underta3ing engaged either in manufacturing

process or ser)ice acti)it. 7hich emp,o.s ,ess than $0 7or3ers andor 7hose fi@ed

capita, is ,ess than T3&00 mi,,ion

2K/ottage Industr.K means an industria, unit either engaged in manufacturing or

ser)icing genera,,. run 5. the fami,. mem5ers either as fu,, time or part time

KMedium Industr.K means an industria, underta3ing 7hich emp,o.s $0 to '' 7or3ers

andor 7hose fi@ed capita, is from T3&00 mi,,ion to T300 mi,,ion

!Karge Industr.K means an industria, underta3ing 7hich emp,o.s &00 7or3ers or more

and 7hose fi@ed capita, is more than T300 mi,,ion

The @port Po,ic.* Import Po,ic.* Industria, Po,ic.* Boreign @change Po,ic.* Manpo7er

and a5our Po,ic. etc are 5rief,. narrated 5e,o7:

14port Policy

The @port Po,ic. &''"42002 has 5een designed to operate in the imperati)e and

opportunit. of the mar3et econom. 7ith a )ie7 to maintaining gro7th of e@port and

narro7ing do7n the gap 5et7een import pa.ment and e@port earning

!trategy of 14port Policy:

The main e,ements of the ,ong term e@port strateg. are as fo,,o7s:

i# emo)e a,, 5ott,enec3s to achie)e the o5ecti)es of e@port po,ic.H

ii# Pro)ide po,ic. support to pri)ate sector operators on a continuous 5asis to ensure

competiti)eness

iii# +trengthen support ser)ices and infrastructure for e@ports and e@port4oriented

industriesH

i)# Priorit. 7i,, 5e gi)en to 5ui,d such infrastructureH

)# De)e,op manageria, and entrepreneuria, s3i,,s through ;D programmersH

)i# Design an appropriate e@port de)e,opment program to 5roaden and di)ersif. the


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countr.s e@port 5ase 7hich is centra, to the e@port strateg.H

)ii# ui,d ,ong term capa5i,it. to e@port 5. de)e,oping ne7 products through adaptation

and increased FD acti)itiesH

)iii# nsure maintenance of eco,ogica, 5a,ance and po,,ution free en)ironment in the

production of e@porta5,e goodsH

i@# @tend technica, and mar3eting assistance for de)e,opment of ne7 products and

their mar3eting

In order to achie)e rapid e@port4,ed gro7th under pri)ate sector the @port Po,ic.

en)isaged the fo,,o7ing incenti)es:

3iscal incentivesi Dut.4free import of capita, machiner. for e@port4oriented industries outside @port

Processing Cones (PC#

ii onded 7arehouse to faci,itate dut.4free import of ra7 materia,s for e@port

production

iii Dut.4dra75ac3* if the 5onded 7arehouse faci,ities are not used

i) +a,e of 20 per cent of products 5. the &00 per cent e@port4oriented industries in

the ,oca, mar3et on pa.ment of duties

) @emption of $0 per cent of income arising out of e@port 5usiness from income ta@

)i Ta@ ho,ida.s

)ii Dut.4free import of samp,es

)iii estructuring of the @port /redit uarantee +cheme (/+#

i@ Ta3a has 5een made con)erti5,e into foreign e@change for import of goods and

e@porters are a,,o7ed to retain their foreign e@change earnings gradua,,. at higher

proportion

@ 20Q of the reected goods of the &00Q e@port oriented industries inc,uding ,eather

goods and read.made garments 7i,, 5e admissi5,e for sa,e in the ,oca, mar3et su5ect to

pa.ment of usua, duties and ta@es


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"mport Policy

The main features of the Import Po,ic. are gi)en 5e,o7:

4 i5era,i?ation of imports through remo)a, and significant reduction of tariff and

non4tariff 5arriers and gearing up customs administration for speed. c,earance of

goods At present ma@imum tariff rate is "$Q

4 ationa,i?ation of the tariff structure to remo)e disincenti)es to domestic

production arising from tariff anoma,iesH this in)o,)es ,o7ering of duties* particu,ar,.

on industria, inputs and capita, machiner.H and

4 Ma3ing foreign e@change con)erti5,e in current account transactions A 3e. o5ect

of tariff rationa,i?ation 7as to create a neutra, trade regime 5. e,iminating anti4

e@port 5ias resu,ting from high tariffs and Guantitati)e estrictions (Gs# The

go)ernment is committed to the reduction of tariffs as part of its ,i5era,i?ation

programmed under 1TO

4 i3e tariff rationa,i?ation* significant progress has 5een made in remo)ing Gs

7hereas a,most 2$ per cent of a,, items under !4digit headings of imports 7ere

su5ect to Gs in &''0* no7 on,. &&' items co)ering on,. 2 per cent of imports are so

disposed Of these* on,. 2" items are restricted for trade reasons


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A )i5rant and d.namic pri)ate sector 7i,, 5e the principa, actor in ang,adeshKs

industria, arena The goa,s of e@port orientation and e@terna, competiti)eness imp,.

the pursuit of industria,i?ation in accordance 7ith the d.namic comparati)e ad)antage

of the econom. i)en ang,adeshKs resource endo7ment* the princip,e of d.namic

comparati)e ad)antage means production of ,a5our intensi)e manufactures 7ith s3i,,

up4gradation and producti)it. gro7th as its cutting edge Decentra,i?ed sma,, and

medium industries 7i,, constitute important e,ements in the industria, scene of

ang,adesh Industria, Po,ic.* &''' aims at addressing these concerns and 5ui,ds on

ear,ier efforts and gains to7ards industria,i?ation of ang,adeshi econom.

ain Objectives of "ndustrial &evelopment :

4 To e@pand the production 5ase of the econom. 5. significant,. raising the ,e)e, of

industria, in)estment

4To promote the pri)ate sector to ,ead the gro7th of industria, production and

in)estment

4 To define the ro,e of the go)ernment as faci,itator in creating an ena5,ing

en)ironment for e@panding pri)ate in)estment

4 To focus pu5,ic underta3ing in those industria, acti)ities 7here pu5,ic sector

in)o,)ement is essentia, to faci,itate the gro7th of the pri)ate sector

4To attract foreign direct in)estment in 5oth e@port and import su5stitute industries4 To ensure rapid gro7th of industria, emp,o.ment 5. encouraging in)estment in ,a5our

intensi)e manufacturing industries inc,uding in)estment in efficient medium* sma,, and

cottage industries

4To generate fema,e emp,o.ment in higher s3i,, categories through specia, emphasis on

s3i,, de)e,opment

4To raise industria, producti)it. and to mo)e progressi)e,. to higher )a,ue added

products through s3i,, and techno,og. up4gradation

4 To enhance operationa, efficienc. in a,, remaining pu5,ic manufacturing enterprises

through appropriate management restructuring and pursuit of mar3et4oriented

po,icies

4 To di)ersif. and rapid,. increase e@port of manufactures

4To encourage the competiti)e strength of import su5stituting industries for catering


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to a gro7ing domestic mar3et

4To ensure the process of industria,i?ation 7hich is en)ironmenta,,. sound for

pre)enting en)ironmenta, po,,ution and maintaining eco,ogica, 5a,ance

4 And to encourage 5a,anced industria, de)e,opment throughout the countr. 5.

introducing suita5,e measures and incenti)es

ain )argets of the "ndustrial Policy

i5era,i?ation of industria, po,ic. in ang,adesh started 7ith the announcement of

Industria, Po,ic.* &'%2 This 7as fo,,o7ed 5. successi)e and progressi)e ,i5era,i?ation

in &''&* &''2 and &''' to ma3e it compati5,e 7ith g,o5a,i?ation and a competiti)e

mar3et econom. The targets of the po,ic. are to:

De)e,op the industria, sector in order to increase its contri5ution to DP* income*

emp,o.ment and po)ert. a,,e)iation

2# @pand industries 5. the pri)ate sector and ma3e ro,e of o)ernment promotiona,

rather than regu,ator.

# ncourage domestic and foreign in)estment in o)era,, industria, and infrastructure

de)e,opment

!# Promote pri)ate sector ,ed e@port4 oriented gro7th

$# De)e,op e@port4oriented* e@port4,in3age and efficient import4su5stitute industries

6# @pedite de)e,opment of ,a5our intensi)e industries through ac


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4 emittance of di)idends on such shares to the non4resident in)estors

4 emittance of di)idend on portfo,io in)estment 5. non4residents through stoc3

e@change

4 emittance of sa,e proceeds inc,uding capita, gains of portfo,io in)estments of non4

residents through stoc3 e@changes

4 emittance in repa.ment of principa, and pa.ment of interest of such ,oans

anpower and (abour Policy

ang,adesh offers a su5stantia, manpo7er reser)e s3i,,ed* uns3i,,ed* educated and

other7ise There is a good supp,. of easi,. traina5,e ,o7 cost ,a5our in the countr.

Man. of them ha)e a 7or3ing 3no7,edge of ng,ish ,anguage and possess the 5asic

s3i,,s re


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In the pu5,ic sector* 7ages and fringe 5enefits of the 7or3ers are determined 5. the

go)ernment on the recommendation of the 9ationa, 1ages /ommission esta5,ished

from time to time +uch /ommissions 7ere appointed in &'"* &'""* &'%!* &'%' F

&''2 1ages F fringe 5enefits dec,ared 5. the go)ernment in &''" ha)e 20 grades of

7ages

The pu5,ic sector emp,o.ees are* ho7e)er* co)ered 5. the pa. /ommission dec,ared 5.

the go)ernment from time to time

In the pri)ate sector* the 7ages F fringe 5enefits of the 7or3ers and emp,o.ees are

determined through co,,ecti)e 5argaining process +ometimes pri)ate industries fo,,o7

the pu5,ic sector 7ages F sa,ar. structure for their 7or3ers and emp,o.ees

respecti)e,.

(!# 1or3ing hours :

1or3ers in the pu5,ic or pri)ate sector remain at their o5 for eight and a ha,f hours

dai,. (inc,uding ha,f an hour for mea, or rest#* 7ith Brida. as 7ee3,. ho,ida. ma3ing !%

7or3ing hours a 7ee3 1or3 in e@cess of these* is paid as o)ertime The rate of

o)ertime is 2 hours pa. for & hour o5

($# egistration under factories act:

An. manufacturing compan. emp,o.ing ten or more 7or3ers (7ith or 7ithout use of

po7er# is re


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In this sense* economic de)e,opment focuses on the recruitment of 5usiness

operations to a region* assisting in the e@pansion or retention of 5usiness operations

7ithin a region or assisting in the start4up of ne7 5usinesses 7ithin a region

In addition to economic mode,s* the needs of constituenc. groups guide economic

de)e,opers actions Bor e@amp,e* a ,oca, economic de)e,oper 7or3ing out of a ma.orKs

office ma. act to7ards decreasing unemp,o.ment 5. attracting 5usinesses 7ith ,arge

,a5or needs The economic de)e,oper 7or3ing for the cham5er of commerce dominated

5. 5an3s* rea, estate agents and uti,ities 7i,, recruit manufacturers 7ith ,arge capita,

in)estments (stee, and chemica, p,ants# The economic de)e,oper 7or3ing for the state

manufacturers association 7i,, ,o55. for more 7or3force training mone. In its

5roadest sense* economic de)e,opment encompasses three maor areas:

Po,icies that go)ernments underta3e to meet 5road economic o5ecti)es such as

price sta5i,it.* high emp,o.ment* e@panded ta@ 5ase* and sustaina5,e gro7th +uch

efforts inc,ude monetar. and fisca, po,icies* regu,ation of financia, institutions* trade*

and ta@ po,icies

2# Po,icies and programs to pro)ide infrastructure and ser)ices such as high7a.s*

par3s* afforda5,e housing* crime pre)ention* and J4&2 education

# Po,icies and programs e@p,icit,. directed at o5 creation and retention through

specific efforts in 5usiness finance* mar3eting* neigh5ourhood de)e,opment* sma,,

5usiness de)e,opment* 5usiness retention and e@pansion* techno,og. transfer* and rea,

estate de)e,opment This third categor. is a primar. focus of economic de)e,opment

professiona,s

To do the economic de)e,opment of on organi?ation against 7or,d mar3et competition

the fo,,o7ing functions are )er. important:

/ontrolling,It is creating and maintaining a positi)e f,o7 of 7or3 5. uti,i?ing 7hat

resources and faci,ities are a)ai,a5,e


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(eading, It is the Process 7hich de)e,oping and cascading the organi?ations strateg.

mission statement to a,, staffs

Organi>ing, esources such as faci,ities and emp,o.ees so as to ensure effecti)e

production of goods and ser)ices

Planning,It prioriti?es customer* emp,o.ee and organi?ationa, re


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p,anning and contro, s.stems* and /omputer4aid manufacturing* /omputeri?ed

Maintenance Management +oft7are* /ontinuous Impro)ement program* O)era,,


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?. Practical aspects of Bangladesh,

Operations management is concerned 7ith the effecti)e and efficient transformation

of inputs into sa,ea5,e tangi5,e products and intangi5,e ser)ices The ,ong term

sur)i)a, of most companies is ine@trica5,. ,in3ed to the a5i,it. of management to shape

operations resources to achie)e this tas3 and to rea,i?e that difficu,t and

fundamenta,,. important trade4off decisions must 5e made Operations* 5. the )er.

nature of its under,.ing resources* cannot 5e a,, things to a,, potentia, customers It

can do some things )er. 7e,, and others ,ess so Jno7ing the e@isting capa5i,ities

a,,o7s for current e@p,oitation of resources and a,so pro)ides the 5asis for deciding

the nature of future resources

Though* operation management is a )ita, part for the de)e,opment of economic

acti)ities in ang,adesh ut it can assume some interruptions such as4 po,itica, issues*

una)ai,a5,e resource* uns3i,,ed ,a5or* proper en)ironment etc 1e shou,d remo)e a,,

o5stac,es regarding operationa, too,s so that our nationa, econom. can de)e,op da. 5.

da.

In either the pri)ate or pu5,ic sectors can operations ma3e strategic decisionsN It

shou,d* ho7e)er* ma3e a contri5ution to strategic thin3ing and to do that operations

managers ha)e to understand ho7 the different components of the operations pac3age

can 5e put together to achie)e 7hat the strategists are aiming for Operations

managers need to 5e a5,e to trans,ate strategic o5ecti)es into c,ear operationa,

o5ecti)es and to design* imp,ement and impro)e 5oth the LproductsL themse,)es and

the processes 5. 7hich the. are de,i)ered The. ha)e to understand ho7 changes to

e@terna, factors impact on the operation and ho7 changes in one part of the operating

s.stem impact on e)er. other part The. need to understand ho7 changes in

techno,ogies impact on the organi?ations de,i)er. capa5i,it.* for e@amp,e* and to feed

this 5ac3 into the strategic process At the heart of operations thin3ing* therefore*

,a.s the a5i,it. to thin3 s.stematica,,. and d.namica,,. across space and time


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+@. /onclusion,

Brom the a5o)e statement 7e can conc,ude that the operation management a greater

contri5ution to the economica, de)e,opment of ang,adesh for the meeting of 7or,d

mar3et competition It has a great inf,uence in case of those factors such as4 socia,

acti)itiesH cu,tura, acti)ities as 7e,, as industria, acti)ities are uni)ersa,,. accepted

A,though ,arge portion of organi?ation usua,,. 5enefited from the operation

management as the. ha)e other options to support them* change of attitude is

gradua,,. ta3ing p,ace in different organi?ation ut garment industr. of ang,adesh is

more and more 5ecoming interested in operation management 3eeping in head the

trou5,es a,though the. are facing in another management process

This stud. e@amines the p,anning* design* e@ecution* and coordination of a,, acti)ities

that create goods or pro)ide ser)ices It addresses ho7 upper ,e)e, management can

impro)e decision4ma3ing in 5oth the manufacturing and ser)ice sectors The course

introduces producti)it.* competiti)eness and strateg.H decision4ma3ingH


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Documents

Operation Management Assignment Final