1. BY: SOLOMON ANGUTSA ATSIAYA – I CUDE (CEO-KENYA POLICE SACCO LIMITED
7TH SACCO OPERATIONAL FORUM
Johannesburg, South Africa
Birchwood Hotel
“OPERATIONS MANAGEMENT DEVELOPMENT”
BY: SOLOMON ANGUTSA ATSIAYA – I CUDE
(CEO-KENYA POLICE SACCO LIMITED

2. INTRODUCTION
OM- Refers to planning, organizing, directing and controlling the activities of the production/service function.
“Concerned with the transformation of a range of inputs into the required output having the requisite quality level”
Objective- To produce goods and services of right quality, quantity, at the right time and right cost.
Right Quality-Based upon customers needs-
( meeting specific requirements)
Right time – Timeliness of delivery
Right Cost - Least cost

3. OM MODEL Inputs Output Transformation Men/Labour Materials Machines
Information
Capital
Land
Production design
Process planning
Production control
Maintenance
Products
Services
CONTROL
Inventory
Quality
Cost

4. OM FRAMEWORK
Planning- Establish course of action to guide future decision making. Include clarifying the roles and focus of operations in the org overall strategy
Organizing- Activities that establish a structure of the task & authority. Roles & flow of information
Controlling- Activities that assures the actual performance in accordance with planned performance

5. KEY RESOURCES
Human, Capital, Materials. As technology advances large portion of human input is in planning & controlling activities.
Intellectual capabilities of the people, managers multiply the value of the employee many times
Capital is a store of value which is used to regulate the flow of the other resources

6. OM - Early Developments
Textile Industry in England
–    Replaced people with machines
–    Water and mule power instead of human power
–    Nature of production changed from cottage to factory
James Watt
–    Steam engine - in use by 1785

7. Eli Whitney
built first cotton gin to separate cotton seeds from cotton fibers.
began mass production of muskets
introduced concept of standard interchangeable parts to allow the use of less skilled labour to produce muskets.
Development of the machine tool industry - metal tools and machines now possible (late 1700's).

8. Frederick Winslow Taylor
Principles of scientific management
1. Scientific laws govern work so scientific methods can be used to analyze work
2. Workers are different so match workers to their job and then train them thoroughly
3. Use employee self-interest to motivate
4. Separate the responsibilities of workers and managers.

9. Taylor - Systems approach to manufacturing
All equipment, workers and tasks are part of a manufacturing system whose performance should be maximized

10. Henry Ford
Early 1900s - introduced assembly line manufacturing to produce Model T cars
Durable, inexpensive automobile
Extensive vertical integration
Coordinated supply and production was really the first Just In Time production
Ford Model T

11. Alfred P. Sloan., Jr. CEO of General Motors - 1923-1946
Competed with Ford through innovation
Developed strategy of marketing different cars with different features and prices Installment selling (GMAC), used car trade-ins, automotive styling, annual design changes

12. Human Resources Movement
Examined psychological factors in manufacturing
Hawthorne Studies – to examine the effect of light on work
Considered the role of treatment of employees in production

13. Operations Research Development
Many management science techniques were developed in the war as a means of controlling and allocating the resources required to fight the war.
The most difficult problems ever to challenge managers
Problems ranged from resource allocation and logistics to rapid calculation of artillery route

14. Computers and Operations
Computational capacity increased dramatically
Computers are now involved in design and production
Development of models for solving operations problems
Communication improvements increased capability

15. Computers/Communications
Combination of computer and communication advances are reshaping the way we do business and service activities

16. LONG LIVE SACCO MOVEMENT
THANK YOU
LONG LIVE SACCO MOVEMENT