OPERATIONS PROCESSES

Inputs Transformed and Transforming Resources Transformation Process 4 V’s Sequencing/scheduling Technology, task design, process layout Monitoring, control, improvement Remember – we are learning now about what it is that operations managers actually do! Outputs Customer service Warranties

INPUTS

TRANSFORMED RESOURCES These are the inputs that are changed and converted into something else such as a component or a finished good or service. Businesses use a combination of materials, information and customers, however, depending on the nature of the industry or type of business one of these will be more important.

Materials Materials are the basic elements, parts and supplies used in a production process and can be raw or intermediate by nature.

Information Information refers to the knowledge gained from instruction, research and investigation which can then be used to inform to inform how inputs are used. It can be accessed internally or externally For example, it might be the knowledge about design principles and equipment that is used to construct a house.

Customers There are a few ways customers are inputs into a business. If their choices shape the decisions made in the operation process they have input into the process. Alternately, they themselves can be transformed, particularly in service industries such as travel, hairdressing, entertainment where they undergo a personal transformation

TRANSFORMING RESOURCES These are those resources that carry out the transformation process. They enable the change and value adding to occur The two main transforming resources are: Human resources Facilities

Human Resources Most important input into the business Well qualified, hard working and disciplined staff can bring great productivity Employees are the ones who coordinate and combine the ‘transformed resources’.

Facilities Facilities refer to the plant (factory or office) and machinery used in the operations process Some important decisions include design layout, number of facilities, location and their capacity.

TRANSFORMATION PROCESS The conversion of inputs (resources) into Outputs (goods or services). Think of our first two examples (Mercedes and Emirates). These two case studies highlighted the transformation process. Transformation directly involves Adding Value.

The influence of the 4V’s Volume Refers to how much of a product is made and how quickly the transformation process can adjust to changes in demand. This is essential in managing Lead Times Variety The mix of products made, or services delivered through the transformation process. The greater the variety made, the more the operations process need to allow for variation. Variation in Demand Similar to Volume. An increase in demand will require increased inputs, human resources, energy use, machinery and technology Visibility (customer contact) Customers and their preferences shape what businesses make. Information should be gathered through surveys, interviews, warranty claims, sales data, market share data.

Sequencing and Scheduling Gantt Charts Outlines the activities that need to be performed, the order in which they should be performed and how long each activity is expected to take. Example: St John’s Boarding House Critical Path Analysis Shows what tasks need to be done, how long they take and what order is necessary to complete those tasks. It shows the shortest length of time it takes to complete all tasks

Gantt Chart

Critical Path Analysis

Process Layout The physical layout of the business’s factory or office. It refers to the arrangement of machinery or business processes so that they are grouped together according to the function they perform. The product moves from department to department, depending on what transformation is needed. This allows for more flexibility and customisation of the product.

Product Layout Product layout is slightly different to process layout. With product layout the goods move from point to point (usually along an assembly line) and the layout is done according to the sequence of tasks performed in the transformation process.

Product Layout Diagram

Technology Technology is the application of knowledge or science that enables people to perform tasks in new and better ways. In business it usually refers to machinery and systems that improve efficiency and accuracy. In manufacturing technology involves the use of Robotics CAD & CAM In service based industries it may refer to wireless comminication, smartphones, scanners and printers, software, RFID

Task Design Very simply, task design involves classifying job activities in ways that make it easy for employees to understand and as a result successfully perform and complete tasks. The operations manager identifies what needs to be done and then breaks the work down into a series of job activities that will combine to contribute to the completion of a transformation process.