1. Operations and Project Management (Overview)By
Oral Ashley
May 2017

2. Minimize interruptions
HOUSEKEEPING
Participation
Breaks
Restrooms
Cell Phones
Minimize interruptions

3. Learning Outcomes
Review and critique the effectiveness of Operations Management
Understanding operations management
Operations, Operations Management and Operations Managers
Historical development of operations management
Role of operations manager

4. Understanding operations management
These finished products went through a process….
The study of Operations deals with how goods and services that you consume and buy everyday are produced.

5. Operations
Every organization has an operations function and the goal involves the production of goods and services. This involves:
-Procurement, converting them into outputs then distribute them to end-users.
The term operations embraces all the activities required to create and deliver an organization’s goods or services to its customers or clients.
In private sector it is expressed in terms of profits, growth and competitiveness or even providing value for money

6. Operations Management
OM is concerned with the design, management and improvement of the systems that create the organization’s goods and services.

7. Work of an Operations Manager
Operations Management
design, operation, and improvement of productive systems
Operations
a function or system that transforms inputs into outputs of greater value
Transformation Process
a series of activities along a value chain extending from supplier to customer
activities that do not add value are superfluous and should be eliminated

8. Transformation Physical: as in manufacturing operations
Locational: as in transportation or warehouse operations
Exchange: as in retail operations
Physiological: as in health care
Psychological: as in entertainment
Informational: as in communication

9. Operations as a transformation Process
INPUT
Material
Machines
Labor
Management
Capital
Output
Goods
Services
Transformation Process
Feedback & Requirements

10. Operations Function Operations Marketing Finance and Accounting
Human Resources
Outside Suppliers

11. How Operations affect other functions
Economics
Marketing
Finance
Use of processes and pareto analysis to ensure operations are smooth
The production and delivery of goods to the consumer are crucial to marketing efforts and consumer satisfaction
Provides funding for capital expenditure on operations as well as most cost savings efforts are centered on operations

12. How Operations affect other functions
Ensures that the requisite control and procedures are in place to account for the operations
Use of technology to implement systems to ensure smooth operations
Lean management, scheduling, sales planning, constraint theory etc are all management tools that are tied to operations.
Accounting
Information Technology
Management

13. Activity 1
For each of the following businesses, identify the main output of the operation:
Brewery
Publisher
Hotel
Insurance company
Your organization

14. Historical Development of OM
Craft production
process of handcrafting products or services for individual customers
Division of labor
dividing a job into a series of small tasks each performed by a different worker
Interchangeable parts
standardization of parts initially as replacement parts; enabled mass production

15. Historical Development of OM
Scientific management
systematic analysis of work methods
Mass production
high-volume production of a standardized product for a mass market
Lean production
adaptation of mass production that prizes quality and flexibility

16. History of OM

17. History of OM

18. History of OM

19. History of OM

20. History of OM

21. Concept of Production
• Production function is ‘the part of an organisation, which is concerned with the transformation of a range of inputs into the required outputs (products) having the requisite quality level’. • Production is defined as ‘the step-by-step conversion of one form of material into another form through chemical or mechanical process to create or enhance the utility of the product to the user’. • Some examples of production are: manufacturing custom-made products like, boilers with a specific capacity, constructing flats, some structural fabrication works for selected customers, etc., and manufacturing standardized products like, car, bus, motor cycle, radio, television, etc.

22. Characteristics of the Production System
Bennett (2015) identifies the following characteristics of the Production system: • Production is an organised activity, so every production system has an objective. • The system transforms the various inputs to useful outputs. • It does not operate in isolation from the other organisation system. • There exists a feedback about the activities, which is essential to control and improve system performance.

23. Operations System
The operation system includes both manufacturing sector as well as service sector
An operation was defined in terms of the mission for the organization, technology it employs and the human and managerial processes it involves.
Operations in an organization can be categorized into Manufacturing Operations and Service operations.

24. Framework for Managing Operations
• Managing Operations involves planning, organizing, and controlling the activities, which affect human behaviour through models. • Planning is the activity that establishes a course of action and guide future decision-making. • Organizing is the activities that establish a structure of tasks and authority. • Controlling is the activities that assure the actual performance in accordance with planned performance. Controlling costs, quality, and schedules are the important functions here.

25. Benefits of OM Use of Best Practice Control risk Reduce costs
Improve efficiency
Search and Analyse
Capture and share information

26. Responsibilities of OM
• The operations managers have the prime responsibility for processing inputs into outputs. • They must bring together under production plan that effectively uses the materials, capacity and knowledge available in the production facility. • Control must be exercised over such parameters such as costs, quality and inventory levels. • The definition of the operations Management contains following keywords: Resources, Systems, transformation and Value addition Activities.

27. Review Questions Define Operations management.
Explain the key concepts of Operations management
Distinguish between manufacturing and service operation with example.
Define the term operations management.
Briefly explain how service producers differ from goods producers in important aspects of their operations.
State the important objectives of production management.
Define the term productive system.
Explain the concept of productivity.

28. References
• Adam, Everett and Ebert, Ronald (1994), Production and Operations Management, Prentice-Hall of India Private Limited, 5th Edition.
• Bennett, Claudette (2015) Operations Management Lecture Notes, Colbourne College
Boundless. "Operations-Management Tools." Boundless Management Boundless, Invalid Date Invalid Date. Invalid Date. Retrieved ‎13 ‎May. ‎2017 from 31/operations-management-tools
• Kumar, Anil and Suresh, N (2008) Production and Operations Management, New Age International (P) Limited Publishers, 2nd Edition.
• Monks, Joseph (2004) Theory and Problems of Operations Management, Tata McGraw-Hill Publishing Company Limited, 2nd Edition.
• Monks, Joseph (1987) Operations Management, McGraw-Hill International Edition, 3rd Edition.
• Pannerselvam, R (2004) Production and Operations Management, Prentice-Hall of India Private Limited, 9th print. • Rexprocess.com (2016) Operations Management retrieved from /

29. Operations and Project ManagementBy
Oral Ashley
May 2017

30. Learning Outcome 1
Oversee the design, implementation and effectiveness of an operations function
Utilise control systems and contingencies to ensure efficiency
The use of Six Sigma and Lean principles to improve efficiency and effectiveness

31. Business Process
Business process modelling, often called process modelling, is the analytical representation or illustration of an organization’s business processes.
• Along with business process discovery, process modelling is widely viewed as a critical component in successful business process management (BPM).
It is used to map out an organization’s current (or “as-is”) processes to create a baseline for process improvements and to design future (or “to-be”) processes with those improvements incorporated.
Process modelling often uses Business Process Modelling Notation (BPMN), a standard method of illustrating processes with flowchart-like diagrams that can be easily understood by both IT and business managers.

32. Process Model Example

33. Purpose of Process Model
Process models are used to lump processes of the same type into a model so that you can see how those processes can work together.
It shows the activities organization typically performs and the kind of information it needs to successfully perform those activities, to transform inputs to goods and services.
Better business process discovery and modelling lead to better business process management.

34. Business Process Model
• The term Business Process Model (also abbreviated to BPM) is the noun form of Business Process Modelling, and refers to a structural representation, description or diagram, which defines a specified flow of activities in a particular business or organisational unit (businessball.com, 2016).
• A business process model should define the following elements:
The goal of the process
Specific inputs and outputs
Consumed resources
Activities and the order in which they are performed
Significant events that drive or affect the process

35. Business Process Modelling
• The aim of modelling is to illustrate a complete process, enabling managers, consultants and staff to improve the flow and streamline the process. • The outcomes of a business process modelling project are essentially: • Value for the customer, and • Veduced costs for the company, leading to increased profits. • Other secondary consequences arising from successful Business Process Modelling can be increased competitive advantage, market growth, and better staff morale and retention. • There are no absolute rules for the scope or extent of a Business Process Model in terms of departments and activities covered.

36. Adding Value for Customers
• Adding value for customers, whether internal or external customers, is at the centre of a Business Process Model.
It starts with a customer need and ends with the satisfaction of that need. Unlike a workflow diagram, which is generally focused on departmental activities, a BPM spans departments and the whole organisation.
This point about customers being internal as well as external is crucial:
Staff are among the internal customers of modern right-minded organisations.
If you approach Business Process Modelling purely from a systems and 'things' viewpoint with a fixation on costs and profitability, and squeezing every activity to its theoretical optimum, then people (notably staff) tend to get squeezed too.
Organisations work well when people enjoy and support the processes that they are required to perform, and you will only add sustainable value for your customers, when you also add value for your staff too.
Successful BPM added value for customers is self-sustaining because for staff it contains the magical WIIFM element - (What's In It For Me).

37. Example-BPM added value
An example could be the actions involved in processing a customer order from an internet-based mail order company. • Starting with a customer placing an order (the customer need) • send IT-based information to the warehouse • stock picking • packing and recording • sending the appropriate IT-based information to the distribution hub • sending IT-based information to the accounts department • generation of an invoice • allocation and organisation of shipment for the vehicle drivers • delivery of the item and invoicing (the customer need fulfilled). • This is a simple 'high-level' example. In practice each part or sub-process (for example, stock-picking) may require a 'low-level' BPM of its own.

38. Process Hierarchy Process Hierarchy Level 1 Business Process
• A high level aggregation of company functionality
2. Level 2 Major Processes
• A bundle of processes that belong to the same area of responsibility dealing with similar tasks and activities for functional or other reasons
Level 3 Business Sub process
• Ful-fill the same business mission but in a different manner or with a different application
Level 4 Business Process Activities
• Activities at the lowest level that needs to be fulfill at the end of the step.

39. Characteristic of Operations Process
• Volume: Key to how business organized, for example McDonalds high volume low cost hamburger and fast food production. • Variety: Flexibility in service, for example choice between taxi and a bus service • Variation: Customized products, for example homes for sales with different number of rooms • Visibility: Customers ability to see, track their experience or order through the operation process

40. Different Process Types
Manufacturing Process types:
•Project, jobbing, batch, mass, continuous.
Service Process types: • Professional services, service shops, mass services
3. Basic types of layouts: • Process layout or functional layout, product layout, fixed-position layout, group or cell layout, hybrids and mixed layout.

41. Need for Management Control Systems
Difference between success and failure
Critical to efficiency and effectiveness
Business must monitor
Production schedules
Productivity
Waste

42. Need for Management Control Systems
Inventory
Rework
The control cycle is a period of time where an activity is planned, measured, corrected and replanned

43. Lean Principles: Operations Management
Lean Manufacturing System designed to eliminate waste, ensure quality and involve employees in designing and managing their work Five key principles Define value from customer’s perspective Identify and map the value stream Reduce and eliminate waste Establish production levels from forecasted demand not arbitrary inventory levels Pursue perfection by repeating the process periodically

44. Lean Principles: Operations Management
Reducing/eliminating waste – seven methods
Stop overproduction
Manage inventory to prevent holding
Streamline transportation of materials
Optimize motion and actions personnel – efficient work spaces
Reduce waiting times for parts – ie. Reduce idle time
Reduce/eliminate defects
Reduce or stop overprocessing by eliminating unnecessary product features that do not add value

45. Six Sigma: Operations Management
A process-improvement method that focuses on statistical methods to reduce the number of defects in a process.
The Six Sigma program accomplishes this by identifying and removing the causes of defects (errors) and by minimizing the variability present in manufacturing and business processes.
Supported by quality-management methods, such as statistical analytics, and creates a special infrastructure of employees within an organization (e.g., "Black Belts," "Green Belts") who are experts in these methods

46. Six Sigma: Operations Management
Each Six Sigma project in an organization follows a defined sequence of steps and has quantified financial targets such as reducing costs or increasing profits.
Tools used in Six Sigma are:
Process mapping,
Trending charts,
Calculations of potential defects,
Ratios, and statistics.
Best practices for work within a team are also used.

47. Examples of Six Sigma and Lean Manufacturing
Similar to Henry Ford and systematic process improvements.
Goal is to reduce staff costs and increase output with same amount or less resources.
Toyota (and the concept of kaizen) is a fantastic example of Lean manufacturing and what is called just-in-time (JIT) inventory management.
Toyota became famous in manufacturing for timing every specific element of the manufacturing process to ensure that minimal warehousing was required, delivering each new add-on component at precisely the time it would be needed and in exactly the location it would be installed.
This created a process flow that minimized space usage (lowering costs), optimized timing, and created widespread consistency of operational flow.