INPUTS PROCESS OUTPUTS

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1 IM EXECUTIVE DIPLOM IN MNGEMENT OPERTIONS MNGEMENT The aim of the workshop is to introduce delegates to the concepts and tools and techniques used in Managing Operations and to consider the impact of legislation in their area of responsibility. OJECTIVES y the end of the workshop delegates will be able to: Describe the type and nature of operations. State the key features of supply chain management Identify the roles and responsibilities for managing operations Describe the range of tools and techniques for managing operations Use the tools and techniques of Operations Management. Identify what legislation that affects their area of responsibility State the principles of Health and Safety practice, including carrying out risk assessments Resources Information People INPUTS Open Systems Economic Political Legal Social Vision/Strategy Planning Transformation Process Feedback Technical Shareholders Consumers Customers OUTPUTS The Transformation Process Five Performance Objectives Do things right Quality advantage The Transformation Process Do things fast Do things on time Speed advantage Dependability advantage Change what you do Flexibility dvantage Do things cheaply Cost dvantage 1

2 Operations Management E & E Efficiency - Doing things right - producing the maximum output from the minimum input Effectiveness Doing the right thing directing the effort towards achieving the objective Legislation Legislation has a profound impact on how managers manage. reas affected include: Health and Safety dvertising Consumer protection/sale of goods ccounting guidelines Employment Disability Rights Group Exercise Consider and record on flip the legislation in force in VI that relates to these areas: Health and Safety dvertising Consumer protection/sale of goods ccounting guidelines Employment Disability Rights Health and Safety UK Legislative Framework Health and Safety at Work ct 1974 European Directives 6 regulations 1992 The Working Time Regulations 1998 RIDDOR 1995 (Reporting requirements) HELTH ND SFETY T WORK: Safe Strategies include: PREMISES ENVIRONMENT PLNT ND MCHINERY MTERILS PROCESSES SYSTEMS OF WORK SUPERVISION ND CONTROL TRINING 2

3 Risk ssessment Identification of hazards Measurement of the risks Evaluation of risk Implementation measures Generic Risk Management Options Terminate risk - take alternative action Tolerate risk - accept Tame risk - improve Transfer risk - insure, contract out Types and Nature of Operations Concepts of Managing Operations Product Service Product/Service mix See page 14 Operations Management The Supply Chain Diagram on pg 339 Structure of supply chain Diagram pg 338 3

4 Capacity and Resource Management Key role of managers to determine inputs needed in order to achieve the desired outputs. INPUTS PROCESS OUTPUTS Resource Planning It is essential that all organisations estimate and plan their resource requirements (pre-cursor to budgeting) Resource planning also assists the manager to plan the actions necessary to realise the resources. Key Resource Planning Questions What new items of equipment will be needed? What materials will be needed? How will they be acquired? What are the requirements for labour? What skill shortages do we need to fill? Expecting the unexpected Necessary to understand the extent to which each resource is key in achieving the outputs, and to have contingency plans to account for non-supply or failure of that resource. INPUTS PROCESS OUTPUTS Capacity Definition: the ability to produce goods or services, and has two elements: Quantitative capacity as in a machine can produce x units per day; and Qualitative capacity the ability of both staff and the organisation as a whole. See Chapter 11 Operations Management Summary Resource planning is used to ensure the right things are in the right place at the right time to enable you to achieve your objectives. 4

5 Scheduling Tools and Techniques for Managing Operations Once capacity levels have been established, an organisation must schedule provision of services on a day to day basis. It deals with the detailed how to, breaking down the process into manageable units. INPUTS PROCESS OUTPUTS Types of scheduling geographic location division into blocks requiring similar expertise, labour, parts or equipment customer type or priority division of time into periods with reservations (first come, first served) separation of front office / back office Planning Planning the use of resources involves selecting the best tools and techniques for the task/project. General approach to planning involves 4 steps: Plan when to start llocate resources to comply with schedule Monitor the availability and use of resources Take steps to minimise risks and factors that prevent you from achieving your task Planning Tools and Techniques Flow charts/process Mapping: can help you break work into manageable chunks. Network analysis: for detailed planning (critical path analysis, programme evaluation and review technique, precedence planning) ar or Gantt charts: perhaps the most common method of displaying schedules graphically Contingency diagrams: to plan for when things go wrong with your supply of resources. Flow Chart Method of identifying the sequence of steps needed to complete a project or task. Once you ve identified the scope of the work you can: Identify the main activities, inputs and outputs; Decide the order in which activities will/need to be performed; dd outline timings (ie key dates for completion of activities; and Illustrate handoffs. 5

6 Flowchart Symbols operation e.g. task / activity inspection e.g. quality control transportation Flowcharting You will practice this during the major group exercise later in the day! storage delay decision point Network nalysis diagrammatic representation of relationships between activities, with the sequence of activities shown as a network of lines and circles. Network analysis is particularly useful when planning complex projects. Network nalysis Tool which helps: which tasks must be complete before other tasks can start; which tasks can be done at the same time as others; and which tasks must be finished as soon as possible, and finished on schedule, if the completion date for the entire project is to be met. Network nalysis Terminology activity separately identifiable piece of work event the start or completion of an activity critical path - route represents the shortest possible practical time to complete a project. Network nalysis Symbols activity event

7 Network Diagram 1 2 C 3 1 Network Diagram 3 C activities Neither or C can begin until is completed and C can both take place at the same time 3 activities C cannot begin until both and are completed Network Diagram C 3 C D D 4 5 Paths sequence of events leading from the start to the end of the network. The time taken to complete the longest path in the network is the shortest possible time in which you can complete the project the critical path. ny delays to activities along the critical path will add to the total time the project will take, similarly any savings in time on this path will reduce the overall project time. ar or Gantt Charts Example Gantt Chart Graphic representation of a plan, showing the planned duration of work packages in a time context. Number of project planning software packages that provide this facility, eg Microsoft Project. 7

8 Contingency Diagrams Contingency Diagrams Contingency plan is an extension of a project plan in a given set of circumstance it seeks to answer the question what will we do if. contingency diagram helps you structure your analysis of options. SOLUTION 1 SOLUTION 2 SOLUTION 3 SOLUTION 4 CUSE 1 CUSE 2 CUSE 3 CUSE 1 PROLEM Scheduling & Planning Working out how and when resources will be used to enable you to achieve a project of department objective. Ensuring all elements of the process fit together to achieve the end goal. Resource Planning Organisations will have a number of resource plans for within different areas, human resources, stock, equipment etc. Long-term Plans vision of future Medium-term Plans broad policy direction Short term Plans operational plans The Hat Factory Prepare to produce hats! 8