Ops Mgmt - Directing - Chapter One Basics (Reid Ch1 p1-24)

Transformational Model
1. 2 images in file
Ops Mgr Day in Life
1. Tasks
  1. 1.Call in plan ahead - overnight - informal shift status updates
  2. 2.Visit shop flr - check logbook & prev day stats > picture of prev day's production
    1. 2.1 Resolve Probs
    2. 2.2 Targets for today
  3. 3.Meetings & Inspections
    1. 3.1 Short Meetings - targets & perf req cascade to supvrs
      1. 3.2 Inspections / Process Audits
        3.3 Analyse Prod Reports Prev Day
  4. 4. Follow Ups
    1. 4.1 Quality / Qty / Resource Tracking & Avail Focus
      1. 4.2 Meetings - Suppliers etc & Other Depts
  5. 5. Closing
    1. 5.1 Analyse Prod Figs & Losses / Gains
    2. 5.2 Logbook Updates inc prod figs for shift / instructions / new targets / material avail / loss reasons
Ops Mgmt- Top 8 Roles
1. 1.IT Ops Mgr - oversee programmers / sftw eng
2. 2. Financial Ops Mgr - resp for finances & report analysis for mgmt decisions and in budget & forecasting
3. 3. Ops Mgr Research Analyst - resp for company resource alloc to ensure profits
4. 4. Systems Centre Ops Mgr - resp for company computer network running - monitoring networks, outages, security checks & upgrades
5. 5. QA Ops Mgr - ensure products no defects and prod goals met re quality. May lead tests / inspections
6. 6. Industrial Prod Ops Mgr - coordinate prod depts in Manu Co's
7. 7. Mkting Ops Mgr - resp all aspects prod svc mkting
8. 8. Purchasing Ops Mgr - resp for acquiring goods & svcs req for ops. Buy and monitor quality and quantity + forecast changes in prices of goods & svcs.
Chapter 1. Basics of Ops Mgmt
1. Source: Reid, R Dan & Sanders, Nada R. 'Operations Management' 5th Edn. Wiley.
2. OM Definition
  1. The business function responsible for planning, coordinating, and controlling the resources needed to produce products and services for a company [Wiley, 2013]
  2. OM Function Characteristics
    1. 1. Management function
    2. 2. Organisational core function
    3. 3. All Organisations irrespective of size or type
    4. OM Typical Mgmt Hierarchy & Decisions Made by role
      1. 1. President/CEO 2. VP Operations 3. VP Marketing 4. VP Finance
        VP Mkt - (Inputs) Resp for cust demands and (Outputs) driving sales of goods & svcs
        VP Ops - (Inputs) Resp for people, equip, tech, materials, info (Outputs) Sales of goods and svcs
        VP Finance - (Inputs) Resp for cashflow, curr assets, CAPEX
      2. Role/Obj of OM
        Transformation Inputs to Outputs [Wiley, 2013]
        Inputs: raw materials, people, facilities, processes, material, technical knowledge
        Outputs: finished goods and services
        Role Objective: Add Value - inc product value at each stage & Op efficiency (activities performed well for least possible cost)
        OM Value Added Calc = net incr between output product val and input materials val
        OM Functions / In practice / Info Flow
        Diverse org function
        Manage Transformation Process
        Many roles e.g plant / supply / QA
        Info provision to all business functions for decision making
        OM one of 3 major business functions 1. Ops 2. Finance. 3. Marketing
        If Functions don't get Ops Info Support
        Mkting - what ops to produce
        Finance - can't judge CAPEX inv level needed
        Info Sys - allows flow of info through org
        HR - know job needs / skills & comp
        Accounts - to validate inventory / cashflow / labor stds
        Manage resources to deliver company prod & svcs
        Range of strat & tact decisions
Service Orgs vs Manu Orgs - Comparison
1. Service Org Characteristics: (Differences)
  1. 1.Intangible product 2.Product not inventoried 3.High cust contact 4.Short resp time 5.Labor Intensive
2. Manu Org Characteristics: (Differences)
  1. 1. Tangible product 2. Product inventory 3.Low cust contact 4.Longer response time 5. Capital intensive
3. Similarities:
  1. 1.Both use tech 2. Both have productivity, quality & response issues 3. Both forecast demand 4. Both can have forecast, capacity, layout & location issues 4. Both have cust , supplier, scheduling and resource issues
4. Exceptions:
  1. 1. Manu can provide svcs 2. Svc can provide tangible product. 3. Some are a 'quasi-manu' (QM) =mix of both. QM orgs are a)low cust contact and b) capital intensive
Curr Trends in OM
1. 1. Service Sector Growth (Source Wiley, 2013)
  1. a.Service = 50-80% non farm jobs b. globalisation c) higher quality demand d) tech changes e)time based competition f) workforce diversity
2. OM Cust Drivers Today
  1. greater quality
  2. lower cost
  3. better speed
  4. Efficient Ops e.g introduce LEAN (total systems approach)
    1. X functional decision making
  5. Tech - more integrated info ie CRM
OM Strategic v Tactical Decision Making
1. Strategic
  1. 1.Set direction for entire company 2. Broad brush 3. Long term nature 4.Infrequent by comparison to tactical - Example what are our USPs as a business
2. Tactical
  1. 1. Day to day focus - operational issues eg resourcing / prod qtys 2. more frequent Example who to go on next shift
OM Historical Dev
1. OM Today
  1. Shaped by historic M.Stones
    1. Historic M.Stones from Ind Rev > Scientific Mgmt > HR Movement > Management Science > Computer age
  2. Current Trends
    1. 1.Just in Time 2. TQM 3. Re-Engineering 4. Flexibility 5. Time Based Competition 6. SCM 7. Global Marketplace 8. Environ Issues

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Ops Mgmt - Directing - Chapter One Basics (Reid Ch1 p1-24)

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