P1The goal of operations management is maximize efficiency while producing goods and servicesthat effieciently fulfill customer needs.
If the organization has made mostly good operating decisionsin designing and executing its transformation system to meet the needs ofcustomersThe Role of Operations Management in theOrganizationOperations is one of the three functions of strategy of anyorganization. This means that it is a vital part of accomplishing theorganization’s strategy and ensuring its long-term survival. The other twoareas are marketing and finance.
Strategic Versus Tactical Operations DecisionsOperations decisions include decisions that are strategic innature, meaning that they have long-term consequences and often involve a greatdeal of expense and resource commitments.managing inventory. For example, United Parcel Service (UPS), an internationalpackage delivery service, formed a partnership with its customer, Toshibacomputers. Toshiba needs to provide a repair service to its laptop computercustomers. The old approach of providing this service was cumbersome andtime-consuming:The traditional approach, the total time to get a laptopcomputer repaired was two weeks—a long time for people to be without theirlaptop! Then they came up with an innovative idea for Toshiba to provide betterservice to its customers.UPS hired, trained, and certified its own employees torepair Toshiba laptop computers. The new repair process is much more efficient:UPS picks up computers from Toshiba owners.UPS repairs the computers.
Intangibility –Services cannot be touched, shipped, handled, or looked at. Inventory – Servicescannot be stored for later use. They occur, or they do not occur.
Inseparability –Services cannot be pulled into different parts or separated Inconsistency –Services tend to be unique. A teacher may teach you a topic, and anotherteacher may teach you the same topic in another course. Involvement –Consumers are often directly involved in the service delivery. A therapist is agood example of thisManaging Service OperationsManaging operations isjust as critical on the service side as it is on the product side.
While thereare countless considerations to be made, many of which are unique to specificorganizations or industries, these core operational decisions are strongindications of the mentality service management specialists consider:LocationChoosing where to opena facility, how to lay out the facility, what size is appropriate, and overallhow efficiently a given space can be used relative to the cost are keyconsiderations. Consider a car mechanic opening a garage.SchedulingJust as a productmanufacturing facility will know when a product will be where, so too doservice operators need to know when a given service should start and whatduration of time is required to complete it.Maximizing output through planningproperly can minimize opportunity costs and maximize revenue, and plays anintegral role in operational management of services. Take a doctor’s office. QualityOperationsmanagers are integral to organizational strategy in many companies andorganizations. The Bureau of Labor Statistics (BLS) reports that over 1.
7million operations and general managers were employed throughout the UnitedStates in 2010 in various industries..PlanningOperationsmanagement professionals are responsible for collaborating with other managersand executives to determine how operational planning can contribute to thelong-term strategy of the organization. DirectionToensure that planning is carried out, operations management professionals arealso responsible for providing direction to various managers under their watch.Operations managers ensure that all departments are completing their necessaryfunction within the organization by meeting productivity goals and budgetaryguidelines..CoordinationOperations managers also help in the achievementof organizational strategy goals by coordinating the activities between variousdepartments within their companies. They improve efficiency and focus byfacilitating and improving relations between departments, especially those thatoften operate independently of one another.
ResourcesThe operations manager is also integral to thecontinued strategy and vision of a company in his role as a resource manager.Operational managers must be able to assess the resources of the organization,whether they be monetary or otherwise, and ensure that the resources are usedas efficiently as possible P2Quality Management SystemsThe regulated companies that fail to embed anautomated, effective QMS solution into their manufacturing and value chainoperations expose their brands to increased compliance risks, and thus weakentheir competitive standings in the market. But automating your qualityprocesses, such as document control, training, corrective action, and riskmanagement, into one easy-to-use, easy-to-access effective quality managementsystem can give your regulated organization the competitive edge it needs toachieve compliance success, and win the race to market.You’ll save time You’llimprove profitabilityYou’ll accelerate complianceYou’ll deliver safer, higher quality productsto your customersEffective QualityManagement Systems: Build vs. BuyTheadvantages of automating your quality processes into an effective QMS arecompelling.
Any company that wants to stay competitive and compliant needs anautomated effective quality management system. But should you build your ownhomegrown system or buy a proven, validated QMS? Building a homegrown QMS hasits advantages, but it also presents unique challenges and raises importantquestions Effective Quality Management System MasterControlis a leading provider of effective quality management systems to regulatedcompanies worldwide. Unlike other effective QMS solutions, MasterControl beendesigned to integrate with other enterprise systems quickly and easily.Furthermore, MasterControl allows you to create a unified method forstreamlining and managing all of your critical quality processes such asdocument control, risk management, audit, training control, quality eventmanagement (complaints, MDR, NCMR, CAPA, deviations, nonconformances), as wellas BOM management, project management, and change control (ECR,ECO).
Few othereffective quality management systems offer such one-stop-shopping.MasterControlis also web-based, so users can access the system from virtually anywhere inthe world, at any time. Users can also access the system using a tablet or asmartphone. It involvesfollowing steps.Gap AnalysisResourcesEmployeeParticipation:EmployeeParticipation is very important to improve the quality of the work In theorganisation. Managers need to encourage workers to take responsibility for thequality they provide, and meets the customer’s expectations.
ResourceRequirements:Technology Training andDevelopment TransporationQualitySystem TotalQuality Management:It is aphilosophy of management, which addresses the means of raising the qualityperformance to unprecedented levels. It involves the participation from wholeorganisation and demands to be implemented in all aspects of the businessprocesses. Benefits ofQuality Change:CorporateImage :SinceCanadian market is very competitive, the new improved processes and systemswill also create a good image for the organizationMotivatedWork ForceCustomersatisfactionThe qualityimprovement technique will also help them to get customer satisfaction on ahiger level. They will be able to address their customers’ needs in a moreefficient and effective way. With this they can rebuild customer relation andhelp maintain businessPerformancemeasurementTotalQuality Management Principles:It is amanagement approach which involves the data, data and effective communicationto integrate quality principles and management into the organisation.
Customerfocused:The veryfirst principle of TQM is to be customer focused. Whatever done for the qualityimprovement, is to gain customer satisfaction. If EmployeeParticipation:The nextprinciple is that managers need to ensure that they have employees on boardProcessFocused:Thisinvolves the complete focus of the management centred towards the processthinking, so that two key principles can be achieved:Prevention:the first step to improve quality is to prevent errors. It is better to trainstaff and avoid accidents rather than finding ways out of itThe ultimateaim should be to provide a service with zero defects, that means no comprise atall. The mortar should be prepared by missing the correct ratio of cement andsand.ActionPlanningOrganizationStructureNext step isto sort the organizational structure according to the action plan and strategy.
It is very important that managers must align the strategy with organizationalstructure. They manage the question “Is the organization’s currentstructure appropriate to the intended strategy?”HumanResources P3Change Management has evolved over the past several yearswith Change Management , Processes, plans and models developed to help ease theimpact change can have on organizations environment. Change Management Models have been developedbased on research and experience on how to best manage change within anorganization or in your personal life.
Most Change Management Models provide asupporting process that can apply to your organization and personalgrowth. These Processes include a sequence of steps oractivities that move a change from inception to delivery.They are developed to support a project to deliver a change. Itis typically created during the planning stage of a Change Management Process. 8 Essential Stepsfor an Effective Change Management 1.
Identify What Will Be Improved Since most change occurs to improve a process, a product, or an outcome, it iscritical to identify the focus and to clarify goals. This also involvesidentifying the resources and individuals that will facilitate the process andlead the endeavor 2. Present a Solid BusinessCase to Stakeholders There are several layers of stakeholders that include upper management who bothdirect and finance the endeavor, champions of the process, and those who aredirectly charged with instituting the new normal.
3 .Plan for the Change This is the “roadmap” that identifies the beginning, the route to betaken, and the destination. You will also integrate resources to be leveraged,the scope or objective, and costs into the plan. A critical element of planningis providing a multi-step process rather than sudden, unplanned “sweeping”changes 4. Provide Resources and UseData for Evaluation As part of the planning process, resource identification and funding arecrucial elements. These can include infrastructure, equipment, and softwaresystems. Also consider the tools needed for re-education, retraining, andrethinking priorities and practices.
Many models identify data gathering andanalysis as an underutilized element. The clarity of clear reporting onprogress allows for better communication, proper and timely distribution ofincentives, and measuring successes and milestones. 5. Communication This is the “golden thread” that runs through the entire practice ofchange management. Identifying, planning, onboarding, and executing a goodchange management plan is dependent on good communication. There arepsychological and sociological realities inherent in group cultures.
Thosealready involved have established skill sets, knowledge, and experiences 6. Monitor and ManageResistance, Dependencies, and Anticipating and preparing for resistanceby arming leadership with tools to manage it will aid in a smooth changelifecycle. 7. Celebrate Success Recognizing milestone achievements is an essential part of any project.
Whenmanaging a change through its lifecycle, it’s important to recognize thesuccess of teams and individuals involved. This will help in the adoption ofboth your change management process as well as adoption of the change itself. 8. Review, Revise andContinuously Improve As much as change is difficult and even painful, it is also an ongoing process.Even change management strategies are commonly adjusted throughout a project.Like communication, this should be woven through all steps to identify andremove roadblocks. .
P4Throughout most of modernbusiness history, organisations have attempted to unlock value by matchingtheir structures to their strategies. As mass production took hold in the eighteenthcentury, for instance, companies generated enormous economies of scale bycentralizing key functions like , sales, operations and finance. A few centurieslater, as firms diversified offerings and moved into new regions, a rival modelemerged. Corporations such as General Motors and DuPont created business unitsstructured around products and geographic markets. The smaller business unitssacrificed some economies of scale but were more flexible and adaptable tolocal conditions.Many multinationalsadopted a matrix arrangement in the belief that they could retain both theeconomies of scale of centralized functions and the flexibility of theirproduct-line and geographic business units.
But matrix organizations weredifficult to coordinateThe continual search for new organizational forms isdriven by basic changes in the nature of competition and the economyThecustomer perspective.Corporate synergies canalso be generated by leveraging relationships across multiple business units tooffer common customers lower prices, greater convenience, or solutions morecomplete than specialized competitors can provide. For example, Media Generalimplemented an effective convergence strategy by sharing editorial processesand advertising content among its regional television stations, newspapers, andinteractive online media properties. This cross-unit integration created aunique value proposition for the common customers—advertisers andsubscribers—that was better than any single property could offer on its own.Customer synergies also arise when retail companies like hotel chains, consumerbanks, or quick-service restaurants consistently deliver the same valueproposition across a geographically dispersed network of retail outlets. HiltonHotels and McDonald’s are good examples here.Theprocess perspective.
.P5Toyota Company focused onits inventory management and quality improvements in its products andprocesses. This operational excellence is based in part on tools and qualityimprovement methods made famous by Toyota in the manufacturing world such as continuousimprovement, one-piece flow, Automation: automation with human intelligence)and production smoothing). These techniques have helped in spawning down the”Lean Manufacturing” revolutionWith the implementation ofLean system, Toyota has been achieved a significant mile stone in terms ofimproving the quality of its output and reducing the cost of the products throughelimination of waste. There are four goals of Lean manufacturing systems. Oneof the major goals is to improve quality where as the Elimination of waste, Tostay competitive in today’s marketplace, a company must understand itscustomers’ wants and needs and design processes to meet their expectations andrequirements. As such Toyota has been able to win their customers by providingquality output at a reasonable price and it has become the leader in theautomobile industry at present.The fundamentals needed in developing a strategic qualityplan are usually same for all organizations.
Vision – Begins with a customer focussed vision. More broadlyvision aims at the satisfaction of all the stakeholders. Vision should statethe desired future state of the organisation to everyone involved and compeland share throughout the organisation.Mission that clarifies thepurpose for organisation’s existence will provide an agreed- upon direction tothe entire organisation and can be used as a basis for decision-making.Customer satisfaction, loyalty and retentionCosts involve in poor quality products/processes.Culture of the organisationBusiness processes and improvementsCompetitive and industry benchmarking P6 Strategy evaluation is the final step of strategymanagement process. The key strategy evaluation activities are: appraisinginternal and external factors that are the root of present strategies,measuring performance, and taking remedial / corrective actions.
Evaluation makessure that the organizational strategy as well as it’s implementation meets theorganizational objectives. Strategic Evaluation is defined as the process ofdetermining the effectiveness of a givenstrategy in achieving the organizational objectives and taking correctiveaction wherever required.In the absence of such a mechanism, there would be no meansfor strategists to find out whether or not the strategy is producing the desiredeffect.q There has to be a way of findingout whether the strategy being implemented will guide the organisation towardsits intended objectives. Strategic evaluation and control, therefore, performsthe crucial task of keeping the organisation on the right track.q During the strategic managementprocess, the strategists formulate the strategy to achieve a set of objectivesand then implement the strategy.q Nature ofthe strategic evaluation and control process is to test the effectiveness ofstrategy.
qNature of Strategic Evaluation The process of strategic evaluationprovides a considerable amount of information and experience to strategiststhat can be useful in new strategic planning. Strategic evaluation, through itsprocess of control, feedback ,rewards, and review, helps in a successfulculmination of the strategic management process. Strategic evaluation can helpto assess whether the decisions match the intended strategy requirements.Importanceof Strategic EvaluationMiddle-level manager Corporate Planning Staff or Department? Audit and Executive CommitteesExternaland Internal Auditors? Company secretaries? Financial controllers? Profit-centre heads? Chief executives? Board of Directors? Shareholders?Participants in Strategic EvaluationQuantitative criteria includes determination of net profit,ROI, earning per share, cost of production, rate of employee turnover etc.Among the Qualitative factors are subjective evaluation of factors such as -skills and competencies, risk taking potential, flexibility etcPremise Control.
The two basis types ofimplementation control are: a. Monitoring strategic thrusts (new or keystrategic programs): Two approaches are useful in enacting implementationcontrols focused on monitoring strategic thrusts: (1) one way is to agree earlyin the planning process on which thrusts are critical factors in the success ofthe strategy or of that thrust; (2) the second approach is to use stop/goassessments linked to a series of meaningful thresholds (time, costs, researchand development, success, etc.) associated with particular thrusts. b.
Milestone Reviews: Milestones are significant points in the development of aprogramme , such as points where large commitments of resources must be made. Amilestone review usually involves a full-scale assessment of the strategy andthe advisability of continuing or refocusing the direction of the company