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Business Services – Operations Management
Session 1 – Introduction & Overview
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Business Services Business Services ––Operations ManagementOperations Management
Facilitator:Facilitator:Dr. Jonathan FarrellDr. Jonathan Farrell
Session 1 – Introduction & Overview
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This EveningThis Evening’’s Programs Program
•• IntroductionsIntroductions•• Unit outlineUnit outline•• Lecture Lecture -- Introduction to Operations ManagementIntroduction to Operations Management•• Case Studies Case Studies –– Concept Design Services, Central Evaluation Unit Concept Design Services, Central Evaluation Unit --
class discussionclass discussion•• LittleLittle’’s Laws Law
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Business Services – Operations Management
Session 1 – Introduction & Overview
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PlagiarismPlagiarism
• Plagiarism: “using the work of another person and presenting it as your own”
• If you use any source material from another source (e.g. text graphics, charts, diagrams, etc.) you must acknowledge that source
• Contrary to popular belief, Plagiarism is easy to detect• Your assignments will be checked for plagiarism, both manually and
electronically• For more information, go to www.student.mq.edu.au/plagiarism
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IntroductionsIntroductions(1 minute maximum)(1 minute maximum)
•• NameName•• OrganisationOrganisation•• PositionPosition•• Type of operationType of operation•• Why are you here?Why are you here?
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Business Services – Operations Management
Session 1 – Introduction & Overview
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Gain an appreciation of technologies available, and how they Gain an appreciation of technologies available, and how they are applied to operations.are applied to operations.
Develop an ability to Develop an ability to integrateintegrate these technologies with these technologies with corporatecorporate and operations and operations strategies.strategies.
RecogniRecognisse how e how successful osuccessful operationsperations mmanagementanagement can lead to can lead to ssustainableustainable ccompetitiveompetitive aadvantagedvantage..
Understand the dynamics of change management and the Understand the dynamics of change management and the effects of changes on organisation culture.effects of changes on organisation culture.
Course ObjectivesCourse Objectives
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The operations function is fashionable!The operations function is fashionable!The consultancy services market
% of world revenues of 40 largest firms
Marketing/sales2
Operations and process management
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Corporate strategy17
IT strategy17
Benefits/Actuarial16
Organizational design11
Financial6
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Business Services – Operations Management
Session 1 – Introduction & Overview
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They are all operations
Retail operation
Back office operation in a
bank
Take-out / restaurant operation
Kitchen unit manufacturing
operation
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A general model of operations managementA general model of operations management
Input transformed resources
Materials Information Customers
Facilities Staff
Input transforming
resources
Planning and control
ImprovementDesign
The operation’s competitive role
and position
Operation’s strategic objectives
Operations strategy
CustomersOutput products
and servicesInput resources
ENVIRONMENT
ENVIRONMENT
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Business Services – Operations Management
Session 1 – Introduction & Overview
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Where does the business get Where does the business get its competitive advantage?its competitive advantage?
The way it The way it produces its produces its goods and goods and services?services?
The way it The way it positions itself positions itself in its market?in its market?
The The ““technologicaltechnological””specification of its specification of its product/service?product/service? Product/
Service Technology
Marketing Operations
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The three functions working together .... The three functions working together .... egeg. Swatch. Swatch
but also
Standardise, easy to make
product at high volume so low
cost
Product/ service design
OperationsMarketing
Further innovations
which fundswhich
funds etc.
Increased variety does not increase
costsbut because volume
is high
Extended range
Mass fashion orientation
allows
which gives
Innovative plastic design with few parts
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Business Services – Operations Management
Session 1 – Introduction & Overview
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Core and support functionsCore and support functions
Accounting and finance
function
Human resources function
Others
Engineering/ technical function
Information/ technical (IT)
function
Marketing function
Product/services development function
Operations function
Core functions
Support functions
A broad definition of operations management
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The position of the operations functionThe position of the operations function
Marketing Operations
Church Call on newcomers
Manage appeals
Retranslate scriptures
Conduct weddings
Advertise on television
Pay suppliers
Design hamburgers
Make hamburgers
Sell to stores Pay staff Design new
furnitureAssemble furniture
Identify needs
Raise capital
Developproduct
Make and distribute
Accounting and finance
Product development
Fast food chain
Furniture manufacturer
Process perspective
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Business Services – Operations Management
Session 1 – Introduction & Overview
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The best way to start understanding the nature of “Operations” is to look around you
Everything you can see around you (except the flesh and blood) has been processed by an operation
Every service you consumed today (radio station, bus service, lecture, etc.) has also been produced by an operation
Operations Managers create everything you buy, sit on, wear, eat, throw at people, and throw away
We will start by examining a “high street” operation
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IKEA STORE
Design elegant products which can be flat-packed efficiently
Design a store layout which gives smooth and effective flow
Ensure that the jobs of all staff encourage their contribution to business success
Maintain cleanliness and safety of storage area
Arrange for fast replenishment of products
Monitor and enhance quality of service to customers
Site stores of an appropriate size in the most effective locations
Continually examine and improve operations practice
Some operations management activities Some operations management activities at IKEAat IKEA
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Business Services – Operations Management
Session 1 – Introduction & Overview
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PretPret a Mangera Manger
“High-end” sandwich and snack retailerUse only “wholesome” ingredientsAll shops have own kitchens which make fresh sandwiches every day
Fresh ingredients delivered early every morning
Same staff who serve you at lunch made the sandwiches that morning
“We don’t work nights, we wear jeans, we party…”
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The three basic functions at The three basic functions at PretPret a Mangera Manger
Marketing Operations
Promotional activities, market research, etc.
Design, location and management of stores and in-store processes and the network that supplies them
Nutritional “mechanical” and aesthetic design of the sandwiches and snacks
Product/Service Technology
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Business Services – Operations Management
Session 1 – Introduction & Overview
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All oAll operationsperations are transformation are transformation processesprocesses
ENVIRONMENT
ENVIRONMENT
INPUT OUTPUTGOODS
AND SERVICES
TRANSFORMED RESOURCES
MATERIALSINFORMATION CUSTOMERS
FACILITIES STAFF
TRANSFORMINGRESOURCES
TRANSFORMATION PROCESS
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At At PretPret a Mangera Manger
ENVIRONMENT
ENVIRONMENT
INPUT OUTPUTCUSTOMERS
“ASSEMBLED”TO SNACKS
TRANSFORMED RESOURCES
Food ingredients Packaging Customers
Kitchen equipment Shop fittings, Staff
TRANSFORMINGRESOURCES
TRANSFORMATION PROCESS
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Business Services – Operations Management
Session 1 – Introduction & Overview
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Operations Management Operations Management –– Basic Basic PrinciplesPrinciples
All types of enterprise have an operations function, even if it isn’t called ‘operations.
Most operations produce both products and services.
Materials
Products and services
Information
Customers
Operations management is concerned with producing and
delivering products and services
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Television programme and video Television programme and video production companyproduction company
Set and props manufacture
Engineering
Marketing and sales
Broadcasting and programme making equipmentTest and repair equipment
Staff
Adapted,maintainedand repaired equipment
Wood, steel plastic etc.
CarpentersMachines
Scenery and props
Information from customersComputer systems
Surveys and analysis staff
Market forecasts,salesproposals and plans
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Business Services – Operations Management
Session 1 – Introduction & Overview
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The two main processes at a The two main processes at a PretPret a Manger storea Manger store
INPUT OUTPUTTRANSFORMATION PROCESS
Sandwichproduction
Bread, mayo, fillings, packing,
etc.
Staff
Packed, fresh sandwiches
SandwichproductionStaff
Satisfied customers “assembled” to sandwiches
Packed, fresh sandwiches
Customers
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The three core functions as transformation The three core functions as transformation process process ‘‘operationsoperations’’
DesignersDesign software
Appropriate designs as promised and to budget
Producing effective new products and
services
Marketing function
Product/ services
development function
Operations function
Transformed/ transforming resources
Products and services
Producing service value for
customersSales peopleMarketeersMarket information
OrdersMarketing plans as promised and to budget
Producing sales and
market plans
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Business Services – Operations Management
Session 1 – Introduction & Overview
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The output from most types of operation is a The output from most types of operation is a mixture of goods and servicesmixture of goods and services
Cru
de o
il pr
oduc
tion Pure goods
TangibleCan be stored
Production precedes consumption
Low customer contactCan be transported
Quality is evident
IntangibleCannot be storedProduction and consumption are simultaneousHigh customer contactCannot be transportedQuality difficult to judge
Pure services
Alu
min
ium
sm
eltin
g
Spec
ialis
t mac
hine
tool
m
anuf
actu
rer
Res
taur
ant
Com
pute
r sys
tem
s se
rvic
es
Man
agem
ent
cons
ulta
ncy
Psyc
hoth
erap
y cl
inic
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The output from most operations is a The output from most operations is a mixture of goods and servicesmixture of goods and services
CR
UD
E O
IL P
RO
DU
CTI
ON
ALU
MIN
IUM
SM
ELTI
NG
SPEC
IALI
ST M
AC
HIN
E TO
OL
MA
NU
FAC
TUR
ER
RES
TAU
RA
NT
CO
MPU
TER
SYS
TEM
S SE
RVI
CES
MA
NA
GEM
ENT
CO
NSU
LTA
NC
Y
PSYC
HO
THER
APY
CLI
NIC
PURE GOODSTangible
Can be stored
Production precedes consumption
Low customer contact
Can be transportedQuality is evident
PURE SERVICESQuality difficult to judgeCannot be transportedHigh customer contact
Production and consumption are simultaneous
Cannot be stored
Intangible
Pret
a M
ange
r
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Business Services – Operations Management
Session 1 – Introduction & Overview
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A Typology of OperationsA Typology of OperationsIMPLICATIONS IMPLICATIONS
High LowVisibilityVisibility
High LowVariation in demandVariation in demand
High LowVarietyVariety
Low HighVolumeVolume
Time lag between production and consumptionStandardisedLow contact skillsHigh staff utilisationCentralizationLow unit costs
Short waiting toleranceSatisfaction governed by customer perceptionCustomer contact skills neededReceived variety is highHigh unit cost
Changing capacityAnticipationFlexibilityIn touch with demandHigh unit cost
FlexibleComplexMatch customer needsHigh unit cost
Low repetitionEach staff member performs more of jobLess systemisationHigh unit costs
StableRoutinePredictableHigh utilisationLow unit costs
Well definedRoutineStandardisedRegularLow unit costs
High repeatabilitySpecialisationSystemisationCapital intensiveLow unit cost
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Some configurations of Some configurations of FormuleFormule 1 1 prepre--manufactured room unitsmanufactured room units
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Business Services – Operations Management
Session 1 – Introduction & Overview
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Profile of two operationsProfile of two operations
Low
High
High
High
High
Low
Low
Low
Volume
Variety
Variation
VisibilityIsland Resort Formule 1
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Volume
Important to understand how different operations are positioned on the 4 V’s.
Is their position where they want to be?Do they understand the strategic implications?
Variety
Variation
Visibility
Low
High
High
High
High
Low
Low
LowIsland Resort Hotel
Formule1 type Hotel
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Business Services – Operations Management
Session 1 – Introduction & Overview
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Volume
Variety
Variation
Visibility
Low
High
High
High
High
Low
Low
LowPret a
MangerIKEA
PretPret a Manger and IKEAa Manger and IKEA
4 V4 V’’s analysiss analysis
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The activities of operations managementThe activities of operations management
ENVIRONMENT
ENVIRONMENT
INPUT OUTPUTGOODS
AND SERVICES
INPUT TRANSFORMED
RESOURCESMATERIALS
INFORMATION CUSTOMERS
FACILITIES STAFF
INPUT TRANSFORMING
RESOURCES
OPERATIONS STRATEGY
DESIGN
PLANNING AND CONTROL
IMPROVEMENT
OPERATIONS STRATEGIC
OBJECTIVESTHE
OPERATIONS COMPETITIVE
ROLE AND POSITION
Operations strategy
Operations management
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Business Services – Operations Management
Session 1 – Introduction & Overview
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Operations Activities as Feedback LoopsOperations Activities as Feedback LoopsDesign activities set the basic configurationPlanning & control activities guide short/medium term changes
Planning & Control
Design
Improvement
Improvement activities guide longer term changes
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Case Study Case Study –– Central Design ServicesCentral Design Services
•• What are the inputs, transformation processes and What are the inputs, transformation processes and outputs?outputs?
•• Why is operations management important to CDS?Why is operations management important to CDS?•• Draw the four Vs for Draw the four Vs for CDSCDS’’ss products & services.products & services.•• What would you recommend to CDS if you were asked What would you recommend to CDS if you were asked
to advise on improving its operations?to advise on improving its operations?
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Business Services – Operations Management
Session 1 – Introduction & Overview
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Process DesignProcess Design
Processes that Design Products
and Services
Concept Generation
Screening
Preliminary Design
Evaluation and Improvement
Prototyping and final design
Processes that Produce Products
and ServicesSupply Network Design
Layout and Flow
Process Technology
Job Design
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Nature and purpose of the design activityNature and purpose of the design activity
Products, services and the processes which produce them all have to be designed
Decisions taken during the design of a product or service will have an impact on the decisions taken during the design of the process which produces those products or services and vice versa.
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Business Services – Operations Management
Session 1 – Introduction & Overview
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The pThe purposeurpose of design is to satisfy of design is to satisfy customerscustomers
Product designers will seek to create things that:- are aesthetically pleasing;- satisfy needs;- meet expectations;- perform well;- are reliable;- are easy to manufacture and deliver.
Operations managers tend to focus on the design of the transformation process
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Design of the Service
Design of the Process
Design of the Product
Design of the Process
In most service operations the overlap between service and
process design is implicit in the nature of service
In manufacturing operations overlapping the activities of
product and process design is beneficial
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Business Services – Operations Management
Session 1 – Introduction & Overview
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Decisions taken during the design of the product or service will have an impact on the process that produces them and vice versa
Products and services should be designed in
such a way that they can be created effectively
Processes should be designed so they can
create all products and services which the
operation is likely to introduce
Designing the Product or Service
Designing the Processes that
Produce the Product or Service
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Finished designs which are:
High quality
Speedily produced
Dependably delivered
Produced flexibly
Low cost
TRANSFORMED RESOURCES
Technical informationMarket informationTime information
TRANSFORMING RESOURCES
Test and design equipment
Design and technical staff
THE DESIGN ACTIVITY OUTPUTINPUTS
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Business Services – Operations Management
Session 1 – Introduction & Overview
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Relatively early in the design activity the Relatively early in the design activity the decisions taken will commit the operation decisions taken will commit the operation
to costs which will be incurred laterto costs which will be incurred later
100%
0%
Percentage of final product cost
committed by the design
Percentage of design costs
incurred
Start of the design activity
Finish of the design activity
40
Broad categories of evaluation criteria for assessing Broad categories of evaluation criteria for assessing design optionsdesign options
FEASIBILITYHow difficult is
it?
ACCEPTABILITYHow worthwhile is
it?
VULNERABILITYWhat could go
wrong?
THE CRITERIA FOR ASSESSING PROPOSED DESIGN OPTIONS
What INVESTMENT both managerial and financial
will be needed?
What RETURN in terms of financial and
performance improvement will it give?
What RISKSdo we run if things
go wrong?
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Business Services – Operations Management
Session 1 – Introduction & Overview
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Operation (an activity that directly adds value)
Inspection (a check of some sort)
Transport (a movement of some thing)
Delay (a wait, e.g. for materials)
Storage (deliberate storage, as opposed to a delay)
Process mapping symbols derived from “Scientific Management”
Decision (exercising discretion)
Process mapping symbols derived from Systems Analysis
Direction of flow
Input or Output from the process
Activity
Beginning or end of process
Process Mapping SymbolsProcess Mapping Symbols
42
Standard sandwich process
Raw Materials Assembly Stored
SandwichesMove to Outlets
Stored Sandwiches Sell Take Payment
Customer Request
Raw Materials
Assembly Take Payment
Customer Request
Customised sandwich - old process
Process Mapping Process Mapping –– An ExampleAn Example
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Business Services – Operations Management
Session 1 – Introduction & Overview
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PrepareAssemble as
requiredTake
payment
Bread and Base filling
Stored “Bases”
Fillings
Assemble whole sandwich
Customer Request
Use standard “base”?
Assemble from standard “base”
No
Yes
The operation of making and selling customised sandwiches
The outline process of making and selling customised sandwiches
The detailed process of assembling customised
sandwiches
Sandwich materials and customers
Customers “assembled” to
sandwiches
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Bread and Base filling
Assembly of “sandwich
bases”
Stored “Bases”
Fillings
Assemble whole sandwich
Take Payment
Customer Request
Customised sandwich new process
Use standard “base”?
Assemble from standard “base”
No
Yes
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Business Services – Operations Management
Session 1 – Introduction & Overview
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Left hand Right handPick up base plate
Insert into fixturePick up two supportsLocate back plate
Pick up screws
Locate screwsPick up air driver
Fasten screws
Replace air driver
Pick up centre assembly
Inspect centre assembly
Locate and fix
Switch on timer
Wait to end test
Inspect
Transfer grasp
Put aside
Wait
Hold base plate
Wait
Hold centre assembly
Inspect
Transfer grasp
Wait
‘‘Two handedTwo handed’’ process chartprocess chart
46
VolumeLow High VolumeLow High
Varie
tyLo
wH
igh
Varie
tyLo
wH
igh
Project
Jobbing
Batch
Mass
Contin--uous
Professional service
Service shop
Mass service
Service process Service process typestypes
Manufacturing Manufacturing process typesprocess types
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Business Services – Operations Management
Session 1 – Introduction & Overview
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Project ProcessesProject Processes
•• OneOne--off, off, ccomplexomplex, large scale, high work content , large scale, high work content ““productsproducts””•• SpeciallySpecially made, every one made, every one customicustomisseded•• Defined start and finish: Defined start and finish: ttimeime, quality and cost objectives, quality and cost objectives•• Many different skills have to be coordinated Many different skills have to be coordinated •• Fixed position layout, resources brought to productFixed position layout, resources brought to product
48
Jobbing ProcessesJobbing Processes
• Very small quantities: “one-offs”, or only a few required• Specially made. High variety, low repetition. “Strangers”• Skill requirements are usually very broad• Skilled jobber, or team of jobbers complete whole product• Fixed position or process layout (routing decided by jobbers)
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Business Services – Operations Management
Session 1 – Introduction & Overview
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Batch ProcessesBatch Processes
• Higher volumes and lower variety than for jobbing• Standard products, repeating demand. But can make specials• Specialized, narrower skills• Set-ups (changeovers) at each stage of production• Process or cellular layout, predetermined planned routing
50
Mass (Line)Mass (Line) ProcessesProcesses
• Higher volumes than Batch• Standard, repeat products (“runners”)• Low and/or narrow skills• No set-ups, or almost instantaneous ones• Cell or product layout: a fixed sequence of operations
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Business Services – Operations Management
Session 1 – Introduction & Overview
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Continuous ProcessContinuous Process
• Extremely high volumes and low variety: often single product• Standard, repeat products (“runners”)• Highly captial-intensive and automated• Few changeovers required• Difficult and expensive to start and stop the process• Product layout: usually flow along conveyors or pipes
52
The Product/Process MatrixThe Product/Process Matrix
Low volumeLow
standardisation
INCREASING VARIETY
Low volumeMultiple products
Higher volumeFew major products
High volumeHigh
standardisation
PRODUCT CHARACTERISTICS
INCREASING VOLUME
Jumbled flow
(jobbing)
Disconnected line flow(batch)
Connected line flow(mass)
Smooth flow(Continuous)PR
OC
ESS
CH
AR
AC
TER
ISTI
CS
Randomflow
(project)
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Business Services – Operations Management
Session 1 – Introduction & Overview
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The Product/Process MatrixThe Product/Process Matrix
Low volumeLow
standardisation
INCREASING VARIETY
Low volumeMultiple products
Higher volumeFew major products
High volumeHigh
standardisation
PRODUCT CHARACTERISTICS
INCREASING VOLUME
Too much flexibility so high
costs
Too little flexibility so high
costs
Jumbled flow
(jobbing)
Disconnected line flow(batch)
Connected line flow(mass)
Smooth flow(Continuous)PR
OC
ESS
CH
AR
AC
TER
ISTI
CS
Randomflow
(project)
54
The Product/Process MatrixThe Product/Process Matrix
Low volumeLow
standardisation
INCREASING VARIETY
Low volumeMultiple products
Higher volumeFew major products
High volumeHigh
standardisation
PRODUCT CHARACTERISTICS
INCREASING VOLUME
Machine tool maker
Custom furniture
maker
Automobile factory
Petro-chemical refinery
Jumbled flow
(jobbing)
Disconnected line flow(batch)
Connected line flow(mass)
Smooth flow(Continuous)PR
OC
ESS
CH
AR
AC
TER
ISTI
CS
Randomflow
(project)
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Business Services – Operations Management
Session 1 – Introduction & Overview
55
The Product/Process MatrixThe Product/Process Matrix
Low volumeLow
standardization
INCREASING VARIETY
Low volumeMultiple products
Higher volumeFew major products
High volumeHigh
standardization
PRODUCT CHARACTERISTICS
INCREASING VOLUME
Customer service branch
Investment banking
Bank call centre
Credit card processing
Jumbled flow
(jobbing)
Disconnected line flow(batch)
Connected line flow(mass)
Smooth flow(Continuous)PR
OC
ESS
CH
AR
AC
TER
ISTI
CS
Randomflow
(project)
56
Deviating from the Deviating from the ‘‘naturalnatural’’ diagonal on the diagonal on the productproduct--process matrix has consequences for process matrix has consequences for
cost and flexibilitycost and flexibility
Project
Jobbing
Batch
Mass
Continuous
Professionalservice
ServiceShop
Massservice
None
None
Less process flexibility than is
needed so high cost
More process flexibility than is
needed so high cost
The ‘natural’ line of fit of process to volume/variety characteristics
Manufacturing operations process
types
Service operations process types
VarietyVolume
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Business Services – Operations Management
Session 1 – Introduction & Overview
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Case Study Case Study –– Central Evaluation Centre Central Evaluation Centre Processing UnitProcessing Unit
•• Construct a Process Map for the new applicationsConstruct a Process Map for the new applications•• Calculate the cycle time for the processCalculate the cycle time for the process•• Calculate the number of people involved in the Calculate the number of people involved in the
processing of an applicationprocessing of an application•• Why is it difficult to locate an individual file?Why is it difficult to locate an individual file?•• What are the problems?What are the problems?•• What suggestions would you make to Veronique to What suggestions would you make to Veronique to
improve her process? improve her process?
58
CECPU Process MapCECPU Process Map
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Business Services – Operations Management
Session 1 – Introduction & Overview
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Process Cycle TimeProcess Cycle Time
The total work in progress (applications in the in-trays) = 600 + (4 × 130) + 220= 1340 applications
Average throughput time = 36 working days
Therefore, from Little’s Law: Throughput time = cycle time × work in progress (and working in hours)
36 × 7 = cycle time × 1340Therefore, cycle time = (36 × 7)/1340 = 0.188 hours
In other words, a fully processed application form is emerging from the process every 0.188hours.
That is, in a 35 hour week, the Centre will process 35/0.188 = 186.17 applications per week
This is an important finding because 200 applications per week are entering the process, butonly 186.17 applications per week are emerging from the process. In other words, inventorymust be building up within the process.
60
Throughput (TH) = Work in process (WIP) × Cycle time (CT)
LittleLittle’’s Laws Law
Cycle time = 2 minutes
Throughput time = ?
WIP = 10
Throughput time = 10 × 2 minutes= 20 minutes
Also stated as:“The average number of customers in a stable
system (over some time interval) is equal to their average arrival rate, multiplied by their average time in the system. “
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Business Services – Operations Management
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Throughput (TH) = Work in process (WIP) × Cycle time (CT)LittleLittle’’s Laws Law
Throughput time = 5 days × 7 hours = 35 hours
500 exam scripts need to be marked in 5 days (working 7 hours a day).It takes 1 hour to mark a script. How many markers are needed?
35 hours = 500 scripts × Cycle time
Cycle time = 35 hours500 scripts
= 0.07 hours
Number of markers = Work content = 1 hour = 14.29Cycle time 0.07
62
LittleLittle’’s Law s Law –– An ExampleAn ExampleThink of a tank of water with a constant inflow and a constant, identical outflow.In this analogy, the input tap represents orders coming to the factory. The outlet tap represents finished product. Water in the tank represents WIP inventory. Average throughput or dwell time in the tank is 100 minutes. (If we set the level to 100 gallons and maintain the same flow, throughput time is only 10 minutes).
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Business Services – Operations Management
Session 1 – Introduction & Overview
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Throughput efficiency = Work content
Throughput time × 100
Throughput efficiency is the work content of whatever is being processed as a percentage of its throughput time
Throughput efficiencyThroughput efficiency
64
LittleLittle’’s Law s Law –– More ExamplesMore Examples
• At the supermarket a checkout operator has on average 4 customers and customers arrive every 2 minutes. Therefore customers on average will be in line for 8 minutes.
• A restaurant holds about 60 people, and the average person will be in there about 2 hours, so they're entering at the rate of about 30 people an hour. The queue for the restaurant has 30 people in it, so that means I'll wait about an hour for a table.
• A financial services organisation receives on average 160 enquiries per day about its products and services. If it takes around 30 minutes to process each enquiry and management want to ensure each enquiry is responded to on the same day its received, how many people are needed to process the enquiries?