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Organising Operations

Organising Operations. Managing Operations. Operations managers organise the operations process. Communication, leadership and coordination are essential skills for op managers. Effective operation requires careful planning. Purchasing / Supply Chain Management.

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Organising Operations

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  1. Organising Operations

  2. Managing Operations • Operations managers organise the operations process. • Communication, leadership and coordination are essential skills for op managers. • Effective operation requires careful planning.

  3. Purchasing / Supply Chain Management • Supply chain is the link between a business and its suppliers who provide the inputs to be used in the operations of a business. • Supply chain management is concerned with identifying relevant suppliers and coordinating the purchasing of the inputs to be used.

  4. Supply chain management includes: • Assessment of location (distance to suppliers). • Efficiency of delivery • Stock usage rate • Uniformity of quality • Pricing and comparisons with other suppliers.

  5. Lead times: The time it takes for the business to meet the customer’s needs. Minimal lead times are often described as allowing the business to work in real time (the present). • Ideal lead times of zero…Instantaneous fulfilment of an order ie Fast food, are almost impossible.

  6. Supplier Rationalisation: a recent trend for large businesses is to reduce the number of their suppliers. Efficiencies can be maximised and supplier reliability can be rewarded. • Inputs to be used include: Raw Materials, intermediate goods, finished goods, capital equipment and labour.

  7. Rostering and Scheduling • Rostering: is the coordination and allocation of staff as an input. A roster is a plan of the staffing needs of the business ensuring that there are sufficient numbers of staff (with appropriate skills to match the tasks that require completion).

  8. Rosters need to take into account: • Task type • Leave entitlements (holidays, sickness, long service, maternity leave) • Working hours: Award hours, overtime, breaks.

  9. Scheduling • Scheduling is the coordination of the activities of the business. The timing of the activities is crucial to maximise efficiency and avoid bottlenecks or leave productive equipment standing idle. • Timing and order of activities

  10. Sequencing Tools • Program Evaluation Review Technique (PERT) • Gantt Charts. A Bar graph illustrating the order of events highlighting periods of overlap. • Critical Path Analysis: sequence stages of activity identifying shortest completion time possible.

  11. PERT and CPA techniques show what needs to be done, how long tasks take, what order is necessary. • Draw Fig 8.11 and 8.12 • Activities: Construct a roster for an imaginary Chicken Fast Food outlet called Kanwal Fried Chicken (KFC). • Complete extension 2 (p.183)

  12. Task Design • Refers to breaking the business’ core activity into smaller tasks, therefore creating more manageable activities. • Tasks that are created must be analysed in terms of labour requirements, matching staff needs to available labour. • Human Resources: Their job is to source the right person. Screening candidates against needed skills and competencies for correct match.

  13. Plant / Office Layout • Layout refers to the physical space of the business. Factors affecting layout include: • Sequencing: Production line in proximity to maximise efficiency. Must complement process. • Size of space needed to maximise production capacity required. • Manoeuvrability – movement between tasks • Manageability – overseeing performance

  14. Safety requirements – OH&S, Fire • Storage – location of stock and warehousing requirements. • Staff Morale

  15. Warehousing • Involves storage of supplies (raw materials, intermediate goods, finished goods) • Warehousing involves investing the following: • Land, security, stock and supplies, staff and captial equipment (shelving, inventory control systems, forklifts etc)

  16. Activities • Define: Project Production, Process production, Product production • Describe efficient office layout and the use of workstations. • Describe the importance of efficient warehousing. • Revision activity 7

  17. Technology • Involves applying scientific methods or approving existing methods, process or product. • Technology uses mechanical or computer aided equipment which makes the task simpler or quicker, thus improving efficiency • Technology improves production methods, communications systems and delivery systems.

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