OPERATION_MANAGEMENT.docx - Paneer Selvam Executive MBA JAN 2011 Intake Group WCU-KL-MA OPERATIONS MANAGEMENT INTRODUCTION Management is the complete

OPERATION_MANAGEMENT.docx - Paneer Selvam Executive MBA JAN...

This preview shows page 1 out of 18 pages.

Unformatted text preview: Paneer Selvam Executive MBA JAN 2011 Intake Group: WCU-KL-MA OPERATIONS MANAGEMENT INTRODUCTION Management is the complete process of handling an operation of the conversion of raw material to a finish product. In the process of this conversion a management is responsible, and this management is a group of people assigned with task and responsibilities. A simple diagram of a management can be like example below:- Management Flow Diagram PHDSR rRi te& oro& dDerPD uecerD cptDhe taoesp orpDa ntapr Pmrt aetm nme ten nt t a l s Each u c Department that a makes e organization e t up . l dependant each the is on others functions; a management is a group people of having the same goal and vision in operating a good and services program (Business). The director is the person who inherits an in idea and works out a process and with a team decides to produce/manufacture the good via profiting in the returns. In the operation of the program (business) the above diagram is a basic layout. Some departments can be added in time as an example and IT department solely in charge of all electrical and electronic functions. Page 1 Paneer Selvam Executive MBA JAN 2011 Intake Group: WCU-KL-MA OPERATIONS MANAGEMENT The three distinct areas that are inherited in any business are marketing, finance, and operations; all other business disciplines fit somewhere under one or more of these areas. Operations management is the area concerned with the efficiency and effectiveness of the operation in support and development of the firm's strategic goals. The director of the program (business) assigns managers and under them he/she operates the programs. Managers carry out the instructions and often need to feedback to the director for changes and decision makings. An operation is also an academic field of study that focuses on the effective planning, scheduling, use, and control of a manufacturing or service firm and their operations. This field is a synthesis of concepts derived from design engineering, industrial engineering, management information systems, quality management, production management, inventory management, accounting, and other functions. To briefly understand operation management each department having their own agenda is the operation, for example sales & purchasing department needs to make sure the sales or the marketing of the goods or the services are making the head start for good sales. The also need to know if the raw materials they are purchasing from their suppliers are cheaper compared to other suppliers and whether the quality is standard and so forth. The managers are responsible for with making decisions about product development, process and layout decisions, site location, and the capacity or volume to be manufactured. These operations managers have a hand in deciding employee levels e.g. how many workers do we need and when do we need them, the inventory levels e.g. when should we have materials delivered and should we use a chase strategy or a level strategy, and the process as how many shifts do they need and etc. If they need to work overtime or subcontract some work and so forth are the decisions of the plant managers and this process is also said the operation process. In general managing this chain of communication in the program is known as the Operation management and it not only ends here. The idea of an operation in a management can be classified in three important process A. Resource Inputs, B. Transformation Processes and C. Output of goods and services. Going back management again is divided with many functional responsibilities, such as a) Operations Management, b) Design Management, c) Demand Management and d) Money management. Page 2 Paneer Selvam Executive MBA JAN 2011 Intake Group: WCU-KL-MA OPERATIONS MANAGEMENT Although all this function has further sub-functions which can be classified under two simple classifications such as: - The Line functions and The Staff functions. Under the line functions the following four as mentioned above comes to activity, which are Money management, Demand Management, Design Management, Material Management and Operation management, but under the staff functions comes the other five functions namely:- Human resource Departments, Maintenance Department, Public Relations Department, Purchasing department and the Information’s Departments. The several definitions for the operation management all coming under one roof:A. B. C. D. E. Overall Business Activity – involves the whole business at large Primary Business Activity – focuses on the inside affairs of the business Functional area – the varies departments The transformation process – moving from resources to final output Job Sequence elements – activities and task of the jobs. The duties that are handled by the management are simply mentioned in three major areas such as creating, improving and implementing. Each of this area when looked under a micro scope the operation management steps in to guide the management in carry out the said task or duties in general carrying out all these functions is where the operation management comes. To carry out a project small or mega size an operational team is to assigned, one of the core functions of the team is to make certain that all other functions are carried out prior to the information’s The operation team can be lead by one main person following with many other persons forming together a team. Assuming the task of a simple job sequence running is running in a timely base, a) 1-10 the first ten days inspecting of work piece .b) 10-20 the next ten days Positioning the work piece c) 20 – 30 the next ten days drill hole for size d) 30 – 40 the next ten days sand work piece. To ensure the smooth operations of this process is where the operation management comes in to manage the accomplishment of the above task. Page 3 Paneer Selvam Executive MBA JAN 2011 Intake Group: WCU-KL-MA OPERATIONS MANAGEMENT Question 1 How does the organization establish customer requirement? Three facts are very important for any organization, a) Goals, b) Resources and c) Information’s. In every organization there is this input and output factor, be it in a raw material manufacturing plant or even in a finish product manufacturing plant. The only variations in the process are what the organization produces for the demand that exist or being created. Some demands can be created and some demand gets stronger over time. The bottom line for both the sectors are the end users such to be known as customers. To understand the market and the product’s demand is first understanding the needs of people or so after called customers. Say rice a raw material produced and harvested in the fields of a farmer. Even though the same grains that are produced from the farmer but by the time in comes into the market its branded, tagged and rated. Doing all this, value is being placed on the same grain. The value added on the grain is the end result of the product and how the demand for the product comes along with the price differentiation. What customers want is a very complex issue, to understand the need of customer’s marketers and researchers spend most of their efforts understanding this factor. Basically when a product has gained good sales and the sales record plotted on the graph indicates a slow moving or fast moving tracks. Usually when the organization’s management team using process such as a simple feedback or survey forms, which may not necessarily provide the right needs and wants of a customer. When looking from the broad aspect customers must first be segregated into age groups and based on these concepts, which age group would gain more attention on the product. In some cases if the product is universal use for all ages such like eye wear or glasses. Such product, have to innovated so often in shape and texture only then it would stand up for competition, another example of foods such as Kentucky Fried chicken, in order to suit all ages the management will constantly upgrade newer product to hold customers. Understanding customer’s requirement alone is not good enough but to analyze and organize the fulfillment of the requirements is more important than just knowing the requirements. The process of understand is by eliciting, documenting, organizing, and tracking changing requirements and communicating this information. Page 4 Paneer Selvam Executive MBA JAN 2011 Intake Group: WCU-KL-MA OPERATIONS MANAGEMENT Question 1 How does the organization establish customer requirement? The management needs to follow some procedures such:1. Manage the changes to requirements – Establish and use formal procedures of requirements and engineer it to ensure that issues are addressed and the appropriate specification and communication occurs. 2. Identify and track requirements attributes – This provides objective data for better decision making. 3. Trace requirements – Maintain an information path from source to implementation Adding more to this requirement the management also needs to processes the following: Identifying customer and market requirements Identifying and innovating products and services to enter new markets, attract new customers, and expand relationships with existing customers Enabling customers to seek information and customer support, conduct business with you, and provide feedback Determining and deploying the key support requirements for each customer group Determining which market customers and markets to pursue Using customer, market, and product/service information to improve marketing, build a more customer-focused culture, and innovate Build customer relationships and market share Manage customer complaints to resolve them promptly and address the causes of the complaints. Some common tips for the understanding and establishing the customer’s requirement can be as follows: - Listening to each key customer group and market segment across the entire customer life cycle, to former and potential customers, and to customers of competitors to obtain actionable information which can be further saved for improvements Following up with customers on product/service quality, customer support, and transactions to acquire immediate and actionable feedback with rated charts presented after purchases which would determine the customer’s satisfaction, their engagement, and their dissatisfaction. Page 5 Paneer Selvam Executive MBA JAN 2011 Intake Group: WCU-KL-MA OPERATIONS MANAGEMENT Question 1 How does the organization establish customer requirement? Using data and information about customer satisfaction, engagement, and dissatisfaction to exceed their expectations and improve loyalty. Buy obtaining information about the customers’ satisfaction with your organization, products, services, and support relative to their satisfaction with your competitors and other organizations providing similar products and services. B. Joseph Pine II, one of the pioneers of the mass customization concept, recently wrote an insightful article for HBR that bashed the notion that most organizations are customer-focused. “They focus on markets rather than on any real, living, breathing individual customer,” he wrote a fresh perspective on what it means to be truly customer-focused with a list that could be a how-to for understanding what your customers require: a.) Every customer deserves to get exactly what he wants at a price he’s willing to pay, and companies must make that happen in a way that makes them money. b.) Every customer is his/her own market. c.) Customers want different offerings at different times under different circumstances. d.) “Customers don’t want choice,” says Pine. They just want exactly what they want. e.) Doing only and exactly what each individual customer wants and doing exactly that. Customers like leadership managements and they will always fall for this quality first rather than the product, for example a hand-phone, if it is the leader in the market, it will continue to attract new customers. To understand customer’s requirement, it must be analyzed from many angles of thoughts, though some may be straight from the books, but more must come from experience. I t is the job of marketers to understand the needs of their customers. In doing so they can develop goods or services which meet their needs more precisely than their competitors. The problem is that the process of buying a product is more complex than it might at first appear. Customers do not usually make purchases without thinking carefully about their requirements. Wherever there is a choice, decisions are involved, and these may be influenced by constantly changing motives. The organization that can understand why customers make decisions such as who buys, what they buy and how they buy will, by catering more closely for customers satisfaction an their needs, become potentially more successful. Page 6 Paneer Selvam Executive MBA JAN 2011 Intake Group: WCU-KL-MA OPERATIONS MANAGEMENT Question 1 How does the organization establish customer requirement? Total quality management is a commitment to the continuous improvement of work processes with the goal of satisfying internal and external customers. It’s the customer that matters in TQM; the process is only the means to satisfying the customer. TQM provides the organizational focus and mind set, as well as specific tools and techniques, to ensure meeting customer requirements, first time and every time. Management must make sure that everybody knows their customers, both internal and external. Further, more it is essential that everybody can "see" the ultimate customer using their products and services. Employees at all levels of the organization should be given opportunities to observe the customer using their products and services. All employees should understand how each process used in producing products and services adds value for the customer. Quality being the fundamental essence for understanding customer’s requirements must be placed in the first category and this can be made into a consistent basis as a "Life Cycle" approach. The other aspects can be the information system. With advance technologies information should be another main factor for storing all known customers’ requirements and choices. Constantly improving the ISO 9001:2008 would bring the product to a good standing and confidently meet customer’s requirements. Dealing effectively with customers is a small fraction in the customer requirement list, this comprises with the following rules such as the communication skills, greet customers, value customers, ask them what help they need, listening to them and requesting them to return back. Guest posting can be a good way to grow your own audience. It can help you build name recognition and authority status in your niche or industry. The four plan strategies which come handy are: - A. Confirm customer requirements, such as listening to question and answers, B. Advise customer of available options such as facilitating customer’s towards decision-making, C. Inform customer of costs such as which good is better and cheaper, D. Agree action plan with customer such as delivery time and date. Page 7 Paneer Selvam Executive MBA JAN 2011 Intake Group: WCU-KL-MA OPERATIONS MANAGEMENT Question 2, How do customer requirement translate into product/ services? Understanding who customers are and translating their requirements is a major task performed by management. In order to tabulate the requirement a good survey and appreciation form need to be submitted to customers. In understanding the requirements first analyzing the failures such as poor quality, excessive cost, late to market, superior competition are certain factors that can be useful tools along with the SWOT analysis that can determine whether the customer requirements are translated into the product and services. Good Product Planning and services process combines prioritized customer requirements, customer perceptions, and technical competitive benchmarking into specific and measurable performance targets. The results are successful innovative new products, shortened development cycles, and a basis for continuous improvement. This information is compiled in the form of customer wants/needs then converted into predictable and measurable targets, typically applying Quality Function Deployment (QFD) methods and tools. Targets must be defined based on the customer-focused product planning and therefore always tie product design decisions to the marketplace, Voice of the Customer (VOC) and business goals. Quality function deployment or QFD is designed to improve customer’s satisfactions; this process is divided into two classes modern and tradition quality systems. It concentrates on maximizing customer satisfaction measured by metrics such as repeat business. QFD also focuses on delivering value by seeking out spoken and unspoken values and needs translating them into actions, and designs and communicating it back to the organization. There are certain principles in serving customer, which are termed as Customer-Servicing principles. One of which is known as the Kano Model in short it is an expected treatment made for customer on prompt purposes. The other term also mentioned is “Gemba” the source of voice of customer’s data; it is here where the management can actually see who are their customers and the problems. Another principle is known as the Kaizen philosophy, setting goals to improve everyday in every way. As such by employing Lagniappe: delight customers by providing more than they expect is another principle. Every successful organization strives to ensure that its internal systems are designed and implemented to deliver flawless and seamless service to every customer under all conceivable conditions and circumstances. Page 8 Paneer Selvam Executive MBA JAN 2011 Intake Group: WCU-KL-MA OPERATIONS MANAGEMENT Question 2, How do customer requirement translate into product/ services? The four phases that are involved in the QFD development are a) Product Planning, b) Assembly c) Process planning and d) Process Quality Control. Each of these categories have job ranks as for Product planning is the planning a product based on needs and opportunity Assembly is about the identification of the critical parts of the product and so forth. Though these does not relevantly attributes the customers relationship to the product, yet sustainably the production contributes to the customers. These procedures would come handy for understanding customer’s requirements which are A. Market Survey B. Bench Marking C. Life Cycle Planning D. Environmental Characterization E. Modeling and Stimulation. The main theme for customer requirements is the expression and this is broken into three factors namely as “Explicitly Expressed” (customer specification includes requirements for reliability performance as a quantitative measure. “Implicitly Expressed” (specification includes product characteristics that necessitate certain levels of reliability in order to satisfy them). “Not expressed” (often the case for commercial products. Suppliers must anticipate needs or position on their products in market place). This is usually carried out with market surveys, quality function deployment, benchmarking and often this is competitive advantage. The requirements for the development can be mentioned in two categories namely as a. design and analysis, under the heading analysis, eight tasks are performed such as, allocations, dormancy analysis, durability assessments, life cycle planning, modeling and simulation, predictions, thermal analysis and translations. Under the heading design there are only two defined task such as, environmental characterization and fault tolerance. Market survey is usually done to determine what customers want and need in terms of new or improved products, like for instance in my producti...
View Full Document

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask bonus questions You can ask questions ( expire soon) You can ask questions (will expire )
Answers in as fast as 15 minutes