week 1(bb) introduction

8/11/2019 Week 1(BB) Introduction

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MGB210 MANAGING

OPERATIONSWeek 1

Dr Mervyn J Morris

Unit coordinator


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I acknowledge the Traditional Owners ofthe lands where QUT now stands, pay

respect to their Elderspast, present andemergingand acknowledge theimportant role Aboriginal and Torres StraitIslander people continue to play within the

QUT community..

of

www.reconciliation.qut.edu.au


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LECTURE 1 OUTLINE

1. Why study operations management?

2. Links to other units3. Unit outcomes

4. Week One document

5. Assessment

6. Tutorial program

7. Expectations

8. Introduction to managing operations.


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Why study operations management?

1. Examines the processes used in producing theproduct or products of the organisation.

2. Provides an understanding of the basic conceptsrelated to operations e.g.:

3. Is a crucial element of organisational activities

Links to other units:Due to the central nature of operations, all prior units

(and subsequent ones as well) are useful inMGB210.


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UNIT OUTCOMES

1. Explain the key operations management activities, processes,technologies and techniques and how these interact with other

management functions.

2. Solve operations management problems in different operationalsettings and organisations using selected analytical and statistical

tools and techniques.

3. Evaluate operational management decisions, strategies andactivities in terms of consistency with other organisational

strategies and management functions and the expectations of thebroader community.

4. Communicate arguments and conclusions about operationsmanagement problems and issues in a variety of written formats

to a target audience.


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MGB210 Managing Operations

Additional resources:

The LibraryJournals

The Web


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Websites:

www.bnet.com./www.bized.co.uk/

www.12manage.com/

www.wikipedia.com/- only for general information

never to be used as a reference!
http://www.bnet.com./http://www.bized.co.uk/http://www.12manage.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.12manage.com/http://www.bized.co.uk/http://www.bized.co.uk/http://www.bnet.com./


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Additional material:

Fitzsimmons, James A., and Mona J. Fitzsimmons (2006), Service

management: Operations, strategy, information technology, 5th

ed.,McGraw-Hill, New York.

Metters, Richard, Kathryn King-Metters, Madeleine Pullman, andSteve Walton (2006), Successful service operations management, 2nded., Thompson, Mason.

Reid, R. Dan and Nada R. Sanders (2007), Operations management,3rded., Wiley, USA.

Stevenson, William J., (2002), Operations management, 7thed.,McGraw-Hill, New York.


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Additional material:

Collier, David A., and James R. Evans, (2007)

Operations management: goods, services, andvalue chains, 2nd ed., Thomson: Mason, Ohio.

See the MGB210 Blackboard site (CMD) for copies of:

Collier, David A., and James R. Evans, (2007)chapters & graphics.


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8. Make connections across units

9. Think about the futuredont find yourself sitting for thefinal examination, wishing you had been sitting here formore of the lectures or had attended more tutorials!

10. If you have a laptop, make use of it with the Excel (andother programs); bring it to your tutorial.

11. Try and locate yourself in the situation

12. How the theory being covered can be used in differentcontexts


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What kind of student are you?

Student as customer: Business educators act as resource

providers to students, who then consume these resources.

Student as employee: The educator typically controls the

learning processstudents are passive participants in the

education process. They are managed, not educated.

Student as co-producer: The educator provides the resources

the student needs to learn and the student recognises that

they must contribute to their own learning

The assumption we will be using is:


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Our expectations of you

1. Being responsible for your own learningwe will do all that wecan to facilitate such learning but the ultimate responsibilityshould be yours.

2. Participation in the different activities undertaken during thesemester.

3. Asking questions of us whenever you have doubts about anythingrelated to goods and service management.

4.Contacting us if you are having a problem (or problems)do notwait until it is too late!
http://www.youtube.com/watch?v=oXCuGvsThEwhttp://www.youtube.com/watch?v=oXCuGvsThEwhttp://www.youtube.com/watch?v=xbVw7entkxg&feature=relatedhttp://www.youtube.com/watch?v=xbVw7entkxg&feature=relatedhttp://www.youtube.com/watch?v=oXCuGvsThEwhttp://www.youtube.com/watch?v=oXCuGvsThEw


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In turn we will:

1 Turn up for class on time and well prepared

2 Welcome questions in class at any time3 Respond to emails/discussion board issues promptly (usuallywithin 48 hoursas circumstances permit)

4 Ensure your assignments are graded promptly (usually within2 weeks)

5 Give you as much assistance and encouragement as we canduring your progress through the unit

6 Challenge you to think in ways which you may finduncomfortable, at least initially.


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Week oneoutcomes

1. Understand the importance of operations managementto the organisation

2. Know the meaning of operations management

3. Appreciate the differences between service operationsand production operations

4. Appreciate the interdependencies between thedifferent functional areas of the organisation

Degree of difficulty of MGB210

Reference: Collier and Evans, 2008, Chapters 1 and 2.


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OperationsManagement

UnderstandingOperations

DesigningOperating Systems

ManagingOperations


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What Operations and Supply Chain

Managers Do

What is Operations Management? design, operation, and improvement of productive systems

What is Operations?

a function or system that transforms inputs into outputs of greatervalue

What is a Transformation Process?

a series of activities along a value chain extending from supplier tocustomer

activities that do not add value are superfluous and should beeliminated

Copyright 2011 John Wiley & Sons, Inc.

What Operations and Supply Chain

Managers Do


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The role of theory in Operations Management (OM).

Theory is used to predict, understand, analysepast, current,

and future actions. Theory has a number of components

General theoryis a general statement about the why, what, how ofa specific course of action.

General theory then consists of a number of sub-theorieswhich

contribute to the general theory

Each week we cover an OM sub-theorythat we need toconsider in terms of general OM Theory.

e.g. How we forecast (Forecasting sub-theory) has implications for:

how we service our customers (Valuegeneral theory); who weorder from (Supply Chain sub-theory), and; how much we order(Inventory Management sub-theory) etc. etc. etc..
http://localhost/var/www/apps/conversion/Week%20One%20document%20S2%202012_tb2.docxhttp://localhost/var/www/apps/conversion/Week%20One%20document%20S2%202012_tb2.docx


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Understanding Operations hasapplication to all aspects of managingoperations.

Topics:

Goods, services, operations management andvalue chains (including supply chains)

Quality Performance Measurement

Operations strategy, ethics, and corporatesocial responsibility

Etc.


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So how important is OM to the Business?


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Operations management (OM): the design, operation, and improvementof productive systems. (Russell and Taylor, 2011, 2)

Operations management (OM)is the science and art of ensuring thatgoods and services are created and delivered successfully to customers(Collier and Evans, 2007, 5).

The principles of OM help one to view a business enterprise asa total system, in which all activities are coordinated not onlyvertically throughout the organization, but also horizontallyacross multiple functions.

Transformation process

General OM Theory


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Transformation Process

Physical: as in manufacturing operations

Locational: as in transportation or warehouse

operations

Exchange: as in retail operations

Physiological: as in health care

Psychological: as in entertainment

Informational: as in communication


1-22

O ti T f ti


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Operations as a Transformation

Process


1-23

INPUT

Material

Machines

Labor

Management

Capital

TRANSFORMATION

PROCESS

OUTPUT

Goods

Services

Feedback & Requirements

The transformational process creates VALUE


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Independent of the type(s) of processes:

1. Value creationprimary goods and services2. Supportthose activities necessary to support the main

task

3. General Managementthose processes necessary to

support the overall processes

OM needs to focus on creating value for the customer

THE VALUE CHAINthat network of processes thatcreate value for the customer (Collier and Evans, 2007, 18)

Processes and value chains (Collier and Evans, 2007, 17-20): refer MGB210 Blackboard site, CMD

The transformational process creates VALUE

for ?

Th V l Ch i


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The Value Chain

(Collier & Evans 2007)

D th t f ti l t d


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What is the difference between a good and a service?( Hill, Terry. (2005). Chapter 5 : Designing Service Delivery Systemsin Hill, Terry, Operations

management, Hampshire: Palgrave Macmillan, pp.138-174 CMD as well)

A good is a physical product that you can see, touch, or possibly consume(Collier and Evans, 2007, 10)

A service is any primary or complementary activity that does not directlyproduce a physical product (Collier and Evans, 2007, 11)

Does the transformation process apply to goods

&/or services?

Independent of how a product is classified:

customers/consumers buy the product or service for a reason

VALUE

(can be defined by the Customer Benefi t Package)
https://qutvirtual2.qut.edu.au/portal/pls/portal/cmd_request_p.show_item?p_item_id=144588https://qutvirtual2.qut.edu.au/portal/pls/portal/cmd_request_p.show_item?p_item_id=144588


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VALUEis the (customers) perception of benefits associated with agood, service, or bundle of goods and services (that is, thecustomer benefit package) in relation to what buyers are willingto pay for them(Collier and Evans, 2007, 41).

So how does OM create VALUEfor the customer?

Creating VALUE for the Customer


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Creating VALUEfor the Customer

(Collier & Evans 2007; Exhibit 6.1)

Creating VALUE for the Customer


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Creating VALUEfor the Customer

(Collier & Evans 2007; Exhibit 6.1)

Creating VALUE for the Customer Steps 1 & 2


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Creating VALUEfor the Customer Steps 1 & 2.

Strategic Planning

Missionand Vision

CorporateStrategy

OperationsStrategy

MarketingStrategy

FinancialStrategy


The Strategy Clock (Bowman): Competitive Strategy


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The Strategy Clock (Bowman): Competitive StrategyOptions

PriceLow

High

Perceived

use

VALUE

(Quality)

Low High

Strategies

destined for

ultimate failure

6

8

No frills1

Focused

differentiation5

Differentiation

4

Hybrid3

Low

price2

MajorCompetitor

Bowman, C. and Faulkner, D. (1997), Competitive and Corporate Strategy, Irwin, London

Creating VALUE for the Customer Step 3


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Creating VALUEfor the Customer Step 3.

Hamburger

Onions

Pickles

Two allbeef

pattiesLettuce

Cheese

Customer Benefit Package Design (CBP)

Sesameseed bun

Creating VALUE for the Customer Step 4a


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Creating VALUEfor the Customer Step 4a

Detailed Product DesignProduct Design for The Hamburger

Ingredients (bill of materials):

1. All beef patties x 2

2. Lettuce x 50g

3. Cheese x 100g

4. Pickles x 2

5. Onions x 1 slice6. Sesame seed bun

7. Sauce x 5ml

8. Hamburger packaging wrapper

9. Oil for the griddle 10ml

10. Griddle (heat 220C)11. Cooking utensils

12. Labour to cook, prepare & package (3 minutes/burger)

Creating VALUE for the Customer Step 4b


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Creating VALUEfor the Customer Step 4b

(Collier & Evans 2007; Exhibit 7.9

Detailed Process Design

Creating VALUE for the Customer Steps 5 & 6


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Creating VALUEfor the Customer Steps 5 & 6.

Market introduction, deployment &Evaluation


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Beatton, T. (2009) MGB210 Semester 2 tutorial program

37

CorporateStrategy

OperationsStrategy

CBP

Management

defines

CBPCustomer

Wants

&

Needs

MeasureValue

CBP

CBP

Deliv

ered

Update OM Strategy?

Refine

UpdateRedesign

OM

Processes

Tute#1: Customer Benefit Package

Tute #2: Quality

Tute #3: Performance Measurement

Tute #4: Product Design

Tute #5: Service Design

Tute #6: Processes & Technology


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In the lecture we covered:

1. Why study operations management?

2. Links to other units3. Unit outcomes

4. Week One document

5. Assessment

6. Tutorial program

7. Expectations.8.Introduction to Operations Management

9. General OM Theory;

10. Transformational process;

11. Value Chain, and;

12. Exampled how OM can create value for the customer.

week 1(bb) introduction

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