Operations management
Relevance and challenges of OMA1 when looking at current developments globally
- Worldwide material shortages caused by covid-19 and Ukrainian war
- Climate-driven disruptions
- Labour scarcity and fatigue in a lot of industries
- So VUCA: volatility, uncertainty, complexity, ambiguity
- Companies need/want to be (more) resilient or agile
Table of Contents
Chapter 1: Operations and processes.......................................................................................2
Chapter 2: Operations strategy...............................................................................................7
Chapter 6: Process design 2 – analysis...................................................................................10
Bottleneck........................................................................................................................................11
Chapter 15: Project management..........................................................................................12
Chapter 12: Improvement......................................................................................................14
Gap analysis.....................................................................................................................................14
2 Improvement (implementation) paths..........................................................................................15
Benchmarking..................................................................................................................................17
Balanced Score Card (BSC)................................................................................................................18
Chapter 7: Supply Chain Management...................................................................................19
SCOR................................................................................................................................................20
Chapter 13: Quality management..........................................................................................22
EFQM self-assessment model...........................................................................................................25
Management models: overlaps, connections and differences..........................................................26
Six Sigma..........................................................................................................................................26
Chapter 11: Lean synchronization..........................................................................................27
Mock exam............................................................................................................................34
Questions mock exam......................................................................................................................40
Answers mock exam.........................................................................................................................41
Case study 1: McDonalds..................................................................................................................42
Case study 2: ARAPU processes........................................................................................................44
Case study 3: United Photonics Malaysia.........................................................................................46
Case study 4: Supplying fast fashion.................................................................................................47
,Chapter 1: Operations and processes
Operations and process management: the activity of managing the resources and processes that
produce (a mix of) products and services, applicable for all types of business.
Operation: an arrangement of processes.
Process: an activity or a collection of actions/activities with a specific purpose turning input into output.
- Black box approach or;
- SIPOC model: suppliers, inputs, process, output, customers
-
o Tangible vs. intangible outputs
Some operations described in terms of their inputs, purpose, and outputs:
Type of What are the operation’s inputs? What does the operation What are operation’s
operation do? outputs?
Airline Aircraft, pilots and air crew, Moves passengers and Transported
ground crew, Passengers, cargo freights around the world passengers and freight
Department Goods for sale, staff sales, Displays goods, gives Customers and goods
store computerized registers, customers sales advice, sells goods ‘assembled together’
Police Police officers, computer systems, Prevents crime, solves Lawful society, public
department information, public crime, apprehends with feeling of security
criminals
Frozen food Fresh food, operators, food- Food preparation, Frozen food
manufacturer processing equipment, freezers freezers
Operations management has expanded from treating only the core production processes in
manufacturing to:
- b. Other non-core processes related to the production and delivery of production and
delivery of products and services (purchasing, distribution, etc.)
- a. Service organizations (including entertainment, health care, non-profit, government,
utilities, retail, etc.)
- Non-operations processes (marketing, sales, finance, HRM, etc.)
2
Operations Management IB year 4
,3
Operations Management IB year 4
, Primary processes:
1. Purchasing: procurement, buying
2. Production: operations, manufacturing, transformation, making
3. Logistics: transport, warehousing, labelling, moving
4. Marketing
5. Sales & service
Operations management is not only about production anymore, it has expanded from treating only the
core production processes in manufacturing to:
- b. Other non-core processes related to the production and delivery of production and
delivery of products and services (purchasing, distribution, etc.)
- a. Service organizations (including entertainment, health care, non-profit, government,
utilities, retail, etc.)
- Non-operations processes (marketing, sales, finance, HRM, etc.)
Organizational Some of its processes Outputs from its process Customer(s) for its outputs
function
Marketing and Planning process, forecasting Marketing plans, sales Senior management, sales
sales process, order-taking process forecasts, confirmed orders staff, planners, operations,
finance
Finance and Budgeting process, capital Budget, capital request Everyone, senior
accounting approval processes, invoicing evaluations, invoices management, requestees,
processes external customers
HRM Payroll processes, recruitment Salary statements, new Employees, all other
processes, training processes hires, trained employees processes
Information System review processes, help System evaluation, advice, All other processes
technology desk process, system implemented working
implementation, project systems and aftercare
processes
Secondary processes or activities (or supporting departments)
- Human resource management (HRM)
- Administration, finance
- Research & development (R&D)
- Communications
- Information & communication technology (ICT)
- Legal affairs
- Facility management
Impact of COVID-19 on Operations and Process Management
- Reimagine the strategic architecture of your supply chain
- Build transparency and resiliency
- Extract cash and cost from your supply chain
- Create a competitive advantage with sustainability
- Drive agility and opportunities for growth through a digital supply chain
4
Operations Management IB year 4
Relevance and challenges of OMA1 when looking at current developments globally
- Worldwide material shortages caused by covid-19 and Ukrainian war
- Climate-driven disruptions
- Labour scarcity and fatigue in a lot of industries
- So VUCA: volatility, uncertainty, complexity, ambiguity
- Companies need/want to be (more) resilient or agile
Table of Contents
Chapter 1: Operations and processes.......................................................................................2
Chapter 2: Operations strategy...............................................................................................7
Chapter 6: Process design 2 – analysis...................................................................................10
Bottleneck........................................................................................................................................11
Chapter 15: Project management..........................................................................................12
Chapter 12: Improvement......................................................................................................14
Gap analysis.....................................................................................................................................14
2 Improvement (implementation) paths..........................................................................................15
Benchmarking..................................................................................................................................17
Balanced Score Card (BSC)................................................................................................................18
Chapter 7: Supply Chain Management...................................................................................19
SCOR................................................................................................................................................20
Chapter 13: Quality management..........................................................................................22
EFQM self-assessment model...........................................................................................................25
Management models: overlaps, connections and differences..........................................................26
Six Sigma..........................................................................................................................................26
Chapter 11: Lean synchronization..........................................................................................27
Mock exam............................................................................................................................34
Questions mock exam......................................................................................................................40
Answers mock exam.........................................................................................................................41
Case study 1: McDonalds..................................................................................................................42
Case study 2: ARAPU processes........................................................................................................44
Case study 3: United Photonics Malaysia.........................................................................................46
Case study 4: Supplying fast fashion.................................................................................................47
,Chapter 1: Operations and processes
Operations and process management: the activity of managing the resources and processes that
produce (a mix of) products and services, applicable for all types of business.
Operation: an arrangement of processes.
Process: an activity or a collection of actions/activities with a specific purpose turning input into output.
- Black box approach or;
- SIPOC model: suppliers, inputs, process, output, customers
-
o Tangible vs. intangible outputs
Some operations described in terms of their inputs, purpose, and outputs:
Type of What are the operation’s inputs? What does the operation What are operation’s
operation do? outputs?
Airline Aircraft, pilots and air crew, Moves passengers and Transported
ground crew, Passengers, cargo freights around the world passengers and freight
Department Goods for sale, staff sales, Displays goods, gives Customers and goods
store computerized registers, customers sales advice, sells goods ‘assembled together’
Police Police officers, computer systems, Prevents crime, solves Lawful society, public
department information, public crime, apprehends with feeling of security
criminals
Frozen food Fresh food, operators, food- Food preparation, Frozen food
manufacturer processing equipment, freezers freezers
Operations management has expanded from treating only the core production processes in
manufacturing to:
- b. Other non-core processes related to the production and delivery of production and
delivery of products and services (purchasing, distribution, etc.)
- a. Service organizations (including entertainment, health care, non-profit, government,
utilities, retail, etc.)
- Non-operations processes (marketing, sales, finance, HRM, etc.)
2
Operations Management IB year 4
,3
Operations Management IB year 4
, Primary processes:
1. Purchasing: procurement, buying
2. Production: operations, manufacturing, transformation, making
3. Logistics: transport, warehousing, labelling, moving
4. Marketing
5. Sales & service
Operations management is not only about production anymore, it has expanded from treating only the
core production processes in manufacturing to:
- b. Other non-core processes related to the production and delivery of production and
delivery of products and services (purchasing, distribution, etc.)
- a. Service organizations (including entertainment, health care, non-profit, government,
utilities, retail, etc.)
- Non-operations processes (marketing, sales, finance, HRM, etc.)
Organizational Some of its processes Outputs from its process Customer(s) for its outputs
function
Marketing and Planning process, forecasting Marketing plans, sales Senior management, sales
sales process, order-taking process forecasts, confirmed orders staff, planners, operations,
finance
Finance and Budgeting process, capital Budget, capital request Everyone, senior
accounting approval processes, invoicing evaluations, invoices management, requestees,
processes external customers
HRM Payroll processes, recruitment Salary statements, new Employees, all other
processes, training processes hires, trained employees processes
Information System review processes, help System evaluation, advice, All other processes
technology desk process, system implemented working
implementation, project systems and aftercare
processes
Secondary processes or activities (or supporting departments)
- Human resource management (HRM)
- Administration, finance
- Research & development (R&D)
- Communications
- Information & communication technology (ICT)
- Legal affairs
- Facility management
Impact of COVID-19 on Operations and Process Management
- Reimagine the strategic architecture of your supply chain
- Build transparency and resiliency
- Extract cash and cost from your supply chain
- Create a competitive advantage with sustainability
- Drive agility and opportunities for growth through a digital supply chain
4
Operations Management IB year 4
