Operations Management

hello everyone we continue with the third part of the presentation or the third part of the lecture material and we are looking at chapter and it's very voluminous so i'm gonna and divide this section into two this should have been a whole lecture and this should have taken a whole day for discussion but i'm planning to i'm just thinking of adding it to today's lecture so that we'll be able to have enough time for us to prepare for our tests so chapter 11 looks at and chapter the other chapters we are looking at looks at the functional areas and one of the functional images suppression management so at the end of this outcome this is what we intend for you to know and um knowing this learning outcome this is the introduction of the presentation today and we will start with the introduction to operations management we start with the introductions to operations management so what is operations management we've already discussed this but this time you're going to take them in details so here the operations and management or one drug of operations functions they are concerned with executing in terms of um and executing the transformative process in businesses so how do you transform input into outputs how do you get things done in the business that's what basically are concerned about how do you get the products that transformation that goes on in the business that is what we are interested in so the operations uh and basically um concerns with the creating of products and providing services in order to realize the objectives of the business so here we are going to discuss how and businesses or how products and things are being done we are also and in terms of understanding the functional rules of operations management we are also going to discuss some importance of operations management so one of the importance is to reduce costs is to reduce costs so and to reduce costs is it can be either in terms of a product or service what we should know is that the output of fm can either be in the form of product that is tangible use or in terms of intangible data services so one of the benefits of operations management is to reduce costs if management are effective it should reduce costs so cost here in terms of the fact that when you are able to and put in place the necessary materials the necessary and things that are needed by the business and they make sure that their right skills and rights things are being employed it reduces the costs the cost involved in production reduces and when the cost reduces it becomes profitable for the firm it also increases revenue so when you increase your revenue and by making sure that you offer quality services or your services and when you offer quality services impressions management when you ensure that services that are provided are quality when those quality services are offered what happens is that you get ma and the market you are able to get more markets and that market increases the revenue of the firm so it ensures profitability of the firm and also it reduces the amount of investment needed to manufacture the type and the quantity of the products or the services required so by um ensuring the better use of machines ensuring the better use of facilities identifying new ways of doing things will help reduce the investment that are needed in producing output thereby also reducing the cost and reduce the cost of in terms of the activity that is going on it is also provide the impetus for new innovation it provides the impetus for new innovation so through the operations management that is when you are trying to gather skills and knowledge in developing new products and new things you end up being innovative because that is what appreciates manager operations management do you try to bring on board and ideas resources and now transform those resources into finnish products so this uh transformation that goes on helps you to be innovative you identify new ways of trying to do things in a more cheaper and a more environmental friendly way there are other reasons of which operations managers will be beneficial some of these reasons may include some of these results may include some of these reasons may include um and it can improve productivity that is in terms of ensuring that work in terms of the transformation process it increase the productivity of the business it also it can help businesses to satisfy the needs of customers or clients more effectively it also can lead to an um general reputation of the business so it also builds the reputation of the business that is when you have a good operations management it helps to build the reputation of the people so these are other benefits of operations management so i did start with the definition of operations management and with the definitions of operations management i talk about the fact that it is concerned with the transformative process and how products are manufactured how services are rendered however it can be looped in three different concepts in three different concepts that is operation functions the operations manager and the operations management that is if you want to understand certain uh conceptual definitions under the concept of operations management you can look at it in terms of their functions in terms of their management managers and in terms of the management so operations function is that function in the business aimed at utilizing you aim at the utilization of resources of manufactured products or render services so this is the functional rule so the function primarily aims at utilization of resources to manufacture products or rendered services then you can look at it in terms of the operations managers these are basically the personnel so these are the personnel who are put in charge the personnel in businesses directly responsible for managing operations functions so those who are in charge then when we involve when we involve managers activities the decisions and the responsibility that time edit the execution of the official function then this is becomes what we call the management so involves the management so operations management you can also tell it that the research management function involves operations managers activities decisions and responsibilities that tie in with execution of the operation function so basically this management process will include um issues of such as operations planning operations organizing operation scheduling and operation control so in terms of defining this concept of understanding the concept of operations management this is we can look at is in terms of their functional role we can look at who is responsible for executing those functions and how the function in terms of and the general responsibility in terms of how their whole execution goes on then the execution goes on as a management rule so we continue our discussion with the understanding the management model so the management model illustrates the management of operation functions the management of operation function and in this model we are going to concern with three main aspects within aspen that is the management strategies and objectives the management activities that influences the transformation processes that produces outputs so in this model then we see the operations management strategies and objectives and we are also going to talk about the transformative process now in the operations management on rejections we are going to discuss the clients and customer relations how then we should put those clients ahead of the business and how to satisfy them and in terms of the transformation process we tend to look at the inputs so the inputs here we can tend to look up what is being what is being needed and the things that are used in yeah so what is um the the focal point and the thing that i use so all these are inputs and how these inputs are being transformed into and achieving the output so this is the general model of how operations management look at we are also going to go further to look at the specific model so in the general model we talked about the fact that and one main aspect that the general model focuses on is operations management strategies and performance objectives so with this one here it basically focuses on the need and continually formulate strategies and objectives to maintain and straighten and expand competitive position and customer base so what we are seeing here is that with this first part of the model it is not just about just the strategy but how do you get a needed advantage how do you position yourself if you are in a business environment or you are trying to engage in the business once you start the process you must have a formulative motive asking how do you go about things so that you will be in a better position compared to other businesses so those are the things that we are looking at how do you position yourself in order to get a good a a um standing in the business and to get a good standing is to have the customers at heart so to have the customers at heart basically there are things that are needed there are things that are needed to ensure that you are having the customer base and these are six elements in terms of the customer client needs so the customer client needs is that basically you have to be concerned with issues of higher quality lower cost shorter time and greater adaptability lower variability and higher level of service and high level of service now in to talk about this we continue to talk about this um performance and strategy then we need to understand that there's this guideline now the operations management guideline that we see here which i'm just going to briefly explain them is to how do you position because the social relates to the positive outcome in terms of the customer client relation that we have just talked about how do you position yourself so to do things right the first time now what if you do this right the first time it implies that as an operations in terms of what you are doing or as you undertake the business and so as you go into the field you should make sure you reduce errors and you should make sure that the products that you produce are of quality when you product quality you get what you call the quality advantage so in terms of even the manufacturing of mobile phones and let me not just talk about and put one phone ahead of the other but techno used to be i mean a very a leading brand in terms of their and their band called highly quality people used to buy techno at a higher price in the earlier parts and and in terms of quality it was very quality so during that time that they take them not take no sorry i'm not here so i'm talking about nokia and not technology so the early 19th um nokia was the main brand of quality phone now new phones are matched and people i realized that its quality was better and those phones were able to take advantage of the quality advantage and now today they are the leading we can talk about apple you can talk about some song and these are the most um mostly um new and trending even who are way in terms of people have attested to equality and now it does also tend to be in the competitive era in terms of the quality advantage so doing 10 strike means that you need to reduce the error in terms of the product or the services that you render and that will give you the quality advantage another thing to also need to look at is to do and things cost effectively is to do things cost effectively so with management one thing is that as you continue to produce goods and produce goals your idea is to make profit and with the idea is to make profit you must identify ways of trying to reduce the costs in terms of the cost involved in producing something and not just reducing the cost of producing something because if you're able to reduce the cost of producing something you're able to reduce the price and get more market share so with that you get what you call the cost advantage so we are able to expand your base so most of the lagger frames and that we see today is because um they are producing on the last scale they have what they call the cost advantage the costs are advantage meaning that they are able to produce the same thing others are producing at a cheaper cost at a cheaper cost then you are so at a cheaper cost another thing that you can also look at is that doing things fast doing things fast so here when you talk about intense fast it's about how do you produce quickly or how do you produce in the shorter possible time so here what you'll be able to do is that you identify what you call speed advantage so let's take a scenario when and you go to the market and there's a strategy in the market you have the machines or the things to produce quickly so when you are able to realize that the market is in shortage and you're able to produce quickly to the market when other and businesses are still now struggling to produce you have that speed advantage you're able to produce and get that market share so people rely on you they know that anytime that they need you they can get it at the shorter possible time another thing we can also talk about is make things and make changes quickly make changes quickly and without make changes quickly you know that um the business environment tends tends to change or there are certain um scenarios or certain conditions that arises that and this tends to change so when those things changes how do your business respond to it is very important when customers taste changes how do you usually change to so this is what we call the adaptability advantage so you are able to change to shoot the needs of your customers and that gives you that ability advantage and that is one of the things that most of the phone companies do not we're not able to i mean let me leave up with better have made them to be missing out of their market how do you adapt to the changing and taste of consumers at first we used the telephone and people wanted to use the moving cell and those things and those phone companies were able to adapt now when they even started with the moving phone it was a bigger phone heavier now people started with the keypad we've moved from that keypad we've moved to a touchscreen now to those kind of smart level like how do you adapt to the changing environment and as a business that's one thing that you should be concerned with another thing we can also talk about is to do things right every time is to do things right every time so when you do things right every time for example if you are um we all right let's take kfc and check elected we know the taste of kfc we know the taste of chicken leggings so if somebody gets a the taste that and inspire somebody to buy chicken they can spice kfc it should be the same taste in job issues the same things in cape town so that if i'm buying chicken licking and i'm a customer of chicken they can i know what taste i want if i'm a customer of kfc i know the chest i want i want to go to a different kfc in a different time and there will be this kind of no the test is different so you should be able to have a lower viability in terms of taste in terms of quality in terms of differences of the goose over time and that is very important and that will give you the what you call the viability low variability advantage so we also talk about the do things better do things better and when they do things better we are saying that um you you always want to be in the position in terms of your packaging in terms of how you relate to your customers in terms of how you uh provide services i mean you get that added advantage you do you are able to get a customer base because you are willing to ensure put customers needs ahead so that gives you and what you call the service advantage service advantage you realize that all these skylines that we talked about is also related to them positive in terms of the customer of clients relations that we talked about earlier here so these are the positive outcomes or the positive and the lead to a relationship between the positive results and their operations management guidelines that we are discussing so under the general model that we talked about the strategies and objectives we also talked about the fact that another important aspect in terms of regional model is the transformation model and now here is where we are mostly concerned about how do we get output or how do we get our final product from the inputs that we have so the transformation and operation function is primarily concerned with application of resources by means of transforming process to provide output now in the transformation model we have three components that we are going to discuss the input the transformation product itself and the output you can recall from the general model that we are talking about the inputs the transformative process and the general output now what are inputs so we'll start with the inputs so the basic transformation model that we are talking about we are saying that we start with the input the transformation process and the output under the input is where we are going to talk about the resources and the ace so the resources are the things that are needed and the a's are the things that facilitate in terms of the transformation processes so we first of all look at the input inputs so intent under inputs inputs using the transformative process basically will comprise of the resources that are to be transformed so what are the resources that have been transformed the resources to be transformed are the material the customers or clients or information data to be transformed and also comprises of the resources required to make the transformation process possible so the resources required to make those transformations possible is the human resource equipment resource center and technology so let's quickly go through this and input here now the material so material can be in terms of a process or on process so sometimes a pro a finished product can also be a form of input for another production for example steel and or glass it can be is needed in terms of other manufacturing and businesses so it becomes an input to them so these are all forms of input and or the things that are needed the resources the process and the process resources we can also talk about the client or customer sometimes clients can serve assignment and they can serve as input to the transformation process so for example if in a dental business or in a dental and hospital you realize that the the patience is now that the client or the customer is the input because it is the person that has been worked on to achieve that needed end results so it becomes a client and information through here basically look at the how um information that are being gathered how are they needed in the transformation process so information for example if the newspaper needs some information either from a primary level or from a secondary level and therefore before they can transform them into i mean a news report or something that it becomes an input the information there becomes an input and it also helps in the business environment we can also quickly talk about it the ace so these resources that we talk ab required in the transformation processes they help in terms of the transformation process we can talk about the human resource the human resource here basically the human involvement the workers and not the type of human resources not just the workers it's also considered the supervisory rule so who are they they find and their workers and who are those who supervise them to work all of these are needed in terms of their service input in terms of them and the management for the transformation process we can also talk about the equipment and on the equipment here is basically their um manufacturing and use factories machinery equipment hospital was for the hospital examination center for schools operation center banks offices the physical things the computers the indian serving counters laboratory lecture halls all these are equipment that are needed because if you want to establish a university and now in terms of establishing the universe what are they into the equipment there you need a lecture hall you need a laboratory you need other other uh presentations and projectors and all these are part of their equipment and those who can talk about the technologies and now one thing you should know about technology is that it keeps changing it's very very important in terms of the transformation process and that's also served as an input so new knowledge and techniques can help manufacturers to manufacture better products and services so you as a business entity must be able to know and and know the new kind of ways of doing things and new ways new requirements that are needed in terms of doing things are also inputs or the aid in making sure that and the transformation process is more effectively and efficient effectively and efficient now once we understood the input section then we also move on to the transformation process so the process now for this time involves done you have identified your input now the transformation process itself is where you are now converting this input into output we are now converting this input into output so it is the process how these inputs are being processed and how they are being transformed so it can transform it can be the process can be in terms of um manufacturing uh um manufacturing it can be in terms of um service um ended how services are being transformed so these are all part of their and transformation processes so services provided that also fall into this category may include them and delivery services how do they go about it how do they go and about so delivery services we can in terms of um where wholesale retails um in terms of the manufacturing we can talk about the manufacturers transformation process all these apart how things i mean evolve in terms of even in the school you can talk about the library for example if you have information as a resource as an input how this information can be converted into maybe an audited report how this transformation goes on is the auditor reports terms of all this is part of the information process in terms of uh formation process then we can also look at the final output and the ultimate goal of every business is to produce an output so the outputs as we are seeing can be in terms of their product in terms of services in terms of products and services so manufacturers basically produce for example either you produce a furniture a motor vehicle a car the final product is i mean you have transformed the inputs into achieving this and it can also in terms of services maybe you get a haircut or get transport and you are you're taking to the final destination so these are some of the services produced however we can find some catalysis of products and services and some criticism between products and services so manufacturing products are produced by the manufacturer and the service given by the service provider so manufacturing product exists physically is long-lasting and the output is held in stock we are just trying to give some definition of distinguished product and service in terms of this um service provider and it is intangible that it cannot be seen it is perishable and the output is not held as stock it's not held at stop so one other um distinguish between product and is that one other difference between the product and manufacture is that a product is manufactured before use while the provision of consumption of service is simultaneous so the product is manufactured before you can use it but where the service is continuous and i mean product also try to target the local and international business environment in terms of manufacture products your aim is to go beyond local and to get international markets but with services is basically provided by local markets the service were basically provided by local market with a manufacturing product too it is easy to measure the quality of the product it is easy to measure the quality of product but it is very difficult to measure the quality of services so these are some of the difference between these two so we move from the general model and we have come to the basic transformation model we talk about the input the transformative process and the output in this model under these operations we should understand that different operations have different m characteristics and how this different characteristics basically have some implication on the cost of producing so how do the patients go about basically have impact on the cost now the operations may have may differ in terms of forming ways and these four main ways we can talk about the volume of the outputs may differ the variety of output may differ the variations of output and the visibility of output so on the volume of outputs here we are talking about the fact that the number of items produced by patients over a given period of time so we are looking at the number of items produced by an operation given a period of time so if you are on this time in the volume how much how many can you produce at a particular period of time and we are maybe considering just producing one commodity so you are considering one commodity and producing them over time it helps you to ensure standardization because you become an expert it makes sure that because you're producing a single product stress a particular period of time it ensures standardization it's responsive and repeatability and ensure that they are there their processes are most smoothly and in this situation it helps to i mean once you're able to produce the same thing over and over a particular period of time and you tend to be able to identify or it helps you and the impact on cost is that it lowers production cost per unit it can lower the production cost per unit because the fixed costs will be spread across it's the same and machines that are being used in producing the same thing over and over so since the first scores have been spread of course it reduces the cost the per unit cost of production so when we talk about the volume is where we are tend to maybe in terms of um manufacturing you can talk about that or maybe i would want to produce 200 motovir kills per day or and 20 airplanes per year you are producing the same thing and your objective is to in terms of the volume you give a quantifying amount that you produce particular commodity per whole year in terms of the variety now the variety here it ranges different items produced by the operations over a given period of time so unlike the volume that the same item is produced over a given period of time and how many um the number of times those are produced this time we are looking at the different items produced by these patients in a given period of time and here the advantage is that it allows for flexibility it allows for flexibility however because and for example if you are producing a particular commodity and you realize that um there's a change in the business environment so you have to therefore maybe instead of because you produce a variety of goods and you realize that no this one is rather i mean um and selling you can be able to stress to produce those i mean there's this flexibility for you to produce to switch to other however the ability is that there's no standardized products or services there's no standardized products or services and it comes at a higher cost per unit of manufacturing it should be come at a high cost of penetrative production because you produce them small small units and different different of products i mean it makes sure that i mean it it increases the cost of production so this uh yes this concept is just trying to let you understand that in terms of your business how do you tend to i mean if in terms of trying to influence the cost of business how do you go about it should you just focus on one commodity that produce over time or produce smaller units over time smaller unit over time so the variation of outputs here will refers to patterns of output of the patients which may be constant or maybe highly irregular non-routine or unpredictable so for example in a seasonal movement for example when it is christmas we realize that the demand for hotels are high in terms of in a particular period the demand for in terms of winter the demand for uh jackets are high so your output therefore therefore focus on production of and those particular or even in the store in the service store that's the office services you realize is that in this period most and shops are willing to sell and jacket ends for a particular period of time in an irregular time then when go to summer then they they tend to switch to and that so this is where we talk about the variations of outputs another um important um and the last one is the visibility of outputs so here we are concerned about the operations activities that are exposed to our customers or clients so it is very important that in the business frame um in terms of how you undertake your patients how do you i mean make it a a visible to your customers or client so if you are somebody who and they said you have you manufacture wedding dresses you need to give customers that room for them to visit your shop or to see and i mean examples of what you do before they can i mean have that trust of i mean purchasing what you you sell and then the kind of designs that you do and that will give you that customer base now that we've finished discussing their characteristics of operations we just talk about that and different operations and their catalysis of different operations it will inform us to also um that's all the businesses that we are doing it helps us to classify and how things are done either under services or under manufacturing so and the four main thing that we discussed the viability the visibility the volume and the others i mean basically we inform in terms of we different from manufacturers as will be different from service providers so under manufacturing realizes that when the volume of outputs which basically is the scope and the variety of products will help us to determine different class and classifications of manufacturing different classifications of manufacturing so the different classifications of manufacturing we have the projects process and we can have the job in we can have the batch process the mass process and the continuous of the repetitive system the continuous of the repetitive system so the project process the projects here when talk of the project process we are talking about processes that are highly individual and unique but that are normally tackled on a large scale so um we are producing a particular um process and individual commodity on a particular something and that thing is on a large scale and it is individual and unique and it may take months or years to complete such a project so that becomes a project process and when talk of project process turns under the manufacturing here what happens is that it is when you undertake a certain complex initiative so for example if you are building a an interchange a more or something these are fall under what you call the project processes these are large initiatives and basically it's individualistic and unique and it happened for a period of time time and when you are done that is it so they call it the project processes we can also talk about the jobing process now the jobing process here the operation process conducted on a small scale with a low volume of output so a low volume of outputs so for example with this kind of um process when you have maybe manufacturing a net place or your jewelry you want to have a small component of maybe different designs with different because some customers want some designs for either for wedding or some designs for either um for party or how you present their necklace you want to manufacture different components of it in terms of even and wedding invitation wedding invitation when you are doing and you can't produce it on the last scale because it's being contracted so you can do two or three things or two or three invitations but you have to do it maybe for in invitation for a zulu for for this person zika you have to do it for maybe 30 or he's asking you to do it for 14. you're doing this a different design for f50 so you're doing it in small scale on low volume of outputs so small scale and low volume of output so we can also talk about the batch processes now when talking batch processes here so for example here it may look similar to chopping but it's different in terms of the probability job and we are saying that and it produces something on small volume on a small scale but can have different varieties so and different invitation cards but you have to produce them on small scale now with this and batch processes here we are seeing that you produce a particular a limited rich range of products is manufactured by business or in badges so if you are producing for example um furniture yeah there is no producing furniture where we are producing furniture with other other aspects so you produce um furniture um or maybe you're using the same businesses to produce um and if you are producing furniture maybe you want to produce tables first when you're done with tables then you want to produce chests so you produce them in badges you can do the same thing for appliances maybe you want to produce and toaster and once you're done with producing two star and you produce maybe grills or you produce ions or you produce other other appliances so you produce them in badges and this is what we are saying that is their patch processes so mass processes basically this is a known term for most of you that is what you call a mass production so here when talk of that is when you produce in high volumes so in higher volumes with less viability so high volume with lens viability so for example a portrait fan or a fan like produce them in high volume if you are producing a cast maybe you produce them on the last scale so that i mean we get a minimized cost we can also talk about the continuous or repetitive process so with this kind of process basically what happens is that you don't um it's a 24-hour running process you don't stop producing producers so you produce um beyond large scale so you can't you just have to produce and you don't cut you cannot ingest alt production by a particular point in time compared to mass production with a continuous repetitive skill once the product begins it continues it runs so basically this is the kind of companies where you run ships you put their machine start and you have to go and replace them so for example s com i mean generation of power you have to make sure that it is 24 7 and provision so that you keep people in check keep people in check so in the same vein we've been able to i mean use and then classifies and different types of processes under manufacturing yet to process types of for service you can identify they can talk about the professional service the service service the service shops and the mass services so one talk of professional services here basically is based on the people with setting unit skills and client-based and customer relations so and one-on-one basis um basis kind of services that are provided these are provided by people with some unique specialized skills so they are trained people in that particular field and those fields are their services are needed at a particular point in time so because it's basically f and client focus nature of the service the volume is basically low and the volume is physically low where the probability of the services can also be high so some of these services we talk about professional services can be in terms of academia they have formal academic requirements and they have gone through a training to attain what they have so you can talk about doctors attorneys and consultants these are all form of professional services we can also talk about the service services and the service services here we are seeing that the processes where the characteristics of service provision fall between those of professional service and those of uh mass services so the services that are provided here they fall between those of um professional services and those of my service services they are also clients contacts and are standardized to some extent so with the service um basically what happens is that they also focus on their clients and they are they tend to render certain services that are basically needed by and the clients that they serve so the client that itself basically uh if you go to the bank and they are focused on their they offer certain special services to their customer base if you go to their hotel they have an incentive and services to customer base even retail shops so these are all forms of data service and shops you can also talk about their mass and services now when talk of the mass services these are where and there are a lot of clients that takes place in the limited and client contact so there's a lot of clients that they are serving we serve a whole lot of clients but it is when that happens and the contact between the customer and and the client relationship is limited so basically what you said the customer's client on the last skill and some of this involves the post or what you call the telecommunications services the air retail services and television services we continue our discussion by looking at operations design now under the nature of what under the patient's design and what you see is uh trying to explain what a patient design should entail so we are basically going to check each of these things and we are going to explain so the nature of operations design is the design of the products um how the manufacturing of hard manufacturing or services provide services and products it's what we are going to discuss how do they provide them what should be involved in their design so before the product comes to you and how what should be entailed how if for example in a security and business or if it's a security firm how do you and there should be an alarm system there should be a control room there should be security personnel if you want to how do you design your business so that it will suit the needs of your clients so official design is basically a way of trying to help you achieve the objectives of a patient's management so how you design this of your business is what is going to inform you achieve the operations management so it's an integration of products and services and the processes of manufacturing and manufacturing or how they provide them how to provide them [Music] one thing we should also know is that in the design of a product or services it has some importance attached to so a person's manager may not be solely responsible for how the design of the product should be but it's indirectly responsible for providing the information and advice on which the ultimate success of the development of the manufacturing of the product or services depends this tells us that operations manager has a rule in terms of how the design now with the design of the product and services it gives the company a comparative advantage a competitive advantage if you have the good and operations design it will give you a good advantage and that good comparative advantage is what we call the it ends with the customers you get the customer base so some businesses will be in the market for a longer time but they will not be able to i mean get them um because they need their customers they want some new customers come in for example how their iphone came in and now i mean they are one of the leading brands in terms of their phone and production how do we able to designed how they designed their operations and how those operations which ends with the customers how they tend to i mean and see the need or the the designs of customers that satisfy those desire give that compatible competitive advantage in the markets of mobile phones in the market of mobile phones in the concept of mobile phones now one interesting thing is that the component of the product or services the product or services is what is basically the end product to the the the customer what the customer gets so and satisfying the need of a customer then one thing important aspect of this uh productive services is that it has three main independence and components the concept the package composition how is being packaged and the process of creating the package the process of creating the package the first aspect in terms of the concept here is basically concerned with the expected benefit the customer or client purchases when purchasing a product or services so on it what we should know is that consumers do not just purchase something for a sick but they have um a need satisfying that they need to satisfy so you as a business entity in terms of your design of your patients you should be concerned with the the the the the niece or you should concern with the desires of these customers and once you have the understand the desires of these customers you therefore i mean the expectations that they they have in terms of what they have in mind or if i want to use a phone what what what are they looking out for what actually drives them what is what are they looking out for to motivate them to even purchase something so if you do not i mean conceptualize this idea you end up missing and the expectations of this and customers and you may not get the comparative advantage that you deserve so it is very important to know the spectral benefits and because it will ensure the safety reliability and ability possible high value of resale so that once they did the result and once you sell to them they're going to come back later for another question because they know that once they come to you the kind of need that they want they get the satisfaction that they desire now in terms of um the concept that is and the expected benefit that the consumer will have of the products conceptualizing that you should also be concerned with the concept of the package now the package here is how you you present the goods to or how the good is made so for example in terms of a car it's not just about the look but it also comes with the setting and the package in terms of their uh fractions in terms of um conditions or guarantee that um it's as reliable so in terms of um even somebody coming to your restaurant to buy food or something people think to how is it packaged to them it's how attractive your packages are it's also important then we can also talk about the process and the process is very necessary it creates the package of the product and services is very necessary so the process in creating this package is also very important for the business the process of creating this package is very important for the business now now we continue our discussion with understanding the stages in the design of the product and to understand the stages in the design of the product forever and design is to understand and the full detailed specification and to understand this full description specification then you should be able to get information from the concept and the concept here the form the functions aim and the benefit of the design or from the package the composition of the product and the services required to support the concepts and the processes and the processes of creating the package which determines the way in which the individual products and services of the package will be manufactured or provided so to obtain this for and detail specification these are the five um steps that we should follow to get to the full detail specification of the model that is we can start with the concept generation so the concept generation here that is the first step in terms of the stages in designing a product if you want to design a product you must have i mean an idea generates an idea of how a new product should look like or a service should it should be the the new ideas can either come from either the business itself or from research or from outside the business how do you and design this product you first of all need to have a concept generation and the concept generation here is developing an idea and the idea should not give you one different ideas you should have developed different ideas either from the business either from research or from other environments another step we also need to also look at is the screening process and the screening process here in the screening process here with the different ideas that you have conceptualized in the first stage you now need to screen them you don't need to screen these different ideas and you need to um and whether they are feasible and the feasibility of it how difficult is it to produce and what is the resources to go in the particular design and acceptability is it going to be how worthwhile is it to i mean um invest into that is it going to have the needed return that you invest in and vulnerability could you go wrong or what are the risk there so the first data you have different concepts in the second step you need to screen all these concepts you need to screen all these concepts and screening all these concepts look out for other alternatives like which design actually may be the the best design and the best design in terms of the feasibility in terms of accessibility of vulnerability which i've just talked about the another step for you to do is to now undertake a preliminary design so once you have ideas concepts generated you need to and i take a preliminary once you screen the processes and i mean assets which may be feasible which may be acceptable you therefore may have started with a preliminary design of what you intend to do so once you screen through the ideas and you narrow it to one or two choices then with the preliminary design here you now focus on them what should the products be involved what components should be used or how the components should be packaged so that is how you undertake the preliminary design the component of the products and the package and how people can identify themselves with this package and how it's gonna sell for their and one or two and you've narrowed your um questions too you can also therefore move on to look at them evaluate and improve evaluation and improve so once a preliminary design has been done then you need to therefore evaluate and the idea of evaluating is to improve that design so making the process of manufacturing and provision less expensive and easier so you have a design and now you tend to evaluate how do you make this um less expensive how do you make it easier to produce so various techniques and methods that can be used to eat the steps what are the technical steps to be used in terms of and aiding the step and the final uh dance of designing a product is to undertake a prototype for the final design so a prototype or a final design is to now and we need to produce that product and with this final design you also need to test it in the market so if you test it and it is a prototype so if you find a need to improve upon it you improve upon your primary design if it is favorably received by the market the final design and the specification of the product can be compiled so after looking at how the product design is and how the product or the service design is issue it's also important to look at the design of the operation processes so it's also important to look at the design of operation processes and in design of operation processes we are interested in looking at the whole network the whole supply network in the business itself the business is the supply network and this may include them intermediaries the final customers and clients and they are all needed you need to have a view about how all these are going to help or work in the business field so understanding that the network in terms of the intermediaries the customer base it helps to position yourself in a competitive way identify your supply network and how involved you're going to involve in this network and involvement of the supply network in terms of your business so this is what the operation design basically what we are going to look out for or what we are going to discuss so we continue to look at how do we i mean and in terms of the business operations how do we lay out our operations or how should the flow of activities go on so under layout here we are basically concerned with the fiscal arrangement of resources for example how machines should be the layout of machines equipment and the personnel so the layout of manufacturing or services facility is usually is the first catalyst in the cooperative process is the first operative process so in terms of the undertaking operations you should be concerned about how where should you position or how do you set out the machines and how the layout should be like when those things are fixed then you now can think of the flow of this eye so the layout is in the which determines how the materials informations and customers flow throughout the transformation process so the layout will determine how and the materials the information the client or the resources that we need how they are going to flow in the transformation process because if you start for example you have the human being and the human resource where you position them you are fought in line one line two line three how it starts from um the cement and the the um cooking of the food and how does it transform who who puts it on fire who put it on and who are today who are that so in terms of kfc if you go to look at their uh business operations they have certain layouts so that the test will be as it is in other operations and the flow of this the layout ensures the flow of the transformation process in terms of the layout we can talk about three levels of three steps in terms of business layout we can talk about the selecting the process type the selecting the basic layout type and the making detailed design of the layout under selecting the layout basically it relates to where we talked about the type of and manufacturing setting for that type of manufacturing sector to talk about either you are going to do a big project if you are going to do a purchase you are going to do mass production of continuous so that is what is going to inform you in terms of the selection of the process type so in terms of the selection of the process type then we now move on to the second step which talks about the selection of the basically out type so selecting the basically our types and we have four main basically archives that we are going to discuss we are going to discuss the fixed position layout the process layout the product layout at the cellular layout which is also known as the hybrid so with the fixed layout basically looking at this and the the shape the size and the location and it cannot be moved it cannot be moved so it's static in a particular endpoint and once um the the the layout has been and and established you cannot move it to any other place so for example a construction site if you are constructing an interchange you cannot i mean at a particular point you can remove it so your layout is basically set in that section and it cannot be moved now under process layout basically what happens is that and similar products or similar products or services are grouped in a consecutive and approved in sections so here we group similar processes together in sections so if you are producing a particular group like for example if we are um producing then fm can produce tables can produce chests can produce texts and other stars but if it is producing and and chess it tends to produce chest and then so the layout for chest then we tend to then change to produce tables maybe it tends to produce dextro eclipses and levels because sometimes in in doing um chair production or wood production how do you produce them you do this things in sections but this is what we call the process types you try to do them and your manufacturing tables your manufacturing chest if you have fracturing tables you want to do the head first the injection then you do the the the legs of the table sex and so it's a flexible flu then we also have the products layout so as you said in the process layout um you do it in section so even within um table you can do maybe if you are sewing you do showing alone if you are and doing and farming like you can do and farming alone taking the land alone you do it in section now it is different from the products layouts and stuff in the sense that here your you arrange the products or the products you have you do or you manufacture or the service you render is being arranged in a consecutive manner it's been arranged in a consecutive manner so for example if you want to manufacture a car if you want to manufacture a car you realize that they are assembling line for this assembly line for that assembly line for that you don't change it in a particular point in time with the flexible layout you can decide to do this first i'll do the second but with that product layouts it's the line form so you have a line for maybe the card tie you have a line for this you can you cannot interchange them at a particular point in time you cannot interchange them at a particular point in time then we have the cellular layouts so with the cellular layout basically when you replace specific processes in cell and you arrange them according to either a process or the product layout what we just discussed so for example if you go to um mr price or shops you realize that in the same particular shop you have a section a cell phone um a men's department and you have a women's department children's department they're all paying please and they and basically sell them similar stuffs and just that we have as a part for men women and children in the same department and even in the shops realize that when in the mail department then there's a particular cell for maybe a giant straw for this that or that so this is what we call the cellular layer out how their range or other defenses are being arranged in terms of the business setting in terms of business setting another important aspect of the operations design which so far we are discussing is the process technology so the process technology refers to the machines the equipment there are power tools used in the transformation process to transform materials information and clients so that products can be manufactured or services provided so the process technology may range from simple um processes and basic extractions and automated machines robots all the new equipment that are needed and this is to ensure that there's an error free product and highly quality speed dependable cost effective and these are very important so as a manager the operations manager you must be oppressed with all the um process technology you must and you must perform this tax effectively because when you've performed the stacks effectively and it can improve specific compression process it can also decide the kind of technology to use it can also help you to integrate new technology into the existing operations it can help you to upgrade and replace technologies and these are important for the manager to be concerned with the operations of this new technology that comes in also under their operations design it is also important to understand and job design and the work organization and operations also should also focus on the people's involvement in the patient's activity itself so job design is important it's vital importance because it determines how workers perform their taxes daily so how are the workers performing and it's very important to them operations manager and their work and study which is a scientific approach in the job design and the web study that influences people in the work environment to improve efficiency and effectively so basically refers to all the factors influencing the people in the work environment systematically in order to improve and the execution of tasks so when talk of their work study there are two techniques that we are going to look at with two techniques that we can look at that is the um method study and the um work measurements so in the job design we are saying that how workers perform the people's involvement is also should be concerned in terms of operations of the business and then how they are the activities are being influenced by the environment to improve their efficiency which is a waste study it's also um to be understood now understanding where study we can look at two techniques that is the method study and the work measurements so the meta study entails a systematic recording and critical investigation of present and proposed work matters with a view of the development and application of easier and more effective methods in effort to reduce the cost so it basically concerns when talk of the recommendation because it's basically concerned with easier and more effective method into reducing and costing the businesses and when talk of the work measurement the work measurement entails and the application of techniques designed to determine how long it takes to train and qualified worker is how long it takes to train to train a qualified worker to do a specific job job at a fixed level of performance so determine how long you train a worker and to when they get qualified to be paced and to be placed in a specific level of performance it's also another importance of work and um it's one of their work um study and so under webster we are looking at two matters that is the method study and their work environment so the meta study looks at the easier ways of trying to reduce the cost of easier ways of improving and making sure that the work is more effective and less and taxes are performed effectively and because when you ensure that it reduces the cost whilst they're working and measurements rather look at the time involving training when they are trained and what when did they get ready to perform a specific task these are all issues that have been concerned with the business tasks we'll end this first section and we'll continue with the second session on continuing this presentation on the operations management so we're going to end the first part here and we're going to continue with the second part

hello everyone we continue with the third part of the presentation or the third part of the lecture material and we are looking at chapter and it&#39;s very voluminous so i&#39;m gonna and divide this section into two this should have been a whole lecture and this should have taken a whole day for discussion but i&#39;m planning to i&#39;m just thinking of adding it to today&#39;s lecture so that we&#39;ll be able to have enough time for us to prepare for our tests so chapter 11 looks at and chapter the other chapters we are looking at looks at the functional areas and one of the functional images suppression management so at the end of this outcome this is what we intend for you to know and um knowing this learning outcome this is the introduction of the presentation today and we will start with the introduction to operations management we start with the introductions to operations management so what is operations management we&#39;ve already discussed this but this time you&#39;re going to take them in details so here the operations and management or one drug of operations functions they are concerned with executing in terms of um and executing the transformative process in businesses so how do you transform input into outputs how do you get things done in the business that&#39;s what basically are concerned about how do you get the products that transformation that goes on in the business that is what we are interested in so the operations uh and basically um concerns with the creating of products and providing services in order to realize the objectives of the business so here we are going to discuss how and businesses or how products and things are being done we are also and in terms of understanding the functional rules of operations management we are also going to discuss some importance of operations management so one of the importance is to reduce costs is to reduce costs so and to reduce costs is it can be either in terms of a product or service what we should know is that the output of fm can either be in the form of product that is tangible use or in terms of intangible data services so one of the benefits of operations management is to reduce costs if management are effective it should reduce costs so cost here in terms of the fact that when you are able to and put in place the necessary materials the necessary and things that are needed by the business and they make sure that their right skills and rights things are being employed it reduces the costs the cost involved in production reduces and when the cost reduces it becomes profitable for the firm it also increases revenue so when you increase your revenue and by making sure that you offer quality services or your services and when you offer quality services impressions management when you ensure that services that are provided are quality when those quality services are offered what happens is that you get ma and the market you are able to get more markets and that market increases the revenue of the firm so it ensures profitability of the firm and also it reduces the amount of investment needed to manufacture the type and the quantity of the products or the services required so by um ensuring the better use of machines ensuring the better use of facilities identifying new ways of doing things will help reduce the investment that are needed in producing output thereby also reducing the cost and reduce the cost of in terms of the activity that is going on it is also provide the impetus for new innovation it provides the impetus for new innovation so through the operations management that is when you are trying to gather skills and knowledge in developing new products and new things you end up being innovative because that is what appreciates manager operations management do you try to bring on board and ideas resources and now transform those resources into finnish products so this uh transformation that goes on helps you to be innovative you identify new ways of trying to do things in a more cheaper and a more environmental friendly way there are other reasons of which operations managers will be beneficial some of these reasons may include some of these results may include some of these reasons may include um and it can improve productivity that is in terms of ensuring that work in terms of the transformation process it increase the productivity of the business it also it can help businesses to satisfy the needs of customers or clients more effectively it also can lead to an um general reputation of the business so it also builds the reputation of the business that is when you have a good operations management it helps to build the reputation of the people so these are other benefits of operations management so i did start with the definition of operations management and with the definitions of operations management i talk about the fact that it is concerned with the transformative process and how products are manufactured how services are rendered however it can be looped in three different concepts in three different concepts that is operation functions the operations manager and the operations management that is if you want to understand certain uh conceptual definitions under the concept of operations management you can look at it in terms of their functions in terms of their management managers and in terms of the management so operations function is that function in the business aimed at utilizing you aim at the utilization of resources of manufactured products or render services so this is the functional rule so the function primarily aims at utilization of resources to manufacture products or rendered services then you can look at it in terms of the operations managers these are basically the personnel so these are the personnel who are put in charge the personnel in businesses directly responsible for managing operations functions so those who are in charge then when we involve when we involve managers activities the decisions and the responsibility that time edit the execution of the official function then this is becomes what we call the management so involves the management so operations management you can also tell it that the research management function involves operations managers activities decisions and responsibilities that tie in with execution of the operation function so basically this management process will include um issues of such as operations planning operations organizing operation scheduling and operation control so in terms of defining this concept of understanding the concept of operations management this is we can look at is in terms of their functional role we can look at who is responsible for executing those functions and how the function in terms of and the general responsibility in terms of how their whole execution goes on then the execution goes on as a management rule so we continue our discussion with the understanding the management model so the management model illustrates the management of operation functions the management of operation function and in this model we are going to concern with three main aspects within aspen that is the management strategies and objectives the management activities that influences the transformation processes that produces outputs so in this model then we see the operations management strategies and objectives and we are also going to talk about the transformative process now in the operations management on rejections we are going to discuss the clients and customer relations how then we should put those clients ahead of the business and how to satisfy them and in terms of the transformation process we tend to look at the inputs so the inputs here we can tend to look up what is being what is being needed and the things that are used in yeah so what is um the the focal point and the thing that i use so all these are inputs and how these inputs are being transformed into and achieving the output so this is the general model of how operations management look at we are also going to go further to look at the specific model so in the general model we talked about the fact that and one main aspect that the general model focuses on is operations management strategies and performance objectives so with this one here it basically focuses on the need and continually formulate strategies and objectives to maintain and straighten and expand competitive position and customer base so what we are seeing here is that with this first part of the model it is not just about just the strategy but how do you get a needed advantage how do you position yourself if you are in a business environment or you are trying to engage in the business once you start the process you must have a formulative motive asking how do you go about things so that you will be in a better position compared to other businesses so those are the things that we are looking at how do you position yourself in order to get a good a a um standing in the business and to get a good standing is to have the customers at heart so to have the customers at heart basically there are things that are needed there are things that are needed to ensure that you are having the customer base and these are six elements in terms of the customer client needs so the customer client needs is that basically you have to be concerned with issues of higher quality lower cost shorter time and greater adaptability lower variability and higher level of service and high level of service now in to talk about this we continue to talk about this um performance and strategy then we need to understand that there&#39;s this guideline now the operations management guideline that we see here which i&#39;m just going to briefly explain them is to how do you position because the social relates to the positive outcome in terms of the customer client relation that we have just talked about how do you position yourself so to do things right the first time now what if you do this right the first time it implies that as an operations in terms of what you are doing or as you undertake the business and so as you go into the field you should make sure you reduce errors and you should make sure that the products that you produce are of quality when you product quality you get what you call the quality advantage so in terms of even the manufacturing of mobile phones and let me not just talk about and put one phone ahead of the other but techno used to be i mean a very a leading brand in terms of their and their band called highly quality people used to buy techno at a higher price in the earlier parts and and in terms of quality it was very quality so during that time that they take them not take no sorry i&#39;m not here so i&#39;m talking about nokia and not technology so the early 19th um nokia was the main brand of quality phone now new phones are matched and people i realized that its quality was better and those phones were able to take advantage of the quality advantage and now today they are the leading we can talk about apple you can talk about some song and these are the most um mostly um new and trending even who are way in terms of people have attested to equality and now it does also tend to be in the competitive era in terms of the quality advantage so doing 10 strike means that you need to reduce the error in terms of the product or the services that you render and that will give you the quality advantage another thing to also need to look at is to do and things cost effectively is to do things cost effectively so with management one thing is that as you continue to produce goods and produce goals your idea is to make profit and with the idea is to make profit you must identify ways of trying to reduce the costs in terms of the cost involved in producing something and not just reducing the cost of producing something because if you&#39;re able to reduce the cost of producing something you&#39;re able to reduce the price and get more market share so with that you get what you call the cost advantage so we are able to expand your base so most of the lagger frames and that we see today is because um they are producing on the last scale they have what they call the cost advantage the costs are advantage meaning that they are able to produce the same thing others are producing at a cheaper cost at a cheaper cost then you are so at a cheaper cost another thing that you can also look at is that doing things fast doing things fast so here when you talk about intense fast it&#39;s about how do you produce quickly or how do you produce in the shorter possible time so here what you&#39;ll be able to do is that you identify what you call speed advantage so let&#39;s take a scenario when and you go to the market and there&#39;s a strategy in the market you have the machines or the things to produce quickly so when you are able to realize that the market is in shortage and you&#39;re able to produce quickly to the market when other and businesses are still now struggling to produce you have that speed advantage you&#39;re able to produce and get that market share so people rely on you they know that anytime that they need you they can get it at the shorter possible time another thing we can also talk about is make things and make changes quickly make changes quickly and without make changes quickly you know that um the business environment tends tends to change or there are certain um scenarios or certain conditions that arises that and this tends to change so when those things changes how do your business respond to it is very important when customers taste changes how do you usually change to so this is what we call the adaptability advantage so you are able to change to shoot the needs of your customers and that gives you that ability advantage and that is one of the things that most of the phone companies do not we&#39;re not able to i mean let me leave up with better have made them to be missing out of their market how do you adapt to the changing and taste of consumers at first we used the telephone and people wanted to use the moving cell and those things and those phone companies were able to adapt now when they even started with the moving phone it was a bigger phone heavier now people started with the keypad we&#39;ve moved from that keypad we&#39;ve moved to a touchscreen now to those kind of smart level like how do you adapt to the changing environment and as a business that&#39;s one thing that you should be concerned with another thing we can also talk about is to do things right every time is to do things right every time so when you do things right every time for example if you are um we all right let&#39;s take kfc and check elected we know the taste of kfc we know the taste of chicken leggings so if somebody gets a the taste that and inspire somebody to buy chicken they can spice kfc it should be the same taste in job issues the same things in cape town so that if i&#39;m buying chicken licking and i&#39;m a customer of chicken they can i know what taste i want if i&#39;m a customer of kfc i know the chest i want i want to go to a different kfc in a different time and there will be this kind of no the test is different so you should be able to have a lower viability in terms of taste in terms of quality in terms of differences of the goose over time and that is very important and that will give you the what you call the viability low variability advantage so we also talk about the do things better do things better and when they do things better we are saying that um you you always want to be in the position in terms of your packaging in terms of how you relate to your customers in terms of how you uh provide services i mean you get that added advantage you do you are able to get a customer base because you are willing to ensure put customers needs ahead so that gives you and what you call the service advantage service advantage you realize that all these skylines that we talked about is also related to them positive in terms of the customer of clients relations that we talked about earlier here so these are the positive outcomes or the positive and the lead to a relationship between the positive results and their operations management guidelines that we are discussing so under the general model that we talked about the strategies and objectives we also talked about the fact that another important aspect in terms of regional model is the transformation model and now here is where we are mostly concerned about how do we get output or how do we get our final product from the inputs that we have so the transformation and operation function is primarily concerned with application of resources by means of transforming process to provide output now in the transformation model we have three components that we are going to discuss the input the transformation product itself and the output you can recall from the general model that we are talking about the inputs the transformative process and the general output now what are inputs so we&#39;ll start with the inputs so the basic transformation model that we are talking about we are saying that we start with the input the transformation process and the output under the input is where we are going to talk about the resources and the ace so the resources are the things that are needed and the a&#39;s are the things that facilitate in terms of the transformation processes so we first of all look at the input inputs so intent under inputs inputs using the transformative process basically will comprise of the resources that are to be transformed so what are the resources that have been transformed the resources to be transformed are the material the customers or clients or information data to be transformed and also comprises of the resources required to make the transformation process possible so the resources required to make those transformations possible is the human resource equipment resource center and technology so let&#39;s quickly go through this and input here now the material so material can be in terms of a process or on process so sometimes a pro a finished product can also be a form of input for another production for example steel and or glass it can be is needed in terms of other manufacturing and businesses so it becomes an input to them so these are all forms of input and or the things that are needed the resources the process and the process resources we can also talk about the client or customer sometimes clients can serve assignment and they can serve as input to the transformation process so for example if in a dental business or in a dental and hospital you realize that the the patience is now that the client or the customer is the input because it is the person that has been worked on to achieve that needed end results so it becomes a client and information through here basically look at the how um information that are being gathered how are they needed in the transformation process so information for example if the newspaper needs some information either from a primary level or from a secondary level and therefore before they can transform them into i mean a news report or something that it becomes an input the information there becomes an input and it also helps in the business environment we can also quickly talk about it the ace so these resources that we talk ab required in the transformation processes they help in terms of the transformation process we can talk about the human resource the human resource here basically the human involvement the workers and not the type of human resources not just the workers it&#39;s also considered the supervisory rule so who are they they find and their workers and who are those who supervise them to work all of these are needed in terms of their service input in terms of them and the management for the transformation process we can also talk about the equipment and on the equipment here is basically their um manufacturing and use factories machinery equipment hospital was for the hospital examination center for schools operation center banks offices the physical things the computers the indian serving counters laboratory lecture halls all these are equipment that are needed because if you want to establish a university and now in terms of establishing the universe what are they into the equipment there you need a lecture hall you need a laboratory you need other other uh presentations and projectors and all these are part of their equipment and those who can talk about the technologies and now one thing you should know about technology is that it keeps changing it&#39;s very very important in terms of the transformation process and that&#39;s also served as an input so new knowledge and techniques can help manufacturers to manufacture better products and services so you as a business entity must be able to know and and know the new kind of ways of doing things and new ways new requirements that are needed in terms of doing things are also inputs or the aid in making sure that and the transformation process is more effectively and efficient effectively and efficient now once we understood the input section then we also move on to the transformation process so the process now for this time involves done you have identified your input now the transformation process itself is where you are now converting this input into output we are now converting this input into output so it is the process how these inputs are being processed and how they are being transformed so it can transform it can be the process can be in terms of um manufacturing uh um manufacturing it can be in terms of um service um ended how services are being transformed so these are all part of their and transformation processes so services provided that also fall into this category may include them and delivery services how do they go about it how do they go and about so delivery services we can in terms of um where wholesale retails um in terms of the manufacturing we can talk about the manufacturers transformation process all these apart how things i mean evolve in terms of even in the school you can talk about the library for example if you have information as a resource as an input how this information can be converted into maybe an audited report how this transformation goes on is the auditor reports terms of all this is part of the information process in terms of uh formation process then we can also look at the final output and the ultimate goal of every business is to produce an output so the outputs as we are seeing can be in terms of their product in terms of services in terms of products and services so manufacturers basically produce for example either you produce a furniture a motor vehicle a car the final product is i mean you have transformed the inputs into achieving this and it can also in terms of services maybe you get a haircut or get transport and you are you&#39;re taking to the final destination so these are some of the services produced however we can find some catalysis of products and services and some criticism between products and services so manufacturing products are produced by the manufacturer and the service given by the service provider so manufacturing product exists physically is long-lasting and the output is held in stock we are just trying to give some definition of distinguished product and service in terms of this um service provider and it is intangible that it cannot be seen it is perishable and the output is not held as stock it&#39;s not held at stop so one other um distinguish between product and is that one other difference between the product and manufacture is that a product is manufactured before use while the provision of consumption of service is simultaneous so the product is manufactured before you can use it but where the service is continuous and i mean product also try to target the local and international business environment in terms of manufacture products your aim is to go beyond local and to get international markets but with services is basically provided by local markets the service were basically provided by local market with a manufacturing product too it is easy to measure the quality of the product it is easy to measure the quality of product but it is very difficult to measure the quality of services so these are some of the difference between these two so we move from the general model and we have come to the basic transformation model we talk about the input the transformative process and the output in this model under these operations we should understand that different operations have different m characteristics and how this different characteristics basically have some implication on the cost of producing so how do the patients go about basically have impact on the cost now the operations may have may differ in terms of forming ways and these four main ways we can talk about the volume of the outputs may differ the variety of output may differ the variations of output and the visibility of output so on the volume of outputs here we are talking about the fact that the number of items produced by patients over a given period of time so we are looking at the number of items produced by an operation given a period of time so if you are on this time in the volume how much how many can you produce at a particular period of time and we are maybe considering just producing one commodity so you are considering one commodity and producing them over time it helps you to ensure standardization because you become an expert it makes sure that because you&#39;re producing a single product stress a particular period of time it ensures standardization it&#39;s responsive and repeatability and ensure that they are there their processes are most smoothly and in this situation it helps to i mean once you&#39;re able to produce the same thing over and over a particular period of time and you tend to be able to identify or it helps you and the impact on cost is that it lowers production cost per unit it can lower the production cost per unit because the fixed costs will be spread across it&#39;s the same and machines that are being used in producing the same thing over and over so since the first scores have been spread of course it reduces the cost the per unit cost of production so when we talk about the volume is where we are tend to maybe in terms of um manufacturing you can talk about that or maybe i would want to produce 200 motovir kills per day or and 20 airplanes per year you are producing the same thing and your objective is to in terms of the volume you give a quantifying amount that you produce particular commodity per whole year in terms of the variety now the variety here it ranges different items produced by the operations over a given period of time so unlike the volume that the same item is produced over a given period of time and how many um the number of times those are produced this time we are looking at the different items produced by these patients in a given period of time and here the advantage is that it allows for flexibility it allows for flexibility however because and for example if you are producing a particular commodity and you realize that um there&#39;s a change in the business environment so you have to therefore maybe instead of because you produce a variety of goods and you realize that no this one is rather i mean um and selling you can be able to stress to produce those i mean there&#39;s this flexibility for you to produce to switch to other however the ability is that there&#39;s no standardized products or services there&#39;s no standardized products or services and it comes at a higher cost per unit of manufacturing it should be come at a high cost of penetrative production because you produce them small small units and different different of products i mean it makes sure that i mean it it increases the cost of production so this uh yes this concept is just trying to let you understand that in terms of your business how do you tend to i mean if in terms of trying to influence the cost of business how do you go about it should you just focus on one commodity that produce over time or produce smaller units over time smaller unit over time so the variation of outputs here will refers to patterns of output of the patients which may be constant or maybe highly irregular non-routine or unpredictable so for example in a seasonal movement for example when it is christmas we realize that the demand for hotels are high in terms of in a particular period the demand for in terms of winter the demand for uh jackets are high so your output therefore therefore focus on production of and those particular or even in the store in the service store that&#39;s the office services you realize is that in this period most and shops are willing to sell and jacket ends for a particular period of time in an irregular time then when go to summer then they they tend to switch to and that so this is where we talk about the variations of outputs another um important um and the last one is the visibility of outputs so here we are concerned about the operations activities that are exposed to our customers or clients so it is very important that in the business frame um in terms of how you undertake your patients how do you i mean make it a a visible to your customers or client so if you are somebody who and they said you have you manufacture wedding dresses you need to give customers that room for them to visit your shop or to see and i mean examples of what you do before they can i mean have that trust of i mean purchasing what you you sell and then the kind of designs that you do and that will give you that customer base now that we&#39;ve finished discussing their characteristics of operations we just talk about that and different operations and their catalysis of different operations it will inform us to also um that&#39;s all the businesses that we are doing it helps us to classify and how things are done either under services or under manufacturing so and the four main thing that we discussed the viability the visibility the volume and the others i mean basically we inform in terms of we different from manufacturers as will be different from service providers so under manufacturing realizes that when the volume of outputs which basically is the scope and the variety of products will help us to determine different class and classifications of manufacturing different classifications of manufacturing so the different classifications of manufacturing we have the projects process and we can have the job in we can have the batch process the mass process and the continuous of the repetitive system the continuous of the repetitive system so the project process the projects here when talk of the project process we are talking about processes that are highly individual and unique but that are normally tackled on a large scale so um we are producing a particular um process and individual commodity on a particular something and that thing is on a large scale and it is individual and unique and it may take months or years to complete such a project so that becomes a project process and when talk of project process turns under the manufacturing here what happens is that it is when you undertake a certain complex initiative so for example if you are building a an interchange a more or something these are fall under what you call the project processes these are large initiatives and basically it&#39;s individualistic and unique and it happened for a period of time time and when you are done that is it so they call it the project processes we can also talk about the jobing process now the jobing process here the operation process conducted on a small scale with a low volume of output so a low volume of outputs so for example with this kind of um process when you have maybe manufacturing a net place or your jewelry you want to have a small component of maybe different designs with different because some customers want some designs for either for wedding or some designs for either um for party or how you present their necklace you want to manufacture different components of it in terms of even and wedding invitation wedding invitation when you are doing and you can&#39;t produce it on the last scale because it&#39;s being contracted so you can do two or three things or two or three invitations but you have to do it maybe for in invitation for a zulu for for this person zika you have to do it for maybe 30 or he&#39;s asking you to do it for 14. you&#39;re doing this a different design for f50 so you&#39;re doing it in small scale on low volume of outputs so small scale and low volume of output so we can also talk about the batch processes now when talking batch processes here so for example here it may look similar to chopping but it&#39;s different in terms of the probability job and we are saying that and it produces something on small volume on a small scale but can have different varieties so and different invitation cards but you have to produce them on small scale now with this and batch processes here we are seeing that you produce a particular a limited rich range of products is manufactured by business or in badges so if you are producing for example um furniture yeah there is no producing furniture where we are producing furniture with other other aspects so you produce um furniture um or maybe you&#39;re using the same businesses to produce um and if you are producing furniture maybe you want to produce tables first when you&#39;re done with tables then you want to produce chests so you produce them in badges you can do the same thing for appliances maybe you want to produce and toaster and once you&#39;re done with producing two star and you produce maybe grills or you produce ions or you produce other other appliances so you produce them in badges and this is what we are saying that is their patch processes so mass processes basically this is a known term for most of you that is what you call a mass production so here when talk of that is when you produce in high volumes so in higher volumes with less viability so high volume with lens viability so for example a portrait fan or a fan like produce them in high volume if you are producing a cast maybe you produce them on the last scale so that i mean we get a minimized cost we can also talk about the continuous or repetitive process so with this kind of process basically what happens is that you don&#39;t um it&#39;s a 24-hour running process you don&#39;t stop producing producers so you produce um beyond large scale so you can&#39;t you just have to produce and you don&#39;t cut you cannot ingest alt production by a particular point in time compared to mass production with a continuous repetitive skill once the product begins it continues it runs so basically this is the kind of companies where you run ships you put their machine start and you have to go and replace them so for example s com i mean generation of power you have to make sure that it is 24 7 and provision so that you keep people in check keep people in check so in the same vein we&#39;ve been able to i mean use and then classifies and different types of processes under manufacturing yet to process types of for service you can identify they can talk about the professional service the service service the service shops and the mass services so one talk of professional services here basically is based on the people with setting unit skills and client-based and customer relations so and one-on-one basis um basis kind of services that are provided these are provided by people with some unique specialized skills so they are trained people in that particular field and those fields are their services are needed at a particular point in time so because it&#39;s basically f and client focus nature of the service the volume is basically low and the volume is physically low where the probability of the services can also be high so some of these services we talk about professional services can be in terms of academia they have formal academic requirements and they have gone through a training to attain what they have so you can talk about doctors attorneys and consultants these are all form of professional services we can also talk about the service services and the service services here we are seeing that the processes where the characteristics of service provision fall between those of professional service and those of uh mass services so the services that are provided here they fall between those of um professional services and those of my service services they are also clients contacts and are standardized to some extent so with the service um basically what happens is that they also focus on their clients and they are they tend to render certain services that are basically needed by and the clients that they serve so the client that itself basically uh if you go to the bank and they are focused on their they offer certain special services to their customer base if you go to their hotel they have an incentive and services to customer base even retail shops so these are all forms of data service and shops you can also talk about their mass and services now when talk of the mass services these are where and there are a lot of clients that takes place in the limited and client contact so there&#39;s a lot of clients that they are serving we serve a whole lot of clients but it is when that happens and the contact between the customer and and the client relationship is limited so basically what you said the customer&#39;s client on the last skill and some of this involves the post or what you call the telecommunications services the air retail services and television services we continue our discussion by looking at operations design now under the nature of what under the patient&#39;s design and what you see is uh trying to explain what a patient design should entail so we are basically going to check each of these things and we are going to explain so the nature of operations design is the design of the products um how the manufacturing of hard manufacturing or services provide services and products it&#39;s what we are going to discuss how do they provide them what should be involved in their design so before the product comes to you and how what should be entailed how if for example in a security and business or if it&#39;s a security firm how do you and there should be an alarm system there should be a control room there should be security personnel if you want to how do you design your business so that it will suit the needs of your clients so official design is basically a way of trying to help you achieve the objectives of a patient&#39;s management so how you design this of your business is what is going to inform you achieve the operations management so it&#39;s an integration of products and services and the processes of manufacturing and manufacturing or how they provide them how to provide them [Music] one thing we should also know is that in the design of a product or services it has some importance attached to so a person&#39;s manager may not be solely responsible for how the design of the product should be but it&#39;s indirectly responsible for providing the information and advice on which the ultimate success of the development of the manufacturing of the product or services depends this tells us that operations manager has a rule in terms of how the design now with the design of the product and services it gives the company a comparative advantage a competitive advantage if you have the good and operations design it will give you a good advantage and that good comparative advantage is what we call the it ends with the customers you get the customer base so some businesses will be in the market for a longer time but they will not be able to i mean get them um because they need their customers they want some new customers come in for example how their iphone came in and now i mean they are one of the leading brands in terms of their phone and production how do we able to designed how they designed their operations and how those operations which ends with the customers how they tend to i mean and see the need or the the designs of customers that satisfy those desire give that compatible competitive advantage in the markets of mobile phones in the market of mobile phones in the concept of mobile phones now one interesting thing is that the component of the product or services the product or services is what is basically the end product to the the the customer what the customer gets so and satisfying the need of a customer then one thing important aspect of this uh productive services is that it has three main independence and components the concept the package composition how is being packaged and the process of creating the package the process of creating the package the first aspect in terms of the concept here is basically concerned with the expected benefit the customer or client purchases when purchasing a product or services so on it what we should know is that consumers do not just purchase something for a sick but they have um a need satisfying that they need to satisfy so you as a business entity in terms of your design of your patients you should be concerned with the the the the the niece or you should concern with the desires of these customers and once you have the understand the desires of these customers you therefore i mean the expectations that they they have in terms of what they have in mind or if i want to use a phone what what what are they looking out for what actually drives them what is what are they looking out for to motivate them to even purchase something so if you do not i mean conceptualize this idea you end up missing and the expectations of this and customers and you may not get the comparative advantage that you deserve so it is very important to know the spectral benefits and because it will ensure the safety reliability and ability possible high value of resale so that once they did the result and once you sell to them they&#39;re going to come back later for another question because they know that once they come to you the kind of need that they want they get the satisfaction that they desire now in terms of um the concept that is and the expected benefit that the consumer will have of the products conceptualizing that you should also be concerned with the concept of the package now the package here is how you you present the goods to or how the good is made so for example in terms of a car it&#39;s not just about the look but it also comes with the setting and the package in terms of their uh fractions in terms of um conditions or guarantee that um it&#39;s as reliable so in terms of um even somebody coming to your restaurant to buy food or something people think to how is it packaged to them it&#39;s how attractive your packages are it&#39;s also important then we can also talk about the process and the process is very necessary it creates the package of the product and services is very necessary so the process in creating this package is also very important for the business the process of creating this package is very important for the business now now we continue our discussion with understanding the stages in the design of the product and to understand the stages in the design of the product forever and design is to understand and the full detailed specification and to understand this full description specification then you should be able to get information from the concept and the concept here the form the functions aim and the benefit of the design or from the package the composition of the product and the services required to support the concepts and the processes and the processes of creating the package which determines the way in which the individual products and services of the package will be manufactured or provided so to obtain this for and detail specification these are the five um steps that we should follow to get to the full detail specification of the model that is we can start with the concept generation so the concept generation here that is the first step in terms of the stages in designing a product if you want to design a product you must have i mean an idea generates an idea of how a new product should look like or a service should it should be the the new ideas can either come from either the business itself or from research or from outside the business how do you and design this product you first of all need to have a concept generation and the concept generation here is developing an idea and the idea should not give you one different ideas you should have developed different ideas either from the business either from research or from other environments another step we also need to also look at is the screening process and the screening process here in the screening process here with the different ideas that you have conceptualized in the first stage you now need to screen them you don&#39;t need to screen these different ideas and you need to um and whether they are feasible and the feasibility of it how difficult is it to produce and what is the resources to go in the particular design and acceptability is it going to be how worthwhile is it to i mean um invest into that is it going to have the needed return that you invest in and vulnerability could you go wrong or what are the risk there so the first data you have different concepts in the second step you need to screen all these concepts you need to screen all these concepts and screening all these concepts look out for other alternatives like which design actually may be the the best design and the best design in terms of the feasibility in terms of accessibility of vulnerability which i&#39;ve just talked about the another step for you to do is to now undertake a preliminary design so once you have ideas concepts generated you need to and i take a preliminary once you screen the processes and i mean assets which may be feasible which may be acceptable you therefore may have started with a preliminary design of what you intend to do so once you screen through the ideas and you narrow it to one or two choices then with the preliminary design here you now focus on them what should the products be involved what components should be used or how the components should be packaged so that is how you undertake the preliminary design the component of the products and the package and how people can identify themselves with this package and how it&#39;s gonna sell for their and one or two and you&#39;ve narrowed your um questions too you can also therefore move on to look at them evaluate and improve evaluation and improve so once a preliminary design has been done then you need to therefore evaluate and the idea of evaluating is to improve that design so making the process of manufacturing and provision less expensive and easier so you have a design and now you tend to evaluate how do you make this um less expensive how do you make it easier to produce so various techniques and methods that can be used to eat the steps what are the technical steps to be used in terms of and aiding the step and the final uh dance of designing a product is to undertake a prototype for the final design so a prototype or a final design is to now and we need to produce that product and with this final design you also need to test it in the market so if you test it and it is a prototype so if you find a need to improve upon it you improve upon your primary design if it is favorably received by the market the final design and the specification of the product can be compiled so after looking at how the product design is and how the product or the service design is issue it&#39;s also important to look at the design of the operation processes so it&#39;s also important to look at the design of operation processes and in design of operation processes we are interested in looking at the whole network the whole supply network in the business itself the business is the supply network and this may include them intermediaries the final customers and clients and they are all needed you need to have a view about how all these are going to help or work in the business field so understanding that the network in terms of the intermediaries the customer base it helps to position yourself in a competitive way identify your supply network and how involved you&#39;re going to involve in this network and involvement of the supply network in terms of your business so this is what the operation design basically what we are going to look out for or what we are going to discuss so we continue to look at how do we i mean and in terms of the business operations how do we lay out our operations or how should the flow of activities go on so under layout here we are basically concerned with the fiscal arrangement of resources for example how machines should be the layout of machines equipment and the personnel so the layout of manufacturing or services facility is usually is the first catalyst in the cooperative process is the first operative process so in terms of the undertaking operations you should be concerned about how where should you position or how do you set out the machines and how the layout should be like when those things are fixed then you now can think of the flow of this eye so the layout is in the which determines how the materials informations and customers flow throughout the transformation process so the layout will determine how and the materials the information the client or the resources that we need how they are going to flow in the transformation process because if you start for example you have the human being and the human resource where you position them you are fought in line one line two line three how it starts from um the cement and the the um cooking of the food and how does it transform who who puts it on fire who put it on and who are today who are that so in terms of kfc if you go to look at their uh business operations they have certain layouts so that the test will be as it is in other operations and the flow of this the layout ensures the flow of the transformation process in terms of the layout we can talk about three levels of three steps in terms of business layout we can talk about the selecting the process type the selecting the basic layout type and the making detailed design of the layout under selecting the layout basically it relates to where we talked about the type of and manufacturing setting for that type of manufacturing sector to talk about either you are going to do a big project if you are going to do a purchase you are going to do mass production of continuous so that is what is going to inform you in terms of the selection of the process type so in terms of the selection of the process type then we now move on to the second step which talks about the selection of the basically out type so selecting the basically our types and we have four main basically archives that we are going to discuss we are going to discuss the fixed position layout the process layout the product layout at the cellular layout which is also known as the hybrid so with the fixed layout basically looking at this and the the shape the size and the location and it cannot be moved it cannot be moved so it&#39;s static in a particular endpoint and once um the the the layout has been and and established you cannot move it to any other place so for example a construction site if you are constructing an interchange you cannot i mean at a particular point you can remove it so your layout is basically set in that section and it cannot be moved now under process layout basically what happens is that and similar products or similar products or services are grouped in a consecutive and approved in sections so here we group similar processes together in sections so if you are producing a particular group like for example if we are um producing then fm can produce tables can produce chests can produce texts and other stars but if it is producing and and chess it tends to produce chest and then so the layout for chest then we tend to then change to produce tables maybe it tends to produce dextro eclipses and levels because sometimes in in doing um chair production or wood production how do you produce them you do this things in sections but this is what we call the process types you try to do them and your manufacturing tables your manufacturing chest if you have fracturing tables you want to do the head first the injection then you do the the the legs of the table sex and so it&#39;s a flexible flu then we also have the products layout so as you said in the process layout um you do it in section so even within um table you can do maybe if you are sewing you do showing alone if you are and doing and farming like you can do and farming alone taking the land alone you do it in section now it is different from the products layouts and stuff in the sense that here your you arrange the products or the products you have you do or you manufacture or the service you render is being arranged in a consecutive manner it&#39;s been arranged in a consecutive manner so for example if you want to manufacture a car if you want to manufacture a car you realize that they are assembling line for this assembly line for that assembly line for that you don&#39;t change it in a particular point in time with the flexible layout you can decide to do this first i&#39;ll do the second but with that product layouts it&#39;s the line form so you have a line for maybe the card tie you have a line for this you can you cannot interchange them at a particular point in time you cannot interchange them at a particular point in time then we have the cellular layouts so with the cellular layout basically when you replace specific processes in cell and you arrange them according to either a process or the product layout what we just discussed so for example if you go to um mr price or shops you realize that in the same particular shop you have a section a cell phone um a men&#39;s department and you have a women&#39;s department children&#39;s department they&#39;re all paying please and they and basically sell them similar stuffs and just that we have as a part for men women and children in the same department and even in the shops realize that when in the mail department then there&#39;s a particular cell for maybe a giant straw for this that or that so this is what we call the cellular layer out how their range or other defenses are being arranged in terms of the business setting in terms of business setting another important aspect of the operations design which so far we are discussing is the process technology so the process technology refers to the machines the equipment there are power tools used in the transformation process to transform materials information and clients so that products can be manufactured or services provided so the process technology may range from simple um processes and basic extractions and automated machines robots all the new equipment that are needed and this is to ensure that there&#39;s an error free product and highly quality speed dependable cost effective and these are very important so as a manager the operations manager you must be oppressed with all the um process technology you must and you must perform this tax effectively because when you&#39;ve performed the stacks effectively and it can improve specific compression process it can also decide the kind of technology to use it can also help you to integrate new technology into the existing operations it can help you to upgrade and replace technologies and these are important for the manager to be concerned with the operations of this new technology that comes in also under their operations design it is also important to understand and job design and the work organization and operations also should also focus on the people&#39;s involvement in the patient&#39;s activity itself so job design is important it&#39;s vital importance because it determines how workers perform their taxes daily so how are the workers performing and it&#39;s very important to them operations manager and their work and study which is a scientific approach in the job design and the web study that influences people in the work environment to improve efficiency and effectively so basically refers to all the factors influencing the people in the work environment systematically in order to improve and the execution of tasks so when talk of their work study there are two techniques that we are going to look at with two techniques that we can look at that is the um method study and the um work measurements so in the job design we are saying that how workers perform the people&#39;s involvement is also should be concerned in terms of operations of the business and then how they are the activities are being influenced by the environment to improve their efficiency which is a waste study it&#39;s also um to be understood now understanding where study we can look at two techniques that is the method study and the work measurements so the meta study entails a systematic recording and critical investigation of present and proposed work matters with a view of the development and application of easier and more effective methods in effort to reduce the cost so it basically concerns when talk of the recommendation because it&#39;s basically concerned with easier and more effective method into reducing and costing the businesses and when talk of the work measurement the work measurement entails and the application of techniques designed to determine how long it takes to train and qualified worker is how long it takes to train to train a qualified worker to do a specific job job at a fixed level of performance so determine how long you train a worker and to when they get qualified to be paced and to be placed in a specific level of performance it&#39;s also another importance of work and um it&#39;s one of their work um study and so under webster we are looking at two matters that is the method study and their work environment so the meta study looks at the easier ways of trying to reduce the cost of easier ways of improving and making sure that the work is more effective and less and taxes are performed effectively and because when you ensure that it reduces the cost whilst they&#39;re working and measurements rather look at the time involving training when they are trained and what when did they get ready to perform a specific task these are all issues that have been concerned with the business tasks we&#39;ll end this first section and we&#39;ll continue with the second session on continuing this presentation on the operations management so we&#39;re going to end the first part here and we&#39;re going to continue with the second part

Transcript for:Operations Management

Transcript for:
Operations Management