Operations

“Designing, planning, managing, and improving the processes that convert materials and labor into goods and services as efficiently as possible.” 

  • inherent part of open systems 

  • made up of 3 aspects 

  1. operational 

  • core business function

  • ex: UVA professors who teach, renovating buildings, etc. 

  1. managerial

  • people who manage operations 

  • ex: CEO, exec team, the dean, etc. 

  1. supporting 

  • everything else happening that allows the organization to be successful

  • ex: tech support, food service workers, etc.  

Effectiveness 

  • productivity (how much)

    • what you make 

    • productivity = outputs/inputs 

      • items produced 

      • ex: 100,000 units in 250 hours = 400 units/labor hour 

  • efficiency (how well) 

    • how you optimize your resources 

    • efficiency = actual/standard output 

      • maximizing resource utilization in the transformation process

      • ex: 

        • standard output = 150/day

        • output today = 120 

        • efficiency = 120/150 = 80% 

Process Design 

  • optimizing workflow and procedures 

  1. map steps in process 

  • critical paths 

  1. analyze efficiency 

  • quantitative/qualitative 

  1. design/improve process

  • equipment and people

Additional Issues 

  • supply chain management 

    • all activities for producing and delivering 

    • systems and resources

    • internal and external 

    • broader, strategic 

  •  just in case vs. just in time 

    • just in case (JIC)  

      • lots of inventory 

      • inventory supply chain management 

        • full inventory/warehouse full of stuff  just in case you need it 

      • risk management strategy 

      • trades up front costs for availability 

    • just in time (JIT)

      • little inventory 

      • arrives when needed 

      • trades savings for risk 

      • relies on technology, careful coordination