OPERATIONS PROCESS
Operations processes
Inputs
○ Transformed resources (materials, information, customers)
○ Transforming resources (human resources, facilities)
operations processes are those processes involved directly with transformation. They may be broadly classified according to their role in transformation:
Inputs in the transformation process
The actual process of transformation
Outputs of the transformation process
Inputs are the resources used in the transformation process. Some inputs are owned by the business, while others are provided by suppliers.
There are 4 common direct inputs: labour, energy, raw materials, machinery and technology
Inputs can be divided into transformed resources and those that are transforming resources
Transformation process
○ Influence of volume, variety, variation in demand and visibility (customer contact)
○ Sequencing and scheduling- Gantt charts, critical path analysis
○ Technology, task design and process layout
○ monitoring , control and improvement
transformation, which involves the conversion of inputs (resources) into outputs (goods or services).
Example : samsung takes plastic, metal, glass and electronic parts and transforms each through design, manufacturing and assembly into numerous electronic products.
Volume flexibility enables businesses to efficiently respond to changing demand, minimizing waste, inventory costs, and lost sales due to delayed order fulfillment.
Mix variety refers to a business’s ability to offer a wide product range, requiring adaptable operations to handle greater variety in production or service delivery.
Variation in demand affects transformation resources by requiring greater input and flexibility during increases, and careful scaling down during decreases, to avoid inefficiencies, delays, or unnecessary costs.
Customer contact whether direct or indirect plays a vital role in shaping transformation processes by influencing production decisions to better align with consumer preferences and maximize sales.
○ Sequencing and scheduling- Gantt charts, critical path analysis
Sequencing and scheduling are two aspects that assist with structuring and ordering the transformation processes. Sequencing refers to the order in which activities in the operations process occur. Scheduling refers to the length of time activities take within the operations process.
A Gantt chart is a visual timeline that shows tasks, their order, and duration.
What it does: Helps plan and schedule activities, track progress, and manage deadlines.
What it’s used for:
Simple tasks like homework assignments
Complex projects like construction or business setups
Scheduling work for individuals or teams
Advantages:
Encourages detailed planning and time estimation
Makes it easy to monitor progress against the plan
Critical path analysis (CPA) is a scheduling method or technique that shows what tasks need to be done, how long each takes and the order necessary to complete those tasks
The critical path identifies the longest sequence of essential tasks to complete a project, helping managers plan, schedule, and coordinate activities efficiently while recognizing which tasks can occur simultaneously.
○ Technology, task design and process layout
business technology
involves the use of machinery and systems that enable business to undertake the transformation process more effectively and efficiently
technology includes : computer or tablet, keyboard and mouse ,USB and other data storage devices such as external hard drives and Cloud storage ,mobile telephones/hands-free telephones/wireless enabled phones combined printer.
Developments of technology have created the opportunity for people to do more work in less time, which means a greater range of tasks can be completed in their working time. These technologies have also enabled office workers to work at a great distance from the office.
Key manufacturing technology includes robotics, computer-aided design (CAD) and computer-aided manufacturing (CAM).
Robotics : used in engineering and specialised areas of research, as well as on assembly lines where a programmable machine capable of doing several different tasks is required
computer-aided design (CAD) : a computerised design tool that allows businesses to create product possibilities from a series of input parameters
computer-aided manufacturing (CAM) : software that controls manufacturing processes
Task design
involves classifying job activities in ways that make it easier for an employee to successfully perform and complete the task.
Task design involves grouping skills and competencies to aid recruitment by ensuring candidates match job requirements.
Through job analysis, businesses can review existing roles to improve efficiency and boost overall productivity
The skills audit is a formal process used to determine the present level of organisational skills (and any shortfalls) that need to be addressed through recruitment or training and development.
Process layout
process layout the arrangement of machines so that the machines and equipment are grouped together by the function (or process) they perform
Workplace layout options include:
process layout
product layout
fixed position layout
Process production deals with high-variety, low-volume production. In this process, each good has a different sequence of production and the steps involved are intermittent, moving from one department to another
Product production (mass production) is characterised by the manufacturing of a high volume of constant quality goods
Project production deals with layout requirements for large-scale, bulky activities such as the construction of bridges, ships, aircraft or buildings.
A fixed position layout is where a product remains in one location due to its weight or bulk.
process layout the arrangement of machines so that the machines and equipment are grouped together by the function (or process) they perform
product layout in which the equipment arrangement relates to the sequence of tasks performed in manufacturing a product
Office layout is designed to support efficient, safe workflow tailored to business needs, and post-pandemic changes now emphasize flexibility, hygiene, and collaborative open spaces. An office needs to be designed in a way that allows for smooth workflow; it should also provide a space (lunch room, games room) that enables employees to take a break from the work environment if required.
Case study: The office is dead! Long live the office in a post-pandemic world
Will office workers flock back to their cubicles and water coolers when the pandemic ends? Or will employees want to hold on to their newfound freedom and flexibility, while employers eye the lower costs of the lack of a physical footprint?
Transformation processes: monitoring, control and improvement
monitoring
the process of measuring actual performance against planned performance.
Monitoring involves the measurement of all aspects of operations, from supply chain management and the use of inputs, through to transformation processes and outputs.
control
occurs when KPIs are assessed against predetermined targets and corrective action is taken if required. Control requires operations managers to take corrective action. This means controlling compares what was intended to happen with what has occurred.
discrepancy between performance and goals, changes and improvements can be made. Improvements in processes are often framed around quality. Quality controls, assurance and improvements.
Improvement
improvement refers to systematic reduction of inefficiencies and wastage, poor work processes and the elimination of any bottlenecks.
A bottleneck is an aspect of the transformation process that slows down the overall processing speed or creates an impediment, leading to a backlog of incompletely processed products Improvement typically is sought in time, process flows, quality, cost and efficiency.
Outputs
outputs the end result of the business efforts — the final good or service that is provided or delivered to the customer.
businesses carry out both types of operation.
Example : Mazda Australia : separates its vehicle manufacturing operation from its customer service operation, although both elements are critical to the business’s overall success.
Out puts of the operation process:
· Goods made or services provided
· Customer service
· Warranties
Customer service
customer service refers to how well a business meets and exceeds the expectations of customers in all aspects of its operations
A customer focus increasingly shapes operations processes, inputs, transformations processes and outputs that are all directed to meeting or exceeding customer expectations.
Customer service is to ensure that the correct good or service is delivered or provided at the right place at the right time
Market research has shown that those businesses capable of providing superior customer service can:
charge an average of 10 per cent more for the same goods and services
grow twice as fast as their competitors
increase their market share and profits
Exceeding customers’ expectations is likely to be the key in developing long-term customer relationships; however, failure to do so will drive customers away.
Warranties
a promise made by a business that they will correct any defects in the goods they produce or services they deliver.
Warranty claims are made against goods that have defects arising from an issue in transformation
Warranties will also apply to services. The supply of services must come with the statements that enable customers to cancel service contracts or to refund them the unused portion or be compensated for the reduced value if a major failure occurs.