BY: SOLOMON ANGUTSA ATSIAYA – I CUDE (CEO-KENYA POLICE SACCO LIMITED 7TH SACCO OPERATIONAL FORUM Johannesburg, South Africa Birchwood Hotel “OPERATIONS MANAGEMENT DEVELOPMENT” BY: SOLOMON ANGUTSA ATSIAYA – I CUDE (CEO-KENYA POLICE SACCO LIMITED

INTRODUCTION OM- Refers to planning, organizing, directing and controlling the activities of the production/service function. “Concerned with the transformation of a range of inputs into the required output having the requisite quality level” Objective- To produce goods and services of right quality, quantity, at the right time and right cost. Right Quality-Based upon customers needs- ( meeting specific requirements) Right time – Timeliness of delivery Right Cost - Least cost

OM MODEL Inputs Output Transformation Men/Labour Materials Machines Information Capital Land Production design Process planning Production control Maintenance Products Services CONTROL Inventory Quality Cost

OM FRAMEWORK Planning- Establish course of action to guide future decision making. Include clarifying the roles and focus of operations in the org overall strategy Organizing- Activities that establish a structure of the task & authority. Roles & flow of information Controlling- Activities that assures the actual performance in accordance with planned performance

KEY RESOURCES Human, Capital, Materials. As technology advances large portion of human input is in planning & controlling activities. Intellectual capabilities of the people, managers multiply the value of the employee many times Capital is a store of value which is used to regulate the flow of the other resources

OM - Early Developments Textile Industry in England –    Replaced people with machines –    Water and mule power instead of human power –    Nature of production changed from cottage to factory James Watt –    Steam engine - in use by 1785

Eli Whitney 1794 - built first cotton gin to separate cotton seeds from cotton fibers. 1799 - began mass production of muskets introduced concept of standard interchangeable parts to allow the use of less skilled labour to produce muskets. Development of the machine tool industry - metal tools and machines now possible (late 1700's).

Frederick Winslow Taylor Principles of scientific management - 1911 1. Scientific laws govern work so scientific methods can be used to analyze work 2. Workers are different so match workers to their job and then train them thoroughly 3. Use employee self-interest to motivate 4. Separate the responsibilities of workers and managers.

Taylor - Systems approach to manufacturing All equipment, workers and tasks are part of a manufacturing system whose performance should be maximized

Henry Ford Early 1900s - introduced assembly line manufacturing to produce Model T cars Durable, inexpensive automobile Extensive vertical integration Coordinated supply and production was really the first Just In Time production Ford Model T

Alfred P. Sloan., Jr. CEO of General Motors - 1923-1946 Competed with Ford through innovation Developed strategy of marketing different cars with different features and prices Installment selling (GMAC), used car trade-ins, automotive styling, annual design changes

Human Resources Movement Examined psychological factors in manufacturing Hawthorne Studies - 1927 – to examine the effect of light on work Considered the role of treatment of employees in production

Operations Research Development Many management science techniques were developed in the war as a means of controlling and allocating the resources required to fight the war. The most difficult problems ever to challenge managers Problems ranged from resource allocation and logistics to rapid calculation of artillery route

Computers and Operations Computational capacity increased dramatically Computers are now involved in design and production Development of models for solving operations problems Communication improvements increased capability

Computers/Communications Combination of computer and communication advances are reshaping the way we do business and service activities

LONG LIVE SACCO MOVEMENT THANK YOU LONG LIVE SACCO MOVEMENT