CO6001 Managing a Computer Based Environment Session 18 Introduction to Operations Management

Types of Operation and Production Project Example: ‘one off’ system development project 50+ tasks x 1-2 weeks task duration Several resources Jobbing Example: technical and user support Many, small, projects Batch production Examples: building computers, training staff Repeatedly make products or deliver services Improve ‘efficiency’ by grouping production/delivery into batches Mass and Process Flow Production Example: manufacture microchips Dedicated, balanced ‘production line’

Project Establish the Project Plan Set-up the team Procure resources (network, hardware, software, … ) Work on the project tasks Monitor progress, costs, quality and performance Handover the completed product / service Disband team or move onto next project

Jobbing – one offs Establish the plan Set up the infrastructure Accommodation, communication facilities, job logging system Procedure manuals for common tasks and escalation procedure for non-routine queries Staff with appropriate customer-care and technical expertise Deliver service Deal with customers’ problems: e.g. loss of connection, hardware failures, software bugs, recovery of data Undertake small installation and maintenance tasks Do small developments that are beyond the skill levels (technical or conceptual) of users Monitor level of customer service Response time, recovery time Monitor utilisation and productivity of support staff Time occupied / total on call; time taken to complete job of particular types

Batch Production Establish the Project Plan Establish the infrastructure Accommodation, equipment, raw materials, trained staff Set-up for a specific product / service Choose equipment settings, deploy staff Repeatedly make this product / deliver this service Switch to next product / service in production schedule Aim to minimise time and cost per unit Make 60 As (set-up 3 mins, make 2 mins) and 60 Bs (set-up 9 mins, make 1 mins) Worst case: time to complete 15 hours (A B A B A B … ) Best case: time to complete 3 hrs and 12 mins (A x 60, B x 60)

Batch Example 1 – Package Software Establish the Project Plan Infrastructure Acquire equipment to make multiple copies of CD Put all necessary files onto a master CD Set-up Insert master CD, load label template, insert blank CDs in feeder Repeatedly make Press ‘start’ Remove completed CDs and place in boxes Replenish feeder with more blank CDs Similar, in parallel, to print documentation Put CD and documentation into box and shrink-wrap

Batch Example 2 – Training Course Establish the Project Plan Infrastructure Accommodation, data projector and screen, tables and chairs, computers for tutor and trainees Design training course, including visual aids and handouts Recruit / train the tutor Set-up Print handouts Install software and initialise data files on tutor and trainee computers Repeatedly deliver To classes that are as big as possible, without significantly compromising quality of learning Set-up and repeatedly deliver other courses according to course schedule

Issues in Batch Production / Operation (1) Capability and Capacity CD Copier; copies per minute, feed capacity & hence replenishment effort? Training Courses: how many rooms, how often to run the course, how many trainees per class? Training Courses: specialist equipment, versatility of tutor? Utilisation and Cost £10,000 CD copier in use 1 hour per week, or £1,000 copier in use 24 x 7? 2-weeks’ preparation for 2 x half day courses?

Issues in Batch Production / Operation (2) Production Schedule Need to produce/deliver a mix of products/services limits size of batch Cycle Time and Cost Can time/cost taken to make/deliver each unit be reduced By more sophisticated equipment (faster or automated)? By clever design of product / service or improvement to process (download instead of CD)?

Mass and Process Flow Production Establish the Project Plan Infrastructure, and processes designed for a single, or very narrow range of products/services Highly efficient Time and cost per unit is low High effective Good quality (close to spec) Good yield (few rejects) Expensive to establish Inflexible (difficult to swap to a different product/service) Best example is microchip manufacture in multi-million dollar factory with dust-free, temperature and humidity control, precision equipment, high level of automation and use of robots

Principles of Operations Management Forward planning Long and medium term Decide strategies Acquire / dispose of capability and capacity Manage demand (e.g. by differential pricing, stockholding and service levels) Scheduling Short term Deploy available resources Monitoring and Controlling Output: meet demand and stock-replenishment targets, Quality and performance: optimise productivity and yield Costs: e.g. procurement, batch sizes Variance Analysis: respond to significant variances Feedback Systems

Forward Planning Product Research, development, engineering (= clever design) Workplace Layout, Infrastructure and Equipment Acquisition, Useful Life, Maintenance, Obsolescence, Disposal Process Organisation Methods Automation Workforce Selection, development, motivation, retention Performance standards Quality Management Standards and conformance Supplier selection

Logistics Logistics is the management of the flow of goods and services between the point of origin and the point of consumption in order to meet the requirements of customers. Enabled by advanced information and communication technology however outside the scope of this module, but worthy of special study. The right quantities of the right products in the right place at the right time at the right cost. Workplace Close to customers, suppliers or expertise? Distribution Consider manufacture, storage, wholesale, retail, customer, consumer Transport Physical (air, rail, road) or virtual (download)