Operations management – Part 1 Christie Sarri

Contents Lesson 1: An Introduction to Operations Management  Operations & Process management  4Vs of processes  Performance objectives Lesson 2: High-level Process Design  Process Types Lesson 3: Process Analysis

Case Study HSBC Bank – Branches in London One of the world's largest banks by assets, HSBC Holdings is active throughout the UK and Europe, North and South America, Asia/Pacific, Australia, the Middle East, and Africa. All told, the company has some 10,000 offices in more than 80 countries, providing consumer and commercial banking services, credit cards, asset management, private banking, securities underwriting and trading, insurance, and leasing.

Operations management DirectDevelopDeliverDesign

Operations management – case study Direct: Separate the branch in sectors Develop: new ways to improve, internet banking Deliver Offered service to clients as they come Design: Person in the entrance to direct

4Vs of processes Volume High degree of repeatability = high volume Systemization, standardize procedures Variety Wide range of activities, more complex= high variety Additional complexity of matching customer req. Variation in demand Predictable demand over time = low variation Planned in advance = lower cost Visibility Process experienced directly by users Process exposed to clients

4Vs of processes – case study Volume Variety LowHigh Low Variation HighLow Visibility HighLow

Operations Performance

Operations Performance – study case

Process Matrix Low Variety High Volume

Process Types Manufacturing: ◦Project: high customized projects, construction ◦Jobbing: project shares operation resources, specialist toolmakers ◦Batch: some periods repeating, gourmet frozen foods ◦Mass: repetittive and predictable, cd production ◦Continuous: endless flow, electricity utilities Services: ◦Professional: high levels of customization, architects ◦Service: mix of front and back service activities, banks ◦Mass: mainly back service activities, supermarkets

Process Maps – case study Customer enters the bank Check client’s request Sent customer to appropriate department Queue Ask a cheque book Application for Cheque book completed Check before issue Deliver to customer by post

Cycle time, process capacity, process balancing Cycle time = Time available / numbers Process capacity = Work content / cycle time Process balancing = idle time / cycle time Little’s law: Throughput time= work in progress x cycle time