1. OPERATIONS MANAGEMENT Dr. Hulya Julie Yazici, Lutgert College of Business Dr. Lisa Zidek, U.A. Whitaker College of Engineering Dr. Halcyon St Hill, College of Health Professions and Social Work

2. INTRODUCTION Operations Management: is used in business, engineering, healthcare and other industries to strategically address issues from the physical plant layout and structure to the processes or operation. includes methods of practice, equipment selection, maintenance and replacement, scheduling, production and productivity, inventory management, quality control, inspection and, materials handling. 2

3. INTRODUCTION Operations Management: leads to improvements, higher quality, cost effectiveness and solutions for issues addressed. forms a basis for policy and practice, improvements geared toward better outcomes, and patient/client satisfaction. is a common ground - an area used by many industries including business, engineering and healthcare. 3

4. INTRODUCTION Why you are working together (and in teams)… When two or more majors or disciplines (in this case business, bioengineering and health profession majors) work together to address an area of study or practice, this approach is referred to as being interprofessional or interdisciplinary. In this module you are involved in interdisciplinary or interprofessional education (referred to as IPE). 4

5. Why you are working in teams… Healthcare involves business, and engineering, which is vital to healthcare and its business operations. Members from various professions bring different knowledge, skills and perspectives, which address strengthen insights and outcomes. 5

6. Why you are working in teams… This operations management IPE is a unique experience designed to immerse you in learning content that is relevant to your major and to apply what you learn to a real world workplace issue. You will learn information and skills needed to resolve an issue in teams of 6-7; this mimics how teams function in the workplace. 6

7. Why you are working together… IPE is the buzz in higher education and professional practice; your learning experience in this lesson is however grounded in the FGCU cutting edge educational practices that stem from its Guiding Principles, which state: Connected knowing and collaborative learning are basic to being well educated. The University structures interdisciplinary learning experiences throughout the curriculum to endow students with the ability to think in whole systems and to understand the interrelatedness of knowledge across disciplines. (http://www.fgcu.edu/info/mission.asp)http://www.fgcu.edu/info/mission.asp We (Dr. Halcyon St. Hill, Dr. Hulya Julie Yazici and Dr. Liza Zidek) hope you enjoy and greatly benefit from this IPE - learning experience. 7

8. OPERATIONS MANAGEMENT Process Management FGCU 8

9. PROCESS INITIALIZATION PROCESS DEFINITION PROCESS CONTROL PROCESS IMPROVEMENT PROCESS MANAGEMENT APPROACH 9

10. PROCESS INITIALIZATION  Determine process ownership  Delineate process boundaries & interfaces  Customer-Producer-Supplier Model PROCESS MANAGEMENT APPROACH

11. PROCESS DEFINITION / ANALYSIS  Define the set of activities  Map the process  Determine customer requirements  Find performance gaps  Redesign the process WHICH ACTIVITY? WHERE WHEN HOW IT IS DONE? PROCESS MANAGEMENT APPROACH

12. PROCESS CONTROL & IMPROVEMENT Establish control points Implement measurements and assess the process Obtain feedback and perform corrective action Redesign the process PROCESS MANAGEMENT APPROACH Measures of Conformance Measures of Response Time Measures of Service Level Measures of Repetition Measures of Cost

13. PROCESS IMPROVEMENT IN HEALTHCARE Flow Patients Information Material Quality Eliminate errors Decrease variation Improved experience Patient Flow impacts: Quality of care received (perception) Cost of care Patient outcome Flow in the entire system Cost (both to the consumer and supplier) 13

14. What is a process? Group of interrelated work activities providing output of greater value than the inputs by means of one or more transformations Flow of products organized to achieve customer satisfaction with the final product Series of actions or operations conducted to produce a desired result 14

15. Process Example INPUTPROCESS OUTPUT Auto Driver Car Key Start car Drive south to Park St. Turn Left Gas Drive East 1.8 miles Stop at 320 Park St. Trips Made Driving across town Steps, Activities Destination 15

16. FUNCTIONS VERSUS PROCESSES Accounting Purchasing Manufacturing Supplier Sales Corporate CUSTOMER SERVICE PRODUCT DEVELOPMENT PROCESS SUPPLY CHAIN MGMT. FUNCTIONS PROCESSES ORDER FULFILLMENT 16

17. Process allows breaking down barriers 17

18. 18

19. PROCESS DEFINING AND MAPPING CUSTOMER PROCESS REQUIREMENTS INPUTS PROCESS OUTPUTS RESOURCES CUSTOMER REQUIREMENTS Activity A1 Activity A2 Activity B1 Activity B4 Activity B5 Activity B2 Activity B3 Activity C2 Activity C1 Activity C3 Activity C4 Activity D2 Activity D3 Activity D1 Activity D4 Activity D5 FUNCTION A FUNCTION B FUNCTION C FUNCTION D PROCESS XX MILESTONE 1MILESTONE 3MILESTONE 2 TASK RESPONSIBLEACTION TASK LIST 1 2 3 19

20. What is Process Analysis? Process Analysis The set of tools used to identify opportunities for improvement, document current processes, evaluate processes to find performance gaps, redesign processes, and implement desired changes. 20

21. Process Analysis Steps 21

22. Documenting the Process Flowchart – A tool to trace the flow of information, customers, equipment and materials through the various steps of a process. Swim Lane Flowchart – A visual representation that groups functional areas responsible for different sub-processes into lanes. Flow Chart of Consulting 22

23. Swim Lane Flowchart in Manufacturing Swim Lane Flowchart – A visual representation that groups functional areas responsible for different sub-processes into lanes. 23

24. Order Filling Process in a Catalog Store Telephone orders received by Reps. over 12 hr. period Orders collected at end of the day Supervisor checks order (Next day) Transfer previous days order to data processing Invoice & print orders in one-day batches in data processing Match invoices back to original orders Customer verification and account setup Computer/Customer Check Correct typos. New customer ? Order verification info. complete Proofing typo. errors yes no yes noTransfer order for printing 24

25. Flow Chart Symbols Process/ Activity Flow Decision Yes No 25

26. Flowcharts Basic Flowcharting Symbols Figure 10.3 26

27. Tool 1- Flowcharts Flowcharts –A flowchart is a picture of a process. The first step in many process improvement projects is to flowchart the process as it exists. This useful step also determines the parameters for process improvement. The concept is that we must know the process before we can improve it. 27

28. Flowcharts Rules for Flowcharting –Use these simple symbols to chart the process from the beginning, with all arcs in the flowchart leaving and entering a symbol. The arcs represent the progression from one step to the next. –Develop a general process flowchart and then fill it out by adding more detail about each of the elements. 28

29. Flowcharts Rules for Flowcharting (continued) –Step through the process by interviewing those who perform it – as they do their work. –Determine which steps add value and which don’t in an effort to simplify the work. –Before simplifying work, determine whether the work really needs to be done in the first place. –See Flowchart examples provided in this lesson. 29

30. Documenting the Process Process Charts - An organized way to document all the activities performed by a person or group Activities are typically organized into five categories – Operation, – Transportation,  – Inspection, – Delay,  – Storage,  30

31. Process Chart 31 Value Added Percentage: Number of Operation steps / Total number of Steps

32. Step No. Time (min) Distance (ft)    Step Description 1X 2X 3X 4X 5X 6X 7X 8X 9X 10X 11X 12X 13X 14X 15X 16X 17X 18X 19X 0.5015.0 10.00 0.7540.0 3.00 0.7540.0 1.00 60.0 4.00 5.00 2.00200.0 3.00 2.00200.0 3.00 2.00 1.0060.0 4.00 2.00180.0 4.00 1.0020.0 Sit down and fill out patient history Enter emergency room, approach patient window Nurse escorts patient to ER triage room Nurse inspects injury Return to waiting room Wait for available bed Go to ER bed Wait for doctor Doctor inspects injury and questions patient Nurse takes patient to radiology Technician x-rays patient Return to bed in ER Wait for doctor to return Doctor provides diagnosis and advice Return to emergency entrance area Check out Walk to pharmacy Pick up prescription Leave the building Process Charts 32

33. Step No. Time (min) Distance (ft)    Step Description 1X 2X 3X 4X 5X 6X 7X 8X 9X 10X 11X 12X 13X 14X 15X 16X 17X 18X 19X 0.5015.0 10.00 0.7540.0 3.00 0.7540.0 1.00 60.0 4.00 5.00 2.00200.0 3.00 2.00200.0 3.00 2.00 1.0060.0 4.00 2.00180.0 4.00 1.0020.0 Sit down and fill out patient history Enter emergency room, approach patient window Nurse escorts patient to ER triage room Nurse inspects injury Return to waiting room Wait for available bed Go to ER bed Wait for doctor Doctor inspects injury and questions patient Nurse takes patient to radiology Technician x-rays patient Return to bed in ER Wait for doctor to return Doctor provides diagnosis and advice Return to emergency entrance area Check out Walk to pharmacy Pick up prescription Leave the building Summary Activity Number of Steps Time (min) Distance (ft) Operation 523.00 Transport  911.00815 Inspect 28.00 Delay  38.00 Store  ―― Process Charts 33

34. Flowchart Symbols 11-34

35. Process Flowchart Example (Slot Machine) 11-35