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

2. 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’

3. 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

4. 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

5. 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)

6. 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

7. 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

8. 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?

9. 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)?

10. 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

11. 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

12. 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

13. 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)