Lecture 1: Introduction to Systems and Operations Management, Lecture notes of Quality Management

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Introduction to Systems and

Operations Management

Lecture 1

Week commencing 30 January, 2012

Definitions

Input-Process -Output

Introduction

Typology of Ops

Self-managed Learning

What is this module about?

• Role of systems and operations management

and its integration into efficient and effective

running of business.

• Process analysis; improvement and quality

management

• The soft systems approach of SSM to systems

development will be used to analyse and

define business requirements.

• People and management issues will be

reviewed with emphasis on communication,

teamwork and effective leadership.

Introduction

Definitions

Input-Process -Output

Introduction

Typology of Ops

Self-managed Learning

Assessment – Atokowa case study

• Starting on page 8 of your module guide
• Atokowa case study
• You will analyse the problems they have

had with their systems and operations

management

Introduction

Definitions

Input-Process -Output

Introduction

Typology of Ops

Self-managed Learning

Assessment – 3000 word assignment (pg 7-8)

1. Apply appropriate models to the organisation to critically analyse how systems and operations are currently managed. 25%
2. Apply the techniques of soft systems methodology to analyse the current issues in the organisation. Through this analysis summarise the main business requirements of the organisation. 25%
3. Explain how the organisation can improve quality management; business improvement and excellence in their systems and operations. 25%
4. Identify the relevant people and management issues that may arise in implementing your quality management; business improvement and excellence recommendations (in 3). 15%
5. Report Style and Academic Rigour Your report should be written in good business English and be well structured and presented. 10%

Introduction

Definitions

Input-Process -Output

Introduction

Typology of Ops

Self-managed Learning

Introduction: Learning Outcomes

1. Define Operations Management and

Systems Management;

2. Understand how Operations and

Systems work together;

3. Apply the input-process-output model

from an operations and systems

perspective;

4. Know the 4 V’s typology of operations:

volume; variety; variation of demand

and visibility.

Definitions

Input-Process -Output

Introduction

Typology of Ops

Self-managed Learning

Definitions of Systems and Operations

• “Operations management is the activity

of managing the resources which are

devoted to the production and delivery

of products and services.” (Slack et al,

• Information Systems is a “set of

interrelated components that collect (or

retrieve), process, store, and distribute

information to support decision making

and control in an organization.” (Laudon

and Laudon, 2010)

Definitions

Definitions

Input-Process -Output

Introduction

Typology of Ops

Self-managed Learning

Customers

Transformed

resources

• Materials
• Information
• Customers

Transforming

resources

• Facilities
• Staff

Transformation process

Outputs are products and services

that add value for customers

Transformation Process in Operations

Inputs

resources

Outputs Products

Services

Definitions

Input-Process -Output

Introduction

Typology of Ops

Self-managed Learning

Input-Processing-Output Model

Laudon and Laudon (2007) Figure 1.2, page 12 and Bocij et al (2006)

INFORMATION SYSTEM

Transformation

Process:

Classify

Rearrange/Sort

Aggregate

Calculate

Select

Input:

Data

Output:

Information

Feedback

Suppliers ENVIRONMENT Customers

ORGANISATION

Regulatory Agencies Stockholders Competitors

Input-Process

-Output

Definitions

Input-Process -Output

Introduction

Typology of Ops

Self-managed Learning

Example: Prêt a Manger info system

Data

Each customer transaction that is processed – i.e. the till Delivery arrival of new stock (ingredients etc.) Temperature levels

Process Information

Stock level information Sales reports Peak times reports

Input-Process

-Output

Inputs Outputs

Definitions

Input-Process -Output

Introduction

Typology of Ops

Self-managed Learning

Operations management is

concerned with the flow of

transformed resources

between operations, processes, where

Processes form an internal ‘supply network’ and become each others customers and suppliers

External operations interact with internal processes to form the external supply network

Flow between operations

Flow between processes

Flow between resources

Supplynetwork

Operation

Process

Three levels of analysis

Definitions

Input-Process -Output

Introduction

Typology of Ops

Self-managed Learning

High Variation in demand Low

High Visibility Low

High Variety Low

Low (^) Volume High High

A typology of operations and processes

The 4 Vs

Typology of Ops

Definitions

Input-Process -Output

Introduction

Typology of Ops

Self-managed Learning

• Low repetition
• Each staff member performs more of each task
• Less systemization
• High unit costs

Volume Low

High

Implications of the operations typology

• Flexible
• Complex
• Match customer needs
• High unit costs
  • Well defined
  • Routine
  • Standardized
  • Regular
  • Low unit costs

•High repeatability

• Specialization
• Capital intensive
• Low unit costs

Variety High

Low

Typology of Ops

Definitions

Input-Process -Output

Introduction

Typology of Ops

Self-managed Learning

Self-managed learning

• Complete the

workshop task

• Read Chapter 1 –

Operations

Management

Self-managed

learning

Definitions

Input-Process -Output

Introduction

Typology of Ops

Self-managed Learning

Questions