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Managing the Operations Function

The document discusses key aspects of managing operations in a business. It describes the enterprise delivery system framework which involves mobilizing resources like money, materials, and machines as inputs that are transformed through production processes into outputs like goods and services. The six Ms - money, manpower, materials, machinery, management, and methods - are critical inputs. Effective operations management focuses on technology utilization, work flow efficiency, quality control, production scheduling, and motivating employees to transform inputs successfully into outputs that meet customer expectations.

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Joban Las Pinyas
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1K views3 pages

Managing the Operations Function

The document discusses key aspects of managing operations in a business. It describes the enterprise delivery system framework which involves mobilizing resources like money, materials, and machines as inputs that are transformed through production processes into outputs like goods and services. The six Ms - money, manpower, materials, machinery, management, and methods - are critical inputs. Effective operations management focuses on technology utilization, work flow efficiency, quality control, production scheduling, and motivating employees to transform inputs successfully into outputs that meet customer expectations.

Uploaded by

Joban Las Pinyas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
  • Enterprise Delivery System Framework
  • Managing the Operations Function
  • Support Services
  • References

MODULE HENTRE (ENTREPRENEURSHIP)

Chapter 8 : Managing the Operations Function

Objectives:

1. The technology application and utilization


2. Operation management , supervision, and
controlling

Operations management is about delivering products and services to customers


to meet surpass their expectations. It is designing, developing, and executing the
Enterprise Delivery System (EDS), from sourcing of the necessary input to the
transformation of these input into the final output which, In turn assure the Intended
outcome of delighting the customers. The final output, which come in the form of goods
or services (or both), most carry all the features and attributes that customers are looking
for.

*THE ENTERPRISE DELIVERY SYSTEM FRAMEWORK AND THE QDP

The Six Ms of operations


The six Ms of the operations function cover the input portion of the EDS Design
Framework. To better illustrate how the six Ms work across the EDS Design Framework.

Input – Resources Mobilized


-money
-men
-machines
-materials
-methods
-management

Throughput – Transformation Process


Conversation of Input into Output

Output – Products
Goods made or Services rendered

Final Delivery to Customers - Marketing and Customer Servicing


Marketing Program
Service Level Experience

Outcomes – Customer Expectations


Quality
Delivery
Price
- Market Expectations
Revenues/Sales
Market share
Market Reach
- Finance Expectations
Profits
Return on Investment

Page 1|3
MODULE HENTRE (ENTREPRENEURSHIP)

The input is composed of six Ms: Money, Manpower, Management, Methods,


Materials, and Machinery. The six Ms are transformed into the right output through a
highly productive system, meaning one with high efficiency, economy, and effectiveness.
The transformation process is called the Throughput System.

The Nine Critical Sub- processes or Sub-Systems in the transformation Process


The transformation process or throughput system is what differentiates a well-
managed from a poorly-managed EDS. There are nine critical sub-processes or sub-
systems that must be managed well in the transformation process.

Technology Application and Utilization


The enterprise managers and technicians must understand how the technology
works and how it should be properly utilized.

Operating Work Flow


The Operating Work Flow (OWF) should follow the rationale of the technology
being adopted and used. It is the step by step process of sourcing and storing the input,
converting these input into output and delivering the output to the customers. Two guiding
principles should dictate the OWF.

1. The OWF must be very efficient in terms of time, movement, and utilization
of resources. Long waiting times, Lag times, down times, and wasted times
should be avoided. There should be as little distance as possible between steps
of the sequential work process.
2. The OWF must be balanced capacity-wise. These should not be significant
disparities in the capacity of each step in the process.

Lay outing

The operating work flow must translate


into an appropriately-designed and executed
physical Layout of the factory or service shop.

The layout should follow four principles;

1. The physical layout must allow the goods or the customers being processed to go
from one step to another with very little distance and time spent between steps.
2. There should be minimal or no crisscrossing of goods or customers within the
physical space. This means that the goods or the customers should not go back
and forth from one workplace to another in a confusing manner.
3. The layout should capture the physical and psychological atmosphere desired.
4. From the management perspective, the layout must be easy to see, follow,
monitor, and control.

Production Programming and Scheduling


Operations management is responsible for Production Programming and
Scheduling (PPS). It is the proper determination of: (1) what goods or services to produce,
(2) in what sizes and packaging, (3) in what machinery and equipment for
production/service line, (4) in how many units and (5) precisely when.

Quality Control

The Quality, Delivery, and Price expectations of customers must be matched with
the Quality, Delivery, and Productivity measurement, monitoring and evaluation system
at every stage of the Enterprise Delivery System.

Operating Systems and Procedures


Page 2|3
MODULE HENTRE (ENTREPRENEURSHIP)

Operating Systems and Procedures (OSP) are the enterprise standards for
running the entire operations of the factory or service shop. They are “engineered
methods”

Operations Management, Supervision, and control

Operations managers and supervisors orchestrate and control the entire EDS.
There are three distinct phases of managing and controlling the EDS: (1) Pre-operations;
(2) Operations Proper; and (3) Post-operations.

Worker Motivation, Skilling, Deployment, Compensation, and Control

People run factories and service establishments. Even factories with the most
automated machines require good people to calibrate and maintain the machines.

Support Services

The Operations Function cannot perform well without soliciting and getting the
support of all the other units of the enterprise. Cross functional coordination is important
to the success of any operations.

Please refer to the link below for a Documentary about:

 Video of technology application and


utilization:[Link]
 Example of quality control
tools:[Link]

Reference:
[Link]
Entrepreneurship by Dr. Eduardo A. Morato Jr.

Page 3|3

Common questions

Powered by AI

Quality control is integrated into the Enterprise Delivery System by implementing a comprehensive monitoring and evaluation system. This system matches the Quality, Delivery, and Price expectations of customers with operational metrics at every stage of the process. By ensuring each step meets these quality benchmarks, the enterprise can consistently deliver products and services that meet or surpass customer expectations .

The Operating Work Flow (OWF) is crucial because it dictates the efficiency of converting inputs into outputs, directly affecting customer satisfaction. It should adhere to principles ensuring minimal delays and balanced capacities across processing steps. Efficiency in time and use of resources, as well as minimizing the spatial distance between workflow steps, are also critical for minimizing costs and maximizing throughput .

The nine critical sub-processes are key determinants of the transformation process's efficiency and effectiveness. Each sub-process—from technology application to worker deployment—contributes to seamless input-to-output conversion. Proper management ensures that bottlenecks are minimized, workflows are streamlined, and resource utilization is optimized, which collectively enhances service or product delivery quality .

Worker motivation and skilling directly enhance operational quality by improving productivity and reducing errors in processes. Motivated workers are more engaged and willing to contribute innovative ideas, while skilled employees ensure tasks are performed efficiently and effectively, enhancing quality across operations. Additionally, well-trained workers are crucial for maintaining and optimizing automated systems, further boosting operational performance .

An appropriately designed physical layout facilitates efficient operations by minimizing the distance and time between processing steps, preventing crisscrossing of goods or customers, and promoting a conducive physical and psychological atmosphere. It also allows for easy monitoring and control by management, ultimately contributing to a streamlined workflow and improved overall operational efficiency .

Managing the three phases—Pre-operations, Operations Proper, and Post-operations—poses challenges like maintaining consistent quality and efficiency across phases and adapting to technological changes. Controlling these phases requires strategic oversight to anticipate disruptions, streamline processes, and ensure alignment with market demands. Coordination amongst cross-functional teams is also critical to overcome these hurdles .

An Operations Manager should apply principles ensuring minimal transition time and distance between operational steps, avoiding crisscrossing, creating an appropriate physical and psychological atmosphere, and facilitating easy monitoring and control. These factors help maintain a smooth flow of goods and customers, enhance productivity, and improve response times to operational issues, thus maximizing efficiency .

Cross-functional coordination enhances operational performance by ensuring that all enterprise units work in harmony, aligning their activities with the overarching goals of the operations function. Such collaboration prevents resource conflicts, facilitates problem-solving, and promotes innovation. It ensures the support services are aligned with operations, maintaining high efficiency and responsiveness to changes in market demands .

Production Programming and Scheduling (PPS) is vital for operational success as it involves determining what goods or services to produce, in what quantity, size, and during which timeframes. Proper scheduling ensures that resources are optimally utilized and customer demands are met timely. This accountability in planning helps the enterprise avoid underproduction or overproduction, which can lead to waste or missed opportunities .

The Enterprise Delivery System (EDS) Framework integrates the six Ms—money, manpower, materials, machines, methods, and management—as inputs in the operations management process. These inputs are transformed into outputs through the Throughput System, which is designed to be efficient, economical, and effective. The transformation involves nine critical sub-processes that ensure productive system performance to meet customer expectations .

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