2. Operations Systems and the evolution of Operations Management.pdf
- 1. Operations Systems and the evolution of Operations Management
- 2. Historical Evolution Of Production And Operations Management For over two centuries operations and production management has been recognised as an important factor in a country’s economic growth. The traditional view of manufacturing management began in eighteenth century when Adam Smith recognised the economic benefits of specialisation of labour.
- 3. HISTORICAL EVOLUTION OF PRODUCTION AND OPERATIONS MANAGEMENT He recommended breaking of jobs down into subtasks and recognises workers to specialised tasks in which they would become highly skilled and efficient. In the early twentieth century, F.W. Taylor implemented Smith’s theories and developed Scientific Management. From then till 1930, many techniques were developed prevailing the traditional view
- 4. HISTORICAL EVOLUTION OF PRODUCTION AND OPERATIONS MANAGEMENT With the 1970s emerges two distinct changes in our views. The most obvious of these, reflected in the new name operations management was a shift in the service and manufacturing sectors of the economy. As service sector became more prominent, the change from ‘production’ to ‘operations’ emphasized the broadening of our field to service organizations. The second, more suitable change was the beginning of an emphasis on synthesis, rather than just analysis, in management practices.
- 5. A systems view of Operations A system is a collection of objects related by regular interaction and interdependence. Systems vary from large to small organisations. The systems model of an organisation identifies the subsystems or sub-components that make up an organisation e.g. Finance, Marketing, Personnel, Engineering, Purchasing and Physical Distribution systems in addition to the operations system.
- 6. A systems view of Operations These systems are not independent of each other but are interrelated to one another in many vital ways. Decisions made in the Production/ Operations subsystem affect the behaviour and performance of other subsystems.
- 7. Operations Management elements from various schools of thought Managers use various approaches from different schools to view operations management. The schools are categorized into the following taxonomies. Classical School of thought Behavioural school of thought Modelling school of thought.
- 8. Classical School of Thought 1. Economic efficiency. 2. Management as a continuous process of Planning, Organising and Controlling. Economic efficiency was the hallmark of scientific management, which is simply a ratio between outputs and inputs of the organisation.
- 9. Classical School of Thought In most cases management is concerned with the efficiency of labour and always sets an individual standard which is the average output per unit of time under normal working conditions Also referred to as the administrative or functional approach views management as a continuous process of planning, organising and controlling.
- 10. Classical-Process Management Planning-activities that establish the course of action and guide future decision making. Organising-activities establishing the structure of tasks and authority. Controlling-activities that ensure that actual performance is in accordance with standard performance.
- 11. Behavioural Management Began in the 1920s with the emergence of human relations movement after the shortcomings of Scientific Management. The school of thought emphasised on how changes in work environment affect output. Social scientists who also carried out the study observed that workers respond favourably when given attention.
- 13. Modelling Management The school of modelling management is concerned with decision making and systems theory and the mathematical modelling of these theories. Systems theorists advocate the importance of studying and identifying subsystem relationships, predicting of changes in the system.
- 14. Modelling Management Mathematical modelling focuses on creating mathematical representations of management problems and organisations, for instance the model can be used to demonstrate different outcomes that would result from various possible managerial choices.
- 15. Mathematical models in Production and Operations Management. The models are classified into two: Optimisation models These help managers analyse problems and suggest solutions. They use a step by step procedure of attaining a goal known as optimisation algorithm. This step by step approach can be used by managers to find the best solution or goal.
- 16. Mathematical models in Production and Operations Management. Heuristics approach This is a strategy of using the rule of thumb or use of defined decision procedures to attack a problem. In using the approach, we do not expect to get the best possible solution but a satisfactory solution quickly. When the procedures are developed formally they are called heuristic
- 17. Interdependence among decisions This is when a number of decision stages have to be considered. Decisions can be single stage or multistage. Multistage decisions entail several sequential decisions related to one another. Outcome of the first decision affects the attractiveness of the choices at the next decision stage. Sequential problems are commonly encountered by the Operations Manager in project management, capacity planning and aggregate scheduling.
- 19. Framework for managing operations Operations management should be understood in terms of the following frameworks:
- 20. 1. Planning Operations Managers: • Define the objectives for the operations of the subsystems of the organisation and the • Establish policies, programs and procedures for achieving the objectives. This involves the clarification of role and focus of operations within the context of the overall organisational strategy and involves product planning, facilities designing and the usage of the conversion process.
- 21. 2. Organising Operations managers • Establish structures and flow of information within the operational subsystems. • Assign authority and responsibility for carrying tasks and duties. • Coordinate ALL activities required by the operation’s subsystems to achieve goals are determined
- 22. 3. Controlling This ensures that plans for operations subsystems are accomplished by measuring actual outputs performance and comparing them with planned outputs / performance. This helps control costs, quality and schedules.
- 23. 4. Behaviour Operations Managers are concerned with how their efforts to plan, organise and control affect human behaviour and also how subordinates’ behaviour affect management. • Human Relationship • Organisational behaviour
- 24. 5. Models As Operations managers plan, organise and control the conversion process, they encounter problems and have to make decisions. The problems are simplified by models • Decision making • Systems thinking and management • Modelling management
- 26. Conclusion 3 schools of thought Framework for managing operations