Operations management – Part 1

Christie Sarri 31.03.2010

 Lesson 1: An Introduction to Operations Management
 Operations & Process management
 4Vs of processes
 Performance objectives

 Lesson 2: High-level Process Design

 Process Types

 Lesson 3: Process Analysis

Contents
 HSBC Bank – Branches in London

One of the world's largest banks by assets, HSBC

Holdings is active throughout the UK and Europe,
North and South America, Asia/Pacific, Australia, the
Middle East, and Africa. All told, the company has
some 10,000 offices in more than 80 countries,
providing consumer and commercial banking services,
credit cards, asset management, private banking,
securities underwriting and trading, insurance, and
leasing.

Case Study
Operations management
Operations management – case study
4Vs of processes
Low Volume High

High Variety Low

High Variation Low

High Visibility Low

4Vs of processes – case study

Operations Performance
Operations Performance
Operations Performance – study case
 Low Variety

High Volume

Process Matrix
Manufacturing:

◦ Project: high customized projects, construction

◦ Jobbing: project shares operation resources, specialist toolmakers
◦ Batch: some periods repeating, gourmet frozen foods
◦ Mass: repetittive and predictable, cd production
◦ Continuous: endless flow, electricity utilities
Services:

◦ Professional: high levels of customization, architects

◦ Service: mix of front and back service activities, banks
◦ Mass: mainly back service activities, supermarkets

Process Types
Customer Check Sent
enters client’s customer to
the bank request Queue
appropriate
department

Application for Ask a cheque

Cheque book Check before book
completed issue

Deliver to
......... customer by
...... post

Process Maps – case study

 Cycle time = Time available / numbers

 Process capacity = Work content / cycle time

 Process balancing = idle time / cycle time

 Little’s law:

Throughput time= work in progress x cycle time

Cycle time, process capacity, process balancing