Executive summary Operation management is the process of bringing people in to the organization making very sure that new entrants have the potential and willingness to contribute to organizational success. In today’s scenario without effective Operation management the organization will meet the considerable resistance when introducing change. Without organizational change and development survival become very uncertain so in order to make the industry survive it is very important to adopt the different Operation management practices in all organizations so as to understand the employees or workers need and satisfy them. There should be effective people utilization in every industry. All these practices in an organization will make the organization to grow at a faster speed The study will be empirical and primary research will be done by using the questionnaire which will administer to sales, service and support function employee, The date will be collected and assimilated by using statistical tool like median and date will be analyzed by using Bar Chart, The analysis will be to find the effectiveness of current PMS.1, INTRODUCTION HCL an overview Born in 1976, ICL has a 3-decade rich history of inventions and innovations. In 1978, ICL developed the first indigenous microcomputer at the same time as Apple and 3 years before IBM's PC. During this period, India was a black box to the world and the world was a black box to India, This microcomputer virtually gave birth to the Indian computer industry. The 80's saw HCL developing know-how in many other technologies, HCL's in« depth knowledge of Unix led to the development of a fine grained multi-processor Unix in 1988, three years ahead of Sun and HP. HCL's R&D was spun off as HCL Technologies in 1997 to mark their advent into the software services arena. During the last eight years, HCL has strengthened its processes and applied its know-how. developed over 30 years into multiple practices - semi- conductor, operating systems, automobile, avionics, bio-medical engine HCL's R&D was spun off as HCL Technologies in 1997 to mark their advent into the software services arena, During the last cht years, HCL has strengthened its processes and applied its know-how, developed over 30 years into multiple practices - semi-conductor, operating systems, automobile, avionics, bio-medical engineering, wireless, telecom technologies, and many more, ‘Today, HCL sells more PCs in India than any other brand, runs Northern Ireland's largest BPO operation, and manages the network for Asia's largest stock exchange network apart from designing zero visibility landing systems to land the world’s most popular airplane.The HCL HeritEdge click here 1976 Hindustan Computers Limited (HCL) born. 1977 Distribution alliance formed with Toshiba for copiers. 1978 HCL successfully ships in-house designed microcomputer at the same time as Apple. The Indian computer industry is born. 1980 HCL introduces bit sliced, 16-bit processor based microcomputer.1983 _Indigenously develops an RDBMS, a Networking OS a Client Server architecture, at the same time as global IT peers. 1986 HCL becomes the largest IT Company in India. 1988 HCL introduces fine-grained multi-processor Unix-3 years ahead of “Sun” and up”. 1990 Data Quest marks HCL No.1 amongst top ten computer giants. 1991 HCL Ltd, and Hewlett Packard, USA, partner to form HCL-Hewlett Packard Ltd. JV develops multi-processor Unix for HP-heralds HCL’s entry into contract 1994 Distribution alliances formed with Ericsson Switches and Nokia Cell phones. 1997 HCL Info systems are formed. HCL's R&D spun-off as HCL Technologies marks advent into software services. JV with Perot Systems, stake divested in 2003. 1999 Initial Public Offering made by HCL Technologies [Link] of Global Board of Directors, 2000 Large contracts won from Bankers Trust, KLA Tenor, Cisco, GTech, NEC among, others. 2001 JV with Deutsche Bank DSL software formed. HCL BPO Incorporated. Acquired British Telecom Apollo's contact center in Belfast, Northern Ireland. HCL Info systems become largest hardware company. 2002 Strong pursuit of nonlinear strategy to widen services portfolio; several JVs and alliances formed. Strategic alliance forged with Jones Apparel Group, Inc. a fortune 500company. Infrastructure services division launched to address emerging global needs. Software businesses of HCL Info systems and HCL Technologies merged. 2003 Largest BPO order ever outsourced to an Indian BPO firm, won from British Telecom, Landmark deals signed with Airbus and AMD. HCL manpower crosses the 20,000 mark.. 2004 Accorded leader status by Meta Group in Offshore Outsourcing. HCL is India’s No.1 PC 4th year in a row. 2005 2006 HCL signs Software Development Agreement with Boeing for the 787 Dream liner program. IV with NEC, Japan HCL sets up first Power PC architecture design center outside of IBM. Completes buy-out of JVs with Deutsche Bank and British Telecom Apollo Contact Center. HCL integrates all group employees under HCL in domain. Sets up a dedicated Offshore Design Center for leading Tier Aerospace supplier, Hamilton Sundstrand. HCL Info systems launches sub Rs.10, 000 PC. Joins hands with AMD, Microsoft to bridge the digital divide. 75,000+ machines produced in a single month, HCL Info systems in partnership with Toshiba expand its retail presence in India by unveiling 'shop Toshiba’.«HCL Info systems & Nokia announce a long-term distribution strategy. HCL the leader in Desktops PCs unveils India's t segment specific range of notebooks brand - 'HCL Laptops’ ‘* HCL Info systems showease Computer Solutions for the Rural Markets in India. * HCL Support wins the DQ Channels-2006 GOLD Award for Best After Sales Service on a nationwide customer satisfaction survey conducted by IDC. + HCL AND ZEE - Dish TV team up to take DTH TV to its next level of growth in India * HCL Info systems First in India to Launch the New Generation of High Operation Server Platforms Powered by Inte! Dual - Core Xenon 5000 Processor. «HCL Forms a Strategic Partnership with APPLE to provide Sales & Service Support for iPods in India. HCL is one of the leading global Technology and IT enterprises with annual revenues of US$ 4 billion, ‘The HCL Enterprise comprises two companies listed in India, HCL Technologies (ip www. [Link]/) and HICL Info systems (ottp:tiwww helinfosystems in) The 30 year old enterprise, founded in 1976, is one of India's original IT garage start ups. Its range of offerings span R&D and Technology Services, Enterprise and Applications Consulting, Remote Infrastructure Management, BPO services, IT Hardware, Systems Integration and Distribution of Technology and ‘Telecom products in India. The HCL team comprises 45,000 professionals of diverse nationalities, operating across 17 countries including 360 points of presence in India, HCL has global partnerships with several leading Fortune 1000 firms, including several IT and Technology major1.2. Fueled by the entrepreneurial zeal of its founders, HCL developed the first indigenous microcomputer in 1978, at the same time as Apple. Since then, HCL has had a 3-decade rich history of inventions and innovations. Entrepreneur is the term that best describes the HCL employees. The TIME magazine has referred to HCL as an “intellectual clean room where its employees could imagine endless possibilities." Ever since HCL entered into an alliance in 1970s, partnerships and HCL have been inseparable, Bonds have been forged with partners to co-create value. Strong inorganic growth is a testimony to the spirit of partnerships. 1213. This entrepreneurial and win-win relationship driven culture continues to guide HCL in all its endeavors. Our DNA Seon vey Penne Passion for Growth ‘Teehnolog/nvention ard innovation maT New Business Areas i History of inventions and innovations [ Stratege investments / Leveraging inventions ang innovations ® parinetshibs / ventures Technology Deployment Procuict Engineering expertise Deep Vertical Expertise: partetshins / ventures Leveraged expertsein new domans Creating Networks Partners (HP, Cisco, Deutsche Bank, nd Britsh Telecom) ‘Gents Founded in 1976: A 30 year technology heritage Employer spotlight: HCL is one of India’s leading global IT Services companies, providing software-led IT solutions, remote infrastructure management services and BPO. Having made a foray into the global IT landscape in 1999 after its IPO, focuses on Transformational Outsourcing, working with clients in areas that impact and re-define the core of their business. The company leverages an extensive global offshore infrastructure and its global network of offices in 16 countries to deliver solutions across select verticals including Financial Services, Retail & Consumer, Life Seiences Aerospace, Automotive, Semiconductors, ‘Telecom and MPE (Media Publishing & Entertainment) 1BHCLin Indi: HCL has evolved from a dream of eight youngsters in 1977 to the country's top IT group today. Our well-balanced portfolio of turkey solutions across equipments, software and services make our offerings end-to-end for all IT needs of the Indian customers. Our recognitions speak of our dominant position in India. V&D100 2005, No. 1 Security service provider in India by DQ Annual 2004, No.1 Infra service provider by CMP 2005, and No.1 PC Brand recognize us as No.1 Network Management service provider in India for the last 5 years in India. HCL is known to be the harbinger of technology in the country, Our partnerships with technology leaders like DA, Oracle, SAP, KANA, Intel, and Microsoft go back to the time when India was being recognized as a growing and strategic market. Along with global capability, HCL has leveraged such relationships to create value for Indian customers - the comprehensive integrated market surveillance solution for SEBI being ‘one such example. Our services are backed by an extensive direct support infrastructure spread across 170 locations nationwide, which offer 24-x7 support offering for critical sites. With more than 70 SAP implementations till date, HCL has been rendering service to key Indian players in Banking, Retail and Government. ‘We are committed to the Indian Market and will continue to invest more to further enrich our end-to end IT offerings for this market, Our flexible engagement models, rich heritage of technology solutions and over 29 years of leadership across service areas give us a strategic advantage to meet the nation's IT needs.1.4, About HCL. HCL Enterprise is a leading Global Technology and IT enterprise that comprises two companies listed in India - HCL Technologies & HCL Info systems. The 3-decade-old enterprise, founded in 1976, is one of India’s original IT garage start-ups. Its range of offerings span Product Engineering, Technology and Application Services, BPO, Infrastructure Services, IT Hardware, Systems Integration, and distribution of ICT products. The HCL team comprises approximately 42,000 professionals of diverse nationalities, who operate from 16 countries including 300 points of presence in India. HCL has global partnerships with several leading Fortune 1000 firms, including leading IT and Technology firms. HCL Technologies is one of India’s leading global IT Services companies, providing software-led IT solutions, remote nfrastructure management services and BPO. Having made a foray into the global IT landscape in 1999 after its IPO, HCL Technologies focuses on Transformational Outsourcing, working with clients in areas that impact and re-define the core of their business. The company leverages an extensive global offshore infrastructure and its global network of offices in 16 countries to deliver solutions across select verticals including Financial Services, Retail & Consumer, Life Sciences Aerospace, Automotive, Semiconductors, Telecom and MPE (Media Publishing & Entertainment). For the quarter ending 31st December 2006, HCL Technologies, along with its subsidiaries had revenue (TTM) of US $ 1.155 billion (Rs. 5220 crore) and employed 38,317 professionals.1.5. Strong SAP Capabilities: HCL Technologies is one of the largest global SAP service providers in India, providing a spectrum of SAP services. HCL Technologies has developed strong capabilities on the SAP Net Weaver platform and drives market demand in the SAP world through unique ‘market propositions and upgrade offerings to my SAP ERP. HCL is a value added reseller and services partner across multiple geographies. With a track record of successful engagement in this space, HCL has received prestigious awards from SAP - distinguished partner award 2005, best my SAP HCM implementation award 2005, Sap’s “outstanding partner” award for implementation/upgrade project 2004, and more. Forrester has lauded HCL Technologi is one of a number of firms in this space and is a viable candidate for multinational firms that are contemplating global outsoureing and are interested in SAP implementation and maintenance services. 1.6. VISION STATEMENT * Together we create enterprises of tomorrow 1.7. MISSION STATEMENT * To provide world class information technology solution and services to enable our customers to serve their customer better’ QUALITY POLICY STATEMENT * “We will deliver defect-free products, service and solutions to meet the requirements of our extemal and internal customers the fist time, every time.”1.9.0UR OBJECTIVE OUR MANAGEMENT OBJECTIVE * To fuel initiative and foster active by allowing individuals freedom of action and innovation in attaining defined objectives. OUR PEOPLE OBJECTIVE * To help HCL Infosystem people share in the company’s success, which they make possible to provide job security based on their Operation; to recognize their individual achievements and to help them gain a sense of satisfaction and accomplishment from their work. 1.10. CORE VALUES + Weshall uphold the dignity of individual © Weshall honor all commitments. . We shall be committed to Quality. Innovation and growth in every endeavor. © We shall be responsible Corporate Citizens1.11. | ASNAPSHOT OF HCL Infosystems Ltd. India’s leading IT company HCL In say is India’s largest information technology (IT), transnational conglomerate. With its-depth expertise in developing solution spanning diverse technologies. HCL Insys aims to propel its course on to the high growth Path total Technology Integration. Towards capturing two Ends of market spectrum - enterprise solution and PCs. HCL Insys has made significant strategic infrastructure investments in the professional services Organization (PSO), the Support Services Organization (SSO) and its manufacturing plant at Pondicherry. Thus it is the manufacturer of general purpose computer and provides services in the areas of IT Consultancy, system integration, Software Development and Training. It makes true technology integration possible across multiple platforms, this was possible because of the in-depth expertise in developing state-of-the-art indigenous hardware solution; thorough understanding of networking technology. As a part of this plan to market more and more technology integration services world= wide, HCL in sys has already taken a step in the direction of export by localizing its service comprising software, hardware design and development, value added support service networking abs repair services and overseas integration projects to meet the demands of the global clients. Company's continuous and consistent anticipation of the requirement of the IT Industry has led it to undertake the acquisition of the business of HCL Info solutions limited (now known as Frontline Division), HCL Peripherals Limited (now known the acquisition ofCustomer Support Organization (CSO) activities of HCL Of (now know as office Automation Division) FRONTLINE DIVISION Frontline Division, formerly HCL Info solution Ltd. (HCL Insol) started with the aim of increasing market penetration by handing segments not covered by HCL Insys and creating new niches. Today it specializes. 192. Literature Review Operations management is an area of management concemed with overseeing, designing, and controlling the process of production and redesigning busines S operations in the production of goods or services Four Types of Focus Dimensions Used in Operations Management Every business operates along four basic focus dimensions: finance, customers, intemal processes, and learning and innovation. These theoretical divisions of operations rch of Robert $. Kaplan and David P. Norton. The ‘management come from the 1 dimensions aren't mutually exclusive. For example, employees who become more competent through learning can improve the functioning of internal processes, according to “Management Principles: A Contemporary Edition for Africa,” by P. J. Smit. Finance The heart of the financial dimension for most businesses is profit, though short-term financial goals might entail sacrificing current profits to increase future capacity. For example, a company might decide to reinvest all its profits into new and better machinery to increase production capacity and efficiency, but the ultimate goal remains greater profit. Managers must control the flow of money through the organization to ensure short-term goals align with long-term goals. ‘Customers Customers are the foundation of your business. Without the flow of their money through im to maximize the flow of your organization, everything grinds to a halt. Managers customer money, but that doesn’t always mean securing as many customers as possible. A boutique hotel, for example, might focus on serving relatively few high-paying customers, while a chain hotel focuses on the wide swath of people who are unwilling to 20pay high prices. Though each business targets customers who have different needs, meeting those needs is equally vital to their profitability Internal Processes Optimization of internal processes leads to greater profitability and customer satisfaction For example, a manager might focus on developing efficient communications within an organization to ensure orders travel quickly from the customer service department to the production line. The manager further expedites the order by ensuring the production department syncs with the shipping department to get the order to the customer quickly. Fine-tuning the process to make it maximally efficient keeps operating costs low and pleases customers, leading to greater profits. Learning and Innovation Technology progresses and so must businesses, An invention that improves a manufacturing process, for example, might be a game changer that forces factories to upgrade their processes or lag behind competitors. A good manager stays abreast of technological shifts: a great manager anticipates and initiates change by encouraging her organization to focus on leaming and innovation. Practically, this can mean anything from having a wellefunded research-and-development team to paying for continuing education for employees, An organization that surmounts cognitive limitations stays one step ahead of its competitors. Understanding operations management Consider the ingredients of your breakfast this morning. Unless you live on a farm and produced them yourself, they passed through a number of different processing steps between the farmer and your table. Every organization has an operations jon, whether or not it is called ‘operations The goal or purpose of most organizations involves the production of goods and/or 21services. Operations in some form has been around as long as human Endeavour itself but, in modem manufacturing and service industry at least, it has changed dramatically over time. To some (especially those professionally involved in operations management!) operations ‘management involves everything an organization does. In this sense, every manager is an operations manager. Operations management definitions There are many differing definitions of operations management; we have picked a range for you to look at below. Depending on your specific area of operations management, some may suit your role or understanding better, but overall they all make a similar point. ‘The efficient and effective implementation of the policies and tasks necessary to atisfy an organization's customers, employees, and management (and stockholders, if publicly owned company) ‘The management of systems or processes that create goods and/or provide services "The on-going activities of designing, reviewing and using the operating system, to achieve service outputs as determined by the organization for customers" (Wright, 1999) Management of main business activity: the organizing and controlling of the fundamental business activity of providing goods and services to customers Operations management deals with the design and management of products, processes, services and supply chains. It considers the acquisition, development, and utilisation of resources that firms need to deliver the goods and services thei clients want. 2The purvey of operations management ranges from strategic to tactical and operational levels, Representative strategic issues include determining the size and location of manufacturing plants, deciding the structure of service or telecommunications networks, and designing technology supply chains. include plant layout and structure, project management methods, and equipment selection and replacement. Operational issues include production scheduling and control, inventory management, quality control and inspection, traffic and materials handling, and equipment maintenance policies, Operations management is an area of management concerned with overseeing, d the production of goods and/or services. It involves the responsibility of ensuring that igning, controlling the process of production and redesigning business operations in business operations are efficient in terms of using as few resources as needed, and effective in terms of meeting customer requirements. It is concerned with managing the process that converts inputs (in the form of materials, labor and energy) into outputs (in the form of goods and/or services). 10M would like to thank Derek Thomason FIOM, Ui art Expert Practices, for sharing examples and information contained in this section for the benefit of [OM members and those interested in learning more about what operations management is. So what does it means? What exactly does this mean in real terms? What kinds of tasks, roles and responsibilities do people working in operations management have? Forecast demand ~ Market product — Adapt to comply with customer demand 23— Understand what the customer wants — Understand how much the customer wants — Set targets (timescales) — Know product demand — Measuring standards — Produce sales invoices / solve customer disputes — Measure outputs — Plan production and timescales Sourcing and procurement — Order materials — Negotiate price — Check deliv y with order — Reconcile invoice with correct supplier statement — Pay on time — Buy supplies — Order materials = Stock control — Buying resources and allocating = Inventory / stock control 24~ Schedule suppliers — Managing stock (getting it in the right place at the right time) — Locating and procuring supplies — Pay suppliers Creation of output — Managing budgets st implications — Buy cost effective materials — Replenish inventories — Arrange for necessary equipment — Schedule material / staff / equipment to produce goods and services — Plan ‘work order* — Produce product — Produce goods nverting supplied materials (adding value) — Quality control — Measure conformance / quality Delivery Customer satisfaction 25— Deliver finished products nsider logistics / delivery — Arrange delivery to customer = Dispate — Arrange packaging / presentation Managing people _{— Employ people ~ Train people — Implementing and timescales — Outsource — Delegation — Managing people — Recruit and train staff — Schedule labour Brief history of operations management Pre 18th century Agriculture was the predominant Industrial Revolution 1770-1830 ing the goods or service to the customer country 26— Economy based on manual labour was replaced by one dominated by industry and the manufacture of machinery — The development of all-metal machine tools in the first two decades of the 19th century facilitated the manufacture of more production machines powered by steam or wate (James Watt, 1785) ‘Second Industrial Revolution (around 1850) — Development of st um-powered ships, railways, and later in the nineteenth century with the internal combustion engine and electrical power generation — Introduction of Frederick W. Taylor's systematic approach to scientific management at the beginning of the twentieth century (1911) — Henry Ford, father of the moving assembly line, brought the world into an age centred around the mass production of goods (1920) Post WWIT — Leverage of management science techniques that were developed in the war — Growth in power of computers — Japanese Toyota Production System (IPS) based on three principles: 1. Quality 2. Continual Improvement ination of waste Late 1950s and early 1960s 27— Move from industrial engineering and operations research into production management — Production management becomes a professional field as well as an academic discipline — Major world economies evolving into the service arena’ © service jobs outnumber manufacturing jobs ises much more difficult to achieve productivity ine — Operations techniques begin to be incorporated into services -the term production/operations management comes into use Today — Environmental and social awareness ‘Types of operations management Every organisation has an operations function, whether or not it is called ‘operations’, The goal or purpose of most organisations involves the production of goods and/or es that services. These pages provide you with an idea of the sorts of tasks and proc relate to operations management within each of the following industry types. — Manufacturing products — Providing insurance cover — Providing healthcare = Government — Armed Forces — peace keeping 28— OXFAM - bringing relief Manufacturing products Managing operations — Receiving requirements — Procuring raw materials — Recruiting and retaining staff — Budgeting and cash management — Meeting Health, Safety and Legal requirements — Planning resources ality, cost and delivery — Procuring / managing assets — Defining policies and procedures — Making products ~ Storing and distributing produ legotiations — Provide training — Plan raw materials — Process raw materials — Make intermediates 29— Process copy (for Control) ~ Printing — Quality control — Recycling / rework Providing insurance cover Managing operations — Receiving requests for cover jing / reassess risk — Answering customer enquiries — Undertaking competitor reviews laims — Processing — Making payments, — Recruiting and retaining staff — Budgeting and cash-flow management ting Health, Safety and Legal requirements — Planning resources — Improving quality, cost and delivery — Customer care process — Aceredit repairers 30— Forecast demand — Process applications — Process renewals — Calculate no claims bonuses — Arrange repairs -nd out certificates / reminders — Send out claims forms Providing healthcare Managing operations — Obtaining finance — Project / programme Management — Recruiting and retaining staff Sourcing and procuring supplies — Responding to emergencies ~ Scheduling patient operations Controlling infection — Providing post operative care — Capacity planning (bed / theatre management) — Quality control / track and trace 31— Dispatch ambulance ~ Inform hospital of arrival — Inform stakeholders — Contact theatre team — Provide interim care — stabilise patient — Prepare resource (theatre) ~ Kitting for operations — Resource planning (ITU / ward) — Deploy ambulance Government Managing operations — HMRC © Process tax forms o Investigate errors © Prosecute offenders © Labour plannin Social Services 32© Assessing risk © Providing support services — Emergency Services © Capacity planning © Resource deployment — Central Government o Generate new laws 6 Influence people © Process claimants 0 Allocate resources according to need o Educate and train people Armed Forces Managing operations ~ Training and development ~ Contingency planning — Capital investment and programme management ~ Logistics (soldiers and materials) — Supply chain management — Returns management— Deployment — Measurement and control — Manage budgets and costs — Stakeholder management — Manage people — Manage resources (equipment and materials) — Management of maintenance OXFAM Managing operations — Generate funds — Contingency planning ~ Material and labour planning — Forecast demand ~ Source and procure non-perishables — Response time management — What-if and scenario planning — Deploying aid (people and materials) — Transport to site of disaster — Enabling s istainability 34~ Distribute to people in need — Plan for short term and longer term sustainability — Conduct risk assessment — Skills assessment / training — Manage shops — Run collections / donations — Receive goods and price in shops 35‘What do operations managers do? Strategic (long term) Level — Responsible for, and decisions about: 0 What to make (product development) ‘0 How to make it (process and layout decisions) ~ or should we buy it? o Where to make it (site location) How much is needed (high level capacity decisions) Tactical Level (intermediate term) — Address material and labour resoureing within strategy constraints, for example: © How many workers are needed and when (labour planning) © What level of stock is required and when should it be delivered (inventory and replenishment planning) © How many shifts to work. Whether overtime or subcontractors are required (detailed capacity planning) Operational Level — Detailed lower-level (daily/weekly/monthly) planning, execution and control decisions, for example: ‘© What to process and when (scheduling) © The order to process requirements (sequencing) © How work is put on resources (loading) 36© Who does the work (assignments) 37‘What skills do operations managers need? Have knowledge of: — advanced operations technology and technical knowledge relevant to his/her indus ~ interpersonal skills and knowledge of other functional areas — the ability to communicate effectively, motivate other people, manage projects, and ‘work on multidisciplinary teams Multi-disciplinary working, for example: — Supply chains — management of all aspects of providing goods to a consumer from extraction of raw materials to end-of-life disposal — The interface with marketing — determining what customers’ value prior to product/service development ~ Operations management/finance interface — capital equipment and inventories comprise able portion of many firms’ assets in addition to normal operating costs ervice operations — coping with inherent service characteristics such as simultaneous delivery/consumption, performance measurements, ete — Operations strategy — consistent and aligned with other strategies and legal requirements — Process design and improvements — managing the innovation process 38Major issues are: — Environmental sustainability, recycling , reuse ~ Counter terrorism / risk management ~ Globalisation of supply and demand — Reducing time to market, — Achieving and sustaining high quality while controlling cost — Integrating new technologi and control systems into existing processe — Obtaining, training, and keeping qualified workers and managers — Working effectively with other functions to accomplish the goals — Integrating production and service activities at multiple sites in decentralized organisations — Working effectively with suppliers and customers ~ Strategic allianes Alll these are critical sues. Operations management is at the very core of most organisations. We can no longer focus on isolated tasks and processes but must be one of the architects of the overall business operating model. 39Another language??? There are lots of words and terms used in operations management, many of which are explained in full in the IOM’s Knowledge Bank. Members can login to the members” area to find out what these terms mean in full = World class — S&OP (Sales and Operations Planning) — Lean vs agile — KPIs ~ Master scheduling —MRP — Processes — TPS (Toyota Production System) — Theory of constraints Balanced scorecard —DRP ~ Kaizen —TPM — Change management 40— Continuous improvement — Planning and scheduling — ERP systems 41Operations management is an area of management concerned with overseeing, designing, and controlling the process of production and redesigning business operations in the production of goods or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed, and effective in terms of meeting customer requirements. It is concemed with managing the process that converts inputs (in the forms of raw materials, labor, and energy) into outputs (in the form of goods and/or services).l!! The relationship of operations management to senior management in commercial contexts can be compared to the relationship of line officersto highest-level senior officers in military science. The highest-level officers shape the strategy and revise it over time, while the line officers make tactical decisions in support of carrying out the strategy. In business as in military affairs, the boundaries between levels are not always distinct; tactical information dynamically informs strategy, and individual people often move between roles over time. Ford Motor car assembly line: the classical example of a manufacturing production system. Post office queue. Operations management studies both manufacturing and service According to the United States Department of Education, operations management is the field concemed with managing and directing the physical and/or technical functions of a firm or organization, particularly those relating to development, production, and manufacturing. Operations management programs typically include instruction in principle: of general management, manufacturing and —_ production systems, factory management, equipment maintenance management, production control, industrial labor relations and skilled trades supervis ion, strategic manufacturing policy, systems analysis, productivity analysis and cost control, and materials planning.” "Management, including operations management, is like engineering in that it blends art with applied science. People skills, creativity, rational analysis, and knowledge of technology are all required for success. 42History The history of production and operation systems began around 5000 B.C. when Sumerian priests developed the ancient system of recording inventories, loans, taxes, and business transactions. The next major historical application of operation systems occurred in 4000 B.C. It was during this time that the Egyptians started using planning, organization, and control in large projects such as the construction of the pyramids. By 1100 B.C., labor was being specialized in China; by about 370 B.C., Xenophon described the advantages of dividing the various operations necessary for the production of shoes among different individuals in ancient Greece In the Middle Ages, kings and queens ruled over large areas of land. Loyal noblemen maintained large sections of the monarch’s territory. This hierarchical organization in which people were divided into classes based on social position and wealth became known as the feudal system. In the feudal system, servants produced for themselves and people of higher classes by using the ruler’s land and resources. Although a large part of labor was employed in agriculture, artisans contributed to economic output and formed guilds. The guild system, operating mainly between 1100 and 1500, consisted of two types: merchant guilds, who bought and sold goods, and craft guilds, which made goods. Although guilds were regulated as to the quality of work performed, the resulting system was rather rigid, shoemakers, for example, were prohibited from tannin hides. ‘The industrial revolution was facilitated by two elements: interchangeability of parts and division of labor. Division of labor has always been a feature from the beginning of civilization, the extent to which the division is camied out varied considerably depending on period and location. Compared to the Middle Ages, the Renaissance and the Age of Discovery was characterized by a greater specialization in labor, one of characteristics of growing European cities and trade. It was in the late eighteenth century when Eli Whitney popularized the concept of interchangeability when he manufactured 10,000 muskets. Up to this point in history of manufacturing, each product (e.g. each gun) was considered a special order, meaning that parts of a given gun were fitted only for that particular gun and could not be used in other guns. Interchangeability of partsallowed the mass production of parts independent of the final products in which they will be used. In 1883, Frederick W. Taylor introduced the stopwatch method for accurately measuring the e to perform each single task of a complicated job. He developed the scientific study of productivity and identifying how to coordinate different tasks to eliminate wasting of time and increase the quality of work. The next generation of scientific study oceurred with the development of work sampling and predetermined motion time systems (PMTS). Work sampling is used to measure the random variable associated with the time of each task. PMTS allows the use of standard predetermined tables of the smallest body movements (e.g. turning the left wrist by 90°), and integrating them to predict the time needed to perform a simple task. PMTS has gained substantial importance due to the fact that it can predict work measurements without actually observing the actual work. The foundation of PMTS was laid out by the research and development of Frank B. and Lillian M. Gilbreth around 1912. The Gilbreths took advantage of taking motion pictures at known time intervals while operators were performing the given task The idea of the production line has been used multiple times in history prior to Henry Ford: the Venetian Arsenal (1104), Smith pin manufacturing in the Wealth of Nations (1776) or Brunel's Portsmouth Block Mills (1802). Ransom Olds was the first to ‘manufacture cars using the assembly line system, but Henry Ford developed the first auto assembly system where a car cha: ‘was moved through the assembly line by a conveyor belt while workers added components to it until the car was completed. During World War Il, the growth of computing power led to further development of efficient manufacturing methods and the use of advanced mathematical and statistical tools. ‘This tems was supported by the development of academic programs in industrial and engineering disciplines, as well as fields of operations research and management science (as multi-disciplinary fields of problem solving). While systems engineering concentrated on the broad characteristics of the relationships between inputs and outputs of generic systems, operations researchers concentrated on solving specific and focused problems. ‘The synergy of operations research and systems engineering allowed for the realization of 44solving large scale and complex problems in the modem era, Recently, the development of faster and smaller computers, intelligent systems, and the World Wide Web has opened new opportunities for operations, manufacturing, production, and service systems Malakooti (2013) states that production and operation systems can be divided into five phases:!®! 1. Empiricism (leaming from experience) 2. Analysis (scientific management) Synthesis (development of mathematical problem solving tools) 4, Isolated Systems with Single Objective (use of Integrated and Intelligent Systems, and WWW) 5. Integrated Complex Systems with Multiple Objectives (development of ecologicall sound systems, environmentally sustainable systems, considering individual preferences) 45Industrial Revolution Before the First industrial revolution work was mainly done through two systems: domestic system and craft guilds. In the domestic system merchants took materials to homes where artisans performed the necessary work, eraft guilds on the other hand were associations of artisans which passed work from one shop to another, for example: leather was tanned by atanner, passed to curriers, and finally arrived at shoemakers and saddlers. ‘The beginning of the industrial revolution is usually associated with 18th century English textile industry, with the invention of shuttle by John Kay in 1733, the spinning jenny by James Hargreaves in 1765, the water frame by Richard Arkwright in 1769 and the steam engine by James Watt in 1765. In 1851 at the Crystal Palace Exhibition the term American system of manufacturing was used to describe the new approach that was evolving in the United States of America which was based on two central features: interchangeable parts and extensive use of mechanization to produce them. Henry Ford was 39 years old when he founded the Ford Motor Company in 1903, with $28,000 capital from twelve’s investors. The model T car was introduced in 1908, however it was not until Ford implemented the assembly line concept, that his vision of making a popular car affordable by every middle-class American citizen would be realized. The first factory in which Henry Ford used the concept of the assembly line was Highland Park (1913), he characterized the system as follows: "The thing is to keep everything in motion and take the work to the man and not the man. to the work. That is the real principle of our production, and conveyors are only one of many means to an end” This became one the central ideas that led to mass production, one of the main elements of the Second Industrial Revolution, along with emergence of the electrical industry and petroleum. 46Although productivity benefited considerably from technological inventions and division of labour, the problem of systematic measurement of performances and the calculation of these by the use of formulas remained somewhat unexplored until Frederick Winslow ‘Taylor. Frederick Taylor early work focused on developing what he called a "differential piece-rate system" and a series of experiments, measurements and formulas dealing with cutting metals and manual labor. The differential piece-rate system consisted in offering two different pay rates for doing a job: a higher rate for workers with high productivity (efficiency) and who produced high quality goods (effectiveness) and a lower rate for those who fail to achieve the standard. One of the problems Taylor believed could be solved with this system, was the problem of soldiering: faster workers reducing their production rate to that of the slowest worker. In 1911 Taylor published his "The Principles of Scientific Management", in which he characterized scien management (also know as Taylorism) as: 1. The development of a true science; 2. The scientific sel ion of the worker; 3. ‘The scientific education and development of the worker; 4, Intimate friendly cooperation between the management and the workers. Taylor is also credited for developing stopwatch time study, this combined with Frank and Lillian Gilbreth motion study gave way to time and motion study which is centered on the concepts of standard method and standard time. Frank Gilbreth is also responsible for introducing the flow process chart. Other contemporaries of Taylor worth remembering are Morris Cooke (rural electrification in the 1920s and implementer of Taylor's principles of scientific management in the Philadelphia's Department of Public Works), Carl Barth(speed-and-feed-calculating slide rules ) and Henry Gantt (Gantt 47chart). Also in 1910 Hugo Diemer published the first industrial engineering book: Factory Organization and Administration. In 1913 Ford W. Harris published his "How Many parts to make at once" in which he presented the idea of the economic order quantity model. He described the problem as follows; "Interest on capital tied up in wages, material and overhead sets a maximum limit to the quantity of parts which can be profitably manufactured at one time; "set-up" costs on the job fix the minimum, Experience has shown one manager a way to determine the economical size of lots" ‘This paper inspired a large body of mathematical literature focusing on the problem of production planning and inventory control. In 1924 Walter Shewhart introduced the control chart through a technical memorandum while working at Bell Labs, central to his method was the distinction between common cause and special cause of variation. In 1931 Shewhart published his Economic Control of Quality of Manufactured Product, the first systematic treatment of the subject ofStatistical Process Control (SPC). In the 1940s methods-time measurement (MTM) was developed by H.B. Maynard, JL. Schwab and GJ Stegemerten. MTM was the first of a seri of predetermined motion e systems, predetermined in the sense that estimates of time are not determined in loco but are derived from an industry standard. This was explained by its originators in a book they published in 1948 called "Method-Time Measurement". Up to this point in history, optimization techniques were known for a very long time, from the simple methods employed by [Link] to the more elaborate techniques of thecalculus of variations developed by Euler in 1733. or the multipliers employed by Lagrange in 1811, and computers were slowly being developed, first as analog computers by Sir William Thomson (1872) and James Thomson (1876) moving to the eletromechanical computers of Konrad Zuse (1939 and 1941), During World War 48II however, the development of mathematical optimization went trough a major boost with the development of the Colossus computer, the first electronic digital computer that was all programmable, and the possibility to computationally solve large linear programming problems, first by Kantorovich in 1939 working for the Soviet government and latter on in 1947 with the simplex method of Dantzig. These methods are known today as belonging to the field of operations research. From this point on a curious development took place: while in the United States the possibility of applying the computer to business operations led to the development of management software architecture such as MRP and successive modifications, and ever more sophisticated optimization techniques and manufacturing simulation software, in post-war Japan a series of events at Toyota Motor led to the development of the Toyota Production System (TPS) and Lean Manufacturing. In 1943, in Japan, Taiichi Ohno arrived at Toyota Motor company. Toyota evolved a unique manufacturing system centered on two complementary notions: just in time (produce only what is needed) and autonomation (automation with a human touch). Regarding JIT, Ohno was inspired by American supermarkets: workstations functioned like supermarket shelf where the customer can get products they need, at the time they need and in the amount needed, the workstation (shelf) is then restocked. Autonomation was developed by Toyoda Sakichi in Toyoda Spinning and Weaving: an automatically activated loom that was also foolproof, that is automatically detected problems. In 1983 J.N Edwards published his "MRP and Kanban-American style" in which he described JIT goals in terms of seven zeros: zero defects, zero (excess) lot size, zero setups, zero breakdowns, zero handling, zero lead time and zero surging. This period also marks the spread of Total Quality Management (TQM) in Japan, ideas initially developed by American authors such as Deming, Juran and Armand V. Feigenbaum, TQM is a strategy for implementing and managing quality improvement on an organizational basis, this includes: participation, work culture, customer focus, supplier quality improvement and integration of the quality system with business goals.("4) Schnonberger!'®) identified seven fundamentals principles essential to the Japanese approach: 491, Process control: SPC and worker responsibility over quality 2. Easy able -to-see quality: boards, gauges, meters, etc. and poka-yoke 3. Insistence on compliance: "quality first" 4, Line stop: stop the line to correct quality problems 5. Correcting one's own errors: worker fixed a defective part if he produced it 6. The 100% check: automated inspection techniques and foolproof machines 7. Continual improvement: ideally zero defects In 1987 the International Organization for Standardization (ISO), recognizing the growing importance of quality, issued the ISO 9000, a family of standards related to quality management systems. There has been some controversy thought regarding the proper procedures to follow and the amount of paperwork involved Meanwhile in the sixties, a different approach was developed by George W. Plossl and Oliver W. Wright,” this approach was continued by Joseph Orlicky as a response to the TOYOTA Manufacturing Program which led to Material Requirements Planning (MRP) at IBM, latter gai Control Society launched the "MRP Crusade", One of the key insights of this 1 momentum in 1972 when the American Production and Inventory ‘management system was the distinction between dependent demand and independent demand. Independent demand is demand which originates outside of the production system, therefore not directly controllable, and dependent demand is demand for components of final products, therefore subject to being directly controllable by ‘management through the bill of materials, via product design. Orlicky wrote "Materials Requirement Planning" in 1975,°l the first hard cover book on the subject.!!?! MRP. II was developed by Gene Thomas at IBM, and expanded the original MRP software to include additional production functions. Enterprise resource plaming (ERP) is the modern software architecture, which __addresse: besides production operations, distribution, accounting, human resourcesand procurement. 50Recent trends in the field revolve around concepts such as: . Business Process Re-engineering (launched by Michael Hammer in 1993): a business management strategy focusing on the analysis and design of workflows and business processes within an organization. BPR seeks to help companies radically restructure their organizations by focusing on the ground-up design of their business processes, + Lean Manufacturing: a systemic method for the elimination of waste ("Muda") within a manufacturing process. Lean also takes into account waste created through overburden ("Muri") and waste created through unevenness in work loads ("Mura"), The term Jean manufacturing was coined in the book The Machine that Changed the World. 2) + Six Sigma (an approach to quality developed at Motorola between 1985-1987): Six Sigma refers to control limits placed at six (6) standard deviations from the mean of anormal distribution, this became very famous after Jack Welch of General Electric launched a company-wide initiative in 1995 to adopt this set of methods. More recently, Six Sigma has included DMAIC (for improving processes) and DFSS (for designing new products and new processes) + Reconfigurable Manufacturing Systems: a production system designed at the outset for rapid change in its structure, as well as its hardware and software components, in order to quickly adjust its production capacity and functionality within a part family in response to sudden market changes or intrinsic system change. SI522A. 2A. 21.2. An Introduction of Operation Management What is Operation management? Operation management is the activity of tracking Operation against targets and identifying opportunities for improvement - but not just looking back at past Operation. ‘The focus of Operation management is the future - what do you need to be able to do and how can you do things better? Managing Operation is about managing for results Operation-based management at any level in the organization should demonstrate that * You know what you are aiming for * You know what you have to do to meet your objectives * You know how to measure progress towards your objectives * You can detect Operation problems and remedy them Why is it important? The Modernizing Government agenda sets challenging new Operation objectives for organizations, from the delivery of high quality services that meet the needs of their customers and stakeholders, to doing more within the constraints of available resources, through to continuous improvement in how the organization itself operates. Operation management underpins the operations and processes within a strategic change program framework. Sound practices and targets, which are both flexible and reactive to change, are needed to achieve Operation improvement. The effective Operation of your organization depends on the contributions of activities at all levels - from top management policy development through to efficiently run operations.2.1.4. 2.1.5. In response to the pressures and opportunities for improving organizational Operation, you need to understand how to define and measure Operation as part of a concerted strategy for relevant, successful and cost-effective operations Critical factors for success ‘Focusing on outcomes that meet busines s objectives, rather than outputs ‘+ Managing Operation by cascading down from the top and building bottom-up ‘Defining and using measures that evolve over time © Using a mix of short and long term measures, and selecting measures that link cause and effect © Measuring effectiveness (doing the right things) and efficiency (doing things right) in parallel ion with achievement of outcomes. © Relating individuals’ reward and remun Who is involved’ Business managers are responsible for setting targets and managing Operation against those targets; contract managers monitor service Operation from the customer viewpoint; service providers supply Operation information Principles Operation management should be an integrated part of a business lifecycle helping an organization to mature through evolving and changing Operation measures, from their definition through to monitoring and review in addition, by including the IS/IT component throughout this lifecycle, rather than just considering it as a ‘downstream’ cost 542.1.6. 2.2. of provision, there should be enhanced benefits from an increased and more effective contribution from any investment made in IS/IT. ‘You will need to ensure that you have adopted sound practices in commissioning and acquiring IS/IT services to achieve Operation improvement. Operation management identi 's opportunities for maximizing improvements in managing service delivery in the future. Operation management helps you to make decisions about investment routes, affordability and setting investment priorities in the face of competing demands for resources. Managing for results Managing for results requires the organization to focus on the outputs of the processes and activities undertaken by the organization at varying levels. Together these outputs will contribute to the achievement of the outcomes desired by the organization and those of the government as a whole. Levels of Operation management ibution of activities 1. The effective Operation of your organization depends on the con at all levels - from top management policy development through to efficiently run operations, There are three or four levels of Operation management in the model framework below, some organizations may combine the strategie level with the organization's priorities level. 2. Organization’s priorities: at the highest level Operation management is rooted in the organization’s long term business strategy. Measures at this level are of impact, resource utilization and public service improvement. 3. Strategic level Operation management: at this level the management concer is from sures are of outcome, such as an “outside in" as well as an intemal perspective. Me: 55volume and value of service take-up, upward trends for inclusion, staff and users’ satisfaction, 4, Program level Operation management: Operation management at this level is focused on the desired results of programs of change, to demonstrate what has been accomplished. The measures used would include those stated in individual business cases, Benefits management would help to determine if these are achieved, Tactical or operational service level Operation management: here the management, focus is concerned with service delivery and outputs, using conventional service level agreement approaches and related measures of aspects such as volumes and quality. Although Operation measures and indicators may be different at each level, they will need to be. ‘* Directional - to confirm that you are on track to reach the goals. '* Quantitative - to show what has been achieved and how much more is to be done. ‘© Worthwhile - adding more value to the business than they cost to collect and use. Value for money ‘You must be able to demonstrate that you have achieved value for money in your operations. Value for money is taken to cover three measures of Operation: © Economy - Minimizing the cost of resources used for an activity, having regard to appropriate quality ‘© Efficiency - the relationship between outputs, in terms of goods, services or other results and the resources used to produce them ‘* Effectiveness - the extent to which objectives have been achieved, and the relationship between the intended impacts and actual impacts of an activity 562.4. 2.4.1. Measures and metrics ‘You should use these evaluation criteria for measures and metries: * Are you measuring the right thing? © Do you have the right measures? ‘© Are the measures used in the right ways? ‘* Do you determine the quality of a particular Operation metric using the SMART test (Specific, Measurable, Attainable, Relevant, Timely)? ‘The procedures and measures used in Operation management will depend, among other factors, on the type of business process which is being measured. A business proces s assumed to be made up of a number of activities which transform inputs into outputs and contribute to the realisation of outcomes. The customers for a process may be extemal (for example, members of the public) or intemal, within the same organisation or elsewhere in the public sector. Business processes can be distinguished b; The extent to which the activities involved are people-oriented as opposed to automated ‘© Whether the activities are primarily 'front-office' or ‘back-office’ - that is, the amount of direct contact whi ‘nthe staff have with the customers or recipients of the process ‘© Whether the proces itself is the important feature of the activity - for example, in delivering consultancy - or whether the activities are concerned primarily with the generation of defined outputs ‘© The extent to Which the activity is customized or tailored to the needs of each customer, as opposed to being routine and procedural 372.5. © The amount of discretion which needs to be exercised in the activities ‘© The duration of the contact with the customer. Processes ‘You will need to review the effectiveness of your procedures for: ‘* Setting Operation targets ‘© Designing measures of Operation relevant to the targets ‘© Systematically and accurately measuring outcomes ‘* Assessing the Operation of external service providers ‘* Using results for informed decision-making ‘+ Improving Operation. Research shows that most organizations have the components of Operation management in place, but they are not always used to overall advantage. A possible five-step approach that could help organizations in improving the Operation management of the IS/IT contribution is outlined below, with suggested techniques. Step 1: Identify your level of maturity in Operation management * Look at how the organization is performing in all its aspects of Operation management - from direction setting through to review and measurable improvement. © Do an assessment; this will help to identify your organization's maturity and the strengths and weaknesses. ablish where you are now as a series of baselines, looking at Operation management at strategic program, tactical and operational levels ‘* Bottom-up measures of economy and efficiency are likely to be reasonably strong and have good management. This may not be so well developed for effectiveness measures 58‘© Innovation, process improvement, customer satisfaction, and contribution to policy objectives. Most organizations have a good understanding of financial measure; this level of understanding needs to be developed for other measures. ‘© Techniques: Assessment; baseline Step 2: Identify where Operation management is important to your organization Is it in setting direction or ensuring the delivery of required benefits or improving the alignment, Operation and contribution of the internal and external resources used by the organization? ‘* Identify the values for your organization. * Key values for safety critical operational services are speed and integrity of information. A different organization might place high value on information flows or on single points of access to information at a contact/call centre © Techniques: Value chain analysis; benchmarking with other organizations (which may identify things you had not thought of) ‘Step 3: Resolve any mismatch between steps 1 and 2 ‘© Review Operation management at each of the four levels = (organization, strategic, program and tactical). Are there weaknesses in areas that are important to your organization? ‘© Techniques: to become more outward looking and customer-focused, use the well established balanced scorecard and EFQM® techniques. © To answer qu Metrics (GQM) to identify and define measures. tions about where IT makes a contribution, use Goals, Questions and 59Step 4: Establish where you want to be and begin to build Operation management into business processes and into the culture ‘* The aim is to have target, measurement and review processes for those things that the business considers important such as product, process, service and staff. ‘+ You will have lots of measures which need to be prioritised against your particular perspective on effectiveness, efficiency and economy and against your values. ‘establish benefits management as a norm ‘© Use databases to collect Techniques Operation information and analyse trends ‘+ Include Operation management in the business, programme and project lifecycle Step 5 : Feed information back into Operation improvement Monitor and take action on: © Weachieve what we set out to do? ‘© Where are the opportunities to improve? ‘© What can we do to improve? You are seeking answers to: What is achievable? © What is important for our organization? © What was achieved? Techniques: Process looking at benchmarks from the ssment; your own target outside world, 60prin Organize Sse Schedule Baseline Unsatistactory Review ToK Authorize Approve Y Measure aul 243 Monitor Control The process of Operation management 61622.6. Objectives of a Operation Management System Operation management is an integral part of a comprehensive human resource management strategy. Its objective is to maximize individuals’ Operation and potential with a view to attaining organizational goals and enhancing overall effectiveness and productivity Astaff Operation management system aims at: - To help achieve departmental objectives through staff Departments formulate strategies and objectives to support their vision, mission and values. To achieve these broad objectives, departments have to turn them into specific objectives and targets for the divisions, sections, units and subsequently individual job objectives and targets for implementation, As individual job objectives are linked to those of departments’, the Operation of individual officers contributes to the delivery of departmental objectives. To evaluate Operation and improve communication between managers and staff on managing Operation ‘The staff Operation management system provides a mechanism to monitor and evaluate staff Operation. Operation objectives are set at the beginning of the Operation management cycle through open discussion between the supervisors and the appraisees Progress is monitored regularly and feedback from staff and supervisors is collated to help clarify obje and output expectation; and to enhani Operation.2.7. 2.9. Ongoing Acti To provide opportunities for development The staff Operation management system serves as a multi-purpose management tool. It provides valuable information to help identify individual training needs so as to enhance Operation and to develop the potential of the staff for further advancement. ‘The following figure provides an illustration of how Operation management links with other human resource functions. Overall Goal and Focus of Operation Management ‘The overall goal of Operation management is to ensure that the organization and all of its subsystems (processes, departments, teams, employees, ete.) are working together in an optimum fashion to achieve the results desired by the organi: 2.8. Operation Improvement of the Organization or a Subsystem is an Integrated Process Note that because Operation management strives to optimize results and alignment of all subsystems to achieve the overall results of the organization, any focus of Operation management within the organization (whether on department, process, employees, ete.) should ultimately affect overall organizational Operation management as well. ies of Operation Management Achieving the overall goal requires several ongoing activities, including identification and prioritization of desired results, establishing means to measure progress toward those results, setting standards for assessing how well results were achieved, tracking and measuring progress toward results, exchanging ongoing feedback among those participants working to achieve results, periodically reviewing progress, reinforcing 64actin es that achieve results and intervening to improve progress where needed. Note that results themselves are also measures. Note: these general activities are somewhat similar to several other major approaches in organizations, e.g., strategic planning, management by objectives, Total Quality Management, etc. Operation management brings focus on overall results, measuring results, focused and ongoing feedback about results, and development plans to improve results, The results measurements themselves are not the ultimate priority as much as ongoing feedback and adjustments to meet results The steps in Operation management are also similar to those in a well-designed training process, when the process can be integrated with the overall goals of the organi zation, Trainers are focusing much more on results for Operation. Many trainers with this priority now call themselves Operation consultants. 2.10. Basic Steps Various authors propose various steps for Operation management. The typical Operation management process includes some or all of the following steps, whether in Operation management of organizations, subsystems, processes, ete, Note that how the steps are carried out can vary widely, depending on the focus of the Operation efforts and who is in charge of carrying it out. For example, an economist might identify financial results, such as return on investment, profit rate, ete, An industrial psychologist might identify more human-based results, such as employee productivity. The following steps are described more fully in the topics Operation Plan, ‘operation Appraisal and Development Plan, including through use of an example application. ‘The steps are generally followed in sequence, but rarely followed in exact sequence Results from one step can be used to immediately update or modify earlier steps. For example, the Operation plan itself may be updated as a result of lessons leaned during the ongoing observation, measurement and feedback step. 65NOTE: The following steps occur in a wide context of many activities geared towards Operation improvement in an organization, for example, activities such as management development, planning, organizing and coordinating activities. 1. Review organizational goals to associate preferred organizational results in terms of units of Operation, that is, quantity, quality, cost or timeliness (note that the result itself is therefore a measure) 2. Specify desired results for the domain -- as guidance, focus on results needed by other domains (c.g., produets or servi. by internal or external customers) Ensure the domain's desired results directly contribute to the organization's results Weight, or prioritize, the domain's desired results. st-level measures to evaluate if and how well the domain's desired results were achieved Identify more specific measures for each first ary Identify standards for evaluating how well the desired results were achieved (e.g., "below expectations", "meets expectations” and "exceeds expectations") 8. Document a Operation plan -- including desired results, measures and standards 9. Conduct ongoing observations and measurements to track Operation 10. Exchange ongoing feedback about Operation 11. Conduct a Operation appraisal (sometimes called Operation review) 12. If Operation meets the desired Operation standard, then reward for Operation (the nature of the reward depends on the domain) 13, If Oper 1n does not meet the desired Operation standards, then develop or update a Operation development plan to address the Operation gap* (See Notes 1 and 2) 14, Repeat steps 9 to 13 until Operation acceptable, standards are changed, the domain is replaced, management decides to do nothing, ete. 662.11. Operation management mainly include follo Note 1: Inadequate Operation does not always indicate a problem on the part of the domain, Operation standards may be unrealistic or the domain may have insufficient resources. Similarly, the overall strategies or the organization, or its means to achieving its top-level goals, may be unrealistic or without sufficient resources. Note 2: When Operation management is applied to an employee or group of employees, a development plan can be initiated in a variety of situations E.g, a, When a Operation appraisal indicates Operation improvement is needed, that is, that there is a "Operation gap" To "benchmark" the status of improvement so far in a development effort ©. As part of a professional development for the employee or group of employees, in which case there is not a Operation gap as much as an "growth gap” 4. As part of succession planning to help an employee be eligible for a planned change in role in the organization, in which case there also is not a Operation gap as much as an "opportunity gap" To "pilot", or test, the operation of a new Operation management system. 2 things: Operation management is the systematic process by which an agency involves its employees, as individuals and members of a group, in improving organizational effectiveness in the accomplishment of agency mission and goals. 67Cr (recur) ron ‘+ Planning work and setting expectations, © Continually monitoring Operation, * Developing the capacity to perform, . Periodically :ating Operation in a summary fashion, and . Rewarding good Operation, The revisions made in 1995 to the Government wide Operation appraisal and awards regulations support sound management principles. Great care was taken to ensure that the requirements those regulations establish would complement and not conflict with the kinds of activities and actions practiced in effective organizations as m after of course. Additional background information on Operation management can be found in the following 2411. Planning 682.11.2. In an effective organization, work is planned out in advance. Planning means setting Operation expectations and goals for groups and individuals to channel their efforts towards achieving the organizational objectives. Getting employees involved in the planning process will help them understand the goals of the organization, what needs to be done, why it needs to be done, and how well it should be done. ‘The regulatory requirements for planning employees’ Operation include establishing the elements and standards of their Operation appraisal plans. Operation elements and standards should be measurable, understandable, verifiable, equitable, and achievable. Through critical elements, employees are held accountable as individuals for work assignments or responsibilities. Employee Operation plans should be flexible so that they can be adjusted for changing program objectives and work requirements. When used effectively, these plans can be beneficial working documents that are discussed often, and not merely paperwork that is filed in a drawer and seen only when ratings of record are requirement Monitoring In an effective organization, assignments and projects are monitored continually. Monitoring well means consistently measuring Operation and providing ongoing feedback to employees and work groups on their progress toward reaching their goals. Regulatory requirements for monitoring Operation include conducting progress reviews with employees where their Operation is compared against their elements and standards. Ongoing monitoring provides the opportunity to check how well employees are meeting predetermined standards and to make changes to unrealistic or problematic standards. And by monitoring continually, unacceptable Operation can be identified at any time during the appraisal period and assistance provided to address such Operation rather than wait until the end of the period when summary rating levels are assigned, 62.113. Developing Employees In an effective organization, employee developmental needs are evaluated and addressed. Developing in this instance means increasing the capacity to perform through training, giving assignments that introduce new skills or higher levels of responsibility, improving work processes, or other methods. Providing employees with training and developmental opportunities encourages good Operation, strengthens job-related skills and competencies, and helps employees keep up with changes in the workplace, such as the introduction of new technolo; Carrying out the processes of Operation management provides an excellent opportunity to identify developmental needs. During planning and monitoring of work, deficiencies in Operation become evident and can be addressed. Areas for improving good Operation also stand out, and action can be taken to help succes sful employees improve even further. 2114. Ra From time to time, organizations find it useful to summarize employee Operation. This can be helpful for looking at and comparing Operation over time or among various employees. Organizations need to know who their best performers are. Within the context of formal Operation appraisal requirements, rating means evaluating employee or group Operation against the elements and standards in an employee's 702.11.5. Operation plan and assigning a summary rating of record. The rating of record is assigned according to procedures included in the organization's appraisal program, It is based on work performed during an entire appraisal period. The rating of record has a bearing on various other personnel actions; such as granting within-grade pay increases and determining additional retention service credit in a reduction in force. Note: Although group Operation may have an impact on an employee's summary rating, a rating of record is assigned only to an individual, not to a group. Rewarding In an effective organization, rewards are used well. Rewarding means recognizing employees, individually and as members of groups, for their Operation and acknowledging their contributions to the agency's mission, A basic principle of effective management is that all behavior is controlled by its consequences. Those consequences can and should be both formal and informal and both positive and negative. Good Operation is recognized without waiting for nominations for formal awards to be solicited. Recognition is an ongoing, natural part of day-to-day experience. A lot of the actions that reward good Operation — like saying "Thank you" — don't require a specific regulatory authority. Nonetheless, awards regulations provide a broad range of forms that more formal rewards can take, such as cash, time off, and many no monetary items. The regulations also cover a variety of contributions that can be rewarded, from suggestions to group accomplishments. 12.12. Managing Operation Effectively In effective organizations, managers and employees have been practicing good Operation ‘management naturally all their lives, executing each key component process well. Goals are set and work is planned routinely. Progress toward those goals is measured and employees get feedback. High standards are set, but care is also taken to develop the skills needed to reach them. Formal and informal rewards are used to recognize the behavior and results that accomplish the mission. All five-component processes working together and supporting each other achieve natural, effective Operation management. 2.13. Features of a Good Operation Management System A good staff Operation management system normally consists of the following features: «Fair and open Objective ~The system designed should aim to facilitate objective and fair assessment by the management and encourage frank and constructive feedback of appraises. These can be achieved through: ‘+ Setting clear targets and standards; ‘+ Providing opportunities for supervisors to inform appraises of their Operation regularly, to be accompanied by timely coaching and counseling; ‘* Permitting the appraise to have access to the entire report and to review the apprais before the appraisal interview; and 2‘© Where necessary an assessment panel should be formed to ensure faimess in Operation rating, Adopting such an open system for staff Operation also supports the spirit of the Personal Data (Privacy) Ordinance. Competency-Based Competency refers to the knowledge, attributes, attitude and skills required to perform a job effectively. There are two broad categories of competencies: core competencies and functional competencies. Core competencies are the generic competencies associated with effective Operation required by a group of job holders in a department across different divisions/sections. An example is managerial competencies required for staff in managerial positions. Functional competencies are the competencies specific to certain job functions, such as computer programming skills for programmers in the Computer Section and classroom skills for train in the Training Division of a department. Competencies are reflected in a set of desirable behavior patterns which are observable, measurable and can be tracked and monitored. Developing and using a competency-based approach enables departments to use a common language and structured way to define and describe appropriate job behaviors at different ranks as officer’s progress through the grade. The approach help to assess staff's potential and promo ability to the next higher rank and identify development needs of the staff. It also enhances the objectivity and transparency of Operation assessment.}