ETHICS IN OPERATION

MANAGEMENT

Presented: Bello Mustapha Adekunle

 SLIDES CONTENTS

 Difference between ethics and operations

 Definition of ethics in operation management
 Regulatory
 Operation management system
 Importance of operation management
 Ethics in operation management decision
 Objectives of ethics in operation
 ETHICS IN OPERATION
MANAGEMENT
We need to understand the dichotomy between Ethics and operation management.

Hence, what’s
Ethics?
Ethics is defined as a set of moral principles, or the principles of conduct governing an
individual or a group.

 Ethics play an essential role in protecting overall stages of the operational integrity and
the functioning of the producing/manufacturing industry.

 Operational integrity refers to production stages are ethical and transparent and
provide societal protection.
 OPERATION MANAGEMENT
Definition of Operation Management:

 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

 Broadly interpreted, operation management underlies all functional areas, because,

processes are found in all business activities. Narrowly interpreted, operation refers to a
particular department.
Regulatory Bodies
 Nigerian Institute of Production Management (NIPM)
 Good distribution Practices (GDP)
 Good manufacturing Practices (GMP)
 OPERATIONAL MANAGEMENT
SYSTEM:

 If the customers are dissatisfied, then the overall system should be revised.

 If the customer is being satisfied with the current process, then the process should be
continued until the system/ process provides customer satisfaction.

 Finally, a transformation process is any activity or group of activities that takes one or
more inputs, transfers, and adds value to them and provides for customers or clients.
 Importance of Ethics in Operation

The impeccability of ethics in operation management can never be undermine and it

should be considered as a corporate responsibility;

 Ethics enhanced and promote corporates standard in operations and

management.

 Focused on how profits is generated on operations rather than on the quantity

of profits maximization level.

 Analyzed cost advantages from outsourcing channels.

 Its helps to build and maintain good relationship between the business entity
and other channels involved in the operations.

 It helps us to improve workers motivation and recruitment and retention

performance.
 ETHICS IN OPERATION MANAGEMENT DECISION

Decision making, both strategic and tactical, is an essential aspect of all

management activities, including operation management.

 Strategic choice
Operation management helps to determine the company’s global strategies and
competing priorities and how best to design processes that fit with its competitive
priorities.

 Process
A Process is fundamental to all activities that produce goods and services. Ex: Operation
Management make process decisions about the types of work to be done in house, the
amount of automation to use and methods of improving existing processes.

 Quality
Quality issues underlie all processes and work activities. Operations management helps to
establish quality objectives and seek ways to improve the quality of the products and
services.
Contd.

 Capacity, Location, and Layout

Operation managers help to determine the system’s capacity, the location of new facilities,
and the organizations of departments and a facility’s physical layout.

 Operating Decisions
At this stage, operation management takes the decision regarding supply chain
management, inventory management, aggregate planning, resource planning, lean systems,
and schedules, etc.
 Objectives of Ethics in Operation

 Sustainability:
Its expected of every to make provision for life sustainability for both people and
plants which could be considered as ethical conduct in operations.

 Waste Reduction
Operations of manufacturing industries is expected to minimize the volume waste
caused to climate/environment and take cognizance policies for better ecosystem.

CONCLUSION:

Ethics in operation management is basically on maintaining best practices in the

overall process of operations and its channels(supplier, employee, consumers and
other channels) to protect the corporate social responsibility
 ETHICAL ISSUES FACED IN OPERATIONS MANAGEMENT

 breach of confidence
 negligence
 fraud.

RECOMMENDATION:

The establishment of a code of conduct within an organization can greatly

help operations specialists to decide on a certain ethical issue. Everyday,
everyone are faced with the need to decide on a certain ethical issue.
 References:

• Investopedia
• Wikipedia
• Google