Business Management 1B

COBMB1

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Higher Education Act, 101, of 1997. Registration Certificate number: 2001/HE07/008
Week 1: Lesson 1
Introduction

Operations Management:
You will learn about operations management, the importance of creativity, design,
technology, innovation, the transformation function, types of operations systems,
elements of lead times, process flowcharting, OM performance objectives and
productivity.
Week 1: Lesson 1 - Operations Management:
Learning Outcomes

LO1. Demonstrate an understanding of the activities, techniques and methods

applied in operations and production management. (Chapter 8)
Assessment Criteria: (AC’s)
1.1 Understand the nature of operations management.
1.2 Evaluate the importance of creativity, design, technology and innovation in
operations management (OM).
1.3 Explain why OM is a transformation function.
1.4 Distinguish between different OM systems used in various types of operations.
1.5 Understand the concepts and terms of process management.
 What will be covered
in today’s lesson?
The nature and role of operations
management

Week 1 Operations management activities

Lesson 1 Types of operations systems

Types of operations processes

Performance objectives in
operations management
Case Study

• Procter & Gamble’s Operations Management: 10 Decisions,

Productivity
• Group work: Students must read the case study and then answer
the questions based on a company of their choice.

• Source: Gregory, L. 2017. Procter & Gamble’s Operations

Management: 10 Decisions, Productivity. Panmore Institute, 25
May 2017. [Online] Available at: https://panmore.com/procter-
gamble-operations-management-10-decisions-productivity
[Accessed on: 09 November 2022]
 Please note that the case study is
also available in a separate PDF file
Procter & Gamble’s Operations Management: 10 Decisions,
Productivity

Case Study Click this link:

https://panmore.com/procter-gamble-operations-management-10-decis
ions-productivity
(Available on myLMS
Week 1 tile, Lecturer
Resources)
Week 1: Lesson 1 - Operations Management:
Group Work

1. Study the case study for background about Procter & Gamble’s Operations
Management: 10 Decisions, Productivity.

2. Familiarise yourself with the Operations concepts in the case study.

3. In small groups, choose a P&G company that is producing a physical product

and then answer the questions based on your chosen company.
Problem-Based Learning

Refer to the case study and discuss your chosen

company’s capabilities and discuss their strengths
and weaknesses in terms of operations production

What should their goals for innovation be?

Discuss the focus of the organization to deliver

customer satisfaction.
Case Study

• Procter & Gamble’s Operations Management: 10 Decisions,

Productivity
• Group work: Students must read the case study and then answer
the questions based on a company of their choice.

• Source: Gregory, L. 2017. Procter & Gamble’s Operations

Management: 10 Decisions, Productivity. Panmore Institute, 25
May 2017. [Online] Available at: https://panmore.com/procter-
gamble-operations-management-10-decisions-productivity
[Accessed on: 09 November 2022]
Example answers to case study questions and
indication of mark allocation
Q 1: Organisation capabilities: (Production of Head & shoulders product
used)
• Strengths: For example, high quality product, (1) head and shoulders is a very safe product, (1)
“this research-driven brand has led the way in easy yet effective haircare for over 50 years” (1) and
“In America it is the no.1 dandruff shampoo brand.” (Marketing91, 2022) (1)

• Weaknesses: Users are warned against chemicals that are used in the product, (1) the product
“does not effectively put an end to dandruff” (1) and customers must still go to see medical
practitioners for shampoo prescriptions. (Marketing91, 2022) (1)
Q2: Example of answer
Innovation: P&G strive towards business leadership to match market expectations. (1) They deliver
products worldwide (1) and are always looking to do things better than before (P&G. n.d. Innovation.
[Online] Available at: https://us.pg.com/innovation/, 2022) (1)
Question 3: Delivering value to customers
Focus will be on the product benefits (Head & shoulders shampoo as
example product)
Answer:
Customers buy the product for the benefits and special characteristics, e.g., it is an anti-dandruff
shampoo for dry hair, control dandruff with Hydra Zinc formula, it is unique by having zinc carbonate
and other antioxidants, the bottle is recyclable, eco-friendly, they do not test products on animals. (1)
They also offer a variety of distribution channels, e.g., chemists, retailers, Takealot etc. (1)
 What will be covered
in today’s lesson?
Operations Strategy

Week 1 Operations Design

Lesson 2 Types of production systems

Operation type and layout type

Watch videos on myLMS to learn

about these topics
Example of Heads & Shoulders product
Questions for Discussion

Product
What is the type of products that is produced in the company? Motivate your answer

Processes Explain the processes that they use and motivate your answer.

Transformation process Explain their transformation process, differentiate between the stages of the process. Motivate with examples from the
company

Quality Management Consider the quality management decisions needed when you manufacture for example, Heads and Shoulders Anti
Decisions dandruff shampoo.
Lesson 2: Questions for Discussion

Production type and

process and layout Explain the processes that they use and motivate your answer.
design

Alignment of strategies Explain how the organization manages capacity to meet customer
demand
Example of possible answers: Quality
dimensions
• Quality dimensions to be considered include the following: (Head & Shoulders shampoo example)

 Performance of the product: For example, does the shampoo do what it promises to do? (1)

 Features that the product offers to make it unique, for example, prevent dandruff and strengthen the hair. (1)

 Reliability refers to the promise that it will perform over a specific time, for example, with regular use of the shampoo, the same results
will be evident. (1)

 Conformance refers to the standards that are met. For example, if the label indicates the specified ingredients, all the health and
contents standards are met for Head & Shoulders shampoo. (1)

 Durability refers to the useful life of the product, for example, it will be good to use until the expiry date on the bottle of shampoo. (1)

 Aesthetics involve the physical qualities of the product that make it pleasing to look at, for example, the packaging, or shape or colour
of the shampoo is pleasant and projects the image planned by the organisation. (1)

 Perceived quality refers to the indirect evaluation of the quality, for example, does the product project the correct image of the brand
and is it perceived as offering value for money. (1)
Example of possible answers: Transformation
process
• Transformation process: (Head & Shoulders example)

• Input: (1) ingredients and materials (1) water, (1) knowledge of production management,
etc. (1)

• Transformation process: (1) equipment, (1) workers operating the machines, (1) support
services, (1) materials transformation explained (1)

• Output: (1) finished products (1) stylish bottles (1) lids (1)
Example of possible answers: Production
type, process and layout design
• Production type and process and layout design (Head & Shoulders shampoo example)

 Production type: flow production/continuous, (1) highly sophisticated equipment (1)

 Mass production processes, (1) very fast process, (1) very accurate, thousands of bottles per hour,
low variety and high volumes (1) Relevant example in this case is shampoo. (1) Example for Head &
shoulders is highly automated. (1)

 Layout design can be process layout, (1) or product layout, (1) or combination of product and
process, (1) can be fixed, (1) cellular or what is relevant to the chosen product. (1) Example for Head
& Shoulders is fixed layout design (1) (Source: Head & Shoulders. 2014. How the world’s most
popular shampoo is made. [Online] Available at: https://www.youtube.com/watch?v=UZZbeyUExuA
[Accessed on: 26 November 2022]
Example of possible answers: align strategies with
organisational goals to meet customer demand
• Capacity can be explained as the limited means of a productive unit to manufacture a certain quantity of products within

a given fixed period. (1) For example, the capacity of the production line can be to produce 10 products per hour. (1)

• Customer demand refers to how many products will be required to meet the needs of customers over a specified period
(1) For example if there are 10 customers who each want 2 products of a certain type, then the demand for that product
is 20 products for that given period. (1)

• Example of how the company manages capacity to meet demand can include the following:

 They will do demand forecasting based on historical figures or any other technique. (1)

 They will increase capacity by bringing extra workers to work during peak times or open new production lines. (1)

 They can implement strategies to ensure that they operate at full utilization of capacity and limit delays or breakages
and improve staff training and implement good maintenance programmes. (1)
 What will be covered
in today’s lesson?
Operations Planning

Week 1 Demand Management

Lesson 3 Inventory Management

Continuous improvement

Watch videos on myLMS to learn

about these topics
Activity 3

Watch all the videos in the activity sections

of each lesson, for example, par. 3.8 as
part of Notes 1.1 on myLMS for a better
understanding of Operations Management
Activity 4
For an exciting demonstration of the transformation process, watch the
following video:

British Airways- Building the 787-9 Dreamliner

Source:[Online]Available at:
https://www.youtube.com/watch?v=SJZk9vNS8NE&t=2s

Not to be missed!
What Happens Next?
•Next week we will study chapter 12, Purchasing in Supply Chain
Management in your textbook as set out in the Module Guide.

•You must study the content on myLMS, check the activities and do
additional research on the concepts so that you can ask questions in class
should you need further clarification.