Description
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.
Introduction to Operations Management
Management is the complete process of handling an operation of the conversion of raw material to a finish product. In the process of this conversion a management is responsible, and this management is a group of people assigned with task and responsibilities. A simple diagram of a management can be like example below:-
Management Flow Diagram
Director
HR Department
R&D Department
Sales & Purchase Dept.
Production Plant
Store Department
Each Department that makes up the organization is dependant on each others functions; a management is a group of people having the same goal and vision in operating a good and services program (Business). The director is the person who inherits an in idea and works out a process and with a team decides to produce/manufacture the good via profiting in the returns. In the operation of the program (business) the above diagram is a basic layout. Some departments can be added in time as an example and IT department solely in charge of all electrical and electronic functions. Page 1
OPERATIONS MANAGEMENT The three distinct areas that are inherited in any business are marketing, finance, and operations; all other business disciplines fit somewhere under one or more of these areas. Operations management is the area concerned with the efficiency and effectiveness of the operation in support and development of the firm's strategic goals. The director of the program (business) assigns managers and under them he/she operates the programs. Managers carry out the instructions and often need to feedback to the director for changes and decision makings.
An operation is also an academic field of study that focuses on the effective planning, scheduling, use, and control of a manufacturing or service firm and their operations. This field is a synthesis of concepts derived from design engineering, industrial engineering, management information systems, quality management, production management, inventory management, accounting, and other functions. To briefly understand operation management each department having their own agenda is the operation, for example sales & purchasing department needs to make sure the sales or the marketing of the goods or the services are making the head start for good sales. The also need to know if the raw materials they are purchasing from their suppliers are cheaper compared to other suppliers and whether the quality is standard and so forth.
The managers are responsible for with making decisions about product development, process and layout decisions, site location, and the capacity or volume to be manufactured. These operations managers have a hand in deciding employee levels e.g. how many workers do we need and when do we need them, the inventory levels e.g. when should we have materials delivered and should we use a chase strategy or a level strategy, and the process as how many shifts do they need and etc. If they need to work overtime or subcontract some work and so forth are the decisions of the plant managers and this process is also said the operation process. In general managing this chain of communication in the program is known as the Operation management and it not only ends here. The idea of an operation in a management can be classified in three important process A. Resource Inputs, B. Transformation Processes and C. Output of goods and services. Going back management again is divided with many functional responsibilities, such as a) Operations Management, b) Design Management, c) Demand Management and d) Money management.
Page 2
OPERATIONS MANAGEMENT Although all this function has further sub-functions which can be classified under two simple classifications such as: - The Line functions and The Staff functions. Under the line functions the following four as mentioned above comes to activity, which are Money management, Demand Management, Design Management, Material Management and Operation management, but under the staff functions comes the other five functions namely:- Human resource Departments, Maintenance Department, Public Relations Department, Purchasing department and the Information’s Departments.
The several definitions for the operation management all coming under one roof:A. Overall Business Activity – involves the whole business at large B. Primary Business Activity – focuses on the inside affairs of the business C. Functional area – the varies departments D. The transformation process – moving from resources to final output E. Job Sequence elements – activities and task of the jobs.
The duties that are handled by the management are simply mentioned in three major areas such as creating, improving and implementing. Each of this area when looked under a micro scope the operation management steps in to guide the management in carry out the said task or duties in general carrying out all these functions is where the operation management comes. To carry out a project small or mega size an operational team is to assigned, one of the core functions of the team is to make certain that all other functions are carried out prior to the information’s The operation team can be lead by one main person following with many other persons forming together a team. Assuming the task of a simple job sequence running is running in a timely base, a) 1-10 the first ten days inspecting of work piece .b) 10-20 the next ten days Positioning the work piece c) 20 – 30 the next ten days drill hole for size d) 30 – 40 the next ten days sand work piece. To ensure the smooth operations of this process is where the operation management comes in to manage the accomplishment of the above task.
Page 3
OPERATIONS MANAGEMENT Question 1 How does the organization establish customer requirement? Three facts are very important for any organization, a) Goals, b) Resources and c) Information’s. In every organization there is this input and output factor, be it in a raw material manufacturing plant or even in a finish product manufacturing plant. The only variations in the process are what the organization produces for the demand that exist or being created. Some demands can be created and some demand gets stronger over time. The bottom line for both the sectors are the end users such to be known as customers. To understand the market and the product’s demand is first understanding the needs of people or so after called customers. Say rice a raw material produced and harvested in the fields of a farmer. Even though the same grains that are produced from the farmer but by the time in comes into the market its branded, tagged and rated. Doing all this, value is being placed on the same grain. The value added on the grain is the end result of the product and how the demand for the product comes along with the price differentiation. What customers want is a very complex issue, to understand the need of customer’s marketers and researchers spend most of their efforts understanding this factor. Basically when a product has gained good sales and the sales record plotted on the graph indicates a slow moving or fast moving tracks. Usually when the organization’s management team using process such as a simple feedback or survey forms, which may not necessarily provide the right needs and wants of a customer. When looking from the broad aspect customers must first be segregated into age groups and based on these concepts, which age group would gain more attention on the product. In some cases if the product is universal use for all ages such like eye wear or glasses. Such product, have to innovated so often in shape and texture only then it would stand up for competition, another example of foods such as Kentucky Fried chicken, in order to suit all ages the management will constantly upgrade newer product to hold customers. Understanding customer’s requirement alone is not good enough but to analyze and organize the fulfillment of the requirements is more important than just knowing the requirements. The process of understand is by eliciting, documenting, organizing, and tracking changing requirements and communicating this information.
Page 4
OPERATIONS MANAGEMENT Question 1 How does the organization establish customer requirement? The management needs to follow some procedures such:1. Manage the changes to requirements – Establish and use formal procedures of requirements and engineer it to ensure that issues are addressed and the appropriate specification and communication occurs. 2. Identify and track requirements attributes – This provides objective data for better decision making. 3. Trace requirements – Maintain an information path from source to implementation Adding more to this requirement the management also needs to processes the following:
? ?
Identifying customer and market requirements Identifying and innovating products and services to enter new markets, attract new customers, and expand relationships with existing customers
?
Enabling customers to seek information and customer support, conduct business with you, and provide feedback
? ? ?
Determining and deploying the key support requirements for each customer group Determining which market customers and markets to pursue Using customer, market, and product/service information to improve marketing, build a more customer-focused culture, and innovate
? ?
Build customer relationships and market share Manage customer complaints to resolve them promptly and address the causes of the complaints.
Some common tips for the understanding and establishing the customer’s requirement can be as follows: - Listening to each key customer group and market segment across the entire customer life cycle, to former and potential customers, and to customers of competitors to obtain actionable information which can be further saved for improvements Following up with customers on product/service quality, customer support, and transactions to acquire immediate and actionable feedback with rated charts presented after purchases which would determine the customer’s satisfaction, their engagement, and their dissatisfaction. Page 5
OPERATIONS MANAGEMENT Question 1 How does the organization establish customer requirement? Using data and information about customer satisfaction, engagement, and dissatisfaction to exceed their expectations and improve loyalty. Buy obtaining information about the customers’ satisfaction with your organization, products, services, and support relative to their satisfaction with your competitors and other organizations providing similar products and services. B. Joseph Pine II, one of the pioneers of the mass customization concept, recently wrote an insightful article for HBR that bashed the notion that most organizations are customer-focused. “They focus on markets rather than on any real, living, breathing individual customer,” he wrote a fresh perspective on what it means to be truly customer-focused with a list that could be a how-to for understanding what your customers require: a.) Every customer deserves to get exactly what he wants at a price he’s willing to pay, and companies must make that happen in a way that makes them money. b.) Every customer is his/her own market. c.) Customers want different offerings at different times under different circumstances. d.) “Customers don’t want choice,” says Pine. They just want exactly what they want. e.) Doing only and exactly what each individual customer wants and doing exactly that.
Customers like leadership managements and they will always fall for this quality first rather than the product, for example a hand-phone, if it is the leader in the market, it will continue to attract new customers. To understand customer’s requirement, it must be analyzed from many angles of thoughts, though some may be straight from the books, but more must come from experience. It is the job of marketers to understand the needs of their customers. In doing so they can develop goods or services which meet their needs more precisely than their competitors. The problem is that the process of buying a product is more complex than it might at first appear. Customers do not usually make purchases without thinking carefully about their requirements. Wherever there is a choice, decisions are involved, and these may be influenced by constantly changing motives. The organization that can understand why customers make decisions such as who buys, what they buy and how they buy will, by catering more closely for customers satisfaction an their needs, become potentially more successful. Page 6
OPERATIONS MANAGEMENT Question 1 How does the organization establish customer requirement? Total quality management is a commitment to the continuous improvement of work processes with the goal of satisfying internal and external customers. It’s the customer that matters in TQM; the process is only the means to satisfying the customer. TQM provides the organizational focus and mind set, as well as specific tools and techniques, to ensure meeting customer requirements, first time and every time. Management must make sure that everybody knows their customers, both internal and external. Further, more it is essential that everybody can "see" the ultimate customer using their products and services. Employees at all levels of the organization should be given opportunities to observe the customer using their products and services. All employees should understand how each process used in producing products and services adds value for the customer. Quality being the fundamental essence for understanding customer’s requirements must be placed in the first category and this can be made into a consistent basis as a "Life Cycle" approach. The other aspects can be the information system. With advance technologies information should be another main factor for storing all known customers’ requirements and choices. Constantly improving the ISO 9001:2008 would bring the product to a good standing and confidently meet customer’s requirements. Dealing effectively with customers is a small fraction in the customer requirement list, this comprises with the following rules such as the communication skills, greet customers, value customers, ask them what help they need, listening to them and requesting them to return back. Guest posting can be a good way to grow your own audience. It can help you build name recognition and authority status in your niche or industry. The four plan strategies which come handy are: - A. Confirm customer requirements, such as listening to question and answers, B. Advise customer of available options such as facilitating customer’s towards decision-making, C. Inform customer of costs such as which good is better and cheaper, D. Agree action plan with customer such as delivery time and date.
Page 7
OPERATIONS MANAGEMENT Question 2, How do customer requirement translate into product/ services? Understanding who customers are and translating their requirements is a major task performed by management. In order to tabulate the requirement a good survey and appreciation form need to be submitted to customers. In understanding the requirements first analyzing the failures such as poor quality, excessive cost, late to market, superior competition are certain factors that can be useful tools along with the SWOT analysis that can determine whether the customer requirements are translated into the product and services. Good Product Planning and services process combines prioritized customer requirements, customer perceptions, and technical competitive benchmarking into specific and measurable performance targets. The results are successful innovative new products, shortened development cycles, and a basis for continuous improvement. This information is compiled in the form of customer wants/needs then converted into predictable and measurable targets, typically applying Quality Function Deployment (QFD) methods and tools. Targets must be defined based on the customer-focused product planning and therefore always tie product design decisions to the marketplace, Voice of the Customer (VOC) and business goals. Quality function deployment or QFD is designed to improve customer’s satisfactions; this process is divided into two classes modern and tradition quality systems. It concentrates on maximizing customer satisfaction measured by metrics such as repeat business. QFD also focuses on delivering value by seeking out spoken and unspoken values and needs translating them into actions, and designs and communicating it back to the organization. There are certain principles in serving customer, which are termed as Customer-Servicing principles. One of which is known as the Kano Model in short it is an expected treatment made for customer on prompt purposes. The other term also mentioned is “Gemba” the source of voice of customer’s data; it is here where the management can actually see who are their customers and the problems. Another principle is known as the Kaizen philosophy, setting goals to improve everyday in every way. As such by employing Lagniappe: delight customers by providing more than they expect is another principle. Every successful organization strives to ensure that its internal systems are designed and implemented to deliver flawless and seamless service to every customer under all conceivable conditions and circumstances. Page 8
OPERATIONS MANAGEMENT Question 2, How do customer requirement translate into product/ services? The four phases that are involved in the QFD development are a) Product Planning, b) Assembly c) Process planning and d) Process Quality Control. Each of these categories have job ranks as for Product planning is the planning a product based on needs and opportunity Assembly is about the identification of the critical parts of the product and so forth. Though these does not relevantly attributes the customers relationship to the product, yet sustainably the production contributes to the customers. These procedures would come handy for understanding customer’s requirements which are A. Market Survey B. Bench Marking C. Life Cycle Planning D. Environmental Characterization E. Modeling and Stimulation. The main theme for customer requirements is the expression and this is broken into three factors namely as “Explicitly Expressed” (customer specification includes requirements for reliability performance as a quantitative measure. “Implicitly Expressed” (specification includes product characteristics that necessitate certain levels of reliability in order to satisfy them). “Not expressed” (often the case for commercial products. Suppliers must anticipate needs or position on their products in market place). This is usually carried out with market surveys, quality function deployment, benchmarking and often this is competitive advantage. The requirements for the development can be mentioned in two categories namely as a. design and analysis, under the heading analysis, eight tasks are performed such as, allocations, dormancy analysis, durability assessments, life cycle planning, modeling and simulation, predictions, thermal analysis and translations. Under the heading design there are only two defined task such as, environmental characterization and fault tolerance. Market survey is usually done to determine what customers want and need in terms of new or improved products, like for instance in my production of Artificial Human parts, a market survey reveled that customers are interested in new and advance products and the R&D department is constantly innovating new ideas. These surveys can be carried out with a prototype model and the feedback can determine the reliability of the product. There are many factors which lead to high levels of customer satisfaction including: Products and services which are customer focused and then provide high levels of value for money. Customer service is about giving personal attention to the needs of individual customers which includes after sales services. What is clear about customer satisfaction is that customers are most likely to appreciate the goods and services that they buy if they are made to feel special. Page 9
OPERATIONS MANAGEMENT Question 3, What are operational systems, with activity on arrow/activity on node process? The first process in the activity planning section is activity definition. This process starts with the WBS and identifies the activities required to produce the various project deliverables. Activities are viewed from the perspective of the work packages. Basing on the question, "What activities are required to satisfy this work package?" The resulting information from this process is used next to organize the activities into a specific sequence. Table 3.5 shows the inputs, tools, techniques, and outputs for the activity definition process.
Table 3.5 Activity Definition Inputs, Tools, Techniques, and Outputs Inputs Enterprise environmental factors Organizational process assets Project scope statement Work breakdown structure WBS dictionary Project management plan Tools and Techniques Decomposition Templates Rolling wave planning Expert judgment Planning component Outputs Activity list Activity attributes Milestone list Requested changes
Sometimes it is difficult to know everything about a product during the manufacturing stage. It is common to learn more about the product as you work through the product life cycle. This is called progressive elaboration and it affects the planning process. If you don’t know everything about the product, you can’t plan the whole project to the level of detail necessary. For large projects, it is common to plan the entire project at a high level. The project starts with detailed plans in place for the work packages that are near the beginning of the project. As the time draws near to begin additional work, the more detailed, low-level plans for those work packages are added to the project plan. The planning process is revisited multiple times to ensure that the detailed plans contain the latest information known about the project. This process is called rolling wave planning because the planning wave always moves to stay ahead of the work execution wave. Page 10
OPERATIONS MANAGEMENT Question 3, What are operational systems, with activity on arrow/activity on node process? The Operational Activity describes the operations that are normally conducted in the course of achieving a mission or a business goal. It describes capabilities, operational activities (or tasks), input and output (I/O) flows between activities, and I/O flows to/from activities that are outside the scope of the architecture. High- level operational activities should trace to (are decompositions of) a Business Area, an Internal Line of Business, and/or a Business Sub-Functions. The next process is that of arranging the activities list from activity definition into a discrete sequence. Some activities can be accomplished at any time throughout the project. Other activities depend on input from another activity or are constrained by time or resources. Any requirement that restricts the start or end time of an activity is a dependency. This process identifies all relationships between activities and notes restrictions imposed by these relationships. The two methods in realigning the process of task and duties can be described as the precedence method or activity of node (AoN) and the arrow diagramming method or activity on arrow (AoA). There are various boxes or “nodes” which are connected from a beginning to an end with arrows to depict a logical progression of the dependencies between the schedule activities. Each node is coded with a letter or number that correlates to an activity on the project schedule. Typically, an activity-on-node diagram is designed to show which activities must be completed in order for other activities to commence. This is referred to as “finish -to-start” precedence which is like one activity must be finished before the next one can start. In the diagram below, activities A and D must be done so that activity E can begin. It is also possible to create other variations of this type of diagram. For example, a “start-to-start” diagram is one in which a predecessor activity must simply be started rather than fully completed in order for the successor activity to be initiated. Diagram of Task Arrow on Activity Network A B C E
Start
D
Finish
F Page 11
G
OPERATIONS MANAGEMENT An activity-on-node diagram can be used to provide a visual representation of the network system of an entire project schedule. Or, it can be used for any smaller section of the schedule that lends itself to being represented as having a defined beginning and end. To make it clear and simple and effective it must be included with critical path schedule activities. The planned start date of each node may also be listed in the diagram legend in accordance with the project management timeline. Table for Task A B C D E F G Number of days 3 days 3 days 1 day 7 days 5 days 4days 3 days Table for Predecessors B, E E A, C -
There are six important tasks in a network, Duration (DR), Early Start (ES), Early Finish (EF), Late Start (LS), Late Finish (LF), and the slack or float. The forward pass is the early start and early finish and the backward pass is the late start and late finish. The slack days are days that can be relaxed without affecting the project, a sample of the node can be as this model
D EF
ES
The above network diagram is explained with the forward pass described below:-
3
A Start 0
3
3
B
6
1
13
C
Finish 13 7
7
D
7
5
12 E
4
F
4
3
7 G
Page 12
OPERATIONS MANAGEMENT The only critical path is during the early start and the finish time is thirteen days, for the slack time using the minimum number of days to complete the project is eleven days, and the slack time is Task A and D can have a slack time of 1day and 6 days but task F has no slack time 3 1 A Start 0 0
3
3
B
6 2
1
C
7 4 Finish 12 11
7
D
7 6
5
12 1 E
4
F
4 0
3
G
7 4
The above diagram is only an illustration for the forward pass and backward passes an assumption of evaluating the slack time. The later study on the activity of node is in some ways different.
This network is an activity on node (AON) network. Page 13
OPERATIONS MANAGEMENT Question 4, How are capacity planning, process layout, product /service scheduling, inventory and projects, managed in your organization? A simple illustration can describe how my management operates, since I am a one man show in my business structure yet all duties and task are followed based on the diagram below.
In general my forecasting is based on who know me and my business, being in the business line manufacturing Artificial Human parts, the competition do exist but the important thing above this is innovative, how innovative are we. To forecast well, the first question is our reputation must be good, and we must some times go on lose in order to gain, losing here means, bending some corners with special discounts for cases recommended by Doctors. Some of the core activities such as business strategy, operational strategy, planning the operations and the order fulfillments are all almost combined as one activity. Since I don’t have any departments I have to run every department, under the busin ess strategy I focus on customer’s satisfaction, and insist each time a customer leaves my clinic I make sure he or she takes back a good testimony along with them. Usually I don’t lay tight conditions on pricing as the job itself is unique and I strive to get the best from the customer. My operational strategy is flexible in order to suit the time for the job. This also involves flexible working hours. Page 14
OPERATIONS MANAGEMENT Under the capacity planning, though in theory, it is often mention as the Master Planning of the operation, which are classed into three major branches such as the demand management, the capacity plans and master scheduling. Demand management and forecasting are very important in the operation as to determine the marketing structure, key parameters for financial plans and the development programs. This remains as the major plan or master plan. The four kinds of projections in demand management are as, associative projection, non-pattern projection, Multi-period pattern projections and historical projections. Sales Operation Diagram
Inventory Planning Marketing Planning
Constrained
Sales Operation Planning
Sales Planning
Unconstrained
Production Planning
These sectors contribute towards the overall demand plan for the sales operation planning for a company that intends to sell. It is heavily impacted by marketing plans and corporate revenue and profit targets, and it is a significant input into inventory planning that in turn drives the production and procurement plans. My success depends on the sales through a channel, the success of a marketing campaign, the replacement of an old product with a new one, or the efficient operation of a production facility. This under the operational strategy contains the overview of demand management. The two common factors is accessing the demand and to serve the demand. There are other operational strategy such as lean Manufacturing and T.P.S whereby large companies like Toyota employs. Lean manufacturing is about continuous improvement. Lean believes even the most lean manufacturer can have 30% of waste in their system. So the famous Toyota Production System or the TPS can also have plenty of room for improvement.
Page 15
OPERATIONS MANAGEMENT Question 5, With examples explain why and how monitoring and evaluation of operations take place in your organization? All operation activities when left unmonitored or evaluated, two dangers can prevail, one forecasting demand and sales can be effected, two financial breakdowns can occur. The two main reasons monitoring also prevents loss not only applies to production time but wastage loss. Though my company as mentioned earlier yet I need to monitor the inventory and evaluate the customers satisfaction. But in other companies the two processes are done very differently by the mechanism of tools. Performance monitoring is primarily a management tool performance monitoring involves
the tracking of project outputs and outcomes as indicators of project effectiveness, or the extent to which the project achieves its stated objectives.. It is akin to a roadmap that provides information indicating whether the project is on the right road to its intended destination (or intended impact) and, if not, how to get back on to the right road. Performance monitoring does not (indeed cannot) tell the project whether it has arrived at its final destination. For this, a statistically valid control group is required, and few performance monitoring systems include a valid control group. Performance monitoring tends to focus on outputs and outcomes (the lefthand side of the causal chain) and on those indicators that are easier to capture and measure on an on-going basis. Monitoring may not be only focused on performance alone, overall it’s all the whole involvement of the project by itself from program activities, outputs, outcomes and impacts. Like performance monitoring, project evaluation tends to focus on the left-hand side of the casual chain, although often with a heavier emphasis on project activities and the organizational structures, policies, systems, and day-to-day operations that drive project results. A specific type of project evaluation is the so-called "process evaluation," which assesses whether the project was implemented--including the procedures undertaken, the decisions made, and the services delivered--as intended. By documenting the project's development and operation, the process evaluation uncovers reasons for successful or unsuccessful performance, and provides information for potential replication. Some steps that are shown below could be a good guide in monitoring and evaluating the operation.
Page 16
OPERATIONS MANAGEMENT Question 5, With examples explain why and how monitoring and evaluation of operations take place in your organization?
The first important steps to review the M & E section reports. The overall picture can be known whether the following areas need to be corrected. Areas such as a) Project staffs commitments, b) Monitoring must be an obligation, c) Information provided must be in clear and good quality, d) Attention must be paid on the monitoring needs, e) Project reviews and evaluations should be consistent, f) Integration and cooperation between M&E functions and project management must be smooth process, and the level of participation and qualitative M&E methods should not be limited.
Monitoring: This type of evaluation is performed while a project is being implemented, with the aim of improving the project design and functioning while in action. An example given in the World Bank Technical Paper, Monitoring and Evaluating Urban Development Programs, A Handbook for Program Managers and Researchers by Michael Bamberger, describes a monitoring study that, by way of rapid survey, was able to determine that the amount of credit in a micro credit scheme for artisans in Brazil was too small. The potential beneficiaries were not participating due to the inadequacy of the loan size for their needs. This information was then used to make some important changes in the project. Bamberger defines it as: “an internal project activity designed to provide constant feedback on the progress of a project, the problems it is facing and the efficiency with which it is being implemented” (Bamberger 1) Evaluation: An evaluation studies the outcome of a project (changes in income, housing quality, benefits distribution, cost-effectiveness, etc.) with the aim of informing the design of future projects. An example from Monitoring and Evaluating Urban Development Programs, A Handbook for Program Managers and Researchers describes an evaluation of a cooperative program in El Salvador that determined that the cooperatives improved the lives of the few families involved but did not have a major impact on overall employment. Bamberger describes evaluation as “mainly used to help in the selection and design of future projects. Evaluation studies can assess the extent to which the project produced the intended impacts (increases in income, better housing quality, etc.) and the distribution of the benefits between different groups, and can evaluate the cost-effectiveness of the project as compared with other options” (Bamberger 1). Page 17
OPERATIONS MANAGEMENT Question 5, With examples explain why and how monitoring and evaluation of operations take place in your organization? Monitoring and evaluation need not be expensive or complicated, nor do they require specialists or grand calculations. The complexity and extent of the studies can be adapted to fit the program needs. The job of the project manager in this process is to point out those areas in need of monitoring or evaluation. If this is left to the researchers, the studies may tend to be too academic and not as useful to project management. Evaluation and monitoring systems can be an effective way to: Provide constant feedback on the extent to which the projects are achieving their goals. Identify potential problems at an early stage and propose possible solutions. Monitor the accessibility of the project to all sectors of the target population. Monitor the efficiency with which the different components of the project are being implemented and suggest improvements. Evaluate the extent to which the project is able to achieve its general objectives. Provide guidelines for the planning of future projects (Bamberger 4). Influence sector assistance strategy. Relevant analysis from project and policy evaluation can highlight the outcomes of previous interventions, and the strengths and weaknesses of their implementation. Improve project design. Use of project design tools such as the log frame (logical framework) results in systematic selection of indicators for monitoring project performance. The process of selecting indicators for monitoring is a test of the soundness of project objectives and can lead to improvements in project design. Incorporate views of stakeholders. Awareness is growing that participation by project beneficiaries in design and implementation brings greater “ownership” of project objectives and encourages the sustainability of project benefits. Ownership brings accountability. Objectives should be set and indicators selected in consultation with stakeholders, so that objectives and targets are jointly “owned”. The emergence of recorded benefits early on helps reinforce ownership, and early warning of emerging problems allows action to be taken before costs rise. Show need for mid-course corrections. A reliable flow of information during implementation enables managers to keep track of progress and adjust operations to take account of experience. Page 18
doc_467088001.docx
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.
Introduction to Operations Management
Management is the complete process of handling an operation of the conversion of raw material to a finish product. In the process of this conversion a management is responsible, and this management is a group of people assigned with task and responsibilities. A simple diagram of a management can be like example below:-
Management Flow Diagram
Director
HR Department
R&D Department
Sales & Purchase Dept.
Production Plant
Store Department
Each Department that makes up the organization is dependant on each others functions; a management is a group of people having the same goal and vision in operating a good and services program (Business). The director is the person who inherits an in idea and works out a process and with a team decides to produce/manufacture the good via profiting in the returns. In the operation of the program (business) the above diagram is a basic layout. Some departments can be added in time as an example and IT department solely in charge of all electrical and electronic functions. Page 1
OPERATIONS MANAGEMENT The three distinct areas that are inherited in any business are marketing, finance, and operations; all other business disciplines fit somewhere under one or more of these areas. Operations management is the area concerned with the efficiency and effectiveness of the operation in support and development of the firm's strategic goals. The director of the program (business) assigns managers and under them he/she operates the programs. Managers carry out the instructions and often need to feedback to the director for changes and decision makings.
An operation is also an academic field of study that focuses on the effective planning, scheduling, use, and control of a manufacturing or service firm and their operations. This field is a synthesis of concepts derived from design engineering, industrial engineering, management information systems, quality management, production management, inventory management, accounting, and other functions. To briefly understand operation management each department having their own agenda is the operation, for example sales & purchasing department needs to make sure the sales or the marketing of the goods or the services are making the head start for good sales. The also need to know if the raw materials they are purchasing from their suppliers are cheaper compared to other suppliers and whether the quality is standard and so forth.
The managers are responsible for with making decisions about product development, process and layout decisions, site location, and the capacity or volume to be manufactured. These operations managers have a hand in deciding employee levels e.g. how many workers do we need and when do we need them, the inventory levels e.g. when should we have materials delivered and should we use a chase strategy or a level strategy, and the process as how many shifts do they need and etc. If they need to work overtime or subcontract some work and so forth are the decisions of the plant managers and this process is also said the operation process. In general managing this chain of communication in the program is known as the Operation management and it not only ends here. The idea of an operation in a management can be classified in three important process A. Resource Inputs, B. Transformation Processes and C. Output of goods and services. Going back management again is divided with many functional responsibilities, such as a) Operations Management, b) Design Management, c) Demand Management and d) Money management.
Page 2
OPERATIONS MANAGEMENT Although all this function has further sub-functions which can be classified under two simple classifications such as: - The Line functions and The Staff functions. Under the line functions the following four as mentioned above comes to activity, which are Money management, Demand Management, Design Management, Material Management and Operation management, but under the staff functions comes the other five functions namely:- Human resource Departments, Maintenance Department, Public Relations Department, Purchasing department and the Information’s Departments.
The several definitions for the operation management all coming under one roof:A. Overall Business Activity – involves the whole business at large B. Primary Business Activity – focuses on the inside affairs of the business C. Functional area – the varies departments D. The transformation process – moving from resources to final output E. Job Sequence elements – activities and task of the jobs.
The duties that are handled by the management are simply mentioned in three major areas such as creating, improving and implementing. Each of this area when looked under a micro scope the operation management steps in to guide the management in carry out the said task or duties in general carrying out all these functions is where the operation management comes. To carry out a project small or mega size an operational team is to assigned, one of the core functions of the team is to make certain that all other functions are carried out prior to the information’s The operation team can be lead by one main person following with many other persons forming together a team. Assuming the task of a simple job sequence running is running in a timely base, a) 1-10 the first ten days inspecting of work piece .b) 10-20 the next ten days Positioning the work piece c) 20 – 30 the next ten days drill hole for size d) 30 – 40 the next ten days sand work piece. To ensure the smooth operations of this process is where the operation management comes in to manage the accomplishment of the above task.
Page 3
OPERATIONS MANAGEMENT Question 1 How does the organization establish customer requirement? Three facts are very important for any organization, a) Goals, b) Resources and c) Information’s. In every organization there is this input and output factor, be it in a raw material manufacturing plant or even in a finish product manufacturing plant. The only variations in the process are what the organization produces for the demand that exist or being created. Some demands can be created and some demand gets stronger over time. The bottom line for both the sectors are the end users such to be known as customers. To understand the market and the product’s demand is first understanding the needs of people or so after called customers. Say rice a raw material produced and harvested in the fields of a farmer. Even though the same grains that are produced from the farmer but by the time in comes into the market its branded, tagged and rated. Doing all this, value is being placed on the same grain. The value added on the grain is the end result of the product and how the demand for the product comes along with the price differentiation. What customers want is a very complex issue, to understand the need of customer’s marketers and researchers spend most of their efforts understanding this factor. Basically when a product has gained good sales and the sales record plotted on the graph indicates a slow moving or fast moving tracks. Usually when the organization’s management team using process such as a simple feedback or survey forms, which may not necessarily provide the right needs and wants of a customer. When looking from the broad aspect customers must first be segregated into age groups and based on these concepts, which age group would gain more attention on the product. In some cases if the product is universal use for all ages such like eye wear or glasses. Such product, have to innovated so often in shape and texture only then it would stand up for competition, another example of foods such as Kentucky Fried chicken, in order to suit all ages the management will constantly upgrade newer product to hold customers. Understanding customer’s requirement alone is not good enough but to analyze and organize the fulfillment of the requirements is more important than just knowing the requirements. The process of understand is by eliciting, documenting, organizing, and tracking changing requirements and communicating this information.
Page 4
OPERATIONS MANAGEMENT Question 1 How does the organization establish customer requirement? The management needs to follow some procedures such:1. Manage the changes to requirements – Establish and use formal procedures of requirements and engineer it to ensure that issues are addressed and the appropriate specification and communication occurs. 2. Identify and track requirements attributes – This provides objective data for better decision making. 3. Trace requirements – Maintain an information path from source to implementation Adding more to this requirement the management also needs to processes the following:
? ?
Identifying customer and market requirements Identifying and innovating products and services to enter new markets, attract new customers, and expand relationships with existing customers
?
Enabling customers to seek information and customer support, conduct business with you, and provide feedback
? ? ?
Determining and deploying the key support requirements for each customer group Determining which market customers and markets to pursue Using customer, market, and product/service information to improve marketing, build a more customer-focused culture, and innovate
? ?
Build customer relationships and market share Manage customer complaints to resolve them promptly and address the causes of the complaints.
Some common tips for the understanding and establishing the customer’s requirement can be as follows: - Listening to each key customer group and market segment across the entire customer life cycle, to former and potential customers, and to customers of competitors to obtain actionable information which can be further saved for improvements Following up with customers on product/service quality, customer support, and transactions to acquire immediate and actionable feedback with rated charts presented after purchases which would determine the customer’s satisfaction, their engagement, and their dissatisfaction. Page 5
OPERATIONS MANAGEMENT Question 1 How does the organization establish customer requirement? Using data and information about customer satisfaction, engagement, and dissatisfaction to exceed their expectations and improve loyalty. Buy obtaining information about the customers’ satisfaction with your organization, products, services, and support relative to their satisfaction with your competitors and other organizations providing similar products and services. B. Joseph Pine II, one of the pioneers of the mass customization concept, recently wrote an insightful article for HBR that bashed the notion that most organizations are customer-focused. “They focus on markets rather than on any real, living, breathing individual customer,” he wrote a fresh perspective on what it means to be truly customer-focused with a list that could be a how-to for understanding what your customers require: a.) Every customer deserves to get exactly what he wants at a price he’s willing to pay, and companies must make that happen in a way that makes them money. b.) Every customer is his/her own market. c.) Customers want different offerings at different times under different circumstances. d.) “Customers don’t want choice,” says Pine. They just want exactly what they want. e.) Doing only and exactly what each individual customer wants and doing exactly that.
Customers like leadership managements and they will always fall for this quality first rather than the product, for example a hand-phone, if it is the leader in the market, it will continue to attract new customers. To understand customer’s requirement, it must be analyzed from many angles of thoughts, though some may be straight from the books, but more must come from experience. It is the job of marketers to understand the needs of their customers. In doing so they can develop goods or services which meet their needs more precisely than their competitors. The problem is that the process of buying a product is more complex than it might at first appear. Customers do not usually make purchases without thinking carefully about their requirements. Wherever there is a choice, decisions are involved, and these may be influenced by constantly changing motives. The organization that can understand why customers make decisions such as who buys, what they buy and how they buy will, by catering more closely for customers satisfaction an their needs, become potentially more successful. Page 6
OPERATIONS MANAGEMENT Question 1 How does the organization establish customer requirement? Total quality management is a commitment to the continuous improvement of work processes with the goal of satisfying internal and external customers. It’s the customer that matters in TQM; the process is only the means to satisfying the customer. TQM provides the organizational focus and mind set, as well as specific tools and techniques, to ensure meeting customer requirements, first time and every time. Management must make sure that everybody knows their customers, both internal and external. Further, more it is essential that everybody can "see" the ultimate customer using their products and services. Employees at all levels of the organization should be given opportunities to observe the customer using their products and services. All employees should understand how each process used in producing products and services adds value for the customer. Quality being the fundamental essence for understanding customer’s requirements must be placed in the first category and this can be made into a consistent basis as a "Life Cycle" approach. The other aspects can be the information system. With advance technologies information should be another main factor for storing all known customers’ requirements and choices. Constantly improving the ISO 9001:2008 would bring the product to a good standing and confidently meet customer’s requirements. Dealing effectively with customers is a small fraction in the customer requirement list, this comprises with the following rules such as the communication skills, greet customers, value customers, ask them what help they need, listening to them and requesting them to return back. Guest posting can be a good way to grow your own audience. It can help you build name recognition and authority status in your niche or industry. The four plan strategies which come handy are: - A. Confirm customer requirements, such as listening to question and answers, B. Advise customer of available options such as facilitating customer’s towards decision-making, C. Inform customer of costs such as which good is better and cheaper, D. Agree action plan with customer such as delivery time and date.
Page 7
OPERATIONS MANAGEMENT Question 2, How do customer requirement translate into product/ services? Understanding who customers are and translating their requirements is a major task performed by management. In order to tabulate the requirement a good survey and appreciation form need to be submitted to customers. In understanding the requirements first analyzing the failures such as poor quality, excessive cost, late to market, superior competition are certain factors that can be useful tools along with the SWOT analysis that can determine whether the customer requirements are translated into the product and services. Good Product Planning and services process combines prioritized customer requirements, customer perceptions, and technical competitive benchmarking into specific and measurable performance targets. The results are successful innovative new products, shortened development cycles, and a basis for continuous improvement. This information is compiled in the form of customer wants/needs then converted into predictable and measurable targets, typically applying Quality Function Deployment (QFD) methods and tools. Targets must be defined based on the customer-focused product planning and therefore always tie product design decisions to the marketplace, Voice of the Customer (VOC) and business goals. Quality function deployment or QFD is designed to improve customer’s satisfactions; this process is divided into two classes modern and tradition quality systems. It concentrates on maximizing customer satisfaction measured by metrics such as repeat business. QFD also focuses on delivering value by seeking out spoken and unspoken values and needs translating them into actions, and designs and communicating it back to the organization. There are certain principles in serving customer, which are termed as Customer-Servicing principles. One of which is known as the Kano Model in short it is an expected treatment made for customer on prompt purposes. The other term also mentioned is “Gemba” the source of voice of customer’s data; it is here where the management can actually see who are their customers and the problems. Another principle is known as the Kaizen philosophy, setting goals to improve everyday in every way. As such by employing Lagniappe: delight customers by providing more than they expect is another principle. Every successful organization strives to ensure that its internal systems are designed and implemented to deliver flawless and seamless service to every customer under all conceivable conditions and circumstances. Page 8
OPERATIONS MANAGEMENT Question 2, How do customer requirement translate into product/ services? The four phases that are involved in the QFD development are a) Product Planning, b) Assembly c) Process planning and d) Process Quality Control. Each of these categories have job ranks as for Product planning is the planning a product based on needs and opportunity Assembly is about the identification of the critical parts of the product and so forth. Though these does not relevantly attributes the customers relationship to the product, yet sustainably the production contributes to the customers. These procedures would come handy for understanding customer’s requirements which are A. Market Survey B. Bench Marking C. Life Cycle Planning D. Environmental Characterization E. Modeling and Stimulation. The main theme for customer requirements is the expression and this is broken into three factors namely as “Explicitly Expressed” (customer specification includes requirements for reliability performance as a quantitative measure. “Implicitly Expressed” (specification includes product characteristics that necessitate certain levels of reliability in order to satisfy them). “Not expressed” (often the case for commercial products. Suppliers must anticipate needs or position on their products in market place). This is usually carried out with market surveys, quality function deployment, benchmarking and often this is competitive advantage. The requirements for the development can be mentioned in two categories namely as a. design and analysis, under the heading analysis, eight tasks are performed such as, allocations, dormancy analysis, durability assessments, life cycle planning, modeling and simulation, predictions, thermal analysis and translations. Under the heading design there are only two defined task such as, environmental characterization and fault tolerance. Market survey is usually done to determine what customers want and need in terms of new or improved products, like for instance in my production of Artificial Human parts, a market survey reveled that customers are interested in new and advance products and the R&D department is constantly innovating new ideas. These surveys can be carried out with a prototype model and the feedback can determine the reliability of the product. There are many factors which lead to high levels of customer satisfaction including: Products and services which are customer focused and then provide high levels of value for money. Customer service is about giving personal attention to the needs of individual customers which includes after sales services. What is clear about customer satisfaction is that customers are most likely to appreciate the goods and services that they buy if they are made to feel special. Page 9
OPERATIONS MANAGEMENT Question 3, What are operational systems, with activity on arrow/activity on node process? The first process in the activity planning section is activity definition. This process starts with the WBS and identifies the activities required to produce the various project deliverables. Activities are viewed from the perspective of the work packages. Basing on the question, "What activities are required to satisfy this work package?" The resulting information from this process is used next to organize the activities into a specific sequence. Table 3.5 shows the inputs, tools, techniques, and outputs for the activity definition process.
Table 3.5 Activity Definition Inputs, Tools, Techniques, and Outputs Inputs Enterprise environmental factors Organizational process assets Project scope statement Work breakdown structure WBS dictionary Project management plan Tools and Techniques Decomposition Templates Rolling wave planning Expert judgment Planning component Outputs Activity list Activity attributes Milestone list Requested changes
Sometimes it is difficult to know everything about a product during the manufacturing stage. It is common to learn more about the product as you work through the product life cycle. This is called progressive elaboration and it affects the planning process. If you don’t know everything about the product, you can’t plan the whole project to the level of detail necessary. For large projects, it is common to plan the entire project at a high level. The project starts with detailed plans in place for the work packages that are near the beginning of the project. As the time draws near to begin additional work, the more detailed, low-level plans for those work packages are added to the project plan. The planning process is revisited multiple times to ensure that the detailed plans contain the latest information known about the project. This process is called rolling wave planning because the planning wave always moves to stay ahead of the work execution wave. Page 10
OPERATIONS MANAGEMENT Question 3, What are operational systems, with activity on arrow/activity on node process? The Operational Activity describes the operations that are normally conducted in the course of achieving a mission or a business goal. It describes capabilities, operational activities (or tasks), input and output (I/O) flows between activities, and I/O flows to/from activities that are outside the scope of the architecture. High- level operational activities should trace to (are decompositions of) a Business Area, an Internal Line of Business, and/or a Business Sub-Functions. The next process is that of arranging the activities list from activity definition into a discrete sequence. Some activities can be accomplished at any time throughout the project. Other activities depend on input from another activity or are constrained by time or resources. Any requirement that restricts the start or end time of an activity is a dependency. This process identifies all relationships between activities and notes restrictions imposed by these relationships. The two methods in realigning the process of task and duties can be described as the precedence method or activity of node (AoN) and the arrow diagramming method or activity on arrow (AoA). There are various boxes or “nodes” which are connected from a beginning to an end with arrows to depict a logical progression of the dependencies between the schedule activities. Each node is coded with a letter or number that correlates to an activity on the project schedule. Typically, an activity-on-node diagram is designed to show which activities must be completed in order for other activities to commence. This is referred to as “finish -to-start” precedence which is like one activity must be finished before the next one can start. In the diagram below, activities A and D must be done so that activity E can begin. It is also possible to create other variations of this type of diagram. For example, a “start-to-start” diagram is one in which a predecessor activity must simply be started rather than fully completed in order for the successor activity to be initiated. Diagram of Task Arrow on Activity Network A B C E
Start
D
Finish
F Page 11
G
OPERATIONS MANAGEMENT An activity-on-node diagram can be used to provide a visual representation of the network system of an entire project schedule. Or, it can be used for any smaller section of the schedule that lends itself to being represented as having a defined beginning and end. To make it clear and simple and effective it must be included with critical path schedule activities. The planned start date of each node may also be listed in the diagram legend in accordance with the project management timeline. Table for Task A B C D E F G Number of days 3 days 3 days 1 day 7 days 5 days 4days 3 days Table for Predecessors B, E E A, C -
There are six important tasks in a network, Duration (DR), Early Start (ES), Early Finish (EF), Late Start (LS), Late Finish (LF), and the slack or float. The forward pass is the early start and early finish and the backward pass is the late start and late finish. The slack days are days that can be relaxed without affecting the project, a sample of the node can be as this model
D EF
ES
The above network diagram is explained with the forward pass described below:-
3
A Start 0
3
3
B
6
1
13
C
Finish 13 7
7
D
7
5
12 E
4
F
4
3
7 G
Page 12
OPERATIONS MANAGEMENT The only critical path is during the early start and the finish time is thirteen days, for the slack time using the minimum number of days to complete the project is eleven days, and the slack time is Task A and D can have a slack time of 1day and 6 days but task F has no slack time 3 1 A Start 0 0
3
3
B
6 2
1
C
7 4 Finish 12 11
7
D
7 6
5
12 1 E
4
F
4 0
3
G
7 4
The above diagram is only an illustration for the forward pass and backward passes an assumption of evaluating the slack time. The later study on the activity of node is in some ways different.
This network is an activity on node (AON) network. Page 13
OPERATIONS MANAGEMENT Question 4, How are capacity planning, process layout, product /service scheduling, inventory and projects, managed in your organization? A simple illustration can describe how my management operates, since I am a one man show in my business structure yet all duties and task are followed based on the diagram below.
In general my forecasting is based on who know me and my business, being in the business line manufacturing Artificial Human parts, the competition do exist but the important thing above this is innovative, how innovative are we. To forecast well, the first question is our reputation must be good, and we must some times go on lose in order to gain, losing here means, bending some corners with special discounts for cases recommended by Doctors. Some of the core activities such as business strategy, operational strategy, planning the operations and the order fulfillments are all almost combined as one activity. Since I don’t have any departments I have to run every department, under the busin ess strategy I focus on customer’s satisfaction, and insist each time a customer leaves my clinic I make sure he or she takes back a good testimony along with them. Usually I don’t lay tight conditions on pricing as the job itself is unique and I strive to get the best from the customer. My operational strategy is flexible in order to suit the time for the job. This also involves flexible working hours. Page 14
OPERATIONS MANAGEMENT Under the capacity planning, though in theory, it is often mention as the Master Planning of the operation, which are classed into three major branches such as the demand management, the capacity plans and master scheduling. Demand management and forecasting are very important in the operation as to determine the marketing structure, key parameters for financial plans and the development programs. This remains as the major plan or master plan. The four kinds of projections in demand management are as, associative projection, non-pattern projection, Multi-period pattern projections and historical projections. Sales Operation Diagram
Inventory Planning Marketing Planning
Constrained
Sales Operation Planning
Sales Planning
Unconstrained
Production Planning
These sectors contribute towards the overall demand plan for the sales operation planning for a company that intends to sell. It is heavily impacted by marketing plans and corporate revenue and profit targets, and it is a significant input into inventory planning that in turn drives the production and procurement plans. My success depends on the sales through a channel, the success of a marketing campaign, the replacement of an old product with a new one, or the efficient operation of a production facility. This under the operational strategy contains the overview of demand management. The two common factors is accessing the demand and to serve the demand. There are other operational strategy such as lean Manufacturing and T.P.S whereby large companies like Toyota employs. Lean manufacturing is about continuous improvement. Lean believes even the most lean manufacturer can have 30% of waste in their system. So the famous Toyota Production System or the TPS can also have plenty of room for improvement.
Page 15
OPERATIONS MANAGEMENT Question 5, With examples explain why and how monitoring and evaluation of operations take place in your organization? All operation activities when left unmonitored or evaluated, two dangers can prevail, one forecasting demand and sales can be effected, two financial breakdowns can occur. The two main reasons monitoring also prevents loss not only applies to production time but wastage loss. Though my company as mentioned earlier yet I need to monitor the inventory and evaluate the customers satisfaction. But in other companies the two processes are done very differently by the mechanism of tools. Performance monitoring is primarily a management tool performance monitoring involves
the tracking of project outputs and outcomes as indicators of project effectiveness, or the extent to which the project achieves its stated objectives.. It is akin to a roadmap that provides information indicating whether the project is on the right road to its intended destination (or intended impact) and, if not, how to get back on to the right road. Performance monitoring does not (indeed cannot) tell the project whether it has arrived at its final destination. For this, a statistically valid control group is required, and few performance monitoring systems include a valid control group. Performance monitoring tends to focus on outputs and outcomes (the lefthand side of the causal chain) and on those indicators that are easier to capture and measure on an on-going basis. Monitoring may not be only focused on performance alone, overall it’s all the whole involvement of the project by itself from program activities, outputs, outcomes and impacts. Like performance monitoring, project evaluation tends to focus on the left-hand side of the casual chain, although often with a heavier emphasis on project activities and the organizational structures, policies, systems, and day-to-day operations that drive project results. A specific type of project evaluation is the so-called "process evaluation," which assesses whether the project was implemented--including the procedures undertaken, the decisions made, and the services delivered--as intended. By documenting the project's development and operation, the process evaluation uncovers reasons for successful or unsuccessful performance, and provides information for potential replication. Some steps that are shown below could be a good guide in monitoring and evaluating the operation.
Page 16
OPERATIONS MANAGEMENT Question 5, With examples explain why and how monitoring and evaluation of operations take place in your organization?
The first important steps to review the M & E section reports. The overall picture can be known whether the following areas need to be corrected. Areas such as a) Project staffs commitments, b) Monitoring must be an obligation, c) Information provided must be in clear and good quality, d) Attention must be paid on the monitoring needs, e) Project reviews and evaluations should be consistent, f) Integration and cooperation between M&E functions and project management must be smooth process, and the level of participation and qualitative M&E methods should not be limited.
Monitoring: This type of evaluation is performed while a project is being implemented, with the aim of improving the project design and functioning while in action. An example given in the World Bank Technical Paper, Monitoring and Evaluating Urban Development Programs, A Handbook for Program Managers and Researchers by Michael Bamberger, describes a monitoring study that, by way of rapid survey, was able to determine that the amount of credit in a micro credit scheme for artisans in Brazil was too small. The potential beneficiaries were not participating due to the inadequacy of the loan size for their needs. This information was then used to make some important changes in the project. Bamberger defines it as: “an internal project activity designed to provide constant feedback on the progress of a project, the problems it is facing and the efficiency with which it is being implemented” (Bamberger 1) Evaluation: An evaluation studies the outcome of a project (changes in income, housing quality, benefits distribution, cost-effectiveness, etc.) with the aim of informing the design of future projects. An example from Monitoring and Evaluating Urban Development Programs, A Handbook for Program Managers and Researchers describes an evaluation of a cooperative program in El Salvador that determined that the cooperatives improved the lives of the few families involved but did not have a major impact on overall employment. Bamberger describes evaluation as “mainly used to help in the selection and design of future projects. Evaluation studies can assess the extent to which the project produced the intended impacts (increases in income, better housing quality, etc.) and the distribution of the benefits between different groups, and can evaluate the cost-effectiveness of the project as compared with other options” (Bamberger 1). Page 17
OPERATIONS MANAGEMENT Question 5, With examples explain why and how monitoring and evaluation of operations take place in your organization? Monitoring and evaluation need not be expensive or complicated, nor do they require specialists or grand calculations. The complexity and extent of the studies can be adapted to fit the program needs. The job of the project manager in this process is to point out those areas in need of monitoring or evaluation. If this is left to the researchers, the studies may tend to be too academic and not as useful to project management. Evaluation and monitoring systems can be an effective way to: Provide constant feedback on the extent to which the projects are achieving their goals. Identify potential problems at an early stage and propose possible solutions. Monitor the accessibility of the project to all sectors of the target population. Monitor the efficiency with which the different components of the project are being implemented and suggest improvements. Evaluate the extent to which the project is able to achieve its general objectives. Provide guidelines for the planning of future projects (Bamberger 4). Influence sector assistance strategy. Relevant analysis from project and policy evaluation can highlight the outcomes of previous interventions, and the strengths and weaknesses of their implementation. Improve project design. Use of project design tools such as the log frame (logical framework) results in systematic selection of indicators for monitoring project performance. The process of selecting indicators for monitoring is a test of the soundness of project objectives and can lead to improvements in project design. Incorporate views of stakeholders. Awareness is growing that participation by project beneficiaries in design and implementation brings greater “ownership” of project objectives and encourages the sustainability of project benefits. Ownership brings accountability. Objectives should be set and indicators selected in consultation with stakeholders, so that objectives and targets are jointly “owned”. The emergence of recorded benefits early on helps reinforce ownership, and early warning of emerging problems allows action to be taken before costs rise. Show need for mid-course corrections. A reliable flow of information during implementation enables managers to keep track of progress and adjust operations to take account of experience. Page 18
doc_467088001.docx