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Managing Operations Generic
1. BMG343J4 – Managing Operations (Managing Organisational Improvement) Steve Pollard [email_address] [email_address] BMG343J4 Advanced Diploma in Management Practice
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10. Objective Headings (objectives formulated for different jobs) BMG343J4 General manager Quality manager Sales manager Profitability Reduce waste Achievement of sales targets and plans Volume & business growth Quality registrations & external audits Contribution to profits and overheads Provision & utilisation of assets Product and service specification performance Customer satisfaction Product innovation Maintain the Quality Management System Customer needs Customer satisfaction Key process performance Identification of new products and services Operating costs Foster a customer focus philosophy Resource management of the sales force, including motivation Management effectiveness Foster a zero defects philosophy Resource management of the sales force, including motivation Employee productivity & attitude Foster a continuous improvement philosophy Marketing and market trends Public responsibility Environmentally sound awareness Legal needs and implications
16. BMG343J4 Culture for continual improvement and innovation Role of management Leadership Focus on employees Focus on the customer/client Integration of continuous improvement activities Standardisation/ quality management system Focus on critical processes Measurement and feedback systems Learning from continual improvement results The Continuous Improvement Model for Self-Assessment (SACIM)
17. PERCENTAGE AWARENESS AND USAGE OF UK-WIDE QUALITY STANDARDS (Source: Futureskills, 2003. Base 1000 charities) [Accessed 16 November 2004 - http://www.redf.org/download.sroi/sroi_method_2.pdf] BMG343J4 Awareness Total usage Usage <£100K Usage £100K - £1m Usage £1m – 10m Usage >£10m IIP 94.4 39.3 18.1 38.7 55.7 67.5 ISO 9001 62.5 8.4 6.4 7.4 11.3 15.9 BEM 53.4 8.0 4.4 7.8 11.0 4.8 PQASSO 48.4 45.8 53.2 49.6 28.7 0.0
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19. PERFORMANCE MEASUREMENT BMG343J4 delivered by allocated to linked to Reporting Systems Budget Process Performance Related Rewards mgrs answerable to results feed to Overall Strategy Policy Objectives Other targets eg cost or quality Performance Measures Manager’s sphere of responsibility Review process
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21. Kanji, G K. (1996) Implementation and Pitfalls of Total Quality Management, TQM, vol 7. pp331-343. BMG343J4 Business Excellence DELIGHT THE CUSTOMER CONTINUOUS IMPROVEMENT TQM (principles) MANAGEMENT BY FACT PEOPLE-BASED MANAGEMENT Leadership (prime) Leadership (prime) Customer satisfaction Continuous improvement cycle (concepts) Prevention Measurement (concepts) Internal customers are real (concepts) Teamwork All work is process People make quality (concepts) Prime Business Excellence Principles Core Concepts
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25. BMG343J4 THE SEVEN S FRAMEWORK (Waterman, R H, Jr, Peters, T J and Phillips, J R. 1980. Structure is not organization, Business Horizons, vol. 23, pp. 14-26.) Staff Skills Superordinate goals (Vision) Structure Systems Strategy Style
26. BMG343J4 Total Quality Management Model Teams Tools Systems Culture Communication Commitment (Oakland, J S. 2004. Total Quality Management, 3rd ed. Text, Cases and Readings. ISBN 0-7506-5741-3 (Shelfmark 658.562) Process C S ustomer upplier
27. New framework for quality management BMG343J4 Planning Performance Commitment Process People Communication Culture (Oakland, J S. 2004. Total Quality Management, 3rd ed. Text, Cases and Readings. ISBN 0-7506-5741-3 (Shelfmark 658.562)
28. Oakland, J S. (2003) TQM Text with Cases, 3 rd ed. ISBN 0-7506-5740-5. BMG343J4 Process Feedback Feedback The “voice” of the customer Consistent INPUTS The “voice” of the process OUTPUTS SUPPLIERS CUSTOMERS Materials Procedures Methods Information (including specifications) People Skills Knowledge Training Plant/equipment Products Services Information Paperwork
29. Greiner, L G. (1972) Evolution and Revolution as Organizations Grow , Harvard Business Review, p41. BMG343J4 AGE OF ORGANISATION SIZE OF ORGANISATION Small Large Young Mature PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5 1 Growth through CREATIVITY 2 Growth through DIRECTION 3 Growth through DELEGATION 4 Growth through COORDINATION 5 Growth through COLLABORATION 1 Crisis of LEADERSHIP 2 Crisis of AUTONOMY 3 Crisis of CONTROL 4 Crisis of RED TAPE 5 Crisis of ??
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32. Types of Organisational Change Osborne, S P and Brown, K. (2005) Managing Change in Public Sector Organisations. England. Routledge. BMG343J4 Small-scale incremental change Large-scale radical change Reactive change Proactive change Reactive change to shifting contextual conditions, involving reconfiguration and adaptation to change Proactive refinement and development of procedures, work arrangements and technology updates Radical response to critical junctures, major shifts in business markets etc, to maintain and secure survival Major restructuring and reinvention referred to as transformational and revolutionary proactive change
33. Maslow’s Theory v Personal Change BMG343J4 Physiological Safety or Security Belonging Social Ego & Self Esteem SA Does the Change completely rock my world to its foundation? Has the Change the capacity to undermine me personally? Does the Change alter my belonging to a social grouping? Will I still have a job? Does the Change alter my earnings capacity?
34. Perception of Change Model BMG343J4 DENIAL EXPLORATION RESISTANCE COMMITMENT Denial Shock Frustration Acceptance Experimentation Understanding Integration
35. BMG343J4 Life event 8+ months Well being Feel good OK Distress / despair First shock Provisional adjustment Inner contradictions Inner crisis Re-construction and recovery Positive events Excitement Honeymoon Uncertainty Losing confidence Confusion Depression Crisis Letting go Accepting Exploring Testing New confidence, transformation
36. BMG343J4 Life event 8+ months Well being Feel good OK Distress / despair First shock Provisional adjustment Inner contradictions Inner crisis Re-construction and recovery Trauma or loss Confusion Depression Crisis Quitting Numbness Disbelief Minimising or denial Letting go Accepting Partial recovery Extended crisis
37. BMG343J4 Life event 8+ months Well being Feel good OK Distress / despair First shock Provisional adjustment Inner contradictions Inner crisis Re-construction and recovery Confusion Depression Crisis Quitting Numbness Disbelief Minimising or denial Letting go Accepting Partial recovery Extended crisis Excitement Honeymoon Uncertainty Losing confidence Confusion Depression Crisis Letting go Accepting Exploring Testing New confidence, transformation
38. BMG343J4 Life event Well being Feel good OK Distress / despair First shock Provisional adjustment Inner contradictions Inner crisis Re-construction and recovery Uncertainty Losing confidence Testing New confidence, transformation Confusion Depression Crisis Numbness Disbelief Minimising or denial Letting go Accepting Exploring Taylor’s empirical model
48. BMG343J4 ELAPSED TIME OF ADOPTION % HAVING ADOPTED EARLY MAJORITY (34%) LATE MAJORITY (34%) LAGGARDS (15%) (2.5%) INNOVATORS (13.5%) EARLY ADOPTERS (Spence, W R. 1994. Innovation, The Communication of Change Ideas, Practices and Products. Chapman Hall.) POINT OF INFLEXION POINT OF INFLEXION
49. The Effectiveness Matrix (Carnall, C. (2007) Managing Change in Organisations, 5 th ed. P193) BMG343J4 Quantitative Measures Qualitative Measures Effectiveness Efficiency Resources Costs Waste Employee turnover Resources Staff flexibility Training and development Objectives Growth New products/ services Objectives Corporate image Excellence Adaptability Resources Management style Management development Corporate culture Resources Satisfaction Commitment Objectives Competitive position Utilization of new technology Objectives Profit Market share Volume Delivery
52. BMG343J4 Enterprise Strategy Executive Leadership Principle 1 Mobilize Change Through Leadership 1 Top Leadership committed 4 Vision and strategy clarified 2 Case for change clearly articulated 5 New way of managing understood 3 Leadership team engaged 6 Office of strategy management established Strategic Fit Principle 2 Translate the Strategy to Measurement Terms 1 Strategy map developed 2 Balanced scorecard created 3 Targets established 4 Initiatives rationalized 5 Accountability assigned. Organization Alignment Principle 3 Translate the Strategy to Operational Terms 1 Corporate role defined 2 Corporate and SBUs aligned 3 SBU and support units aligned 4 SBU and external partners. 5 Board of directors aligned Human Capital Alignment Principle 4 Motivate to Make Strategy Everyone’s Job 1 Strategic awareness created 2 Personal goals aligned 3 Personal incentives aligned 4 Competency development aligned. Planning and Control Alignment Principle 5 Govern to Make Strategy a Continual Process Planning Process 1 Initiative planning 2 Integrated HR/ IT planning 3 Budget linkage Operations Management 1 Process improvement 2 Initiative management 3 Knowledge sharing Learning and Control 1 BSC reporting system 2 Strategy review meetings.
Managing Operations BMG343J4 Slides Used May Vary Time compression: The longer a transaction is in the system the more cost it attracts and the more non-value-added effort is expended on it e.g. reporting. Increasing customer satisfaction is determined on turnaround time. The principle demands that the overall cycle time for a transaction is examined an alternative processes designed which dramatically reduce it e.g. instant mortgage quotations. Eliminate Non-value Added Activities: The longer a transaction is in the system the more cost it attracts and the more non-value-added effort is expended on it e.g. reporting. Increasing customer satisfaction is determined on turnaround time. The principle demands that the overall cycle time for a transaction is examined an alternative processes designed which dramatically reduce it e.g. instant mortgage quotations. Quality at Source: Process analysis often reveals that much of the dead time in process cycle times and many of the non-value-added activities are present in processes because of an underlying presumption of low quality. BPR suggests that processes should be redesigned on the basis of quality being established at the very earliest point and thereafter assumed. Organise around outcomes: “As-Is” processes often reveal that many of the aspects of a given process reflect the vested interests of the people or groups involved - over time the people involved in a process can organise the process for their own convenience, rather than operational effectiveness or customer satisfaction. This principle demands that everything is optimised for the desired outcome.
Managing Operations BMG343J4 Slides Used May Vary Empower People: Traditional industrial engineering typically broke work up into a series of small tasks each to be performed by a specialist e.g. the factory production line. A consequence of this approach is that the individuals involved become alienated from, or disinterested in, the purpose they are serving. The alternative is to organise the process around those involved having an end-to-end perspective in satisfying the outcome or customer. Utilise Cost-effective Technology: Traditional controls based process designs are based on the presumption that people are incompetent or dishonest. As a consequence many jobs are constructed to as to minimise the individual’s freedom and individuality. BPR recognises that this approach is misguided and wasteful of an organisation’s most precious asset - the commitment and creativity of its people. Re-engineered processes seek to enrich jobs and exploit the potential of workers. Customer Alignment: An examination of “As-Is” processes usually reveals that they are well and thoroughly designed, given the limitations of the technology available when they were conceived. BPR encourages processes designers to re-think processes from the perspective of seeking ways to exploit the power of the newest technologies. Set Demanding Targets: Human nature is often complacent. People need demanding targets if they are to achieve their potential. BPR suggests that all re-engineered processes should include performance targets which will stretch the stamina and creativity of the workers.
Managing Operations BMG343J4 Slides Used May Vary
Managing Operations BMG343J4 Slides Used May Vary Understanding, Managing and Implementing Quality Frameworks, Techniques and Cases, (eds) J. Anthony and D. Preece. (2002) ISBN 0-415-22271-0 (Shelfmark 658.4013 UND)