Introduction to Systems and

Operations Management

Lecture 1
Week commencing 30 January, 2012
 What is this module about?
Introduction
Introduction
• Role of systems and operations management
Definitions
and its integration into efficient and effective
running of business.
Input-Process
-Output • Process analysis; improvement and quality
Typology of Ops
management
Self-managed
• The soft systems approach of SSM to systems
Learning development will be used to analyse and
define business requirements.
• People and management issues will be
reviewed with emphasis on communication,
teamwork and effective leadership.
 Module Learning Outcomes
Introduction
Introduction
1. Assess the role of systems and operations
Definitions
management in an organisation and its
integration within the business;
Input-Process
-Output 2. Examine the main issues involved in quality
Typology of Ops
management and business excellence;
Self-managed
3. Analyse the people and management issues
Learning in organisations;
4. Evaluate the role of Soft Systems
Methodology (SSM) in analysing and
defining business requirements.
 Assessment – Atokowa case study
Introduction
Introduction
• Starting on page 8 of your module guide
Definitions • Atokowa case study
Input-Process
-Output
• You will analyse the problems they have
had with their systems and operations
Typology of Ops
management
Self-managed
Learning
 Assessment – 3000 word assignment (pg 7-8)
Introduction
Introduction 1. Apply appropriate models to the organisation to critically
analyse how systems and operations are currently
managed. 25%
Definitions
2. Apply the techniques of soft systems methodology to
Input-Process
analyse the current issues in the organisation. Through
-Output
this analysis summarise the main business requirements
of the organisation. 25%
Typology of Ops 3. Explain how the organisation can improve quality
management; business improvement and excellence in
Self-managed
their systems and operations. 25%
Learning 4. Identify the relevant people and management issues that
may arise in implementing your quality management;
business improvement and excellence recommendations
(in 3). 15%
5. Report Style and Academic Rigour Your report should be
written in good business English and be well structured
and presented . 10%
Introduction to Systems and
Operations Management

Week 1
Week commencing 30 January, 2012
 Introduction: Learning Outcomes
Introduction
1. Define Operations Management and
Definitions
Systems Management;
Input-Process
2. Understand how Operations and
-Output Systems work together;
Typology of Ops 3. Apply the input-process-output model
Self-managed from an operations and systems
Learning
perspective;
4. Know the 4 V’s typology of operations:
volume; variety; variation of demand
and visibility.
 Definitions of Systems and Operations
Introduction
• “Operations management is the activity
Definitions
Definitions
of managing the resources which are
devoted to the production and delivery
Input-Process
-Output of products and services.” (Slack et al,
Typology of Ops
2011)
Self-managed
• Information Systems is a “set of
Learning interrelated components that collect (or
retrieve), process, store, and distribute
information to support decision making
and control in an organization.” (Laudon
and Laudon, 2010)
 Why is Operations Management so important?
Introduction
The consultancy services market – % of world
Definitions
Definitions revenues of 40 largest consultancy firms
Input-Process
-Output Financial Marketing/sales
6 2
Typology of Ops Organizational
design
Operations and process
Self-managed 11
Learning management
31
Benefits/Actuarial
16

IT strategy Corporate strategy

17 17
 Transformation Process in Operations
Transformed
Introduction
resources
•Materials
Definitions
•Information
•Customers
Input-Process
-Output
Inputs Outputs
Transformation process Products Customers
resources
Typology of Ops
Services
Self-managed
Transforming
Learning
resources
•Facilities
Outputs are products and services
•Staff
that add value for customers
 Input-Processing-Output Model
Introduction Suppliers ENVIRONMENT Customers

ORGANISATION
Definitions
INFORMATION SYSTEM
Input-Process
Input-Process Transformation
-Output
-Output Process:

Input: Classify Output:

Typology of Ops
Data Rearrange/Sort Information
Aggregate
Self-managed
Learning
Calculate
Select

Feedback

Regulatory Agencies Stockholders Competitors

Laudon and Laudon (2007) Figure 1.2, page 12 and Bocij et al (2006)
 Example: Prêt a Manger
Introduction Inputs
Outputs
resources
Definitions
Transformed Fresh foods
Input-Process
Input-Process resources Satisfied
-Output
-Output
Ingredients customers
Typology of Ops Packaging
Self-managed Customers
Learning
Transforming
Resources
Equipment
Fittings
Staff
 Example: Prêt a Manger info system
Introduction
Inputs Outputs
Definitions
Data Process Information
Input-Process
Input-Process Each customer Stock level
-Output
-Output
transaction that is information
Typology of Ops
processed – i.e. the Sales reports
till Peak times reports
Self-managed Delivery arrival of
Learning new stock
(ingredients etc.)
Temperature levels
 Three levels of analysis
Introduction
Flow between operations Operations management is
network
Supply

Definitions concerned with the flow of

transformed resources
Input-Process
-Output between operations, processes,
Flow between processes
where
Operation

Typology of Ops
External operations interact with
Self-managed internal processes to form the
Learning
external supply network

Processes form an internal

Process

‘supply network’ and become

each others customers and
Flow between resources suppliers
 Introduction

Definitions

Input-Process
-Output

Typology of Ops

Self-managed
Learning
 A typology of operations and processes
Introduction
The 4 Vs
Definitions
Low Volume High
High
Input-Process
-Output

Typology
Typology of of
OpsOps High Variety Low

Self-managed
Learning

High Variation in demand Low

High Visibility Low

 Implications of the operations typology
Introduction • Low repetition
• Each staff •High
Definitions member repeatability

High
performs more

Low
Volume • Specialization
Input-Process of each task • Capital
-Output
• Less intensive
Typology
Typology of of
OpsOps
systemization • Low unit costs
• High unit costs
Self-managed
Learning
•Flexible • Well defined
•Complex • Routine
High

Low
•Match Variety
• Standardized
customer needs • Regular
•High unit costs • Low unit costs
 Implications of the operations typology
Introduction • Changing
capacity
• Stable
Definitions • Anticipation
• Routine

High
• Flexibility

Low
Input-Process
Variation • Predictable
-Output • In touch with in demand
demand • High utilization
Typology OpsOps • High unit costs
Typology of of • Low unit costs

Self-managed • Short waiting • Time lag between

Learning tolerance production and
• Satisfaction by consumption
High

Low
customer Visibility • Standardization
perception
• Low contact skills
• Customer contact
skills needed • High staff
utilization
• Received variety
is high • Centralization
• High unit costs • Low unit costs
 Self-managed learning
Introduction
• Complete the
Definitions workshop task
Input-Process • Read Chapter 1 –
-Output
Operations
Typology of Ops
Management
Self-managed
Self-managed
Learning
learning
 Introduction

Definitions

Input-Process
-Output

Typology of Ops

Self-managed
Questions
Learning