Operation

s
Function
 8.1 The Enterprise
Delivery System
Framework and The QDP
 The Six Ms of Operations
Enterprise Delivery System and the Customer,Market and Financial Outcomes
Input Throughput Output Final Delivery to Customers Outcomes

Resources Mobilized Transition Process Products Marketing and Customer Customer Expectation
Servicing ● Quality
● Money ● Delivery
Conversion of Input into Goods made or Sevices Marketing Program ● Price
● Men Output rendered
Service Level Experience Market Expectations
● Machines ● Revenues/Sales
● Market Share
● Materials ● Market Research

● Methods Finance Expectations

● Profits
● Management ● Return on Investment
 The Nine Critical Sub-
Processes or Sub-Systems
in the Transformation
Process
 Technology Application and
Utilization
- the enterprise managers and
technicians must understand how
the technology works and how it
should be properly utilized.
 Operating Work Flow (OWF)

-should follow the rationale of the

technology being adopted and used. Two
guiding principles should dictate the OWF:
1. The OWF must be very efficient in terms
of time, movement, and utilization of
resources.
2. The OWF must be balanced capacity-
wise.
 Layouting

⋆ -the operating work flow must translate into an

appropriately-designed and executed physical
layout of the factory or service shop. The
dimensions of the service facility should be
configured correctly to provide enough “elbow
room” or human space to serve the customers
comfortably and expeditiously. The working
environment should be conducive for carrying out
the operating activities with as little physical,
 Production and Programming and
Scheduling
- it is the proper determination of:
[1] what goods or services to produce
[2] in what sizes and packaging
[3] in what machinery and equipment
[4] in how many units
[5] precisely when
- for enterprises with multiple products or services, PPS can be a very daunting and complicated
activity. Operations must consider four critical factors in determining the right PPS. These are:
[1] market demand in terms of volume expectations, trends, cycles, and seasonality
⋆ [2] capital investment and financing
⋆ requirements;
⋆ [3] product line profitability and capacity
⋆ utilization;
⋆ [4] the number of products and market segments the enterprise wants to serve and their
implications on the complexity and dexterity of the production system.
 Quality Control
- the Quality, Delivery, and Price expectations of customers must
be matched with the Quality, Delivery, and Productivity measurement,
monitoring and evaluation system at every stage of the Enterprise
Delivery System.
-Before the input is accepted by the Transformations Process, it
must be conform strictly to certain QDP specifications at this input
acceptance stage.
-Every step in the Transformation Process must also be measured,
monitored, and evaluated according to the QDP standards of the
transformation stage.
-Finally, there are QDP specifications at the output stage.
Operating Systems and Procedures

- OSP are the enterprise standards for running

the entire operations of the factory or service shop.
This means that these operating systems or method
have been subjected to conceptual, analytical, critical,
and creative thinking processes.
Operations Management,
Supervision, and Control
 Worker Motivation, Skilling,
Development, Compensation, and
Control
⋆ Operation