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MNB1501

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Lecture notes of 12 pages for the course MNB 1501-Business Management 1A at Unisa (.)

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  • July 23, 2021
  • 12
  • 2020/2021
  • Class notes
  • Unisa
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LLL56
MNB1601/001/4/2017


Learning Unit 2
Operations management: activities, techniques and
methods


INTRODUCTION AND AIM OF THE UNIT
Having gained a basic understanding of what the transformation model entails, it is now
402




possible to examine in more detail the operations activities of design, planning and con-
trol, as well as of improvement. Also, certain operations techniques and methods that
can be used to perform such activities “better” are briefly illustrated.



9STUDY CHAPTER 11 (section 11.4 – 11.7) IN ITBM

Contents of the learning unit

−− Operations design
−− Planning and control of the operations process
−− Operations improvement

10 Learning objectives

After completing this topic, you should be able to

yy explain the nature of design in operations by highlighting the various activities involved
in the design of products, services and operations processes, including the application
of selected operations management techniques and methods
yy explain the nature of planning and control in operations by highlighting the various ac-
tivities involved in capacity, inventory and purchasing, and quality planning and control,
including the application of selected operations management techniques and methods
yy explain the nature of improvement in operations by highlighting various activities involved
in failure prevention and recovery and total quality management, including the applica-
tion of selected operations management techniques and methods




31

, KEY TERMS

operations design total quality management (TQM)
process operations improvement planning and control of the operations
design of processes idea/concept design of products/services
generation screening process operations network
preliminary design design evaluation and improvement
prototype and final design basic product structure
bill of materials simple flow charts
side layout and flow demand side supplier
fixed position layout process type
product layout process layout
process technology cellular layout
method study job design and work organisation
loading work measurement
scheduling sequencing
capacity planning and control level capacity plan
chase-demand plan moving average
demand management cumulative representation
inventory and purchasing planning and quality planning and control
control quality characteristics continuous improvement (CTI)
kaizan performance standards
business process re-engineering (BPR) breakthrough improvement (BTI)
failure prevention and recovery failure types



Refer to the end of chapter 11 in the prescribed book to familiarise yourself with the key
403




terms for this learning unit before continuing.


2.1 OPERATIONS DESIGN

Study section 11.4 in ITBM


Operations design consists of two core components: the design of the product and/
404




or service itself and the design of the operations process by which the product will be
physically manufactured or the service rendered. A five-step procedure is followed in
the design of a product/service, starting from the generation of ideas/concepts, through
screening processes by which some “less promising” ideas are eliminated, to a preliminary
design, to further design evaluation and improvement, and eventually to a prototype of
the product or simulation of the service and final design. In the case of the design of the
operations process, four interrelated areas need to be considered: the operations network,
the layout and flow of the manufacturing/provisioning facility, the use of appropriate
process technology, and the design of jobs and organisation of the work.




32

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