Operations management – Part 1Operations management – Part 1Christie Sarri 31.03.2010
ContentsContents
Lesson 1: An Introduction to Operations Management
Operations & Process management
4Vs of processes
Performance objectives
Lesson 2: High-level Process Design Process Types
Lesson 3: Process Analysis
Case StudyCase Study
HSBC Bank – Branches in London
One of the world's largest banks by assets, HSBC Holdings is active throughout the UK and Europe, North and South America, Asia/Pacific, Australia, the Middle East, and Africa. All told, the company has some 10,000 offices in more than 80 countries, providing consumer and commercial banking services, credit cards, asset management, private banking, securities underwriting and trading, insurance, and leasing.
Operations managementOperations management
Operations management – case studyOperations management – case study
4Vs of processes4Vs of processes
4Vs of processes – case study4Vs of processes – case study
Volume
Variety
Low High
High Low
VariationHigh Low
VisibilityHigh Low
Operations PerformanceOperations Performance
Operations PerformanceOperations Performance
Operations Performance – study caseOperations Performance – study case
Process MatrixProcess Matrix
Low Variety
High Volume
Process TypesProcess Types
Manufacturing:
◦Project: high customized projects, construction
◦Jobbing: project shares operation resources, specialist toolmakers
◦Batch: some periods repeating, gourmet frozen foods
◦Mass: repetittive and predictable, cd production
◦Continuous: endless flow, electricity utilities
Services:
◦Professional: high levels of customization, architects
◦Service: mix of front and back service activities, banks
◦Mass: mainly back service activities, supermarkets
Process Maps – Process Maps – case studycase study
Customer enters the bank
Check client’s request
Sent customer to appropriate department
Queue
Ask a cheque book
Application for Cheque book completed
Check before issue
Deliver to customer by post......
.........
Cycle time, process capacity, process balancingCycle time, process capacity, process balancing
Cycle time = Time available / numbers
Process capacity = Work content / cycle time
Process balancing = idle time / cycle time
Little’s law:
Throughput time= work in progress x cycle time