Organising operations
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Organising Operations. Managing Operations. Operations managers organise the operations process. Communication, leadership and coordination are essential skills for op managers. Effective operation requires careful planning. Purchasing / Supply Chain Management.

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Organising Operations

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Organising operations

Organising Operations

Managing operations

Managing Operations

  • Operations managers organise the operations process.

  • Communication, leadership and coordination are essential skills for op managers.

  • Effective operation requires careful planning.

Purchasing supply chain management

Purchasing / Supply Chain Management

  • Supply chain is the link between a business and its suppliers who provide the inputs to be used in the operations of a business.

  • Supply chain management is concerned with identifying relevant suppliers and coordinating the purchasing of the inputs to be used.

Organising operations

  • Supply chain management includes:

  • Assessment of location (distance to suppliers).

  • Efficiency of delivery

  • Stock usage rate

  • Uniformity of quality

  • Pricing and comparisons with other suppliers.

Organising operations

  • Lead times: The time it takes for the business to meet the customer’s needs. Minimal lead times are often described as allowing the business to work in real time (the present).

  • Ideal lead times of zero…Instantaneous fulfilment of an order ie Fast food, are almost impossible.

Organising operations

  • Supplier Rationalisation: a recent trend for large businesses is to reduce the number of their suppliers. Efficiencies can be maximised and supplier reliability can be rewarded.

  • Inputs to be used include: Raw Materials, intermediate goods, finished goods, capital equipment and labour.

Rostering and scheduling

Rostering and Scheduling

  • Rostering: is the coordination and allocation of staff as an input. A roster is a plan of the staffing needs of the business ensuring that there are sufficient numbers of staff (with appropriate skills to match the tasks that require completion).

Organising operations

  • Rosters need to take into account:

  • Task type

  • Leave entitlements (holidays, sickness, long service, maternity leave)

  • Working hours: Award hours, overtime, breaks.



  • Scheduling is the coordination of the activities of the business. The timing of the activities is crucial to maximise efficiency and avoid bottlenecks or leave productive equipment standing idle.

  • Timing and order of activities

Sequencing tools

Sequencing Tools

  • Program Evaluation Review Technique (PERT)

  • Gantt Charts. A Bar graph illustrating the order of events highlighting periods of overlap.

  • Critical Path Analysis: sequence stages of activity identifying shortest completion time possible.

Organising operations

  • PERT and CPA techniques show what needs to be done, how long tasks take, what order is necessary.

  • Draw Fig 8.11 and 8.12

  • Activities: Construct a roster for an imaginary Chicken Fast Food outlet called Kanwal Fried Chicken (KFC).

  • Complete extension 2 (p.183)

Task design

Task Design

  • Refers to breaking the business’ core activity into smaller tasks, therefore creating more manageable activities.

  • Tasks that are created must be analysed in terms of labour requirements, matching staff needs to available labour.

  • Human Resources: Their job is to source the right person. Screening candidates against needed skills and competencies for correct match.

Plant office layout

Plant / Office Layout

  • Layout refers to the physical space of the business. Factors affecting layout include:

  • Sequencing: Production line in proximity to maximise efficiency. Must complement process.

  • Size of space needed to maximise production capacity required.

  • Manoeuvrability – movement between tasks

  • Manageability – overseeing performance

Organising operations

  • Safety requirements – OH&S, Fire

  • Storage – location of stock and warehousing requirements.

  • Staff Morale



  • Involves storage of supplies (raw materials, intermediate goods, finished goods)

  • Warehousing involves investing the following:

    • Land, security, stock and supplies, staff and captial equipment (shelving, inventory control systems, forklifts etc)



  • Define: Project Production, Process production, Product production

  • Describe efficient office layout and the use of workstations.

  • Describe the importance of efficient warehousing.

  • Revision activity 7



  • Involves applying scientific methods or approving existing methods, process or product.

  • Technology uses mechanical or computer aided equipment which makes the task simpler or quicker, thus improving efficiency

  • Technology improves production methods, communications systems and delivery systems.

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