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