Management opérationnel

Operations management : the activity of managing the resources which are devoted to the production and delivery of products & services.

It is the TRANSFORMATION PROCESS of INPUTS into OUTPUTS. Within inputs, you can find :

- transformed resources : materials, goods, information, customers…

- transforming resources : facilities, staff, machinery, equipment…

TYPOLOGY OF OPERATIONS : “THE 4 Vs”

- VOLUME

Low = low repetition, less systemization, high unit costs

High = high repeatability, specialization, capital intensive, low unit costs

- VARIETY

Low = routine, standardized, regular, low unit costs

High = flexible, complex, match customer needs, high unit costs

- VARIATION IN DEMAND

Low = stable, routine, predictable, low unit costs

High = changing capacity, anticipation, flexibility, in touch with demand, high unit costs

- VISIBILITY

Low = time lag b/w consumption/production, standardization, low contact skills, centralization, low unit costs

High = short waiting tolerance, satisfaction governed by customer perception, high unit costs.

Operations management can be classified according to the :

- operational level : short-run, each single transformation process, assure efficient delivery, meet customer needs with available resources

- strategic level : long-run, the whole operation, reconfiguring the system and adapting it to the changing business environment.

The role of the operations manager encapsulates the “four Ds” :

- DESIGN = shaping processes, products & services

- DIRECT = steering operations & processes

- DEVELOP = improving the operations’ capabilities

- DELIVER = planning & controlling ongoing operations.

The TRIPLE BOTTOM LINE

Aim is to develop profits while respecting the environment and the people.

OVERALL EQUIPMENT EFFECTIVENESS (OEE)

There are FOUR TYPES OF LOSS:

- Set-up & changeover losses: when equipment is being prepared for next activity

- Breakdown failure: when the machine is being repaired

- Speed losses: when the equipment runs below its optimum work rate

- Quality losses: % error in the processed output of an equipment

These losses can be put in THREE CATEGORIES:

- Unplanned + Set-up and changeover + breakdown failure = AVAILABILITY LOSSES.

Loading time – Availability loss = Total operating time

=> Availability rate: a = Total operating time/Loading time

- SPEED LOSSES

Total operating time – Speed losses = Net operating time

=> Performance rate: p = Net operating time/Total operating time

- QUALITY LOSSES

Net operating time – Quality losses = Valuable operating time

=> Quality rate: q = Valuable operating time/Net operating time.

OEE = a * p * q

The stakeholders involved with operations management :

- SOCIETY : through increase of employment, ensure a clean environment, producing sustainable goods.

- SUPPLIERS : through a continued business, development of suppliers’ capabilities, transparent information

- SHAREHOLDERS : economic & ethical value from investment

- EMPLOYEES : continuous employment, fair pay, good working conditions, personal development

- CUSTOMERS : appropriate product, consistent quality, fast and dependable delivery, acceptable price.

FIVE OPERATIONS PERFORMANCE OBJECTIVES

- QUALITY = being RIGHT

- SPEED = being FAST

- DEPENDABILITY = being ON TIME

- FLEXIBILITY = being ABLE TO CHANGE

- COST = being PRODUCTIVE

Combination of those five factors leads to COMPETITIVENESS.

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