THE OPEN UNIVERSITY OF TANZANIA FACULTY OF BUINESS MANAGEMENT DEPARTMENT OF LEADERSHIP AND GOVERNANCE MASTER OF PROJECT MANAGEMENT (MPM) PROGRAMME OLG 629: Management of Strategic Operations COURSE OUTLINE Introduction This course is for those who wish to become expert in managing project operation strategies for competitive performance, time compression, responsiveness, waste elimination through operations management, globalization, supply chains and operations performance measurement. It is the management of processes in systems that transform inputs into finished goods and/or provide services and influence decisions about the strategic Operations Management. This course is designed to address the key operations and logistics issues in service and manufacturing organizations that have strategic as well as tactical implications. The tools learnt from this course will apply to any industry including for nonprofit organizations, manufacturing and service companies. Objectives of the course The course aims at equipping learners with skills and practice behind the strategic importance of project management in both manufacturing and service settings. It provides a fundamental underpinning for the design of sustainable business strategies by focusing on how to achieve the efficient and effective management of resources and operations. The course will provide students with knowledge, skills to analyse project operations activities and design solutions to overcome wasteful operational processes and appreciate the strategic importance of operations to a wide range of settings. Learning outcomes Understanding of the strategic project management and how they function as a centre of competition Understanding of the strategic role and objectives of operations and there position in strategy implementation Understanding of main design factors and their alternatives which shape operations management and how product and service should be considered together Understanding of a range of fundamental operational improvements and the core function of marketing, product/service and operation functions Understanding of the quality management and control in organization and its application OLG 629: Management of Strategic Operations Page 1
Understanding of a capacity management in operations and its challenges of globalization, environment, technology and cooperate social responsibility Understanding a range of operations management methods and supply chain Understanding the role of operations within different business models Ability to evaluate the strategic project operations management Ability to determine the strategic role and objectives of operations Ability to apply main design factors and their alternatives which shape operations management Ability to analyse a range of fundamental operational management of services Ability to access the quality management and control Ability to analyse organisations capacity management in operations and its challenges Ability to apply a range of operations management methods and supply chain Ability to evaluate the role of operations within different business models Formulate strategic project management in an organization Develop a strategic role and objectives of operations Adopt main design factors and their alternatives which shape operations management Demonstrate a range of fundamental operational management of services Explain and apply quality management and control in an organization Analyse organisations capacity management in operations and its challenges Synthesise from a range of operations management methods and supply chain Applying operations management methods within different business models Lecture 1-Strategic Project Operations Management Operations management involves the planning and coordination of work. It is especially concerned with the creation and delivery of products and services and with providing the best match of supply with demand. Operations strategy involves the long-term planning and structuring of work by configuring appropriate resources and processes into an operating system that best implements the organization s strategy. What is a project Elements of project Forms of project Factors in successful project management An overview of Operations Management Operation functions Operation managers Levels of operation analysis Characteristics of Operation Management four Vs of operations The volume dimension The variety dimension The variation dimension The visibility dimension OLG 629: Management of Strategic Operations Page 2
Activities of Operation Management Important of operations Management Lecture 2-The Strategic Role and Objectives of Operations Strategically, project operations management involves the long-term planning and structuring of work. Indeed, the task of operations strategy is to design the operating system, which is the joint configuration of resources and processes, such that its resulting competencies are aligned with the organization s desired competitive position. The role of the operations function Strategic implementation Strategic support Strategic drive Operation performance objectives The quality objective The speed objective The dependability objective The cost objective Lecture 3-Operations Strategy Operations strategy focuses on how to best enable and implement the organization s strategy. (For for-profit organizations, best can be measured as maximizing the net present value of profits. For not-for-profits, it could mean minimizing cost subject to strategically specified constraints on quality, time, flexibility, and other non-financial metrics.) Difference between strategy and operation strategy The top-down perspective The bottom-up perspective The market requirement perspective The operation resources strategy The process of operation strategy (Five Ps of operation strategy formulation) Purpose Point of entry Process Project Management participation Lecture 4-Quality Management and Control Quality refers to the degree of excellence of the process, product, or service. It has designrelated dimensions such as performance and features, as well as process-related dimensions such as durability and reliability. Quality is a key differentiator in luxury and high precision businesses and a required competency in mature industries. OLG 629: Management of Strategic Operations Page 3
An overview of Quality Management Importance of quality Meaning Conformance to specification and the steps involved Statistical process and control (SPC) Process control learning and knowledge Lecture 5-Capacity management Capacity sizing is deciding on how many resources to invest in for each resource type. The resource type with lowest resource capacity is the bottleneck and determines the capacity of the entire operations system. Strategically, capacity sizing involves investment in processing resources: capital and labour. An overview of capacity Capacity constraints Medium and short term capacity Aggregate demand and capacity Planning and control capacity The objective of capacity planning and control Capacity planning as a queuing problem Choosing a capacity planning and control Plant Location, Layout and Design Lecture 6-Supply Chain Management Supply chain management (SCM) is management of a network of interconnected business involved in the provision of product and service packages required by the end customers in a supply chain. Supply chain management spans all movement and storage of raw material, work-in-process inventory, and finished goods from point of origin to point of consumption. Supply chain management Importance of Supply Chain Management Activities involved in supply chain management Objectives of supply chain management Quality Dependability Flexibility Cost Supply chain behaviour and dynamics Inventory Management, Lecture 7-Services Operations Management Operations management is an area of management concerned with overseeing, designing, controlling the process of production and redesigning business operations in the production of goods and/or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed, and effective in terms of meeting customer requirements OLG 629: Management of Strategic Operations Page 4
Understanding Services Economy Role of services in manufacturing firms Service Strategy Developing a service strategy Service Positioning & Implications for Service Delivery Design Degree of customer contact, divergence, customization; Service blue printing Pricing strategies in Services Performance issues in service systems Queuing Theory Applications in Service Systems Lecture 8-Design of Products and Services Although operations managers may not have direct responsibility for product and service design, they have indirect responsibility for product and service design and provide information and advice upon which successful product or service development depends. Importance of good design Design in product or service The stages of product/service design Concept screening Design evaluation and improvement Prototyping and final design Lecture 9-Materials and Inventory Control Materials and Inventory Control introduces about the distribution on service industry. The course will enable you to manage distribution centers, warehouses, and supply rooms. To learn safety standard compliance, tool and equipment identification, operation of industrial lift/transport equipment and data entry. An overview of inventory Forms of inventory Functions of inventory Inventory related costs Lecture 10-Operation Challenges Challenges are caused by new technologies, new ideas, changing market and environmental circumstances, or shift in the very paradigm of business, the operations will have to understand the consequences of these changes and respond to them. OLG 629: Management of Strategic Operations Page 5
An overview of Operation challenges Challenges of operation managers Globalization challenges Environmental protections Corporate social responsibility Technology awareness Knowledge management Reference Brown, S., Bessant, J., Lamming, R. & Jones, P. (2012). Strategic operations management. 3 rd Edition. Jordan Hill Oxford Burlington UK: McGraw-Hill. Cachon, G. & Terwiesch, C. (2006). Matching supply with demand: An introduction to operations management. USA: McGraw-Hill. Chopra, S. & Meindl P. (2004). Supply chain management: Strategy, planning and operation. 2nd Edition. India. Pearson Prentice Hall. Gehrlein, W. V. (2005).Operations management cases. Canada: McGraw-Hill. Heizer, J. & Render, B. (2006). Operations management. 8th Edition. UK: Pearson Prentice Hall. Heizer, J. & Render, B. (2006). Principles of operations management. 6th Edition. USA: Pearson Prentice Hall, Johnston, R. (2003). Cases in operations management. 3rd Edition. USA: Prentice Hall. Kerzner, H.(2009). Project Management: A systems approach to planning, scheduling, and control.10 th Edition. Canada: John Wiley & Sons. Niger, S., Stuart, C., & Robert, J. (2009).Operation management. 5 th Edition. London: Pitman Publishing Steve, B., Richard, L., John, B., & Peter, J. (2005). Strategic operation management. 2 nd Edition. Jordan Hill Oxford Burlington Special Projects Office, Bureau of Naval Ordinance PERT Summary Report (1958): Phase I and Phase II, Navy Department, Taylor, J. (2004). Managing information technology projects: Applying project management strategies to software, hardware, and integration initiatives. New York : AMACOM Westland, J. (2006).The project management life cycle: A complete step-by-step methodology for initiating, planning, executing & closing a project successfully. London : Kogan Page. Williams D. (1996). Preparing for project management: A guide for the new architectural or engineering project manager in private practice. New York: AMACOM OLG 629: Management of Strategic Operations Page 6