PROJECT REPORT

A STUDY ON OPERATION MANAGEMENTAtHCL INFOSYSTEMS LTD.NOIDA

Submitted towards partial fulfillment of theRequirements for the award of thePGDM Programme Approved by AICTE(Equivalent to MBA)ACADEMIC SESSION

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Table of ContentsAcknowledgment51.INTRODUCTION71.1.HCL an overview71.2.HCL DNA:121.3.Employer spotlight:13HCL in India:141.4.About HCL151.6.VISION STATEMENT161.7.MISSION STATEMENT161.8.QUALITY POLICY STATEMENT161.9.OUR OBJECTIVE17OUR MANAGEMENT OBJECTIVE17OUR PEOPLE OBJECTIVE171.10.CORE VALUES171.11.A SNAPSHOT OF HCL Infosystems Ltd.18FRONTLINE DIVISION192.Literature Review20Four Types of Focus Dimensions Used in Operations Management20Finance20Customers20Internal Processes21Learning and Innovation212.1.An Introduction of Operation Management452.1.1.What is Operation management?452.1.2.Why is it important?452.1.3.Critical factors for success462.1.4.Who is involved?462.1.5.Principles462.1.6.Managing for results472.2.Levels of Operation management472.3.Value for money482.4.Measures and metrics492.4.1.Business processes can be distinguished by:492.5.Processes502.6.Objectives of a Operation Management System542.7.Overall Goal and Focus of Operation Management552.8.Operation Improvement of the Organization or a Subsystem is an Integrated Process552.9.Ongoing Activities of Operation Management552.10.Basic Steps562.11.Operation management mainly include following things:582.11.1.Planning592.11.2.Monitoring602.11.3.Developing Employees602.11.4.Rating612.11.5.Rewarding612.12.Managing Operation Effectively622.13.Features of a Good Operation Management System622.13.1.Competency-Based632.13.2.A Continuous Process642.13.3.Operation planning652.13.4.Continuous coaching and development652.13.5.Interim review662.13.6.Operation appraisal672.13.7.To maintain an open system673.PROJECT693.1.Objective of the Project Introduction of the Problem693.1.1.Secondary objective693.2.Significance of the Project693.3.Definition - A Theoretical Perspective703.4.Preparation and Planning for Operation management713.5.Operation Management and Development713.6.Operation Assessment and Development Plan In HCL INFOSYSTEMS LTD.723.6.1.Prior to filling the form please read carefully Instructions to the Appraiser723.6.2.Operation appraisal guidelines723.6.2.1.Appraisal procedure723.6.2.2.The Form And Its Contents734.RESEARCH METHODOLOGY76Introduction77What approach should I take - qualitative or quantitative?77Can my dissertation be entirely literature-based?79What is case study research?80What's an empirical study?80What is secondary analysis?81Where do I find existing research data?81Collecting you own data - primary research81Will my research be inductive or deductive?85What's all this about research design?85Summary86Key Questions874.1.Research Design894.2.Data Collection Method904.3.Analysis of PMS Processes & Components914.3.1.Planning914.3.2.Monitoring924.3.3.Developing Employees934.3.4.Rating944.3.5.Action Based Operation954.3.6.Analysis964.3.7.Effectiveness965.RECOMMENDATIONS985.1.Recommendations986.CONCLUSION997.BIBLIOGRAPHY100

Acknowledgment

The project of this nature is arduous task stretching over a period of time, completing a project like this one takes the effort and cooperation of many people.

Although this project report is being brought in my name, it bears an imprint of guidance and cooperation of many individuals. Several persons with whom I integrated have contributed significantly to the successful completion of the project study. In the successful & trouble free completion of my final term project titled OPERATION MANAGEMENT, I am graceful to Institute of Management and Technology, Ghaziabad for helping us towards the completion of the project.

I extend my deepest and sincere thanks to my project guide, Mr. Ram Krishn and other HR Executives HCL Info systems Ltd. for the unflinching support and guidance throughout the project

I would also like to thank all the executives who shared their precious time and experience with me.

Last but not the least, I extend my sincere thanks to all the staff members of HCL Infosystems Ltd. for their cooperation.

Executive summaryOperation management is the process of bringing people in to the organization making very sure that new entrants have the potential and willingness to contribute to organizational success. In todays scenario without effective Operation management the organization will meet the considerable resistance when introducing change. Without organizational change and development survival become very uncertain so in order to make the industry survive it is very important to adopt the different Operation management practices in all organizations so as to understand the employees or workers need and satisfy them. There should be effective people utilization in every industry. All these practices in an organization will make the organization to grow at a faster speed. The study will be empirical and primary research will be done by using the questionnaire which will administer to sales, service and support function employee. The date will be collected and assimilated by using statistical tool like median and date will be analyzed by using Bar Chart. The analysis will be to find the effectiveness of current PMS.

1. INTRODUCTION

1.1. HCL an overview

Born in 1976, HCL has a 3-decade rich history of inventions and innovations. In 1978, HCL developed the first indigenous microcomputer at the same time as Apple and 3 years before IBM's PC. During this period, India was a black box to the world and the world was a black box to India. This microcomputer virtually gave birth to the Indian computer industry. The 80's saw HCL developing know-how in many other technologies. HCL's in-depth knowledge of Unix led to the development of a fine grained multi-processor Unix in 1988, three years ahead of Sun and HP.

HCL's R&D was spun off as HCL Technologies in 1997 to mark their advent into the software services arena. During the last eight years, HCL has strengthened its processes and applied its know-how, developed over 30 years into multiple practices - semi-conductor, operating systems, automobile, avionics, bio-medical engine HCL's R&D was spun off as HCL Technologies in 1997 to mark their advent into the software services arena. During the last eight years, HCL has strengthened its processes and applied its know-how, developed over 30 years into multiple practices - semi-conductor, operating systems, automobile, avionics, bio-medical engineering, wireless, telecom technologies, and many more.

Today, HCL sells more PCs in India than any other brand, runs Northern Ireland's largest BPO operation, and manages the network for Asia's largest stock exchange network apart from designing zero visibility landing systems to land the world's most popular airplane.

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1976Hindustan Computers Limited (HCL) born.

1977Distribution alliance formed with Toshiba for copiers.

1978HCL successfully ships in-house designed microcomputer at the same time as Apple. The Indian computer industry is born.

1980HCL introduces bit sliced, 16-bit processor based microcomputer.

1983Indigenously develops an RDBMS, a Networking OS a Client Server architecture, at the same time as global IT peers.

1986 HCL becomes the largest IT Company in India.1988HCL introduces fine-grained multi-processor Unix-3 years ahead of Sun and HP.1990Data Quest marks HCL No.1 amongst top ten computer giants.1991HCL Ltd. and Hewlett Packard, USA, partner to form HCL-Hewlett Packard Ltd.JV develops multi-processor Unix for HP-heralds HCLs entry into contract

1994Distribution alliances formed with Ericsson Switches and Nokia Cell phones.

1997HCL Info systems are formed. HCL's R&D spun-off as HCL Technologies- marks advent into software services. JV with Perot Systems, stake divested in 2003.

1999Initial Public Offering made by HCL Technologies Ltd.Formation of Global Board of Directors.2000Large contracts won from Bankers Trust, KLA Tenor, Cisco, GTech, NEC among others.2001JV with Deutsche Bank- DSL software formed. HCL BPO Incorporated. Acquired British Telecom Apollos contact center in Belfast, Northern Ireland. HCL Info systems become largest hardware company.2002Strong pursuit of nonlinear strategy to widen services portfolio; several JVs and alliances formed. Strategic alliance forged with Jones Apparel Group, Inc. a fortune 500 company. Infrastructure services division launched to address emerging global needs.Software businesses of HCL Info systems and HCL Technologies merged.

2003Largest BPO order ever outsourced to an Indian BPO firm, won from British Telecom. Landmark deals signed with Airbus and AMD. HCL manpower crosses the 20,000 mark..2004 Accorded leader status by Meta Group in Offshore Outsourcing. HCL is Indias No.1 PC 4th year in a row.

2005

HCL signs Software Development Agreement with Boeing for the 787 Dream liner program. JV with NEC, Japan HCL sets up first Power PC architecture design center outside of IBM. Completes buy-out of JVs with Deutsche Bank and British Telecom Apollo Contact Center. HCL integrates all group employees under HCL in domain. Sets up a dedicated Offshore Design Center for leading Tier-1 Aerospace supplier, Hamilton Sundstrand. HCL Info systems launches sub Rs.10, 000 PC. Joins hands with AMD, Microsoft to bridge the digital divide.

2006

75,000+ machines produced in a single month. HCL Info systems in partnership with Toshiba expand its retail presence in India by unveiling 'shop Toshiba'. HCL Info systems & Nokia announce a long-term distribution strategy. HCL the leader in Desktops PCs unveils India's first segment specific range of notebooks brand - 'HCL Laptops'. HCL Info systems showcase Computer Solutions for the Rural Markets in India. HCL Support wins the DQ Channels-2006 GOLD Award for Best After Sales Service on a nationwide customer satisfaction survey conducted by IDC. HCL AND ZEE - Dish TV team up to take DTH TV to its next level of growth in India HCL Info systems First in India to Launch the New Generation of High Operation Server Platforms Powered by Intel Dual - Core Xenon 5000 Processor. HCL Forms a Strategic Partnership with APPLE to provide Sales & Service Support for iPods in India.

HCL is one of the leading global Technology and IT enterprises with annual revenues of US$ 4 billion. The HCL Enterprise comprises two companies listed in India, HCL Technologies (http://www.hcltech.com/) and HCL Info systems(http://www.hclinfosystems.in/)

The 30 year old enterprise, founded in 1976, is one of India's original IT garage start ups. Its range of offerings span R&D and Technology Services, Enterprise and Applications Consulting, Remote Infrastructure Management, BPO services, IT Hardware, Systems Integration and Distribution of Technology and Telecom products in India. The HCL team comprises 45,000 professionals of diverse nationalities, operating across 17 countries including 360 points of presence in India. HCL has global partnerships with several leading Fortune 1000 firms, including several IT and Technology major.

1.2. HCL DNA:

Fueled by the entrepreneurial zeal of its founders, HCL developed the first indigenous microcomputer in 1978, at the same time as Apple. Since then, HCL has had a 3-decade rich history of inventions and innovations. Entrepreneur is the term that best describes the HCL employees. The TIME magazine has referred to HCL as an "intellectual clean room where its employees could imagine endless possibilities."

Ever since HCL entered into an alliance in 1970s, partnerships and HCL have been inseparable. Bonds have been forged with partners to co-create value. Strong inorganic growth is a testimony to the spirit of partnerships.

This entrepreneurial and win-win relationship driven culture continues to guide HCL in all its endeavors.

1.3. Employer spotlight:

HCL is one of Indias leading global IT Services companies, providing software-led IT solutions, remote infrastructure management services and BPO. Having made a foray into the global IT landscape in 1999 after its IPO, focuses on Transformational Outsourcing, working with clients in areas that impact and re-define the core of their business. The company leverages an extensive global offshore infrastructure and its global network of offices in 16 countries to deliver solutions across select verticals including Financial Services, Retail & Consumer, Life Sciences Aerospace, Automotive, Semiconductors, Telecom and MPE (Media Publishing & Entertainment)

HCL in India:HCL has evolved from a dream of eight youngsters in 1977 to the country's top IT group today. Our well-balanced portfolio of turnkey solutions across equipments, software and services make our offerings end-to-end for all IT needs of the Indian customers. Our recognitions speak of our dominant position in India. V&D100 2005, No. 1 Security service provider in India by DQ Annual 2004, No.1 Infra service provider by CMP 2005, and No.1 PC Brand recognize us as No.1 Network Management service provider in India for the last 5 years in India.HCL is known to be the harbinger of technology in the country. Our partnerships with technology leaders like JDA, Oracle, SAP, KANA, Intel, and Microsoft go back to the time when India was being recognized as a growing and strategic market. Along with global capability, HCL has leveraged such relationships to create value for Indian customers - the comprehensive integrated market surveillance solution for SEBI being one such example.Our services are backed by an extensive direct support infrastructure spread across 170 locations nationwide, which offer 24-x7 support offering for critical sites. With more than 70 SAP implementations till date, HCL has been rendering service to key Indian players in Banking, Retail and Government.We are committed to the Indian Market and will continue to invest more to further enrich our end-to end IT offerings for this market. Our flexible engagement models, rich heritage of technology solutions and over 29 years of leadership across service areas give us a strategic advantage to meet the nation's IT needs.

1.4. About HCL

HCL Enterprise is a leading Global Technology and IT enterprise that comprises two companies listed in India - HCL Technologies & HCL Info systems. The 3-decade-old enterprise, founded in 1976, is one of Indias original IT garage start-ups. Its range of offerings span Product Engineering, Technology and Application Services, BPO, Infrastructure Services, IT Hardware, Systems Integration, and distribution of ICT products. The HCL team comprises approximately 42,000 professionals of diverse nationalities, who operate from 16 countries including 300 points of presence in India. HCL has global partnerships with several leading Fortune 1000 firms, including leading IT and Technology firms. HCL Technologies is one of Indias leading global IT Services companies, providing software-led IT solutions, remote infrastructure management services and BPO. Having made a foray into the global IT landscape in 1999 after its IPO, HCL Technologies focuses on Transformational Outsourcing, working with clients in areas that impact and re-define the core of their business. The company leverages an extensive global offshore infrastructure and its global network of offices in 16 countries to deliver solutions across select verticals including Financial Services, Retail & Consumer, Life Sciences Aerospace, Automotive, Semiconductors, Telecom and MPE (Media Publishing & Entertainment). For the quarter ending 31st December 2006, HCL Technologies, along with its subsidiaries had revenue (TTM) of US $ 1.155 billion (Rs.5220 crore) and employed 38,317 professionals.

1.5. Strong SAP Capabilities:HCL Technologies is one of the largest global SAP service providers in India, providing a spectrum of SAP services. HCL Technologies has developed strong capabilities on the SAP Net Weaver platform and drives market demand in the SAP world through unique market propositions and upgrade offerings to my SAP ERP. HCL is a value added reseller and services partner across multiple geographies. With a track record of successful engagement in this space, HCL has received prestigious awards from SAP - distinguished partner award 2005, best my SAP HCM implementation award 2005, Saps "outstanding partner award for implementation/upgrade project 2004, and more. Forrester has lauded HCL Technologies is one of a number of firms in this space and is a viable candidate for multinational firms that are contemplating global outsourcing and are interested in SAP implementation and maintenance services.

1.6. VISION STATEMENT

Together we create enterprises of tomorrow.

1.7. MISSION STATEMENT

To provide world class information technology solution and services to enable our customers to serve their customer better.

1.8. QUALITY POLICY STATEMENT

We will deliver defect-free products, service and solutions to meet the requirements of our external and internal customers the fist time, every time.

1.9. OUR OBJECTIVE

OUR MANAGEMENT OBJECTIVE

To fuel initiative and foster active by allowing individuals freedom of action and innovation in attaining defined objectives.

OUR PEOPLE OBJECTIVE

To help HCL Infosystem people share in the companys success, which they make possible to provide job security based on their Operation; to recognize their individual achievements and to help them gain a sense of satisfaction and accomplishment from their work.

1.10. CORE VALUES

We shall uphold the dignity of individual

We shall honor all commitments.

We shall be committed to Quality. Innovation and growth in every endeavor.

We shall be responsible Corporate Citizens.

1.11. A SNAPSHOT OF HCL Infosystems Ltd.

Indias leading IT company HCL In say is Indias largest information technology (IT), transnational conglomerate. With its-depth expertise in developing solution spanning diverse technologies.

HCL Insys aims to propel its course on to the high growth Path total Technology Integration. Towards capturing two Ends of market spectrum - enterprise solution and PCs.

HCL Insys has made significant strategic infrastructure investments in the professional services Organization (PSO), the Support Services Organization (SSO) and its manufacturing plant at Pondicherry. Thus it is the manufacturer of general purpose computer and provides services in the areas of IT Consultancy, system integration, Software Development and Training.

It makes true technology integration possible across multiple platforms, this was possible because of the in-depth expertise in developing state-of-the-art indigenous hardware solution; thorough understanding of networking technology.

As a part of this plan to market more and more technology integration services world-wide, HCL in sys has already taken a step in the direction of export by localizing its service comprising software, hardware design and development, value added support service networking abs repair services and overseas integration projects to meet the demands of the global clients.

Companys continuous and consistent anticipation of the requirement of the IT Industry has led it to undertake the acquisition of the business of HCL Info solutions limited (now known as Frontline Division), HCL Peripherals Limited (now known the acquisition of Customer Support Organization (CSO) activities of HCL Office Automation Limited (now know as office Automation Division)

FRONTLINE DIVISION

Frontline Division, formerly HCL Info solution Ltd. (HCL Insol) started with the aim of increasing market penetration by handing segments not covered by HCL Insys and creating new niches. Today it specializes.

2. Literature Review

Operations managementis an area of managementconcerned with overseeing, designing, and controlling the process of production and redesigning business operationsin the production of goods or services.

Four Types of Focus Dimensions Used in Operations Management

Every business operates along four basic focus dimensions: finance, customers, internal processes, and learning and innovation. These theoretical divisions of operations management come from the research of Robert S. Kaplan and David P. Norton. The dimensions arent mutually exclusive. For example, employees who become more competent through learning can improve the functioning of internal processes, according to Management Principles: A Contemporary Edition for Africa, by P. J. Smit.

FinanceThe heart of the financial dimension for most businesses is profit, though short-term financial goals might entail sacrificing current profits to increase future capacity. For example, a company might decide to reinvest all its profits into new and better machinery to increase production capacity and efficiency, but the ultimate goal remains greater profit. Managers must control the flow of money through the organization to ensure short-term goals align with long-term goals.CustomersCustomers are the foundation of your business. Without the flow of their money through your organization, everything grinds to a halt. Managers aim to maximize the flow of customer money, but that doesnt always mean securing as many customers as possible. A boutique hotel, for example, might focus on serving relatively few high-paying customers, while a chain hotel focuses on the wide swath of people who are unwilling to pay high prices. Though each business targets customers who have different needs, meeting those needs is equally vital to their profitability.Internal ProcessesOptimization of internal processes leads to greater profitability and customer satisfaction. For example, a manager might focus on developing efficient communications within an organization to ensure orders travel quickly from the customer service department to the production line. The manager further expedites the order by ensuring the production department syncs with the shipping department to get the order to the customer quickly. Fine-tuning the process to make it maximally efficient keeps operating costs low and pleases customers, leading to greater profits.Learning and InnovationTechnology progresses and so must businesses. An invention that improves a manufacturing process, for example, might be a game changer that forces factories to upgrade their processes or lag behind competitors. A good manager stays abreast of technological shifts; a great manager anticipates and initiates change by encouraging her organization to focus on learning and innovation. Practically, this can mean anything from having a well-funded research-and-development team to paying for continuing education for employees. An organization that surmounts cognitive limitations stays one step ahead of its competitors.

Understanding operations management Consider the ingredients of your breakfast this morning. Unless you live on a farm and produced them yourself, they passed through a number of different processing steps between the farmer and your table.

Every organization has an operations function, whether or not it is called operations. The goal or purpose of most organizations involves the production of goods and/or services. Operations in some form has been around as long as human Endeavour itself but, in modern manufacturing and service industry at least, it has changed dramatically over time.To some (especially those professionally involved in operations management!) operations management involves everything an organization does. In this sense, every manager is an operations manager.Operations management definitionsThere are many differing definitions of operations management; we have picked a range for you to look at below. Depending on your specific area of operations management, some may suit your role or understanding better, but overall they all make a similar point. The efficient and effective implementation of the policies and tasks necessary to satisfy an organizations customers, employees, and management (and stockholders, if a publicly owned company) The management of systems or processes that create goods and/or provide services "The on-going activities of designing, reviewing and using the operating system, to achieve service outputs as determined by the organization for customers" (Wright, 1999) Management of main business activity: the organizing and controlling of the fundamental business activity of providing goods and services to customers Operations management deals with the design and management of products, processes, services and supply chains. It considers the acquisition, development, and utilisation of resources that firms need to deliver the goods and services their clients want. The purvey of operations management ranges from strategic to tactical and operational levels. Representative strategic issues include determining the size and location of manufacturing plants, deciding the structure of service or telecommunications networks, and designing technology supply chains. Tactical issues include plant layout and structure, project management methods, and equipment selection and replacement. Operational issues include production scheduling and control, inventory management, quality control and inspection, traffic and materials handling, and equipment maintenance policies. 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. It is concerned with managing the process that converts inputs (in the form of materials, labor and energy) into outputs (in the form of goods and/or services).IOM would like to thank Derek Thomason FIOM, Unipart Expert Practices, for sharing examples and information contained in this section for the benefit of IOM members and those interested in learning more about what operations management is.So what does it means?What exactly does this mean in real terms? What kinds of tasks, roles and responsibilities do people working in operations management have?Forecast demand Market product Adapt to comply with customer demand Understand what the customer wants Understand how much the customer wants Set targets (timescales) Know product demand Measuring standards Produce sales invoices / solve customer disputes Measure outputs Plan production and timescalesSourcing and procurement Order materials Negotiate price Check delivery with order Reconcile invoice with correct supplier statement Pay on time Buy supplies Order materials Stock control Buying resources and allocating Inventory / stock control Schedule suppliers Managing stock (getting it in the right place at the right time) Locating and procuring supplies Pay suppliersCreation of output Managing budgets Cost implications Buy cost effective materials Replenish inventories Arrange for necessary equipment Schedule material / staff / equipment to produce goods and services Plan work order Produce product Produce goods Converting supplied materials (adding value) Quality control Measure conformance / qualityDelivery Customer satisfaction Deliver finished products Consider logistics / delivery Arrange delivery to customer Dispatching the goods or service to the customer Arrange packaging / presentationManaging people Employ people Train people Implementing and timescales Outsource Delegation Managing people Recruit and train staff Schedule labourBrief history of operations managementPre 18th centuryAgriculture was the predominant industry in every country

Industrial Revolution 17701830 Economy based on manual labour was replaced by one dominated by industry and the manufacture of machinery The development of all-metal machine tools in the first two decades of the 19th century facilitated the manufacture of more production machines powered by steam or wate (James Watt, 1785)Second Industrial Revolution (around 1850) Development of steam-powered ships, railways, and later in the nineteenth century with the internal combustion engine and electrical power generation Introduction of Frederick W. Taylor's systematic approach to scientific management atthe beginning of the twentieth century (1911) Henry Ford, father of the moving assembly line, brought the world into an age centred around the mass production of goods (1920)Post WWII Leverage of management science techniques that were developed in the war Growth in power of computers Japanese Toyota Production System (TPS) based on three principles:1. Quality2. Continual Improvement3. Elimination of wasteLate 1950s and early 1960s Move from industrial engineering and operations research into production management Production management becomes a professional field as well as an academic discipline Major world economies evolving into the service arena:o service jobs outnumber manufacturing jobso productivity increases much more difficult to achieve Operations techniques begin to be incorporated into services -the term production/operations management comes into useToday Environmental and social awarenessTypes of operations managementEvery organisation has an operations function, whether or not it is called operations. The goal or purpose of most organisations involves the production of goods and/or services. These pages provide you with an idea of the sorts of tasks and processes that relate to operations management within each of the following industry types. Manufacturing products Providing insurance cover Providing healthcare Government Armed Forces peace keeping OXFAM bringing reliefManufacturing productsManaging operations Receiving requirements Procuring raw materials Recruiting and retaining staff Budgeting and cash management Meeting Health, Safety and Legal requirements Planning resources Improving quality, cost and delivery Procuring / managing assets Defining policies and procedures Making products Storing and distributing products Negotiations Provide training Plan raw materials Process raw materials Make intermediates Process copy (for Control) Printing Quality control Recycling / reworkProviding insurance coverManaging operations Receiving requests for cover Assessing / reassess risk Answering customer enquiries Undertaking competitor reviews Processing claims Making payments Recruiting and retaining staff Budgeting and cash-flow management Meeting Health, Safety and Legal requirements Planning resources Improving quality, cost and delivery Customer care process Accredit repairers Forecast demand Process applications Process renewals Calculate no claims bonuses Arrange repairs Send out certificates / reminders Send out claims formsProviding healthcareManaging operations Obtaining finance Project / programme Management Recruiting and retaining staff Sourcing and procuring supplies Responding to emergencies Scheduling patient operations Controlling infection Providing post operative care Capacity planning (bed / theatre management) Quality control / track and trace Dispatch ambulance Inform hospital of arrival Inform stakeholders Contact theatre team Provide interim care stabilise patient Prepare resource (theatre) Kitting for operations Resource planning (ITU / ward) Plan diagnostics resources Liaise with other department Deploy ambulanceGovernmentManaging operations HMRCo Process tax formso Investigate errorso Prosecute offenderso Labour planning Social Serviceso Assessing risko Providing support services Emergency Serviceso Capacity planningo Resource deployment Central Governmento Generate new lawso Influence peopleo Process claimantso Allocate resources according to needo Educate and train peopleArmed ForcesManaging operations Training and development Contingency planning Capital investment and programme management Logistics (soldiers and materials) Supply chain management Returns management Deployment Measurement and control Manage budgets and costs Stakeholder management Manage people Manage resources (equipment and materials) Management of maintenanceOXFAMManaging operations Generate funds Contingency planning Material and labour planning Forecast demand Source and procure non-perishables Response time management What-if and scenario planning Deploying aid (people and materials) Transport to site of disaster Enabling sustainability Distribute to people in need Plan for short term and longer term sustainability Conduct risk assessment Skills assessment / training Manage shops Run collections / donations Receive goods and price in shops

What do operations managers do?Strategic (long term) Level Responsible for, and decisions about:o What to make (product development)o How to make it (process and layout decisions) or should we buy it?o Where to make it (site location)o How much is needed (high level capacity decisions)Tactical Level (intermediate term) Address material and labour resourcing within strategy constraints, for example:o How many workers are needed and when (labour planning)o What level of stock is required and when should it be delivered (inventory and replenishment planning)o How many shifts to work. Whether overtime or subcontractors are required (detailed capacity planning)Operational Level Detailed lower-level (daily/weekly/monthly) planning, execution and control decisions, for example:o What to process and when (scheduling)o The order to process requirements (sequencing)o How work is put on resources (loading)o Who does the work (assignments)

What skills do operations managers need?Have knowledge of: advanced operations technology and technical knowledge relevant to his/her industry interpersonal skills and knowledge of other functional areas the ability to communicate effectively, motivate other people, manage projects, and work on multidisciplinary teamsMulti-disciplinary working, for example: Supply chains management of all aspects of providing goods to a consumer from extraction of raw materials to end-of-life disposal The interface with marketing determining what customers' value prior to product/service development Operations management/finance interface capital equipment and inventories comprise a sizable portion of many firms' assets in addition to normal operating costs Service operations coping with inherent service characteristics such as simultaneous delivery/consumption, performance measurements, etc Operations strategy consistent and aligned with other strategies and legal requirements Process design and improvements managing the innovation process

Issues facing operations managersMajor issues are: Environmental sustainability, recycling , reuse Counter terrorism / risk management Globalisation of supply and demand Reducing time to market Achieving and sustaining high quality while controlling cost Integrating new technologies and control systems into existing processes Obtaining, training, and keeping qualified workers and managers Working effectively with other functions to accomplish the goals Integrating production and service activities at multiple sites in decentralized organisations Working effectively with suppliers and customers Strategic alliancesAll these are critical issues. Operations management is at the very core of most organisations. We can no longer focus on isolated tasks and processes but must be one of the architects of the overall business operating model.

Another language???There are lots of words and terms used in operations management, many of which are explained in full in the IOMs Knowledge Bank. Members can login to the members area to find out what these terms mean in full. World class S&OP (Sales and Operations Planning) Six Sigma Lean vs agile KPIs Master scheduling MRP Processes TPS (Toyota Production System) Theory of constraints Balanced scorecard DRP Kaizen TPM Change management Continuous improvement Planning and scheduling ERP systems

Operations managementis an area ofmanagementconcerned with overseeing, designing, and controlling the process ofproductionand redesigningbusiness operationsin the production ofgoodsorservices. It involves the responsibility of ensuring thatbusinessoperations areefficientin terms of using as few resources as needed, andeffectivein terms of meeting customer requirements. It is concerned with managing the process that converts inputs (in the forms ofraw materials,labor, andenergy) into outputs (in the form of goods and/or services).[1]The relationship of operations management tosenior managementin commercial contexts can be compared to the relationship ofline officersto highest-level senior officers inmilitary science. The highest-level officers shape thestrategyand revise it over time, while the line officers maketacticaldecisions in support of carrying out the strategy. In business as in military affairs, the boundaries between levels are not always distinct; tactical information dynamically informs strategy, and individual people often move between roles over time.

Ford Motor car assembly line: the classical example of a manufacturing production system.Post officequeue. Operations management studies both manufacturing andservices.According to theUnited States Department of Education, operations management is the field concerned with managing and directing the physical and/or technical functions of afirmororganization, particularly those relating to development, production, and manufacturing. Operations management programs typically include instruction in principles of general management,manufacturingand production systems,factorymanagement, equipmentmaintenancemanagement,production control, industriallaborrelations and skilled trades supervision, strategic manufacturing policy,systems analysis,productivityanalysis andcost control, and materials planning.[2][3]Management, including operations management, is likeengineeringin that it blends art withapplied science. People skills, creativity, rational analysis, and knowledge oftechnologyare all required for success.

HistoryThe history of production and operation systems began around 5000 B.C. whenSumerianpriests developed the ancient system of recording inventories, loans, taxes, and business transactions. The next major historical application of operation systems occurred in 4000 B.C. It was during this time that theEgyptiansstarted usingplanning, organization, andcontrolin largeprojectssuch as the construction of the pyramids. By 1100 B.C., labor was being specialized inChina; by about 370 B.C.,Xenophondescribed the advantages of dividing the various operations necessary for the production of shoes among different individuals in ancientGreece .In theMiddle Ages, kings and queens ruled over large areas of land. Loyal noblemen maintained large sections of the monarchs territory. This hierarchical organization in which people were divided into classes based on social position and wealth became known as the feudal system. In the feudal system, servants produced for themselves and people of higher classes by using the rulers land and resources. Although a large part of labor was employed in agriculture,artisanscontributed to economic output and formedguilds. The guild system, operating mainly between 1100 and 1500, consisted of two types: merchant guilds, who bought and sold goods, and craft guilds, which made goods. Although guilds were regulated as to the quality of work performed, the resulting system was rather rigid,shoemakers, for example, were prohibited from tannin hides. The industrial revolution was facilitated by two elements: interchangeability of parts and division of labor.Division of laborhas always been a feature from the beginning ofcivilization, the extent to which the division is carried out varied considerably depending on period and location. Compared to the Middle Ages, theRenaissanceand theAge of Discoverywas characterized by a greater specialization in labor, one of characteristics of growing European cities and trade. It was in the late eighteenth century whenEli Whitneypopularized the concept of interchangeabilitywhen he manufactured 10,000 muskets. Up to this point in history of manufacturing, each product (e.g. each gun) was considered a special order, meaning that parts of a given gun were fitted only for that particular gun and could not be used in other guns. Interchangeability of parts allowed the mass production of parts independent of the final products in which they will be used.In 1883,Frederick W. Taylorintroduced thestopwatchmethod for accurately measuring the time to perform each single task of a complicated job. He developed the scientific study of productivity and identifying how to coordinate different tasks to eliminate wasting of time and increase the quality of work. The next generation of scientific study occurred with the development ofwork samplingandpredetermined motion time systems(PMTS). Work sampling is used to measure the random variable associated with the time of each task. PMTS allows the use of standard predetermined tables of the smallest body movements (e.g. turning the left wrist by 90), and integrating them to predict the time needed to perform a simple task. PMTS has gained substantial importance due to the fact that it can predict work measurements without actually observing the actual work. The foundation of PMTS was laid out by the research and development ofFrank B.andLillian M. Gilbretharound 1912. The Gilbreths took advantage of taking motion pictures at known time intervals while operators were performing the given task.The idea of the production line has been used multiple times in history prior to Henry Ford: theVenetian Arsenal(1104), Smith pin manufacturing in theWealth of Nations(1776) or Brunel'sPortsmouth Block Mills(1802).Ransom Oldswas the first to manufacture cars using the assembly line system, butHenry Forddeveloped the first auto assembly system where a car chassis was moved through the assembly line by a conveyor belt while workers added components to it until the car was completed. During World War II, the growth of computing power led to further development of efficient manufacturing methods and the use of advanced mathematical and statistical tools. This was supported by the development of academic programs in industrial and systems engineering disciplines, as well as fields of operations research and management science (as multi-disciplinary fields of problem solving). Whilesystems engineeringconcentrated on the broad characteristics of the relationships between inputs and outputs of generic systems, operations researchers concentrated on solving specific and focused problems. The synergy ofoperations researchand systems engineering allowed for the realization of solving large scale and complex problems in the modern era. Recently, the development of faster and smaller computers, intelligent systems, and theWorld Wide Webhas opened new opportunities for operations, manufacturing, production, and service systems.Malakooti (2013) states that production and operation systems can be divided into five phases:[6]1. Empiricism(learning from experience)2. Analysis(scientific management)3. Synthesis(development of mathematical problem solving tools)4. Isolated Systems with Single Objective (use ofIntegratedand Intelligent Systems, and WWW)5. Integrated Complex Systems with Multiple Objectives (development of ecologically sound systems, environmentallysustainablesystems, considering individual preferences)

Industrial RevolutionBefore theFirst industrial revolutionwork was mainly done through two systems:domestic systemandcraft guilds. In the domestic system merchantstook materials to homes where artisans performed the necessary work, craft guilds on the other hand were associations of artisanswhich passed work from one shop to another, for example: leather was tanned by atanner, passed tocurriers, and finally arrived atshoemakersandsaddlers.The beginning of the industrial revolution is usually associated with 18th century Englishtextile industry, with the invention ofshuttle byJohn Kayin 1733, thespinning jennybyJames Hargreavesin 1765, thewater framebyRichard Arkwrightin 1769 and thesteam enginebyJames Wattin 1765. In 1851 at theCrystal Palace Exhibitionthe termAmerican system of manufacturingwas used to describe the new approach that was evolving in theUnited States of Americawhich was based on two central features:interchangeable partsand extensive use ofmechanizationto produce them.Henry Ford was 39 years old when he founded the Ford Motor Company in 1903, with $28,000 capital from twelves investors. Themodel Tcar was introduced in 1908, however it was not until Ford implemented the assembly line concept, that his vision of making a popular car affordable by every middle-class American citizen would be realized. The first factory in whichHenry Fordused the concept of theassembly linewasHighland Park(1913), he characterized the system as follows:"The thing is to keep everything in motion and take the work to the man and not the man to the work. That is the real principle of our production, andconveyorsare only one of many means to an end"This became one the central ideas that led tomass production, one of the main elements of theSecond Industrial Revolution, along with emergence of theelectrical industryand petroleum.

Although productivity benefited considerably from technological inventions and division of labour, the problem of systematic measurement of performances and the calculation of these by the use offormulasremained somewhat unexplored until Frederick Winslow Taylor.Frederick Taylorearly work focused on developing what he called a "differential piece-rate system"and a series of experiments, measurements and formulas dealing withcutting metalsand manual labor.The differentialpiece-rate systemconsisted in offering two different pay rates for doing a job: a higher rate for workers with high productivity (efficiency) and who produced high quality goods (effectiveness) and a lower rate for those who fail to achieve the standard. One of the problems Taylor believed could be solved with this system, was the problem ofsoldiering: faster workers reducing their production rate to that of the slowest worker. In 1911 Taylor published his "The Principles of Scientific Management",in which he characterizedscientific management(also know asTaylorism) as:1. The development of a truescience;2. The scientific selection of theworker;3. The scientific education and development of the worker;4. Intimate friendlycooperationbetween the management and the workers.Taylor is also credited for developing stopwatch time study, this combined withFrankandLillianGilbreth motion study gave way totime and motion studywhich is centered on the concepts of standard method andstandard time. Frank Gilbreth is also responsible for introducing theflow process chart. Other contemporaries of Taylor worth remembering areMorris Cooke(rural electrification in the 1920s and implementer of Taylor's principles of scientific management in the Philadelphia's Department of Public Works),Carl Barth(speed-and-feed-calculating slide rules ) andHenry Gantt(Gantt chart). Also in 1910Hugo Diemerpublished the firstindustrial engineeringbook: Factory Organization and Administration.In 1913 Ford W. Harris published his "How Many parts to make at once" in which he presented the idea of theeconomic order quantitymodel. He described the problem as follows:"Intereston capital tied up inwages, material andoverheadsets a maximum limit to the quantity of parts which can be profitably manufactured at one time; "set-up" costs on the job fix the minimum. Experience has shown one manager a way to determine the economical size of lots"This paper inspired a large body of mathematical literature focusing on the problem ofproduction planningandinventory control.In 1924Walter Shewhartintroduced thecontrol chartthrough a technical memorandum while working atBell Labs, central to his method was the distinction betweencommon cause and special causeof variation. In 1931 Shewhart published his Economic Control of Quality of Manufactured Product,the first systematic treatmentof the subject ofStatistical Process Control(SPC).In the 1940smethods-time measurement(MTM) was developed by H.B. Maynard, JL Schwab and GJ Stegemerten. MTM was the first of a series ofpredetermined motion time systems, predetermined in the sense that estimates of time are not determined in loco but are derived from an industry standard. This was explained by its originators in a book they published in 1948 called "Method-Time Measurement".Up to this point in history,optimizationtechniques were known for a very long time, from the simple methods employed by F.W.Harris to the more elaborate techniques of thecalculus of variationsdeveloped byEulerin 1733 or themultipliersemployed byLagrangein 1811, andcomputerswere slowly being developed, first asanalog computersbySir William Thomson(1872) andJames Thomson(1876) moving to the eletromechanical computers ofKonrad Zuse(1939 and 1941). DuringWorld War IIhowever, the development ofmathematical optimizationwent trough a major boost with the development of theColossus computer, the first electronic digital computer that was all programmable, and the possibility to computationally solve largelinear programmingproblems, first byKantorovichin 1939 working for theSoviet governmentand latter on in 1947 with thesimplex methodofDantzig. These methods are known today as belonging to the field ofoperations research.From this point on a curious development took place: while in the United States the possibility of applying the computer to business operations led to the development of management software architecture such asMRPand successive modifications, and ever more sophisticated optimization techniques andmanufacturing simulationsoftware, in post-war Japan a series of events at Toyota Motor led to the development of theToyota Production System(TPS) andLean Manufacturing.In 1943, in Japan,Taiichi Ohnoarrived atToyota Motorcompany. Toyota evolved a unique manufacturing system centered on two complementary notions:just in time(produce only what is needed) andautonomation(automation with a human touch). Regarding JIT, Ohno was inspired by Americansupermarkets: workstations functioned like a supermarket shelf where the customer can get products they need, at the time they need and in the amount needed, the workstation (shelf) is then restocked. Autonomation was developed byToyoda Sakichiin Toyoda Spinning and Weaving: an automatically activated loom that was also foolproof, that is automatically detected problems. In 1983 J.N Edwards published his "MRP and Kanban-American style" in which he described JIT goals in terms of seven zeros:zero defects, zero (excess) lot size, zero setups, zero breakdowns, zero handling, zero lead time and zero surging. This period also marks the spread ofTotal Quality Management(TQM) in Japan, ideas initially developed by American authors such asDeming,JuranandArmand V. Feigenbaum.TQM is a strategy for implementing and managing quality improvement on an organizational basis, this includes: participation, work culture, customer focus, supplier quality improvement and integration of the quality system with business goals.[14]Schnonberger[18]identified seven fundamentals principles essential to the Japanese approach:1. Process control:SPCand worker responsibility over quality2. Easy able -to-see quality: boards, gauges, meters, etc. andpoka-yoke3. Insistence on compliance: "quality first"4. Line stop: stop the line to correct quality problems5. Correcting one's own errors: worker fixed a defective part if he produced it6. The 100% check: automated inspection techniques and foolproof machines7. Continual improvement: ideally zero defectsIn 1987 theInternational Organization for Standardization(ISO), recognizing the growing importance of quality, issued theISO 9000, a family of standards related to quality management systems. There has been some controversy thought regarding the proper procedures to follow and the amount of paperwork involved.Meanwhile in the sixties, a different approach was developed by George W. Plossl and Oliver W. Wright,[19]this approach was continued by Joseph Orlicky as a response to the TOYOTA Manufacturing Program which led toMaterial Requirements Planning(MRP) atIBM, latter gaining momentum in 1972 when the American Production and Inventory Control Society launched the "MRP Crusade". One of the key insights of this management system was the distinction betweendependent demandandindependent demand. Independent demand is demand which originates outside of the production system, therefore not directly controllable, and dependent demand is demand for components of final products, therefore subject to being directly controllable by management through thebill of materials, viaproduct design. Orlicky wrote "Materials Requirement Planning" in 1975,[20]the first hard cover book on the subject.[19]MRP IIwas developed by Gene Thomas at IBM, and expanded the original MRP software to include additional production functions.Enterprise resource planning(ERP) is the modern software architecture, which addresses, besides production operations,distribution,accounting,human resourcesandprocurement.Recent trends in the field revolve around concepts such as: Business Process Re-engineering(launched byMichael Hammerin 1993[21]): a business management strategy focusing on the analysis and design of workflows and business processes within an organization. BPR seeks to help companies radically restructure their organizations by focusing on the ground-up design of their business processes. Lean Manufacturing: a systemic method for the elimination of waste ("Muda") within a manufacturing process. Lean also takes into account waste created through overburden ("Muri") and waste created through unevenness in work loads ("Mura"). The term lean manufacturing was coined in the bookThe Machine that Changed the World.[22] Six Sigma(an approach to quality developed atMotorolabetween 1985-1987): Six Sigma refers to control limits placed at six (6)standard deviationsfrom the mean of anormal distribution, this became very famous afterJack WelchofGeneral Electriclaunched a company-wide initiative in 1995 to adopt this set of methods. More recently, Six Sigma has includedDMAIC(for improving processes) andDFSS(for designing new products and new processes) Reconfigurable Manufacturing Systems: a production system designed at the outset for rapid change in its structure, as well as its hardware and software components, in order to quickly adjust its production capacity and functionality within a part family in response to sudden market changes or intrinsic system change.

2.1. An Introduction of Operation Management

2.1.1. What is Operation management?Operation management is the activity of tracking Operation against targets and identifying opportunities for improvement - but not just looking back at past Operation. The focus of Operation management is the future - what do you need to be able to do and how can you do things better? Managing Operation is about managing for results. Operation-based management at any level in the organization should demonstrate that

You know what you are aiming for You know what you have to do to meet your objectives You know how to measure progress towards your objectives You can detect Operation problems and remedy them

2.1.2. Why is it important?

The Modernizing Government agenda sets challenging new Operation objectives for organizations, from the delivery of high quality services that meet the needs of their customers and stakeholders, to doing more within the constraints of available resources, through to continuous improvement in how the organization itself operates. Operation management underpins the operations and processes within a strategic change program framework. Sound practices and targets, which are both flexible and reactive to change, are needed to achieve Operation improvement.

The effective Operation of your organization depends on the contributions of activities at all levels - from top management policy development through to efficiently run operations.

In response to the pressures and opportunities for improving organizational Operation, you need to understand how to define and measure Operation as part of a concerted strategy for relevant, successful and cost-effective operations.

2.1.3. Critical factors for success

Focusing on outcomes that meet business objectives, rather than outputs Managing Operation by cascading down from the top and building bottom-up Defining and using measures that evolve over time Using a mix of short and long term measures, and selecting measures that link cause and effect Measuring effectiveness (doing the right things) and efficiency (doing things right) in parallel Relating individuals' reward and remuneration with achievement of outcomes.

2.1.4. Who is involved?

Business managers are responsible for setting targets and managing Operation against those targets; contract managers monitor service Operation from the customer viewpoint; service providers supply Operation information. 2.1.5. Principles

Operation management should be an integrated part of a business lifecycle helping an organization to mature through evolving and changing Operation measures, from their definition through to monitoring and review in addition, by including the IS/IT component throughout this lifecycle, rather than just considering it as a 'downstream' cost of provision, there should be enhanced benefits from an increased and more effective contribution from any investment made in IS/IT.

You will need to ensure that you have adopted sound practices in commissioning and acquiring IS/IT services to achieve Operation improvement. Operation management identifies opportunities for maximizing improvements in managing service delivery in the future. Operation management helps you to make decisions about investment routes, affordability and setting investment priorities in the face of competing demands for resources.

2.1.6. Managing for results

Managing for results requires the organization to focus on the outputs of the processes and activities undertaken by the organization at varying levels. Together these outputs will contribute to the achievement of the outcomes desired by the organization and those of the government as a whole. 2.2. Levels of Operation management 1. The effective Operation of your organization depends on the contribution of activities at all levels - from top management policy development through to efficiently run operations. There are three or four levels of Operation management in the model framework below, some organizations may combine the strategic level with the organizations priorities level.

2. Organizations priorities: at the highest level Operation management is rooted in the organizations long term business strategy. Measures at this level are of impact, resource utilization and public service improvement.

3. Strategic level Operation management: at this level the management concern is from an "outside in" as well as an internal perspective. Measures are of outcome, such as volume and value of service take-up, upward trends for inclusion, staff and users' satisfaction.

4. Program level Operation management: Operation management at this level is focused on the desired results of programs of change, to demonstrate what has been accomplished. The measures used would include those stated in individual business cases. Benefits management would help to determine if these are achieved.

5. Tactical or operational service level Operation management: here the management focus is concerned with service delivery and outputs, using conventional service level agreement approaches and related measures of aspects such as volumes and quality.

Although Operation measures and indicators may be different at each level, they will need to be. Directional - to confirm that you are on track to reach the goals. Quantitative - to show what has been achieved and how much more is to be done. Worthwhile - adding more value to the business than they cost to collect and use.

2.3. Value for money

You must be able to demonstrate that you have achieved value for money in your operations. Value for money is taken to cover three measures of Operation:

Economy - Minimizing the cost of resources used for an activity, having regard to appropriate quality Efficiency - the relationship between outputs, in terms of goods, services or other results and the resources used to produce them Effectiveness - the extent to which objectives have been achieved, and the relationship between the intended impacts and actual impacts of an activity.

2.4. Measures and metrics

You should use these evaluation criteria for measures and metrics:

Are you measuring the right thing? Do you have the right measures? Are the measures used in the right ways? Do you determine the quality of a particular Operation metric using the SMART test (Specific, Measurable, Attainable, Relevant, Timely)?

The procedures and measures used in Operation management will depend, among other factors, on the type of business process which is being measured. A business process is assumed to be made up of a number of activities which transform inputs into outputs and contribute to the realisation of outcomes. The customers for a process may be external (for example, members of the public) or internal, within the same organisation or elsewhere in the public sector.2.4.1. Business processes can be distinguished by: The extent to which the activities involved are people-oriented as opposed to automated Whether the activities are primarily 'front-office' or 'back-office' - that is, the amount of direct contact which the staff have with the customers or recipients of the process Whether the process itself is the important feature of the activity - for example, in delivering consultancy - or whether the activities are concerned primarily with the generation of defined outputs The extent to which the activity is customized or tailored to the needs of each customer, as opposed to being routine and procedural The amount of discretion which needs to be exercised in the activities The duration of the contact with the customer.2.5. Processes

You will need to review the effectiveness of your procedures for: Setting Operation targets Designing measures of Operation relevant to the targets Systematically and accurately measuring outcomes Assessing the Operation of external service providers Using results for informed decision-making Improving Operation.

Research shows that most organizations have the components of Operation management in place, but they are not always used to overall advantage. A possible five-step approach that could help organizations in improving the Operation management of the IS/IT contribution is outlined below, with suggested techniques.

Step 1: Identify your level of maturity in Operation management

Look at how the organization is performing in all its aspects of Operation management - from direction setting through to review and measurable improvement. Do an assessment; this will help to identify your organizations maturity and the strengths and weaknesses. Establish where you are now as a series of baselines, looking at Operation management at strategic program, tactical and operational levels. Bottom-up measures of economy and efficiency are likely to be reasonably strong and have good management. This may not be so well developed for effectiveness measures Innovation, process improvement, customer satisfaction, and contribution to policy objectives. Most organizations have a good understanding of financial measure; this level of understanding needs to be developed for other measures. Techniques: Assessment; baseline

Step 2: Identify where Operation management is important to your organization Is it in setting direction or ensuring the delivery of required benefits or improving the alignment, Operation and contribution of the internal and external resources used by the organization? Identify the values for your organization. Key values for safety critical operational services are speed and integrity of information. A different organization might place high value on information flows or on single points of access to information at a contact/call centre. Techniques: Value chain analysis; benchmarking with other organizations (which may identify things you had not thought of)

Step 3: Resolve any mismatch between steps 1 and 2

Review Operation management at each of the four levels - (organization, strategic, program and tactical). Are there weaknesses in areas that are important to your organization? Techniques: to become more outward looking and customer-focused, use the well established balanced scorecard and EFQM techniques. To answer questions about where IT makes a contribution, use Goals, Questions and Metrics (GQM) to identify and define measures.

Step 4: Establish where you want to be and begin to build Operation management into business processes and into the culture

The aim is to have target, measurement and review processes for those things that the business considers important such as product, process, service and staff. You will have lots of measures which need to be prioritised against your particular perspective on effectiveness, efficiency and economy and against your values. establish benefits management as a norm Use databases to collect Techniques Operation information and analyse trends Include Operation management in the business, programme and project lifecycle

Step 5 : Feed information back into Operation improvement

Monitor and take action on:

We achieve what we set out to do? Where are the opportunities to improve? What can we do to improve? You are seeking answers to: What is achievable? What is important for our organization? What was achieved?

Techniques: Process assessment; your own targets, looking at benchmarks from the outside world.

The process of Operation management

2.6. Objectives of a Operation Management System

Operation management is an integral part of a comprehensive human resource management strategy. Its objective is to maximize individuals' Operation and potential with a view to attaining organizational goals and enhancing overall effectiveness and productivity.

A staff Operation management system aims at: - To help achieve departmental objectives through staffDepartments formulate strategies and objectives to support their vision, mission and values. To achieve these broad objectives, departments have to turn them into specific objectives and targets for the divisions, sections, units and subsequently individual job objectives and targets for implementation. As individual job objectives are linked to those of departments', the Operation of individual officers contributes to the delivery of departmental objectives.

To evaluate Operation and improve communication between managers and staff on managing OperationThe staff Operation management system provides a mechanism to monitor and evaluate staff Operation. Operation objectives are set at the beginning of the Operation management cycle through open discussion between the supervisors and the appraisees. Progress is monitored regularly and feedback from staff and supervisors is collated to help clarify objectives and output expectation; and to enhance Operation.

To provide opportunities for developmentThe staff Operation management system serves as a multi-purpose management tool. It provides valuable information to help identify individual training needs so as to enhance Operation and to develop the potential of the staff for further advancement. The following figure provides an illustration of how Operation management links with other human resource functions.

2.7. Overall Goal and Focus of Operation Management

The overall goal of Operation management is to ensure that the organization and all of its subsystems (processes, departments, teams, employees, etc.) are working together in an optimum fashion to achieve the results desired by the organization. 2.8. Operation Improvement of the Organization or a Subsystem is an Integrated Process

Note that because Operation management strives to optimize results and alignment of all subsystems to achieve the overall results of the organization, any focus of Operation management within the organization (whether on department, process, employees, etc.) should ultimately affect overall organizational Operation management as well. 2.9. Ongoing Activities of Operation Management

Achieving the overall goal requires several ongoing activities, including identification and prioritization of desired results, establishing means to measure progress toward those results, setting standards for assessing how well results were achieved, tracking and measuring progress toward results, exchanging ongoing feedback among those participants working to achieve results, periodically reviewing progress, reinforcing activities that achieve results and intervening to improve progress where needed. Note that results themselves are also measures.

Note: these general activities are somewhat similar to several other major approaches in organizations, e.g., strategic planning, management by objectives, Total Quality Management, etc. Operation management brings focus on overall results, measuring results, focused and ongoing feedback about results, and development plans to improve results. The results measurements themselves are not the ultimate priority as much as ongoing feedback and adjustments to meet results.

The steps in Operation management are also similar to those in a well-designed training process, when the process can be integrated with the overall goals of the organi zation. Trainers are focusing much more on results for Operation. Many trainers with this priority now call themselves Operation consultants.

2.10. Basic Steps

Various authors propose various steps for Operation management. The typical Operation management process includes some or all of the following steps, whether in Operation management of organizations, subsystems, processes, etc. Note that how the steps are carried out can vary widely, depending on the focus of the Operation efforts and who is in charge of carrying it out. For example, an economist might identify financial results, such as return on investment, profit rate, etc. An industrial psychologist might identify more human-based results, such as employee productivity.

The following steps are described more fully in the topics Operation Plan, Operation Appraisal and Development Plan, including through use of an example application. The steps are generally followed in sequence, but rarely followed in exact sequence. Results from one step can be used to immediately update or modify earlier steps. For example, the Operation plan itself may be updated as a result of lessons learned during the ongoing observation, measurement and feedback step.

NOTE: The following steps occur in a wide context of many activities geared towards Operation improvement in an organization, for example, activities such as management development, planning, organizing and coordinating activities.1. Review organizational goals to associate preferred organizational results in terms of units of Operation, that is, quantity, quality, cost or timeliness (note that the result itself is therefore a measure)2. Specify desired results for the domain -- as guidance, focus on results needed by other domains (e.g., products or services need by internal or external customers)

3. Ensure the domain's desired results directly contribute to the organization's results4. Weight, or prioritize, the domain's desired results.5. Identify first-level measures to evaluate if and how well the domain's desired results were achieved6. Identify more specific measures for each first-level measure if necessary7. Identify standards for evaluating how well the desired results were achieved (e.g., "below expectations", "meets expectations" and "exceeds expectations")8. Document a Operation plan -- including desired results, measures and standards9. Conduct ongoing observations and measurements to track Operation10. Exchange ongoing feedback about Operation11. Conduct a Operation appraisal (sometimes called Operation review)12. If Operation meets the desired Operation standard, then reward for Operation (the nature of the reward depends on the domain)13. If Operation does not meet the desired Operation standards, then develop or update a Operation development plan to address the Operation gap* (See Notes 1 and 2)14. Repeat steps 9 to 13 until Operation is acceptable, standards are changed, the domain is replaced, management decides to do nothing, etc.

Note 1: Inadequate Operation does not always indicate a problem on the part of the domain. Operation standards may be unrealistic or the domain may have insufficient resources. Similarly, the overall strategies or the organization, or its means to achieving its top-level goals, may be unrealistic or without sufficient resources.

Note 2: When Operation management is applied to an employee or group of employees, a development plan can be initiated in a variety of situations E.g.

a. When a Operation appraisal indicates Operation improvement is needed, that is, that there is a "Operation gap"

b. To "benchmark" the status of improvement so far in a development effort

c. As part of a professional development for the employee or group of employees, in which case there is not a Operation gap as much as an "growth gap

d. As part of succession planning to help an employee be eligible for a planned change in role in the organization, in which case there also is not a Operation gap as much as an "opportunity gap"

e. To "pilot", or test, the operation of a new Operation management system.

2.11. Operation management mainly include following things:

Operation management is the systematic process by which an agency involves its employees, as individuals and members of a group, in improving organizational effectiveness in the accomplishment of agency mission and goals.

Planning work and setting expectations, Continually monitoring Operation, Developing the capacity to perform, Periodically rating Operation in a summary fashion, and Rewarding good Operation.

The revisions made in 1995 to the Government wide Operation appraisal and awards regulations support sound management principles. Great care was taken to ensure that the requirements those regulations establish would complement and not conflict with the kinds of activities and actions practiced in effective organizations as m after of course.Additional background information on Operation management can be found in the following

2.11.1. Planning

In an effective organization, work is planned out in advance. Planning means setting Operation expectations and goals for groups and individuals to channel their efforts towards achieving the organizational objectives. Getting employees involved in the planning process will help them understand the goals of the organization, what needs to be done, why it needs to be done, and how well it should be done.

The regulatory requirements for planning employees' Operation include establishing the elements and standards of their Operation appraisal plans. Operation elements and standards should be measurable, understandable, verifiable, equitable, and achievable. Through critical elements, employees are held accountable as individuals for work assignments or responsibilities. Employee Operation plans should be flexible so that they can be adjusted for changing program objectives and work requirements. When used effectively, these plans can be beneficial working documents that are discussed often, and not merely paperwork that is filed in a drawer and seen only when ratings of record are requirement

2.11.2. Monitoring

In an effective organization, assignments and projects are monitored continually. Monitoring well means consistently measuring Operation and providing ongoing feedback to employees and work groups on their progress toward reaching their goals.Regulatory requirements for monitoring Operation include conducting progress reviews with employees where their Operation is compared against their elements and standards. Ongoing monitoring provides the opportunity to check how well employees are meeting predetermined standards and to make changes to unrealistic or problematic standards. And by monitoring continually, unacceptable Operation can be identified at any time during the appraisal period and assistance provided to address such Operation rather than wait until the end of the period when summary rating levels are assigned.

2.11.3. Developing Employees

In an effective organization, employee developmental needs are evaluated and addressed. Developing in this instance means increasing the capacity to perform through training, giving assignments that introduce new skills or higher levels of responsibility, improving work processes, or other methods. Providing employees with training and developmental opportunities encourages good Operation, strengthens job-related skills and competencies, and helps employees keep up with changes in the workplace, such as the introduction of new technology.

Carrying out the processes of Operation management provides an excellent opportunity to identify developmental needs. During planning and monitoring of work, deficiencies in Operation become evident and can be addressed. Areas for improving good Operation also stand out, and action can be taken to help successful employees improve even further.

2.11.4. Rating

From time to time, organizations find it useful to summarize employee Operation. This can be helpful for looking at and comparing Operation over time or among various employees. Organizations need to know who their best performers are.

Within the context of formal Operation appraisal requirements, rating means evaluating employee or group Operation against the elements and standards in an employee's Operation plan and assigning a summary rating of record. The rating of record is assigned according to procedures included in the organization's appraisal program. It is based on work performed during an entire appraisal period. The rating of record has a bearing on various other personnel actions; such as granting within-grade pay increases and determining additional retention service credit in a reduction in force.Note: Although group Operation may have an impact on an employee's summary rating, a rating of record is assigned only to an individual, not to a group.

2.11.5. Rewarding

In an effective organization, rewards are used well. Rewarding means recognizing employees, individually and as members of groups, for their Operation and acknowledging their contributions to the agency's mission. A basic principle of effective management is that all behavior is controlled by its consequences. Those consequences can and should be both formal and informal and both positive and negative.

Good Operation is recognized without waiting for nominations for formal awards to be solicited. Recognition is an ongoing, natural part of day-to-day experience. A lot of the actions that reward good Operation like saying "Thank you" don't require a specific regulatory authority. Nonetheless, awards regulations provide a broad range of forms that more formal rewards can take, such as cash, time off, and many no monetary items. The regulations also cover a variety of contributions that can be rewarded, from suggestions to group accomplishments.

2.12. Managing Operation Effectively

In effective organizations, managers and employees have been practicing good Operation management naturally all their lives, executing each key component process well. Goals are set and work is planned routinely. Progress toward those goals is measured and employees get feedback. High standards are set, but care is also taken to develop the skills needed to reach them. Formal and informal rewards are used to recognize the behavior and results that accomplish the mission. All five-component processes working together and supporting each other achieve natural, effective Operation management.

2.13. Features of a Good Operation Management System

A good staff Operation management system normally consists of the following features:

Fair and open Objective -The system designed should aim to facilitate objective and fair assessment by the management and encourage frank and constructive feedback of appraises. These can be achieved through: Setting clear targets and standards; Providing opportunities for supervisors to inform appraises of their Operation regularly, to be accompanied by timely coaching and counseling; Permitting the appraise to have access to the entire report and to review the appraisal before the appraisal interview; and Where necessary an assessment panel should be formed to ensure fairness in Operation rating.

Adopting such an open system for staff Operation also supports the spirit of the Personal Data (Privacy) Ordinance.

2.13.1. Competency-Based

Competency refers to the knowledge, attributes, attitude and skills required to perform a job effectively. There are two broad categories of competencies: core competencies and functional competencies. Core competencies are the generic competencies associated with effective Operation required by a group of job holders in a department across different divisions/sections. An example is managerial competencies required for staff in managerial positions. Functional competencies are the competencies specific to certain job functions, such as computer programming skills for programmers in the Computer Section and classroom skills for trainers in the Training Division of a department. Competencies are reflected in a set of desirable behavior patterns which are observable, measurable and can be tracked and monitored.

Developing and using a competency-based approach enables departments to use a common language and structured way to define and describe appropriate job behaviors at different ranks as officers progress through the grade. The approach help to assess staff's potential and promo ability to the next higher rank and identify development needs of the staff. It also enhances the objectivity and transparency of Operation assessment.

When core competency-based approach is adopted, departments need to ensure that the competencies are developed properly by :

Aligning individual Operation objectives with departmental ones, Securing senior management's commitment, and Involving staff in the process.

Furthermore there should be a clear differentiation in competency descriptions among different ranks in the same grade. An unduly long list of competencies may adversely affect the effectiveness of the system.

For competencies to effectively serve the needs of a department, they should be department-specific and reflect the missions, values and culture of the department. Any list of competencies cannot be exhaustive. It only provides the common language and understanding of the key dimensions and descriptions that warrant attention.

Upon implementation, there should be proper and adequate training for the staff on the implementation of the Operation management system

Operation planning starts with a session between the appraising officer and the appraisee to agree on the list of objectives/responsibilities for the coming appraisal period. The agreed list will include the objectives of the section/unit and the broad areas of responsibilities of the appraisees, that is key result areas (KRAs).

2.13.2. A Continuous Process

Staff Operation management cycle is a continuous process which involves : Operation planning Continuous coaching and development Interim review Operation appraisal

2.13.3. Operation planning

Operation planning starts with a session between the appraising officer and the appraise to agree on the list of objectives/responsibilities for the coming appraisal period. The agreed list will include the objectives of the section/unit and the broad areas of responsibilities of the appraises, that is key result areas (KRAs).

Examples of KRAs are: Timely completion of caseloads Customer satisfaction and relations Staff development Resource management Project management

Specific, measurable, achievable and time bound targets will then be set on the basis of the KRAs. The appraising officer should ensure that these targets are in alignment with the overall departmental objectives and that they are clearly understood by the appraisee.

Depending on the nature of the job, appraising officers may alternatively agree with appraises a list of key responsibilities with specific Operation results. This list provides the appraisees and the appraising officers with the yardstick to objectively discuss, monitor and assess Operation. The list should be kept under frequent review and be revised whenever there are changes in the job.

2.13.4. Continuous coaching and development The Operation management system is a on-going process. After work targets and standards have been decided and Operation objectives agreed upon, the appraising officer should start the coaching and development process which threads through Operation planning, regular feedback and guidance, interim reviews and Operation appraisal. Coaching is about providing regular feedback to staff on their Operation. It aims at:

Giving recognition to encourage and reinforce good Operation; and Providing advice and counseling to help improve Operation, and where appropriate, take corrective action.

Through the coaching sessions, training needs should also be identified and followed.

2.13.5. Interim review

An interim review is a scheduled, formal discussion between the appraising officer and the appraisee to review the latter's progress in meeting the agreed objectives/responsibilities. This usually takes place in the middle of the appraisal period. An interim review should take the form of a structured session to provide an opportunity for additional coaching, for problem solving, and for updating objectives/responsibilities.

An interim review aims to: Identify Operation results that are below, on or above target and determine appropriate responses on corrective measures. Supervisors should use this occasion to recognize and encourage good Operation. On the other hand, Operation below targets is to be pointed out and guidance for improvement to be given; Assess and follow up development or training need of staff to assist them in achieving their objectives/responsibilities; Ascertain whether there are potential problems that may affect the appraisers Operation in the latter half of the reporting cycle and put in place preventive measures; and Review whether adjustments to the agreed objectives/responsibilities are required.

2.13.6. Operation appraisal Operation appraisal is the formal assessment on the appraisees Operation for the appraisal period. It covers the following aspects:

How effectively the agreed objectives/responsibilities have been carried out and targets met; Whether the effectiveness has been adversely affected by any constraints or obstacles; The strengths and weaknesses of the appraisee which affected or will affect the officer's further development; And what sort of personal/career development and training actions should be taken.

2.13.7. To maintain an open system The appraisee should be shown the assessment by the appraising and countersigning officers before the appraisal interview. Countersigning officers are encouraged to complete the appraisal form before the appraisal interview is conducted; and An interview record has to be prepared and signed by both parties.

For training and career development proposals put forward in the appraisal, the grade management must take the initiative to ensure any necessary follow up actions are taken in a timely and appropriate manner. These proposals will also provide useful reference for the supervisors to develop the staff's competencies. Common themes on training and development identified should be consolidated for incorporation into the training and development plans of t