As most leaders know, management is a separate entity from leadership. Many organizational leaders have difficulty doing one and continuing to do the other. And management is sometimes still looked upon as an operational piece of the organization, so leaders believe that they should employ "managers" to manage and "leaders" to lead. There are a few basic leadership principles that you can use to look at the organization's operations differently - and pass on to the other leaders and managers down the line.
First, you must take a different view of the organization's operations. As people progress up the ladder, moving from line to management and then to more senior levels, they may begin to see operations as someone else's responsibility. This is a leadership failure, so you should always see the understanding of operations as part of your job.
There are two different views of operations: conventional and systems. The conventional view sees the organization chart and job details. The systems view, which should be the leader's view, is an understanding of how the organization's goals get accomplished. What processes occur to allow higher income, new products, customer service, and industry leadership? To see your organization in this view, you should look at your systems as links in a chain, with one piece dependent on the next. Take the time to understand how each process fits with the next and how the whole structure fits together as a whole. On top of that, leaders should be able to find the chain's "weak link" to make improvements.
Second, you must obtain cooperation across systems lines. This can be very difficult to do, especially in organizations that are rooted in the "org chart" view. People can be apathetic, angry, or unwilling to share information and processes with other departments. But just how can leaders facilitate a change from an organization with very strict boundaries to one without boundaries?
It is important to know what all of the organization's departments do. This may seem elementary, but some high-level leaders do not concern themselves with an understanding of each component. If you're new to an organization, take the time to visit, ask questions, and interview the managers of each area to determine their responsibilities, issues, and processes. Once you've done this, you will begin to see a big picture emerging, an idea of how those links in the chain fit together.
Armed with your big picture knowledge, learn what impacts whom - and vice versa. This means that you should understand that a slowdown in Department A will have an adverse effect on Department B. In linear terms this is simple, but complex organizations sometimes have issues that are not apparent at first glance. From the leadership standpoint, you can use this knowledge to cast an empathetic ear on issues; people behind barriers will be pleasantly surprised to know that you understand their problems.
Again, here is further knowledge that you can use to truly move forward. Leaders should break barriers, so you can show the overall strategy to everyone in the organization and create a team spirit that moves each process forward.
Third, and again elementary, you must learn to solve problems. The wrinkle in problem solving is that you've got to solve those problems from the systems view, not from the organization chart. One common problem solving technique from the operations standpoint is the "Ishikawa Diagram", or the "5 Whys" technique. To use this in the systems view, you must first identify the issues. GE used the "Work Out" program to break down barriers and identify organizational problems. You don't have to use a formalized program like "Work Out", but you can model something after it to bring issues to the forefront.
Once the issues are identified, the "5 Whys" technique requires that you ask "why" at least five times. For example, if you determine that customers are not getting their products in a timely manner, the first question to ask is, "why is this happening?". When you answer the question again, you'll begin to drill down to the causative roots.
Finally, to apply leadership principles to operations management, you must harvest and manage knowledge. In many organizations, operational associates typically have various forms of "tacit" knowledge, that is, knowledge that they can take with them if they go. This knowledge may be written or mental, but it is your duty to begin a process of documenting and imparting knowledge throughout the organization. This process starts through well-developed and documented policies and procedures and continues through exceptional training for cross-organization moves and new hire employees.
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Article Source: http://EzineArticles.com/1922905
Friday, July 8, 2011
Operations Management
Operations Management is an area of business that is concerned with the production of goods and services, and involves the responsibility of ensuring that business operations are efficient and effective. It also is the management of resources and the distribution of goods and services to customers.
"Operations" also refers to the production of goods and services, the set of value-added activities that transform inputs into many outputs. Fundamentally, these value-adding creative activities should be aligned with market opportunity for optimal enterprise performance.
Operations Management is the application of the guidelines and tasks set by the company to meet the customers' standards of satisfaction at the same time upholding the company's administrative standard of excellent performance.
Basically, Operations Management's main function is to organize and control the foremost business activity which is supplying goods and services to the customers while maintaining quality products and services.
Organizations
A number of professional organizations have been formed to promote the operations management profession.
Institute for Operations Research and Management Sciences [INFORMS] has a subdivision called The Manufacturing and Service Operations Management Society [MSOM]. Whose objective is to promote the enhancement and dissemination of knowledge, and the efficiency of industrial practice, related to the operations function in manufacturing and service enterprises.
Another organization, Production and Operations Management Society (POMS), is an international professional organization representing the interests of POM professionals from around the world.
A third organization, The Association for Operations Management (APICS - the acronym comes from the original name: American Production and Inventory Control Society) defines operations management as "the field of study that focuses on the effective planning, scheduling, use and control of a manufacturing or service organization through the study of concepts from design engineering, industrial engineering, management information systems, quality management, production management, inventory management, accounting, and other functions as they affect the organization" (APICS Dictionary, 11th edition).
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Article Source: http://EzineArticles.com/445419
"Operations" also refers to the production of goods and services, the set of value-added activities that transform inputs into many outputs. Fundamentally, these value-adding creative activities should be aligned with market opportunity for optimal enterprise performance.
Operations Management is the application of the guidelines and tasks set by the company to meet the customers' standards of satisfaction at the same time upholding the company's administrative standard of excellent performance.
Basically, Operations Management's main function is to organize and control the foremost business activity which is supplying goods and services to the customers while maintaining quality products and services.
Organizations
A number of professional organizations have been formed to promote the operations management profession.
Institute for Operations Research and Management Sciences [INFORMS] has a subdivision called The Manufacturing and Service Operations Management Society [MSOM]. Whose objective is to promote the enhancement and dissemination of knowledge, and the efficiency of industrial practice, related to the operations function in manufacturing and service enterprises.
Another organization, Production and Operations Management Society (POMS), is an international professional organization representing the interests of POM professionals from around the world.
A third organization, The Association for Operations Management (APICS - the acronym comes from the original name: American Production and Inventory Control Society) defines operations management as "the field of study that focuses on the effective planning, scheduling, use and control of a manufacturing or service organization through the study of concepts from design engineering, industrial engineering, management information systems, quality management, production management, inventory management, accounting, and other functions as they affect the organization" (APICS Dictionary, 11th edition).
http://business-square.com/
Article Source: http://EzineArticles.com/445419
Project Management and How It Relates to Operations Managers and Operations Management
An operations manager is also considered to be a project manager from a certain perspective, and rightly so.
From the time the role of an operations manager was first thought of, the role has experienced notable evolutions. A manager who was supposed to actually look after the day-to-day operations of an organization is now supposed to be a stakeholder in generating revenue for the organization.
Globalization and perfect competition (as the economists call it) have broken the geographical and trade barriers, and enterprises now have the opportunity to do business in other countries. Naturally, this has resulted in increased competition, and all organizations are stretching their resources to survive and thrive in such an environment.
How did enterprises respond to heightened competition?
Enterprises all over the world have responded to increased competition by enhancing the role of an operations manager (of course, this was just one of the ways). A manager was earlier responsible for ensuring smooth operation of day-to-day operations in an enterprise.
An operations manager is now also deemed responsible for profitability. New tools and ideas have been implemented to evaluate the performance, and needless to say, the role is being evaluated threadbare. Let us say that in a nutshell, the responsibilities have increased, and so has the nature of job.
Why is an operations manager also known as a project manager?
Departmentalization: Enterprises have categorized each delivery of goods and services to a client as a project. For example, if an enterprise is delivering a huge consignment of goods to a client, the entire consignment is reckoned as a project.
An operations manager who oversees the operations related to consignment delivery is termed the project manager. Naturally, he r is expected to perform roles that were so far unknown.
Evaluation of the role: Obviously, all deliveries of goods and services have come to be considered as a project. As stated earlier, new tools and ideas are being implemented to ensure higher quality and timely compliance of the deliverables.
Statistics and matrices are being increasingly used to evaluate the performance of a project. Of course, the best thing about these initiatives is that progress and performance can be measured and objective goals can be set for subsequent deliverables.
Increasing compliance parameters: Compliance parameters have become more stringent all over the world, and new standards are evolving continuously. Many standards were hitherto applicable to service companies only (for example, an information technology enterprise), but these standards have rolled on to other enterprises as well, and naturally, operations managers are required to execute projects in a manner that is compliant with the agreed standards across the enterprise. The best aspect of these initiatives has been a marked improvement in the overall capabilities.
http://business-square.com/
Article Source: http://EzineArticles.com/5072515
From the time the role of an operations manager was first thought of, the role has experienced notable evolutions. A manager who was supposed to actually look after the day-to-day operations of an organization is now supposed to be a stakeholder in generating revenue for the organization.
Globalization and perfect competition (as the economists call it) have broken the geographical and trade barriers, and enterprises now have the opportunity to do business in other countries. Naturally, this has resulted in increased competition, and all organizations are stretching their resources to survive and thrive in such an environment.
How did enterprises respond to heightened competition?
Enterprises all over the world have responded to increased competition by enhancing the role of an operations manager (of course, this was just one of the ways). A manager was earlier responsible for ensuring smooth operation of day-to-day operations in an enterprise.
An operations manager is now also deemed responsible for profitability. New tools and ideas have been implemented to evaluate the performance, and needless to say, the role is being evaluated threadbare. Let us say that in a nutshell, the responsibilities have increased, and so has the nature of job.
Why is an operations manager also known as a project manager?
Departmentalization: Enterprises have categorized each delivery of goods and services to a client as a project. For example, if an enterprise is delivering a huge consignment of goods to a client, the entire consignment is reckoned as a project.
An operations manager who oversees the operations related to consignment delivery is termed the project manager. Naturally, he r is expected to perform roles that were so far unknown.
Evaluation of the role: Obviously, all deliveries of goods and services have come to be considered as a project. As stated earlier, new tools and ideas are being implemented to ensure higher quality and timely compliance of the deliverables.
Statistics and matrices are being increasingly used to evaluate the performance of a project. Of course, the best thing about these initiatives is that progress and performance can be measured and objective goals can be set for subsequent deliverables.
Increasing compliance parameters: Compliance parameters have become more stringent all over the world, and new standards are evolving continuously. Many standards were hitherto applicable to service companies only (for example, an information technology enterprise), but these standards have rolled on to other enterprises as well, and naturally, operations managers are required to execute projects in a manner that is compliant with the agreed standards across the enterprise. The best aspect of these initiatives has been a marked improvement in the overall capabilities.
http://business-square.com/
Article Source: http://EzineArticles.com/5072515
Operations Management And The Startup Company
What's the product? Is there a market? Where is the initial funding coming from? How experienced is the management team? These are some of the first questions investors and lenders want answered when investigating a startup company, and rightly so. The business plan typically addresses these and other related questions in some detail, but what about an Operations Plan? If Operations is mentioned at all, details are likely to be sketchy at best. Does Operations Management play a role in the startup firm, and if so, what is the role? As we look into the role of Operations Management in the startup firm, we need to address the roles and responsibilities of two key players; the entrepreneur and the operations management professional.
First, we need to realize the truth that Operations might not play an important or significant role in a startup firm. It depends on the type of product or service the company is producing and the stage of development that the company is at. But then again, Operations might play a vital role, and when it does operations management professionals need to be prepared. This is where the entrepreneur or owners come in. It is the responsibility of the entrepreneur to understand the needs of the organization at any given time and the skills and experience that need to be brought on board at different stages of development. Entrepreneurs are often experts in their fields, and tend to be creative "idea people" who see the big picture and can visualize the future of the business. Many entrepreneurs struggle with the day-to-day details of running a business, and many have no formal operations management education or experience. These entrepreneurs need to understand the skills that operations management professionals bring to the table and where and how they fit in to the startup organization (and when). It is the responsibility of the operations management professional, who is at home in the details, to adapt their skills and knowledge to the entrepreneurial environment and to develop the systems and day-to-day operations that will help guide the organization to long term success.
There are significant differences between a mature, established organization and a startup company, and many operations management professionals might not have the skills and experience required to help guide the startup on it's way to success. If you've spent your career working in large, well established, bureaucratic organizations, you might be ill prepared for life in an entrepreneurial organization. The speed at which decisions can be made and changes in direction can occur in a small or startup company can be mind boggling for those used to bureaucracy. Detailed analysis and lengthy planning are luxuries that few entrepreneurs or managers of startups can afford. Experience, gut feelings, and back of the envelope calculations often rule the day. Operations management professionals need to be able to adapt to this environment, and have the confidence to act without the detail and support that they're often used to.
As for the entrepreneur, how do you determine when and if you should consider a larger role for Operations, and how do you go about developing an Operations Plan? Well, the first thing that must be done is understand just what we're talking about when we talk about Operations and Operations Management. In a nutshell, Operations Management concerns the processes and procedures that an organization uses to produce their product or provide their service. Quality and customer service are important components that fall under the operations umbrella. For the organization to be successful, Operations must have well integrated linkages with all the other functional areas, including strategic planning, marketing and sales, and accounting and finance. There must be formal integration even if all of these functions fall under one or just a few people.
You have to have a viable product or service, you need a good marketing strategy, you need funds, and you need to be able to deliver the product or service. You can have a wonderful product, a continuous stream of new products, an exciting marketing campaign, and plenty of cash, but if you can't satisfy your customers by delivering the product or service with the highest quality, with the highest level of service, you'll fail. Delivering the product or service is in the realm of Operations. The role of Operations will vary, of course, depending on the nature of the business and the life stage of the firm. A software development company in the initial stages of writing code will not need to pay much attention to Operations. The firm that is in the R&D stage of integrating that software into components for original equipment manufacturers needs a well-developed operations strategy. The device manufacturer that is at the stage of transitioning from R&D and prototyping to full production must have a highly developed and highly detailed operations plan in place if they expect to compete in today's global marketplace. The device manufacturer should have an operations strategy and plan in place from day one, since operations is such an important component of their future success. Even if it will take several years to get to the full production mode, you should begin to develop your operations plan in the early stages of the company. You'll have an advantage over any competition if you've developed your operations plan and strategy as you grow, rather than waiting until you're ready to ramp up production. If you wait, it may already be too late.
I've been working recently with a small contracting company. The owner approached me to help him with his business plan for a new line of business. Although I have no knowledge of or experience in his industry, he understands the value that Operations Management and how it can help improve his existing business and help get the new line of business off on the right foot. The existing business would have benefited from Operations planning and management at earlier stages, but the new line of business will have an advantage by beginning this planning at the earliest stages of development. The Operations Management profession as a whole has a largely untapped market in startup companies in almost any industry. Operations management professionals need to adapt their knowledge and skills to this audience.
Also, as I stated earlier, it's probably a pretty safe bet to say that many, if not most, entrepreneurs don't come from an Operations background, so what should be considered in the Operations Plan? Operations encompasses everything from the procurement of the materials and resources needed to produce the product or provide the service, through to the delivery of the product or service to the customer or final consumer. The Operations Plan must address how the organization will perform these tasks. The field of Operations Management is littered with buzzwords (value stream, process mapping), various systems and techniques (Lean Manufacturing, Six Sigma), and three letter acronyms (ERP, for Enterprise Resource Planning, generally meaning a computer system, and SCM for Supply Chain Management). The Operations Plan has to cut through the clutter and simply state how the organization will satisfy their customers and drive profitability.
http://business-square.com/
Article Source: http://EzineArticles.com/674920
First, we need to realize the truth that Operations might not play an important or significant role in a startup firm. It depends on the type of product or service the company is producing and the stage of development that the company is at. But then again, Operations might play a vital role, and when it does operations management professionals need to be prepared. This is where the entrepreneur or owners come in. It is the responsibility of the entrepreneur to understand the needs of the organization at any given time and the skills and experience that need to be brought on board at different stages of development. Entrepreneurs are often experts in their fields, and tend to be creative "idea people" who see the big picture and can visualize the future of the business. Many entrepreneurs struggle with the day-to-day details of running a business, and many have no formal operations management education or experience. These entrepreneurs need to understand the skills that operations management professionals bring to the table and where and how they fit in to the startup organization (and when). It is the responsibility of the operations management professional, who is at home in the details, to adapt their skills and knowledge to the entrepreneurial environment and to develop the systems and day-to-day operations that will help guide the organization to long term success.
There are significant differences between a mature, established organization and a startup company, and many operations management professionals might not have the skills and experience required to help guide the startup on it's way to success. If you've spent your career working in large, well established, bureaucratic organizations, you might be ill prepared for life in an entrepreneurial organization. The speed at which decisions can be made and changes in direction can occur in a small or startup company can be mind boggling for those used to bureaucracy. Detailed analysis and lengthy planning are luxuries that few entrepreneurs or managers of startups can afford. Experience, gut feelings, and back of the envelope calculations often rule the day. Operations management professionals need to be able to adapt to this environment, and have the confidence to act without the detail and support that they're often used to.
As for the entrepreneur, how do you determine when and if you should consider a larger role for Operations, and how do you go about developing an Operations Plan? Well, the first thing that must be done is understand just what we're talking about when we talk about Operations and Operations Management. In a nutshell, Operations Management concerns the processes and procedures that an organization uses to produce their product or provide their service. Quality and customer service are important components that fall under the operations umbrella. For the organization to be successful, Operations must have well integrated linkages with all the other functional areas, including strategic planning, marketing and sales, and accounting and finance. There must be formal integration even if all of these functions fall under one or just a few people.
You have to have a viable product or service, you need a good marketing strategy, you need funds, and you need to be able to deliver the product or service. You can have a wonderful product, a continuous stream of new products, an exciting marketing campaign, and plenty of cash, but if you can't satisfy your customers by delivering the product or service with the highest quality, with the highest level of service, you'll fail. Delivering the product or service is in the realm of Operations. The role of Operations will vary, of course, depending on the nature of the business and the life stage of the firm. A software development company in the initial stages of writing code will not need to pay much attention to Operations. The firm that is in the R&D stage of integrating that software into components for original equipment manufacturers needs a well-developed operations strategy. The device manufacturer that is at the stage of transitioning from R&D and prototyping to full production must have a highly developed and highly detailed operations plan in place if they expect to compete in today's global marketplace. The device manufacturer should have an operations strategy and plan in place from day one, since operations is such an important component of their future success. Even if it will take several years to get to the full production mode, you should begin to develop your operations plan in the early stages of the company. You'll have an advantage over any competition if you've developed your operations plan and strategy as you grow, rather than waiting until you're ready to ramp up production. If you wait, it may already be too late.
I've been working recently with a small contracting company. The owner approached me to help him with his business plan for a new line of business. Although I have no knowledge of or experience in his industry, he understands the value that Operations Management and how it can help improve his existing business and help get the new line of business off on the right foot. The existing business would have benefited from Operations planning and management at earlier stages, but the new line of business will have an advantage by beginning this planning at the earliest stages of development. The Operations Management profession as a whole has a largely untapped market in startup companies in almost any industry. Operations management professionals need to adapt their knowledge and skills to this audience.
Also, as I stated earlier, it's probably a pretty safe bet to say that many, if not most, entrepreneurs don't come from an Operations background, so what should be considered in the Operations Plan? Operations encompasses everything from the procurement of the materials and resources needed to produce the product or provide the service, through to the delivery of the product or service to the customer or final consumer. The Operations Plan must address how the organization will perform these tasks. The field of Operations Management is littered with buzzwords (value stream, process mapping), various systems and techniques (Lean Manufacturing, Six Sigma), and three letter acronyms (ERP, for Enterprise Resource Planning, generally meaning a computer system, and SCM for Supply Chain Management). The Operations Plan has to cut through the clutter and simply state how the organization will satisfy their customers and drive profitability.
http://business-square.com/
Article Source: http://EzineArticles.com/674920
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