PROJECT REPORT Operation Management
Short Description
Operation management is the process of bringing people in to the organization making very sure that new entrants have th...
Description
PROJECT REPORT “A STUDY ON OPERATION MANAGEMENT” At HCL INFOSYSTEMS LTD. NOIDA Submitted towards partial fulfillment of the Requirements for the award of the PGDM Programme Approved by AICTE (Equivalent to MBA) ACADEMIC SESSION
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Table of Contents Acknowledgment................................................................................................................5 1.
INTRODUCTION......................................................................................................7
1.1.
HCL an overview....................................................................................................7
1.2.
HCL DNA:.............................................................................................................12
1.3.
Employer spotlight:..............................................................................................13
HCL in India:...................................................................................................................14 1.4.
About HCL............................................................................................................15
1.6.
VISION STATEMENT.........................................................................................16
1.7.
MISSION STATEMENT.....................................................................................16
1.8.
QUALITY POLICY STATEMENT....................................................................16
1.9.
OUR OBJECTIVE...............................................................................................17
OUR MANAGEMENT OBJECTIVE...........................................................................17 OUR PEOPLE OBJECTIVE.........................................................................................17 1.10.
CORE VALUES................................................................................................17
1.11.
A SNAPSHOT OF HCL Infosystems Ltd.......................................................18
FRONTLINE DIVISION................................................................................................19 2.
Literature Review.....................................................................................................20
Four Types of Focus Dimensions Used in Operations Management...........................20 Finance...........................................................................................................................20 Customers......................................................................................................................20 Internal Processes..........................................................................................................21 Learning and Innovation................................................................................................21 2.1.
An Introduction of Operation Management......................................................45
2.1.1.
What is Operation management?....................................................................45
2.1.2.
Why is it important?.........................................................................................45
2.1.3.
Critical factors for success................................................................................46
2.1.4.
Who is involved?...............................................................................................46
2.1.5.
Principles............................................................................................................46
2.1.6.
Managing for results.........................................................................................47
2.2.
Levels of Operation management........................................................................47
2.3.
Value for money....................................................................................................48
2.4.
Measures and metrics...........................................................................................49
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2.4.1.
Business processes can be distinguished by:...................................................49
2.5.
Processes................................................................................................................50
2.6.
Objectives of a Operation Management System................................................54
2.7.
Overall Goal and Focus of Operation Management.........................................55
2.8. Operation Improvement of the Organization or a Subsystem is an Integrated Process...............................................................................................................................55 2.9.
Ongoing Activities of Operation Management...................................................55
2.10.
Basic Steps.........................................................................................................56
2.11.
Operation management mainly include following things:............................58
2.11.1.
Planning..........................................................................................................59
2.11.2.
Monitoring.....................................................................................................60
2.11.3.
Developing Employees.................................................................................60
2.11.4.
Rating.............................................................................................................61
2.11.5.
Rewarding......................................................................................................61
2.12.
Managing Operation Effectively......................................................................62
2.13.
Features of a Good Operation Management System.....................................62
2.13.1.
Competency-Based........................................................................................63
2.13.2.
A Continuous Process....................................................................................64
2.13.3.
Operation planning.......................................................................................65
2.13.4.
Continuous coaching and development.......................................................65
2.13.5.
Interim review................................................................................................66
2.13.6.
Operation appraisal......................................................................................67
2.13.7.
To maintain an open system.........................................................................67
3.
PROJECT.................................................................................................................69
3.1. 3.1.1.
Objective of the Project – Introduction of the Problem....................................69 Secondary objective..........................................................................................69
3.2.
Significance of the Project....................................................................................69
3.3.
Definition - A Theoretical Perspective................................................................70
3.4.
Preparation and Planning for Operation management....................................71
3.5.
Operation Management and Development........................................................71
3.6.
Operation Assessment and Development Plan In HCL INFOSYSTEMS LTD. 72
3.6.1.
Prior to filling the form please read carefully Instructions to the Appraiser 72
3.6.2.
Operation appraisal guidelines........................................................................72
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3.6.2.1.
Appraisal procedure......................................................................................72
3.6.2.2.
The Form And Its Contents..........................................................................73
4.
RESEARCH METHODOLOGY............................................................................76 Introduction............................................................................................. 77 What approach should I take - qualitative or quantitative?......................77 Can my dissertation be entirely literature-based?...................................79 What is case study research?...................................................................80 What's an empirical study?......................................................................80 What is secondary analysis?....................................................................81 Where do I find existing research data?...................................................81 Collecting you own data - primary research.............................................81 Will my research be inductive or deductive?...........................................85 What's all this about research design?.....................................................85 Summary................................................................................................. 86 Key Questions.......................................................................................... 87
4.1.
Research Design....................................................................................................89
4.2.
Data Collection Method.......................................................................................90
4.3.
Analysis of PMS – Processes & Components.....................................................91
4.3.1.
Planning.............................................................................................................91
4.3.2.
Monitoring.........................................................................................................92
4.3.3.
Developing Employees......................................................................................93
4.3.4.
Rating.................................................................................................................94
4.3.5.
Action Based Operation....................................................................................95
4.3.6.
Analysis..............................................................................................................96
4.3.7.
Effectiveness......................................................................................................96
5. 5.1.
RECOMMENDATIONS.........................................................................................98 Recommendations.................................................................................................98
6.
CONCLUSION.........................................................................................................99
7.
BIBLIOGRAPHY..................................................................................................100
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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.
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Executive summary Operation 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 today’s 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.
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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 indepth 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 - semiconductor, 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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.
1976
Hindustan Computers Limited (HCL) born.
1977
Distribution alliance formed with Toshiba for copiers.
1978
HCL successfully ships in-house designed microcomputer at the same time as
Apple. The Indian computer industry is born. 1980
HCL introduces bit sliced, 16-bit processor based microcomputer.
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1983
Indigenously 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.
1988
HCL introduces fine-grained multi-processor Unix-3 years ahead of “Sun” and
“HP”. 1990
Data Quest marks HCL No.1 amongst top ten computer giants.
1991
HCL Ltd. and Hewlett Packard, USA, partner to form HCL-Hewlett Packard Ltd.
JV develops multi-processor Unix for HP-heralds HCL’s entry into contract 1994
Distribution alliances formed with Ericsson Switches and Nokia Cell phones.
1997
HCL 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. 1999
Initial Public Offering made by HCL Technologies Ltd.Formation of Global
Board of Directors. 2000
Large contracts won from Bankers Trust, KLA Tenor, Cisco, GTech, NEC among
others. 2001
JV with Deutsche Bank- DSL software formed. HCL BPO Incorporated. Acquired
British Telecom Apollo’s contact center in Belfast, Northern Ireland. HCL Info systems become largest hardware company. 2002
Strong pursuit of nonlinear strategy to widen services portfolio; several JVs and
alliances formed. Strategic alliance forged with Jones Apparel Group, Inc. a fortune 500
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company. Infrastructure services division launched to address emerging global needs. Software businesses of HCL Info systems and HCL Technologies merged. 2003
Largest 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 India’s
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'.
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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.
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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.
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This entrepreneurial and win-win relationship driven culture continues to guide HCL in all its endeavors.
1.3.
Employer spotlight:
HCL is one of India’s 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)
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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.
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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 India’s 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 India’s 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.
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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, Sap’s "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.’
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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 company’s 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.
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1.11.
A SNAPSHOT OF HCL Infosystems Ltd. India’s leading IT company
HCL In say is India’s 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 worldwide, 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. Company’s 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
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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.
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2. Literature Review
Operations management is an area of management concerned with overseeing, designing, and controlling the process of production and redesigning business operations in 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 aren’t 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.
Finance The 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. Customers Customers 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 doesn’t 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
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pay high prices. Though each business targets customers who have different needs, meeting those needs is equally vital to their profitability. Internal Processes Optimization 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 Innovation Technology 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
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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 definitions There 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 organization’s 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.
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· 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
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– 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 timescales Sourcing 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
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– Schedule suppliers – Managing stock (getting it in the right place at the right time) – Locating and procuring supplies – Pay suppliers Creation 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 / quality Delivery – Customer satisfaction
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– Deliver finished products – Consider logistics / delivery – Arrange delivery to customer – Dispatching the goods or service to the customer – Arrange packaging / presentation Managing people – Employ people – Train people – Implementing and timescales – Outsource – Delegation – Managing people – Recruit and train staff – Schedule labour Brief history of operations management Pre 18th century Agriculture
was
the
predominant
industry
in
every
country
Industrial Revolution 1770–1830
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– 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 at the 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. Quality 2. Continual Improvement 3. Elimination of waste Late 1950s and early 1960s
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– 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 jobs o productivity increases much more difficult to achieve – Operations techniques begin to be incorporated into services -the term production/operations management comes into use Today – Environmental and social awareness Types of operations management Every 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
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– OXFAM – bringing relief Manufacturing products Managing 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
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– Process copy (for Control) – Printing – Quality control – Recycling / rework Providing insurance cover Managing 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
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– Forecast demand – Process applications – Process renewals – Calculate no claims bonuses – Arrange repairs – Send out certificates / reminders – Send out claims forms Providing healthcare Managing 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
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– 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 ambulance Government Managing operations – HMRC o Process tax forms o Investigate errors o Prosecute offenders o Labour planning – Social Services
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o Assessing risk o Providing support services – Emergency Services o Capacity planning o Resource deployment – Central Government o Generate new laws o Influence people o Process claimants o Allocate resources according to need o Educate and train people Armed Forces Managing operations – Training and development – Contingency planning – Capital investment and programme management – Logistics (soldiers and materials) – Supply chain management – Returns management
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– Deployment – Measurement and control – Manage budgets and costs – Stakeholder management – Manage people – Manage resources (equipment and materials) – Management of maintenance OXFAM Managing 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
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– 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
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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) 36
o Who does the work (assignments)
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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 teams Multi-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
38
Issues facing operations managers Major 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 alliances All 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.
39
Another language??? There are lots of words and terms used in operations management, many of which are explained in full in the IOM’s 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
40
– Continuous improvement – Planning and scheduling – ERP systems
41
Operations management is an area of management concerned with overseeing, designing,
and
controlling
the
process
of production and
redesigning business
operations in the production of goods 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 forms of raw materials, labor, and energy) into outputs (in the form of goods and/or services). [1] The relationship of operations management to senior management in commercial contexts can be compared to the relationship of line officersto highest-level senior officers in military science. The highest-level officers shape the strategy and revise it over time, while the line officers make tactical decisions 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 office queue. Operations management studies both manufacturing and services. According to the United States Department of Education, operations management is the field concerned with managing and directing the physical and/or technical functions of a firm or organization, particularly those relating to development, production, and manufacturing. Operations management programs typically include instruction in principles
of
general
management, manufacturing and
production
systems, factory management, equipment maintenance management, production control, industrial labor relations and skilled trades supervision, strategic manufacturing policy, systems analysis, productivity analysis and cost control, and materials planning.[2] Management, including operations management, is like engineering in that it blends art
[3]
with applied science. People skills, creativity, rational analysis, and knowledge of technology are all required for success.
42
History The history of production and operation systems began around 5000 B.C. when Sumerian priests 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 the Egyptians started using planning, organization, and control in large projects such as the construction of the pyramids. By 1100 B.C., labor was being specialized in China; by about 370 B.C., Xenophon described the advantages of dividing the various operations necessary for the production of shoes among different individuals in ancient Greece . In the Middle Ages, kings and queens ruled over large areas of land. Loyal noblemen maintained large sections of the monarch’s 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 ruler’s land and resources. Although a large part of labor was employed in agriculture, artisans contributed to economic output and formed guilds. 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 labor has always been a feature from the beginning of civilization, the extent to which the division is carried out varied considerably depending on period and location. Compared to the Middle Ages, the Renaissance and the Age of Discovery was characterized by a greater specialization in labor, one of characteristics of growing European cities and trade. It was in the late eighteenth century when Eli Whitney popularized the concept of interchangeability when 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
43
allowed the mass production of parts independent of the final products in which they will be used. In 1883, Frederick W. Taylor introduced the stopwatch method 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 of work sampling and predetermined 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 of Frank B. and Lillian M. Gilbreth around 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: the Venetian Arsenal (1104), Smith pin manufacturing in the Wealth of Nations (1776) or Brunel's Portsmouth Block Mills (1802). Ransom Olds was the first to manufacture cars using the assembly line system, but Henry Ford developed 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). While systems engineering concentrated 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 of operations research and systems engineering allowed for the realization of 44
solving large scale and complex problems in the modern era. Recently, the development of faster and smaller computers, intelligent systems, and the World Wide Web has 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 of Integrated and Intelligent Systems, and WWW) 5. Integrated Complex Systems with Multiple Objectives (development of ecologically sound systems, environmentally sustainable systems, considering individual preferences)
45
Industrial Revolution Before
the First
industrial
revolution work
was
mainly
done
through
two
systems: domestic system and craft guilds. In the domestic system merchants took materials to homes where artisans performed the necessary work, craft guilds on the other hand were associations of artisans which passed work from one shop to another, for example: leather was tanned by a tanner, passed to curriers, and finally arrived at shoemakers and saddlers. The beginning of the industrial revolution is usually associated with 18th century English textile industry, with the invention of shuttle by John Kay in 1733, the spinning jenny by James Hargreaves in 1765, the water frame by Richard Arkwright in 1769 and the steam engine by James Watt in 1765. In 1851 at the Crystal Palace Exhibition the term American system of manufacturing was used to describe the new approach that was evolving in the United States of America which was based on two central features: interchangeable parts and extensive use of mechanization to produce them. Henry Ford was 39 years old when he founded the Ford Motor Company in 1903, with $28,000 capital from twelve’s investors. The model T car 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 which Henry Ford used the concept of the assembly line was Highland 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, and conveyors are only one of many means to an end" This became one the central ideas that led to mass production, one of the main elements of the Second Industrial Revolution, along with emergence of the electrical industry and petroleum.
46
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 of formulas remained somewhat unexplored until Frederick Winslow Taylor. Frederick Taylor early work focused on developing what he called a "differential piece-rate system" and a series of experiments, measurements and formulas dealing with cutting metals and manual labor. The differential piece-rate system consisted 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 of soldiering: 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
characterized scientific
management (also know as Taylorism) as: 1. The development of a true science; 2. The scientific selection of the worker; 3. The scientific education and development of the worker; 4. Intimate friendly cooperation between the management and the workers. Taylor is also credited for developing stopwatch time study, this combined with Frank and Lillian Gilbreth motion study gave way to time and motion study which is centered on the concepts of standard method and standard time. Frank Gilbreth is also responsible for introducing the flow process chart. Other contemporaries of Taylor worth remembering are Morris 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 ) and Henry Gantt (Gantt
47
chart). Also in 1910 Hugo Diemer published the first industrial engineering book: 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 the economic order quantity model. He described the problem as follows: "Interest on capital tied up in wages, material and overhead sets 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 of production planning and inventory control. In 1924 Walter Shewhart introduced the control chart through a technical memorandum while working at Bell Labs, central to his method was the distinction between common cause and special cause of variation. In 1931 Shewhart published his Economic Control of Quality of Manufactured Product, the first systematic treatment of the subject ofStatistical Process Control (SPC). In the 1940s methods-time measurement (MTM) was developed by H.B. Maynard, JL Schwab and GJ Stegemerten. MTM was the first of a series of predetermined 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, optimization techniques were known for a very long time, from the simple methods employed by F.W.Harris to the more elaborate techniques of thecalculus of variations developed by Euler in 1733 or the multipliers employed by Lagrange in 1811, and computers were slowly being developed, first as analog computers by Sir William Thomson (1872) and James Thomson (1876) moving to the eletromechanical computers of Konrad Zuse (1939 and 1941). During World War
48
II however, the development of mathematical optimization went trough a major boost with the development of the Colossus computer, the first electronic digital computer that was all programmable, and the possibility to computationally solve large linear programming problems,
first
by Kantorovich in
1939
working
for
the Soviet
government and latter on in 1947 with the simplex method of Dantzig. These methods are known today as belonging to the field of operations 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 as MRP and successive modifications, and ever more sophisticated optimization techniques and manufacturing simulation software, in post-war Japan a series of events at Toyota Motor led to the development of the Toyota Production System (TPS) and Lean Manufacturing. In 1943, in Japan, Taiichi Ohno arrived at Toyota Motor company. Toyota evolved a unique manufacturing system centered on two complementary notions: just in time (produce only what is needed) and autonomation (automation with a human touch). Regarding JIT, Ohno was inspired by American supermarkets: 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 by Toyoda Sakichi in 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 of Total Quality Management (TQM) in Japan, ideas initially developed by American authors such as Deming, Juran and Armand 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:
49
1. Process control: SPC and worker responsibility over quality 2. Easy able -to-see quality: boards, gauges, meters, etc. and poka-yoke 3. Insistence on compliance: "quality first" 4. Line stop: stop the line to correct quality problems 5. Correcting one's own errors: worker fixed a defective part if he produced it 6. The 100% check: automated inspection techniques and foolproof machines 7. Continual improvement: ideally zero defects In 1987 the International Organization for Standardization (ISO), recognizing the growing importance of quality, issued the ISO 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 to Material Requirements Planning (MRP) at IBM, 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 between dependent demand and independent 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 the bill of materials, via product design. Orlicky wrote "Materials Requirement Planning" in 1975,[20] the first hard cover book on the subject.[19] MRP II was 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 resourcesand procurement. 50
Recent trends in the field revolve around concepts such as:
Business Process Re-engineering (launched by Michael Hammer in 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 book The Machine that Changed the World. [22]
Six Sigma (an approach to quality developed at Motorola between 1985-1987): Six Sigma refers to control limits placed at six (6) standard deviations from the mean of anormal distribution, this became very famous after Jack Welch of General Electric launched a company-wide initiative in 1995 to adopt this set of methods. More recently, Six Sigma has included DMAIC (for improving processes) and DFSS (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.
51
52
2.1. 2.1.1.
An Introduction of Operation Management 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
2.1.2.
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
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.
53
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
2.1.4.
Relating individuals' reward and remuneration with achievement of outcomes.
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
54
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 organization’s priorities level. 2. Organization’s priorities: at the highest level Operation management is rooted in the organization’s 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 55
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.
2.3.
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.
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.
56
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
57
2.5.
The amount of discretion which needs to be exercised in the activities
The duration of the contact with the customer.
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 organization’s 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
58
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.
59
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.
60
The process of Operation management
61
62
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 staff Departments 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 Operation The 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.
63
To provide opportunities for development The 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 64
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 Appraisal
and
Development Plan,
Operation
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. 65
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 results 4. 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 achieved 6. Identify more specific measures for each first-level measure if necessary 7. 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 standards 9. Conduct ongoing observations and measurements to track Operation 10. Exchange ongoing feedback about Operation 11. 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.
66
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.
67
Planning
Continually monitoring Operation,
Developing the capacity to perform,
Periodically rating Operation in a summary fashion, and
Rewarding
work and setting expectations,
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
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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. 69
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 70
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.
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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
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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 officer’s 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.
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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
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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
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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,
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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.
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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 appraiser’s Operation in the latter half of the reporting cycle and put in place preventive measures; and
2.13.6.
Review whether adjustments to the agreed objectives/responsibilities are required.
Operation appraisal
Operation appraisal is the formal assessment on the appraisee’s 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;
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The strengths and weaknesses of the appraisee which affected or will affect the officer's further development;
2.13.7.
And what sort of personal/career development and training actions should be taken.
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 the department and the grade. To ensure consistency in assessment standards and fairness in Operation rating in staff appraisals, heads of departments/grades may consider if an assessment panel should be set up. An assessment panel is a management tool to help departments cross moderate appraisal ratings.
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An assessment panel is usually chaired by the head of branch/division or head of grade with members drawn from section/unit heads. At the start of a reporting cycle, the assessment panel will meet to discuss the marking criteria and standard. Staff will be informed of these criteria and standard and clear guidelines will be issued to appraising officers. The assessment panel will review the completed reports on the basis of panel members' knowledge about the Operation of the appraisees. If the assessment panel disagrees with the assessment of a report, the reviewing officer and the appraising/countersigning officer, where necessary, may be requested to explain before the panel. Amendments may be made to the appraisal reports to ensure parity of assessment, if necessary.
3. PROJECT
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3.1.Objective of the Project – Introduction of the Problem Primary Objective To understand the basic features of Operation management plan or Operation assessment in HCL and their contribution in the success of HCL Info systems Ltd. within a short span of previous years. 3.1.1.
Secondary objective To identify which of the functional aspects/ Parameters are low and which dysfunctional aspects/ Parameters are high in order to put some suggestion for increasing the former and reducing the latter in other words to move from dysfunctional to functional Operation assessment.
3.2.Significance of the Project The six weeks of summer training at HCL Infosystems Ltd. gave me a complete exposure to the organizational work life. It was unique opportunity to explore the realities of India’s leading companies as a researcher and gather knowledge from its vast repertoire of experience. It was great learning experience to know the duties performer, responsibilities taken and the skill regained by the executives of the organization to reform heir jobs effectively and efficiently. The project not only helps me to enhance my practical knowledge but it also help me to understand how Operation management work into the organization and how executives assess their own employee into the organization. The summer project, also made me realize the worth of an HR manager. I got to know the importance of employee assessment and communication and interpersonal skill in getting things done from other. In a net shell, it was a very fulfilling and fruitful period of my life as a management student. 81
3.3.Definition - A Theoretical Perspective Operation Management is the process of crating a work area setting in which people are enabled to perform to the best of their abilities. Operation Management is a whole work system that begins when a job is defined as needed. System includes the flowing actions1. Development job description 2. Select appropriate people with an apply selection process. 3. Negotiate requirement and accomplishment based Operation standards 4. Outcomes measures. 5. Provide effective orientation training. 6. Provide ongoing coaching and feedback. 7. Conduct quarterly Operation development discussions. 8. Design effective compensation and recognition systems that reward people for their contribution. 9. Provide promotional/crier contributions. 10. Assist with exit interviews to understand why valuable employees leave the organization.
3.4.Preparation and Planning for Operation management
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Much work is invested, on the front end, to improve a traditional employee appreciate process, Infect managers can feel as if the new process is too time consuming ones the function of developmental goal is in place however time to an administrator the system decreases. Each of these steps to taken with the participation and cooperation of the employee for best results.
3.5.Operation Management and Development
Define the purpose of the job, job duties.
Define the Operation goals with measurable outcomes.
Define the each job responsibilities a goal.
Define the Operation standards for key components of the job,
Hold interim discussions and provide feedback abuts employee Operation.
Maintain a record of Operation through critical incident reports.
Provide opportunity for broaden feedback. Use 360` Operation feedback system.
Develop administer a coaching and implement plan if the employee is not meeting expectation
3.6.Operation Assessment and Development Plan In HCL INFOSYSTEMS LTD.
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3.6.1.
Prior to filling the form please read carefully Instructions to the
Appraiser
Appraise the employee in related to the positions held during the period under appraisal.
Be objective, Avoid any personal prejudice.
Do not evaluate on the basis of isolated incidents, but base your judgment on the entire period under review.
Consider each independently, uninfluenced by the rating given for other factors.
This from will not be treated as complete and processed further until all selections are filled up.
3.6.2.
Operation appraisal guidelines 3.6.2.1. Appraisal procedure
Operation appraisal encompasses the on-going work-related discussions, which take place between appraisals and appraisees throughout the year. The formal Operation appraisal meeting is normally attended by the employee and manager only; but when relevant, another manager will also participate (e.g. functional head / HR person).
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3.6.2.2. The Form And Its Contents The guide for the Operation / achievement rating is as follows. Outstanding – Consistently exceeds the requirement of job.
Exemplary Operation - Far exceeds the requirement of job. Growth potential unlimited. Very good: - Handle assignments with thoroughness and perfection, effective discharge of responsibilities to the satisfaction of superiors completes assignment in time. With a little more initiative could have performed better. Good: - Just meets the normal requirements of the job, needs substantial improvement in all areas of work to meet requirement of complete employee. Not Up to the Expectation - Not likely to meet the requirements of complete employee.
Section 1 : Quarterly Self appraisal forms:
a) General notes on goals /target setting Key responsibility areas relate to the key result area on going and inherent in the achievements and Operation again each one. Targets and achievements are also to be filled after discussing with the manager. Target related to the priority activates normally are within the key responsibility areas. Target must be agreed between the manager and the subordinate. Each target should be specified in such a way that it will be clear when it is met and must include the time frame in which it elements to ensure consistence as summarized in the acronym SMART (S-specific, M-measurable, A-achievable, Rrelevant, T-timer related). Although it is anticipated the Operation against the target will
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be assessed quarterly, it is responsibilities are reviewed at appropriate in travels every quarterly. The manager should ensure that at all times the subordinate has a clearly defined set of agreed Target.
Target for the period under review: In section 1 KRA/ assignment for the period under review should be stated. In some cases it will be necessary for the objective to be amplified on a separate sheet and this documents should be referenced on the form..
b) Achievement against Target Were the target / expectations for the period under review achieved? Comments and reasons for the success or failure should be given at the end of the review quarter period.
c) Target for the next quarter At the beginnings of the quarter the target should be decided in Section –1. The aim is to achieve sustainable improvement in the subordinate’s Operation. Enter the date by which the target should be achieved.
d) Overall View Of Operation This is the Appraisee/manager’s view of the overall Operation. Assessment must be made on the overall rating listed above and in terms of the trend in Operation.
Section – 2 : Annual Appraisal Form
To the filled up by the appraisee at the end of the annual review year.
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Section – 3 : Potential And Qualitative Assessment
The objective is to provide an opportunity to the employee and the manager to discuss the strengths that the individual brings to the job and examine the limitations, which may require attention. The aim is to improve Operation and development of the individual. Section – 4 : Overall Operation / Potential Assessment Space for other comments by the manager (if required for any issues with regard to constraints to effective Operation and / or supporting actions to achieve target).
a) Ratings / Final Recommendation Rating has to be given by the Regional Manager / General Manager / Functional Head after a through appraisal of the Operation of the employee and in accordance with the parameters given. Mention if any promotion / salary discrepancy / rewards / movement is recommended. b) Signature The managers and employees should sign the form at the end of the discussion acknowledging that the objectives of the appraisal have been achieved and emphasizing a joint commitment to implement and actions agreed upon. Signatures are to confirm that the form has been read and the key points have been noted. Section- 5 : Assessment For Development And Growth
Training for improvement and career development the training plan for the employee for the coming year should be discussed.
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The training identification form has to be filled and returned to the HR department. In the month of the April for the preparation of the training calendar for the forth coming year. The manager should return the complete field form within ten days hence from the completion of the Annual Review period to the HRD Dept. in order to attain consistency of the appraisal standards and relevant follow – up action.
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4. RESEARCH METHODOLOGY This project requires a detailed understanding of the concept – “Operation Management”. Therefore, firstly we need to have a clear idea of what is Operation Management, how it is managed in HCL Info systems, what are the different ways in which the financing of Operation is done in the company. The management of Operation Management involves managing inventories, accounts receivable and payable and cash. Therefore one also needs to have a sound knowledge about cash management, inventory management and receivables management. Then comes the financing of Operation Management requirement, i.e. how the Operation Management is financed, what are the various sources through which it is done. And, in the end, suggestions and recommendations on ways for better management and control of Operation are provided.
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Introduction The way you approach your question will have a profound effect upon the way you construct your dissertation, so this section discusses the types of research you might undertake for your dissertation. The use of literature and case studies is considered and the merits of primary research are debated and advice is given on the use of existing research data. You may not be fond of statistics, but the potential relevance of a quantitative approach should be considered and similarly, the idea of qualitative analysis and conducting your own research may yield valuable data. The possibilities of using quantitative and qualitative data are also discussed.
What approach should I take - qualitative or quantitative? Your approach, research design, and research question are all connected. 'Approach' means something more than the type of data you use – it refers to your overall orientation to research and the type of claims you will make for your study. Dissertations can be based on either quantitative or qualitative data, or on a combination of both. How you choose this may depend on your preferences and abilities, and the suitability of particular approaches to your topic. You need to be able to justify why you have chosen to use such data. Quantitative data is particularly useful when you wish to discover how common particular forms of behaviour such as illegal drug use are for a particular age group. Qualitative data is particularly useful when you wish to find out why people engage in such
behaviour.
Think about the Research Methods modules you have taken so far. Think about the different kinds of studies you have read for other modules. There is plenty of scope to use the approaches and methods that you are most comfortable with. You need tojustify your approach and methods and to cite appropriate literature to help you do this. What if I want to find out about social trends, or the measurable effects of particular policies? You will probably want to use large datasets and undertake quantitative data analysis, and you will be adopting a realist approach to the topic studied. Quantitative dissertations are
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likely to be nearer to the lower end of the range of approved lengths for the dissertation (e.g. if the length is to be 5,000-8,000 words, dissertations based on quantitative analysis are likely to be closer to 5,000 words in length). They will also include tables and figures giving your important findings. Remember that all tables must be carefully titled and labelled and that sources of your data must be acknowledged. What if I want to record people's views on an issue, and give them a 'voice'? You will probably want to use in-depth qualitative data, and you may wish to adopt a realist, a phenomenologist, or a constructionist approach to the topic. Qualitative dissertations will include descriptive material, usually extracts from interviews, conversations, documents or field notes, and are therefore likely to be nearer to the upper limit of your word range (e.g. 8,000 words). The types of method suitable for a dissertation could include content analysis, a small scale ethnographic study, small scale in-depth qualitative interviewing. Whether you choose qualitative or quantitative analysis will depend on several things:
Your
preferred
philosophical
approach
(realist,
phenomenologist
or
constructionist).
Your skills and abilities with methods of data collection (if needed) and analysis.
The topic or issue you are interested in.
How you frame your research question.
Can I combine qualitative and quantitative methods? There are many ways in which qualitative and quantitative data and analysis can be combined. Here are two examples.
You may be interested in doing an analysis that is primarily quantitative, looking at social trends, or policy implications. However you also want to introduce a 'human touch' by conducting one or several interviews asking what these trends mean to people or how particular individuals experience events. After doing your 91
quantitative analysis, you should include a chapter or section on the qualitative data you have collected. In your discussion of findings you can use the qualitative data to help you understand the patterns in the quantitative analysis.
You may be interested in doing an evaluative case study of a process or policy. You will have a particular focus – a 'case' that you are looking at. You will triangulate methods – i.e. collect data in several different ways, and some of these data may be quantitative. You will analyse each type of data and describe this, and then write a discussion that shows how each piece of analysis contributes to the overall picture of what is going on.
Your supervisor or research methods tutor may be able to give you detailed examples of these or other ways to combine methods.
Can my dissertation be entirely literature-based? Yes. If you decide to do a primarily theoretical dissertation, it is almost certain that your dissertation will be entirely literature-based. This is likely to be the methodology of theoretical analysis: selection and discussion of theoretical material and descriptive material, in context, and detailed comparison of theories in terms of their applicability. You might ask how useful certain concepts or theories are for understanding particular patterns of behaviour. How useful is the concept of institutional racism? Is objectivity in the media possible? How useful is subcultural theory for understanding virtual communities? Here, the focus of attention is not so much to discover something about the social world, for example virtual communities, as to reach a judgement about the value of key concepts or theories in understanding that world. How the study is approached and how contrasting approaches are drawn upon needs to be stated very clearly. A library-based or theoretical study is not necessarily 'easier' than an empirical study, indeed, it may well be harder. Remember that theoretical studies, like data-based studies, need
to
have
their
research
design
spelled
out
from
the
start.
But even if your dissertation is more empirically focused, it could still be entirely
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literature-based. You might choose to conduct a review of a field of work. What does the research literature in this field tell us about x? While all dissertations will include a literature review, it is possible to produce a dissertation that is entirely based on a review of the literature. If you do this, it is important to review the literature from an explicit angle and identify some themes to make the review distinctive. You might, for example, explore empirical debates in your chosen field across different countries or time periods. What is case study research? Whilst it is possible for dissertations to be entirely literature-based, the most common form of dissertation takes the form of a case study. Here the focus of attention is on a particular community, organisation or set of documents. The attraction of this kind of dissertation is that it stems from empirical curiosity but is at the same time practical. You may be interested in a wider question but a case study enables you to focus on a specific example. A major challenge in case study dissertations is connecting your own primary research or re-analysis with the broader theoretical themes and empirical concerns of the existing literature. What's an empirical study? Most dissertations demand either primary or secondary research. In other words, you usually have to analyse data that you have either collected yourself or data that is already available. The reason for this is that the questions dissertations usually address take the following form: Is x happening? Is x changing? Why is x happening? Why is x changing? These
questions
demand
primary
or
secondary
analysis
of
data.
Case Study 9 Think hard before you decide to undertake empirical research: a student's view What is secondary analysis? Secondary analysis is when you analyse data which was collected by another researcher. It allows the researcher to explore areas of interest without having to go through the process of collecting data themselves in the field. The problem with using fieldwork methods in an undergraduate dissertation, however, is that they are costly in terms of time
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(which is relatively scarce in your final year!) and possibly your own financial resources too. You may choose, therefore, to undertake secondary research, analysing existing data. Where do I find existing research data? There are a range of documents that already contain research data that you can analyse. You may, for example, be interested in exploring whether gender stereotypes in the media are changing. This might entail content analysis of newspapers, magazines, video or other media over different time periods. Here you would not be collecting your own data but instead would be analyzing existing documents. Collecting you own data - primary research Quantitative data may also result from non-participant observations or other measurements (e.g. in an experimental design). Also, sometimes data that are collected through qualitative processes (participant observation, interviews) are coded and quantified. Your research methods tutor can give you further information on these types of data, but here are some common quantitative data collection methods and their definitions:
A series of questions that the respondent answers on their own. Selfcompletion questionnaires are good for collecting data on relatively Self-completion questionnaires
simple topics, and for gaining a general overview of an issue. Questionnaires need to have clear questions, an easy to follow design, and not be too long.
Structured
Similar to a self-completion questionnaire, except that the questions
interviews
that are asked by an interviewer to the interviewee. The same questions
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are read out in the same way to all respondents. There will typically be a fixed choice of answers for the respondents. Watching people and recording systematically their behaviour. Prior to Structured
the observation, an observation schedule will be produced which
observation
details what exactly the researcher should look for and how those observations should be recorded.
If you are conducting a qualitative analysis you are likely to wish to use at least some original material. This may be collected through in-depth interviews, participant observation recordings and fieldnotes, non-participant observation, or some combination of these. Below are some data collection methods that you might want to use for your dissertation:
A way of asking questions which allows the interviewee to have more control of the interview. The interview could be semi-structured, which uses an interview schedule to keep some control of the interview, but also allows for some flexibility in terms of the interviewee’s responses. The In-depth interviews
interview could be unstructured, here the aim is to explore the interviewee’s feelings about the issue being explored and the style of questioning is very informal. Or the interview could be a life history where the interviewer tries to find out about the whole life, or a portion of the person’s life.
Focus groups A form of interviewing where there are several participants; there is an emphasis in the questioning on a tightly defined topic; the accent is on
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interaction within the group and the joint construction of meaning. The moderator tries to provide a relatively free rein to the discussion. This involves studying people in naturally occurring settings. The Participant
researcher participates directly in the setting and collects data in a
observation systematic manner. The researcher will observe behavior, listen to conversations, and ask questions. Spend some time looking at general books about research - they will give you an overview of the data collection methods available and help you to make the best choice for
your
project.
Bryman
(2004)
would
be
a
useful
starting
point.
For any piece of research you conduct, be it empirically based (quantitative or qualitative) or library based, its methods must be justified. You need to show in the final dissertation how you have given consideration to different methods, and why you have chosen and eliminated these.
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STUDENT VOICE: Findings from our research In our study, supervisors saw part of their role as someone who draws out students’ reasons for choosing a particular research approach. Often in early supervision meetings they ask students to justify their reasons for choosing a library-based or an empirical study. (Todd, Smith and Bannister 2006, p167). Your supervisor will want you to offer convincing reasons as to why you’ve chosen the approach you have - so be ready! If you’re having difficulty making that choice, don’t be afraid to ask your supervisor for their advice. This was particularly useful for one of our respondents: STUDENT VOICE It's been a valuable experience for me it's so different from other stuff. With other essays you can rush them if you have to ... but this is so much work, you can't rush it. It demands more. (Todd, Bannister and Clegg, 2004, p340) ….My reasons for data collection is literature based as my research question involved sensitive subjects which would have been unsuitable for primary data collection. (Level 6 students at Sheffield Hallam University) I chose primary data because it would enable me to build skills that would be useful for postgraduate study. (Level 6 students at Sheffield Hallam University) It will involve primary data, secondary data, quantitative and qualitative research methods, lit reviews, theory and policy studies and an exploration of alternatives. My dissertation is to be based around the experience of 'poverty', as poverty is the experience. Theories and policies are not. However, to do justice to the subject, theories and policies will be included so Iam able to demonstrate where failures in the system may exist. (Level 6 students at Sheffield Hallam University)
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Note: Research must be conducted in a sensible and ethical manner; data must be analysed and presented in a rational manner. It is important that students do not expose themselves or others to dangers or risks when conducting research. Students need the approval of their dissertation supervisor before embarking on any type of fieldwork (see the section on Research Ethics for more information). Will my research be inductive or deductive? In general, deductive research is theory-testing and inductive research is theorygenerating. Often people link deductive research with quantitative experiments or surveys, and inductive research with qualitative interviews or ethnographic work. These links are not hard and fast – for instance, experimental research, designed to test a particular theory through developing a hypothesis and creating an experimental design, may use quantitative or qualitative data or a combination. If your research starts with a theory and is driven by hypotheses that you are testing (e.g. that social class background and social deprivation or privilege are likely to affect educational attainment), it is, broadly speaking, deductive. However much research combines deductive and inductive elements. What's all this about research design? Research design is vital to conducting a good piece of work. At the start of your research you need to set down clearly:
Your research focus and research question.
How you propose to examine the topic:
o
approach
o
methods of data collection
o
methods of data analysis
The types and sources of information you need.
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How you will access these sources of information (be they people, existing datasets, biographical accounts, media articles or websites, official records).
The proposed outcome of this research (in your case, a dissertation) and the form it will take.
A time-frame for all this.
You and your supervisor will discuss your design and decide whether the research is 'doable'. Your university may require you to produce a report (e.g. an 'interim framework report' or a short 'research proposal') that specifies your research design. Other people may have to look at the design to ascertain whether there are ethical issues that affect your research. Summary
Quantitative or qualitative? A quantitative approach will mean you will need substantial datasets, as well as the inclusion of tables and statistics in your final submission. This information could come from a variety of sources - remember to acknowledge them! A qualitative approach will probably mean conducting interviews or focus groups or observing behaviour. Ask yourself if you are prepared to do this, and think about the best way of getting the answers you want from people. Will you stop people in the street? Will you conduct telephone interviews? Will you send out survey forms and hope that people return them? Will you be a participant or non participant observer?
Deductive or inductive? Deductive research is theory-testing, which is often linked to datasets, surveys or quantitative analysis. Inductive research is theorygenerating, and is often linked to qualitative interviews.
Empirical or theoretical? An empirical study could involve close analysis of statistics or some form of qualitative research. However, a theoreticalstudy brings
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its own challenges, and you may be called upon to compare theories in terms of their applicability.
Once you have decided upon your approach, you can write out a research design, i.e. how you are going to approach the project.
Now look a little at the research methods that you have studied. Apart from matching your research to your general sense of objective/subjective reality, it is important to ensure that you match your methodology to the problem you are pursuing.
What kind of data do you need to answer your question/test your hypothesis? How would you best be able to collect that data?
Again, consider time and feasibility of the exercise. The ability to manage your time will be directly related to your ability to control the boundaries of the study – especially if it is closely linked to your workplace.
Now that you have got so far, try to write up your research proposal as far as you can. Make sure that you identify where your proposal needs further work and, at the same time, where you will have to put your maximum effort. It may be helpful to draw a critical path so that you are clear which actions you need to take and in what sequence. You will find it helpful to plot your research questions on the chart on the next page and ensure that your plans for collecting data really answer the question as well as avoiding ethical problems.
At this stage you must be really ruthless with yourself. How viable is it? What are the threats to the study? Try some 'what if?' questions on yourself. It will be better to go back to the drawing board now, than once the project is underway.
IMPORTANT: Whatever approach you settle on, you MUST be able to justify its appropriateness to your topic and question.
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Key Questions
Does the data required to answer your question already exist or will you have to generate your own data?
Can you combine quantitative with qualitative methods? e.g. a survey which includes interviews or a case study that looks at a situation from numerous angles.
What factors may limit the scope of your research? (time, resources, etc.)
Which method(s) best suit the questions and time you have available to do this study?
Do you know the differences between types of data, and types of analysis?
Does your project have clear links between theory and practice?
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4.1.Research Design In general terms research methodology is the process of carrying out research in a formalized and scientific way. It is one manner in which one proceeds with his research design adopted. The research done is exploratory and analytical in nature. The major emphasis in studies was on discovery of new ideas and insights. Research is done as
Firstly to understand the concept of Operation management.
What is the area of Operation management?
How it is being implemented in HCL?
What is the assessment process of Operation management?
Did questionnaire survey with the sample size of 30.It was conducted for three main departments-Sales, Support and Service?
Did analysis and prepared Column charts according to the questionnaire survey response?
The assessment is then done to bring out what is the process being followed in HCL Infosystems Ltd. regarding Operation management.
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4.2.Data Collection Method a. Secondary Data - It refers to the data that has already been collected, the secondary data, which has been used to carry out this study, are as follows: * Operation assessment and development plan manual. * Company’s Internet site (www.hcl.in) * Other relevant study materials and websites.
evidence,
in the form of a
hypothesis test,
indicates otherwise — that is, when researcher
has a certain degree of confidence, usually 95% to 99%, that the data does not support the null hypothesis. It is possible for an experiment to fail to reject the null hypothesis. H0 = the null hypothesis
Assumption: The Operation Management System in HCL Infosystems is not effective.
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4.3.Analysis of PMS – Processes & Components 4.3.1.
Planning In an effective organization, work is planned in advance. This includes setting Operation expectation and goals for individual in order to channel effort towards achieving the organizational objectives. Involvinng employee in planning process is essential to their understanding of the goals of the organization, what needs to be done, why it needs to be done, and expectation of accomplishing the goals.
The PMS in terms of planning in HCL fairs around average, where they need to put planning system in a very scientific way. They need to design the entire planning session taking into consideration the aspiration and need of the people whose Operation needs to be planned.
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4.3.2.
Monitoring Designing effective feedback into a Operation management programme will improve individual and team Operation and will make your organization more effective. With effective feedback process, employees can see their progress and that motivates them to reach their Operation goals effectively.
The PMS of HCL stand in between for monitoring, where they need to develop a feedback channel into the system, which will capture the feedback in holistic way and must be part of organizational culture.
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4.3.3.
Developing Employees Providing employees with training and development opportunities encourages the good Operation, strengthen job related skills and competencies , and help employee keep up with changes in the work place.
The Employee development in HCL is fairly better, where the feedback from PMS is implemented by the way of training and development. Where the organization equips people with the skill which will be required in future.
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4.3.4.
Rating
Within the context of formal appraisal Operation requirement, rating means evaluating the employee Operation against the element and standard in an employee Operation appraisal plan and assigning a rating of record.
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The rating of Operation appraisal system in HCL is satisfactory , ratings are more objective for sales , which people in service and support don’t view as more subjective.
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4.3.5.
Action Based Operation
A Basic principle of effective management is that all behavior is controlled by its consequences. Those consequences should be both formal and informal and both positive and negative. Positive consequences include rewards and recognition.promotion.Negative consequences means may include counseling, reassigning, removing or downgrading.
The PMS in HCL fairs in terms of action based Operation. HCL administers positive and negative consequences with apt.
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4.3.6.
Analysis
If we look at the following graph, which measures the effectiveness of PMS in HCL, we find out that it is quite effective and are continually achieving the purpose of enhanced Operation.
4.3.7.
Effectiveness
Sign of a good system is that, it achieves what it has been designed to achieve. The principle of execution achieves the end with best means and delivers the best result.
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The effectiveness score of HCL is fairly high where the employees seem to be happy with current PMS system .HCL need to work for sales, where they need to design the new PMS system.
The PMS of HCL is very effective on action based Operation and developing employees, which clearly shows that as an organization HCL is highly progressive organization which continually develop people and provides negative and positive feedback.
While, it need to work in the area of planning, monitoring and rating , where they have to get into more systematic and have a separate session on planning , mid year review , and need to teach appraiser how to provide rating objectively. They need to plan and devise KRA sessions for each employee by taking an objective of getting all the KRA in Month , which need to discussed jointly and must be agreed between the Appraiser and Appraisee
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5. RECOMMENDATIONS 5.1.Recommendations
1. Though the employees are free in all respects, there should be more Employee Empowerment. 2. Employees should be encouraged to do work creatively and innovate to improve the growth rate of organizations. 3. While posting employee in different departments their personal choices should also be taken into consideration. 4. Executives must be given jobs where they are creative rather than following orders of the boss and obeying them willingly. 5. The career growth of employees should be planned on the long-term basis. 6. The (candidates) not considered for promotion, should be informed about their weaknesses so that they can work on it. 7. Separate session on planning the KRA should be taken up and must be discussed and signed jointly between the appraiser and the appraisee.
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8. HCL should introduce mid year review into the system and must rate the employee and provide them with necessary training and development.
6. CONCLUSION
HCL Infosystems Ltd. though seems to be an open organization but has a conservative approach towards its Operation management policies. There are many worker policies provided for them. Besides this, their policies are quiet rigid. There is no proper formation of grievance cell. Only basic amenities are being provided to workers. Thus the strengths and weaknesses of the organization can be listed below.
Strengths
High concern for excellence in Operation.
Continuous development of workforce.
No place for displacing personnel power.
A strong desire for making an impact on others for the well being of the organization.
A good teamwork.
A desire to change adverse situations.
Weaknesses
Under utilization of decision-making power.
Rigid hierarchy level.
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7. BIBLIOGRAPHY Web sites
www.google.com
www.hrmguide.net
www.managementscience.org
www.londonexternal.ac.uk
www.hr.com
www.wikipedia.com
https://en.wikipedia.org/wiki/Operations_management
http://www.iomnet.org.uk/Home/WhatisOperationsManagement
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