Chapter 2- Solve Problem Related to Work Activities (PRW)

Week 4

Objectives:

1. Demonstrate an understanding of the principles and concepts in solving problems in the

workplace, including the application of problem solving techniques and in resolving the
root cause of problems.
2. Independently solve problems in the workplace, including the application of problem
solving techniques.
3. Identify the problem/s.
4. Determine fundamental causes of the problem
5. Determine corrective action
6. Provide recommendations.

Chapter 2 – Lesson 2 – Relevant equipment and operational process

What is operation management?

 It is the management of processes that transform inputs into goods and services that
add value for the customer.
 It is a multi-disciplinary field that focuses on managing all aspects of an organization's
operations.
 It focuses on the function of providing the product or service. Their job is to assure the
production of a quality good and/or service. They apply ideas and technologies to
increase productivity and reduce costs, improve flexibility to meet rapidly changing
customer needs, assure a safe workplace for all employees, and when possible assist in
assuring high-quality customer service.
 It is concerned with the design, management, and improvement of the systems that
create the organisation's goods or services. The majority of most organisations’ financial
and human resources are invested in the activities involved in making products or
delivering services. Operations management is therefore critical to organisational
success.
 It focuses on carefully managing the processes to produce and distribute products and
services. A great deal of focus is on efficiency and effectiveness of processes.
Therefore, operations management often includes substantial measurement and
analysis of internal processes.

What is system?

 It is an organized collection of parts that are highly integrated to accomplish an overall

goal. The system has various inputs, which go through certain processes to produce
certain outputs, which together, accomplish the overall desired goal for the system.
 It is a set of things working together as parts of a mechanism or an interconnecting
network
  It is a set of principles or procedures according to which something is done; an
organized scheme or method.
 It a system is an organized collection of parts (or subsystems) that are highly integrated
to accomplish an overall goal.
 It a system is usually made up of many smaller systems, or subsystems. For example,
an organization is made up of many administrative and management functions,
products, services, groups and individuals. If one part of the system is changed, the
nature of the overall system is changed, as well.

What is operation system?

 It is a term used in data warehousing to refer to a system that is used to process the
day-to-day transactions of an organization. These systems are designed in a manner
that processing of day-to-day transactions is performed efficiently and the integrity of the
transactional data is preserved.
 It is a procedure that tracks transactions and business events by using business process
documents such as a purchase order, invoice, travel reservation, or concert ticket. All of
these process documents have reference identifiers such as order, invoice, and
reservation numbers that are unique and used as primary keys to entities in their
supporting operational schemas.
 It is an integrated set of requirements, responsibilities and business processes that will
continuously improve performance and help you achieve your goals
 An operations system includes the ff;
 Inputs - such as expertise, best practices, funding, equipment, facilities and
technologies, as well as the customer's feedback and the overall
organization's strategic priorities
 Processes - such as planning (capacity, product and service design,
production, facilities, jobs, inventory, quality control, etc.) and managing
productivity to produce high-quality products and services
 Outputs - high-quality products and services
 Outcomes - very satisfied customers

What is Operational Process?

 These are processes which define the primary activities that a company needs to
perform in order to successfully execute its business
 It is an organized set of activities or tasks that produces a specific service or product
 is to ensure that resources are utilized in the most conservative manner possible
 It transforms inputs to outputs.
o Input
 are things like raw materials, labour, equipment, information, and money
 Are required by every process to perform work.
o Output - are products or services, as well as the level of customer satisfaction
people have after they’ve purchased from you.
  These processes are different for retail, manufacturing, and service businesses – but the
underlying idea is the same for all businesses, big and small.

Process Categories by type of interaction

1. Human-centric Processes
 Processes that require the involvement of people (who will control, check,
approve or assign tasks).

2. System-centric Processes
 Processes that require integration and/or interaction with external applications (to
import, use or export data for analysis etc.).

Process Categories by importance

1. Primary Processes
 Primary Processes (or core operational business processes) are all the
fundamental activities executed by an organization as an effort to accomplish its
mission. Those processes are customer oriented as their main characteristic is
that they directly add value to the customer.

Examples:
– Sales Logistics
– Operations
– Marketing
– Services

2. Support Processes
 are support oriented which means that they provide support to the execution and
completion of the core processes. Although this kind of processes does not
generate direct value to customers, they are also very important as their
existence in the operation’s lifecycle can be strategic for the effective execution
of the core processes.

Examples:
– Administration
– Information Systems
– HR Management
– Technology Development
– Assets

3. Management Processes
 are a part of the general strategic management of the business operations. They
are also not customer-oriented and they have one single goal: to ensure that
core and support process are meeting their objectives.

Examples:

– Planning
– Controlling
 – Organizing
– Analysis & Evaluation

4. Quality Management Processes

 Quality Management Processes analyze, control and improve all kind of business
process to achieve maximum effectiveness in decision making of a business
environment.

Examples:

– Quality Control
– Quality Assurance
– Process Improvement

Identify your Operational Business Processes

 It is a tricky procedure, since giving attention and focusing on details is demanding. You
can define these processes by combining the inputs, outputs, sequential activity and an
objective in order to manage and improve business processes.

1. Evaluate inputs and outputs

 The first step should be the evaluation of inputs and outputs. Your inputs are all
the resources for your company such as materials, knowledge and human types,
whereas outputs are deployed to cut down on the extended use of your potential
resources. The difference between inputs and outputs lies is in the cost. The
more you use the inputs the higher the cost will be. On the other hand, the cost
of the outputs declines when their use increases.

2. Asking for feedback

 Secondly, find the best practice between hundreds by asking for feedback. Poll
your employees to identify needs or procedures’ description or ask your
customers for their opinion. Are they satisfied with your services? Do they feel
that something is missing from your operational business processes?

3. Make your Process Analysis

 Continue with analysing your processes. Check the potential risks, such as extra
taxes or capital costs. Moreover, think if you are producing your product/ service
 with the minimum cost in the minimum time. Have you managed error rates and
ROI?

4. Analyse your results

 Finally, measure data before starting operational business processes’
implementation and analyse the results. Are you satisfied enough with the
results? If the answer is “Yes”, then start applying your processes and set it as
the manual one.

Wh
1. at I you experienced managing a small business?
Have
2. Have you managed a team or organization?
3.hav
How did you evaluate your inputs and outputs?
4. What system did you use?
e
lear
IDENTIFICATION. Write the Correct answer on the space provided.

ned
__________1. It require integration and/or interaction with external applications (to import, use
? Or export data for analysis etc.).
__________2. this kind of processes does not generate direct value to customers
__________3. control and improve all kind of business process to achieve maximum
effectiveness in decision making of a business environment.
__________4. These processes are customer oriented as their main characteristic is that they
directly add value to the customer.
__________5. It is therefore critical to organisational success.
__________6. It is a set of things working together as parts of a mechanism or an
interconnecting network
__________7. It includes planning (capacity, product and service design, production, facilities,
jobs, inventory, quality control, etc.) and managing
__________8. It is a tricky procedure, since giving attention and focusing on details is
demanding.
__________9. It identifies needs or procedures’ description or ask your customers for their
opinion
__________10. It measure data before starting operational business processes’ implementation
and analyse the results
__________11. These are support oriented which means that they provide support to the
Execution and completion of the core processes
__________12. these are products or services, as well as the level of customer satisfaction
people have after they’ve purchased from you.
__________13. It is an integrated set of requirements, responsibilities and business processes
that will continuously improve performance and help you achieve your goals
__________14. It is an organized collection of parts that are highly integrated to accomplish an
overall goal.
__________15. It focuses on carefully managing the processes to produce and distribute
products and services