Operations-Management 1-4module cc101 Ccdi-1 PDF

COMPUTER COMMUNICATION DEVELOPMENT INSTITUTE
SIKATUNA ST., OLD ALBAY, LEGAZPI CITY

TEL. NO. 7421570
MODULES FOR
ONLINE LEARNING MANAGEMENT
SYSTEM
(A.Y 2020 – 2021)
Subject:
Operations Management
Prepared by:
Albin M. Ranoco
Instructor
Noted by: Approved by:
Engr. Jay A. Dadea, MIT Ramon Severo. Ll. Moraleda. LLB

School Dean Administrator
Bachelor of Science in Information Technology/Information System & Computer Science Department
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TABLE OF CONTENTS
Title Page ……………………………………………………………………………………………………………………………1
Course description ……………………………………………………………………………………………………………..3
Learning outcome ……………………………………………………………………………………………………………..3
Pre-test ----------------------------------------------------------------------------------------------------------- 3
Week 1 Operations Strategy…………………………………………………………………………………………….4
Core Operational Strategy Areas …………………………………………………………………………….5

Tips for Operations Strategies and Tactics ……………………………………………………………….5
Operations Strategy Examples …………………………………………………………………………….6
Types of Operations Strategies …………………………………………………………………………….6
Operations Strategy Framework …………………………………………………………………………….6
Steps to Write a Strategic Operations Plan……………………………………………………………….7
Tips on Writing a Strategic Operations Plan……………………………………………………………..8
What Services Do Operations Strategy Consultants Offer? ……………………………………..8
Week 2 Decision Analysis…………………………………………………………………………………………………9
Decision Analysis (DA) ………………………………………………………………………………………9

Understanding Decision Analysis (DA)…………………………………………………………………9
Examples of Decision Analysis……………………………………………………………………………. 9
A Step-By-Step Explanation of the Decision Analysis Process………………………………9
Reflections …………………………………………………………………………………………………………………….10
Self-check ….…………………………………………………………………………………………………………………..11
References…………………………………………………………………………………………………………………… 12
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Course Description: This course provides a general introduction to operations management (OM), or
the production and delivery of goods and services. Students will learn to observe and analyze an
organization from a systems- or process-perspective. From this lens, students will learn to design, operate,
and improve the systems that deliver goods and services through OM tools such as process flow diagrams,
lean management, and decision trees. Ultimately, this course aims to familiarize students with the major
operational issues that confront managers, and provide them with the basic language, concepts, insights,
and analytical tools to deal with these issues.
Learning Outcomes/Objectives :
At the end of the session, the student is expected to:

1. Identify the different strategic operations of some companies by using the steps in decision
making.
2. Demonstrate the process of giving the right decisions in uncertain problem in the company.
3. Reflect on how you make a decision in your life.
Pre-test
In your experience, when you’re working on a team project, do you make the most decisions or do you
prefer to step back and follow someone else’s guideline?
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Information Sheet 1.0
Week #1
Operations Strategy
The activities that produce and deliver a product or service. Operations management is the
profession that encompasses planning, implementing, and supervising that production. Some people
think of operations as the daily tasks and tactics that transform materials or actions into a product or
service, but operations strategy goes a level higher to determine operations approaches and goals.
example, operations could include the following: obtaining and transporting raw materials
(metal, rubber, and plastic, etc.), dealing with suppliers, conducting and measuring the steps that
transform materials into parts, managing the people, machines, and processes, assembling the vehicles
efficiently, maintaining quality and troubleshooting problems, delivering car orders on time, and
managing and continually optimizing the whole value chain. In addition, operations could play a role in
product design, plant capabilities and design, and production or sales forecasting.
The seven main functions of operations are:
 Product management
 Supply chain
 Inventory
 Forecasting
 Scheduling
 Quality
 Facilities planning and management
The Role and Purpose of Operations Strategy
Operations strategy is only one part of overall business or corporate strategy, but it’s crucial for
competitiveness and success. Without a strong operations strategy, companies fail to keep up with
changing markets and lose out to more strategic competitors. Many companies, big and small, have
struggled with operations strategy, often lacking in comparison with technologically savvy competitors.
For example, Amazon, while constantly advancing technology such as drones for delivery, has pushed
aside myriad brick-and-mortar retailers.
To be effective and competitive, all parts of a company must work together. All departments should
contribute to the company mission and have strategies underlying the overall corporate/business
strategy. In addition to having an operations strategy, they should also have functional area strategies in
finance, IT, sales, marketing, human resources, and possibly other departments, depending on the type
of business.
“An operations strategy should guide the structural decisions and the evolution of operational capabilities
needed to achieve the desired competitive position of the company as a whole,” says Tim Laseter in his
article "An Essential Step for Corporate Strategy.”
These days, however, it’s not enough to simply follow best practices. Companies must innovate, not just
play catch-up to practices already mastered by competitors.
Authors Steven C. Wheelwright and Robert H. Hayes categorized types of organizations based on a
company’s attitude toward operations:
 Stage 1, Internally Neutral: The operations function is reactive and viewed as a necessary evil.
 Stage 2, Externally Neutral: The operations function adopts best practices and tries to match the
competition.
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 Stage 3, Internally Supportive: The operations function tries to provide support for the overall
business strategy.
 Stage 4, Externally Supportive: The operations function provides competitive advantage for the
company, and sets the industry standard.
Core Operational Strategy Areas
Way to categorize core strategies:
 Corporate: Overall company strategy, driving the company mission and interconnected
departments
 Customer-Driven: Operational strategies to meet the needs of a targeted customer segment
 Core Competencies: Strategies to develop the company’s key strengths and resources
 Competitive Priorities: Strategies that differentiate the company in the market to better provide
a desired product or service
 Product or Service Development: Strategies in product design, value, and innovation
A company’s key success factors (KSFs) pertain to competitiveness, such as a company’s attributes,
resources, capabilities, and competencies. By identifying these, a company can focus on the issues that
matter most and measure them with key performance indicators (KPIs).
Another way to frame strategic areas is by these “distinctive” competencies:
 Price
 Quality, such as performance, features, aesthetics, and durability
 Service
 Flexibility
 Tradeoffs, or competing on one or two distinctive competencies at the necessary expense of
others
Author Terry Hill used the terms order qualifier and order winner. An order qualifier means a company or
product has a characteristic that allows it to be a viable competitor. An order winner is a characteristic
that causes customers to choose it over competitors.
Tips for Operations Strategies and Tactics
Specific strategies depend on your specific business. Here are strategy tips that apply to many companies,
whether they are producing goods or services.
 Take a Global View: See how others worldwide are providing better goods and services. Learn
from them, and see how you might compete and innovate in a core competency. Also, improve
your supply chain by looking globally, and employ global talent if remote work is an option.
 Have a Strong Mission Statement: Focus your efforts with a mission statement that truly defines
your goals and guides your business approach. Tie your overall business strategy and operations
strategy into it.
 Gain Competitive Advantage with Differentiation: Develop a point of differentiation and a
unique value proposition, and consistently innovate and build strategies around them. Don’t just
use best practices. Exceed them, and leapfrog the competition.
 Gain Insights from a SWOT Analysis: Analyze your company’s strengths, weaknesses,
opportunities, and threats as a catalyst to strategy.
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 Track Progress: Develop strong analytics and KPI dashboards to measure and optimize your
operational efforts.
Operations Strategy Examples
With the rapidly changing marketplace in recent years, some companies have excelled in part due to their
strong operations strategies. Here a few examples:
 Amazon: Once known for books, Amazon is now known as the go-to platform for online shoppers
of any product. Its distribution network is widely touted and even includes experiments with
drone delivery.
 Apple Computers: Apple is long recognized in operations circles for its operational excellence and
supply chain management.
 Walmart: This retailing giant managed to undercut many competitors on the price and variety of
a wide range of products.
 FedEx: FedEx made speed of delivery its calling card, achieving it with excellent operations.
 IKEA: The world’s largest furniture retailer undercut many home goods competitors on price and
variety with its warehouse concept.
Types of Operations Strategies
We can broadly categorize major operations decisions as structure or infrastructure. Structure means the
physical attributes of operations, while infrastructure refers to the people, systems, and software.
Structural decisions include facilities, capacity to produce, process technology, and supply network. An
example of a decision many companies face is how much to outsource vs. handle in-house. The structural
decision on whether to build or expand a facility is an expensive one that could affect the company for
years to come.
Infrastructure decisions include planning and control systems, quality management, work organization,
human resources, new product development, and performance management of employees.
Operations strategy has a vertical relationship with overall business/corporate strategy, and it has
a horizontal relationship with other functional strategies, such as strategies for marketing, sales, finance,
IT, and HR.
Another way to categorize operations strategies is top-down or bottom-up. That is, operations strategies
might come down from business strategy, supporting it. Or, strategies might arise over time as a pattern
of decisions within operations.
Also, operations strategy can be market-led or operations-led. When it’s market-led, operations strategy
derives from a response to the market conditions. When it’s operations-led, excellence in operations in a
particularly savvy company drives the strategy.
Operations Strategy Framework
Operations strategy provides the ability to improve products, services, and processes. To develop the
strategy, consider the business/corporate strategy and a market/needs analysis. Then, consider the
competing priorities of cost, quality, time, and flexibility — and how you’ll handle them.
To exist in the market, you need to have acceptable quality, price, reputation/years in business, and
reliability. To actually win more orders in the market, the factors change a bit. You need winning quality,
price, speed of delivery, consistency of delivery, and reliability.
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These factors combine like this to provide an operations strategy framework, as outlined by lean
transformation consultant Anand Subramanian:
 We start with the business/corporate strategy, laying out objectives, such as return on
investment (ROI), profit, and growth.
 We move to marketing strategy, where we consider factors such as customer segments,
standardization vs. customization, innovation level, and leader-vs.-follower alternatives.
 Next comes order-winning criteria such as quality, price, delivery speed, design, and after-sales
support.
 Last comes operations/manufacturing strategy, which includes choices of structure (such as
facilities and process) and infrastructure (such as planning/control systems and work
organization). Feeding into that strategy are the elements of product/process design, inventory,
quality management, human resources and job design, and maintenance.
In a similar vein, Slack and his co-authors outlined five performance objectives in their 2004
book, Operations Management:
 Cost: Ability to compete on low price

 Quality: Ability to compete on high quality
 Speed: Ability to compete on fast delivery
 Dependability: Ability to compete on reliable delivery
 Flexibility: Ability to compete with new products or services, wide selection, and timing
Authors Henry Mintzberg and James A. Waters wrote about how organizations form strategies in their
1985 book, Of Strategies, Deliberate and Emergent. Organizations start with an intended strategy, but
only some of that is realized through deliberate strategy. Some intentions are left unrealized, such as
those that didn’t adequately consider operational feasibility. Meanwhile, emergent strategies develop
as patterns of actions taken in the organization — most often by the operations department. The
deliberate strategies and emergent strategies feed into the realized strategies. This process shows the
importance of operations details in the big picture.
Steps to Write a Strategic Operations Plan
Below are 15 straightforward steps for writing a solid strategic operations plan:
1. Choose the Right People: Select those with the right knowledge to compile the operations
strategy plan, sometimes just called an operations plan. Some businesses provide more strategy
than others in their ops strategy plan.
2. Study the Overall Business Strategy Plan: Sometimes the operations strategy plan is included as
a section of the overall business plan. In any case, the ops strategy plan should align with the
business plan.
3. Develop Measurable Operations Goals: These should match up with the business plan. Don’t do
KPIs in a vacuum. Ensure that stakeholders have a say and agree to the numbers.
4. Gather Key People to Brainstorm Strategies: Work on strategies (approaches to reach goals) and
underlying tactics (specific steps and tasks to implement the strategy).
5. Outline Your Major Points to Maintain Your Plan’s Focus: Use headings, subheadings, and
bulleted lists for clear organization. These will carry over to your fully written plan, providing clear
structure and easy scanning. Your plan might have elements of a SWOT analysis: strengths,
weaknesses, opportunities, and threats.
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6. Keep Your Audience in Mind: Write so that they will understand it. The plan is all about
communication.
7. Include an Index: Use this for easy scanning of the plan and its sections.
8. Use an Appendix: Use this for supplementary material or for items too detailed for the whole
audience.
9. Include the Operations Budget: Include it, or cross-reference or cross-link it in your operations
strategy plan. Show the rationale for key budget items, especially large expenses.
10. Include a “Stage of Development” Section: Give an overview of the current state of operations
and what you’re trying to accomplish and improve. Provide a high-level view of how you make
your product, your supply chain, and quality control. Identify risks and how you’ll monitor them.
11. Include a Production Process Section: This goes into detail on the daily production process, and
demonstrates that you’ve worked out the necessary specifics. For manufacturing, you would list
plant details, equipment, assets, materials, special requirements, inventory, and quality control
steps. For a startup, you might include prototype and testing details.
12. If Necessary, Divide Other Sections by Product Family: You can also divide them by product,
service, or different areas of operations. You might include overall strategies and tactics and/or
consider them by section.
13. Use Flowcharts: Use these images and other graphics to make it more easily understandable.
14. Build in Flexibility: Explain how you might adjust operations based on a changing market.
15. Regularly Monitor Your Goals: Do this to see how your strategies and tactics are working. Adjust
as necessary to keep ahead of the curve. A strong operations strategy plan is key to your success.
Tips on Writing a Strategic Operations Plan
1. Write the plan based on priority products. All products aren’t the same. For example, if you’re thinking
of expanding into Canada, consider what percentage of primary products are represented there.
2. Know your current and future priority customers. Different departments such as operations, marketing,
and sales may not agree on priorities.
3. Use a matrix of priority products and priority customers to clarify opportunities and decisions.
4. Decide whether to buy or build. Is it something you should outsource? You don’t need to know
everything. You just need to know where to get it.
Robin Speculand provides these tips:
1. Don’t wait for perfection. There’s no such thing. As soon as you roll out your operations plan, things
change. Once you get 80 percent of your plan, start to roll it out.
2. Be clear on what’s actionable. You need to be able to explain what action is taking place across the
division.
3. Make sure you have clear measures in place. Every objective must have a measure.
What Services Do Operations Strategy Consultants Offer?
Consultants offer a wide range of services in functional strategy areas like operations as well as overall
corporate/business strategy. Among other things, they can help a business do the following:
 Map and assess their operations

 Improve alignment with the overall business and with other departments
 Create strategic plans
 Perform a SWOT analysis (strengths, weaknesses, opportunities, and threats)
 Advise on better technology
 Develop benchmarking, KPIs, and goals
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 Streamline operations for efficiency and cost reduction

 Implement strategic plans and new ways of doing things
Week 2
Decision Analysis (DA)

Systematic, quantitative, and visual approach to addressing and evaluating the important choices
that businesses sometimes face. Ronald A. Howard, a professor of Management Science and Engineering
at Stanford University, is credited with originating the term in 1964. The idea is used by large and small
corporations alike when making various types of decisions, including management, operations, marketing,
capital investments, or strategic choices.
Understanding Decision Analysis (DA)
Decision analysis uses a variety of tools to evaluate all relevant information to aid in the decision-
making process and incorporates aspects of psychology, management techniques, training, and
economics. It is often used to assess decisions that are made in the context of multiple variables and that
have many possible outcomes or objectives. The process can be used by individuals or groups attempting
to make a decision related to risk management, capital investments, and strategic business decisions.
Examples of Decision Analysis
 Financial demographics, local competition, and preferred shopping habits of the area population.
All of these items can be put into a decision-analysis program and different simulations are run
that help the company make a decision about the shopping center.
 Patent for a new product that is expected to see rapid sales for two years before becoming
obsolete. The company is confronted with a choice of whether to sell the patent now or build the
product in-house. Each option has opportunities, risks, and trade-offs, which can be analyzed with
a decision tree that considers the benefits of selling the patent verses making the product in-
house.
A Step-By-Step Explanation of the Decision Analysis Process
Real-life decision analysis is a complex exercise, and usually requires the deployment of various
mathematical models and statistical techniques. Follow these basic steps:
1. Create a model structure. While there is

no hard and fast rule on the best model
structure, decision trees, influence diagrams,
and payoff matrices find common use.
2. List each possible alternative in the
model structure. Possible alternatives are a finite
number of possible future events, denoted as
“States of Nature” identified and grouped in sets
of mutually exclusive events. Represent
uncertainties through probabilities and
probability distributions.
3. Assign numerical values to the
probability of the action taking place, and the money value expected as the outcome. Assign value
weights for measuring the trade-off objectives, and the risk preference to lend clarity.
4. Analyze for payoffs, or expected returns. Different combinations generate different payoffs.
Represent the outcome for each combination in a table, with positive (+) value for net revenue,
income, or profit, and negative (-) value for expense, cost or net loss.
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5. Consider the payoff of each combination together with the sensitivity of the outcome, the weighted
utility for key probabilities, and the risk tolerance for the combination to select the most preferred
alternative.
Week 3
Consulting and Reengineering
What is Operations Consulting?
Operations consulting: assisting clients in developing operations strategies and in improving

production
An effective job of operations consulting results in an alignment between strategy and process
dimensions that enhances the business performance of the client
The Management Consulting Industry
Can be categorized in three ways:

 By size Most consulting firms are small
 By specialization Frequently characterized as either in strategic planning or tactical analysis and
implementationIn-
 house or external
Finders: members who find new business
Hierarchy
 Finders: members who find new business

 Minders: managers of project teams
 Grinders: the consultants who do the work
 Typically work in project teams Selected according to client needs
Economics of Consulting Firms
David H. Maister’s article on consulting draws an analogy between the consulting firm and a job
shop operation
Three types of jobs:
 Brain surgery: requiring innovation and creativityGray

 hair: requiring a great deal of experience
 Procedures: requiring activities similar to other existing projects
Where Operations Consulting is Needed


Plants
 Adding and locating new plants
 Expanding, contracting, or refocusing facilities
 Parts
 Make or buy decisions
 Vendor selection decisions
 Processes
 Technology evaluation
 Process improvement and reengineering
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Where Operations Consulting is Needed Continued
o People
 Quality improvement
 Setting/revising work standards
 Learning curve analysis
o Planning and Control Systems
 Supply chain management

 MRPShop floor control
 Warehousing and distribution
When are Operations Consultants Needed
 When faced with a major investment decision

 When management believes it is not getting the maximum effectiveness from the organization’s
productive capability
Stages in Operations Consulting Process
1. Sales and proposal development

2. Analyze problem
3. Design, develop and test alternative solutions
4. Develop systematic performance measures
5. Present final report
6. Implement changes
7. Assure client satisfaction
8. Assemble learnings from the study
Practical Guidelines for Conducting Consulting Projects
 Under promise and over deliver

 Get the team mix right
 This rule is true
 Do not analyze everything
 Use the elevator test
 Pluck the low-hanging fruit
 Make a chart every day
 Hit singles
Practical Guidelines for Conducting Consulting Projects Continued
 Do not accept “I have no idea”

 Engage the client in the process
 Get buy-in throughout the organization
 Be rigorous about implementation
Operations Consulting Tool Kit
 Problem definition
 Data gathering
 Data analysis and solution development
 Cost impact and payoff analysis
 Implementation
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Problem Definition Tools
 Issue trees
 Customer surveys
 Gap analysis
 Employee surveys
 Five forces mode
Organizational charts
 Data Gathering Tools

 Plant tours/audits
 Work sampling
 Flowcharts
 Organizational charts
Data Analysis and Solution Development Tools
 Problem analysis
 SPC tools
 Bottleneck analysis
 Computer simulation
 Statistical tools
Cost Impact and Payoff Analysis Tools
 Decision trees
 Balanced scorecard
 Stakeholder analysis
Responsibility charts Project management techniques
 Implementation Tools
 Responsibility charts
 Project management techniques
Business Process Reengineering (BPR)
 Reengineering: the fundamental rethinking and radical redesign of business processes to

achieve dramatic improvements in critical, contemporary measures of performance such as
cost, quality, service, and speed
 As a engineering discipline, reengineering can be applied to any process in manufacturing and
service businesses, education, and the governmentBusiness process reengineering (BPR) is
focused on reengineering business processes
Principles of Reengineering
Rule 1: Organize around outcomes, not tasks

Rule 2: Have those who use the output of the process perform the process
Rule 3: Merge information-processing work into the real work that produces the information
Principles of Reengineering Continued
Rule 4: Treat geographically dispersed resources as though they were centralized

Rule 5: Link parallel activities instead of integrating their results
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Rule 6: Put the decision point where the work is performed, and build control into the process
Rule 7: Capture information once and at the source
Guidelines for Implementation
 Codification of reengineering
 Clear goals and consistent feedback
 High executive involvement in clinical changes
Week 4
Information Sheet 4.0
Process Analysis
What is business process analysis?
Process analysis is the action of conducting a review and gaining an understanding of business
processes. It involves reviewing the components of a process, including inputs, outputs, procedures,
controls, actors, applications, data, technologies and their interactions to produce results.
The analysis includes the evaluation of time, cost, capacity and quality of processes, being able to
use static or dynamic visual models of the process, data collection from the beginning to the end of
activities, analysis of value chain, end-to-end modeling and functional decomposition.
Process Analysis Techniques
1) – Identify the processes
The first step is to identify which processes need improvement. These are the ones you need to study and
understand. It’s important to always think about the goals of your business, and what processes
contribute to that goal. Prioritize them.
But how do you identify which are the most important processes? They are those that most contribute to
achieving the organizational goals and add more value to the final delivery of the processes.
A business analysis methodology suggested by Peter Drucker, can help you understand these strategic
company objectives, and then define which processes need to be improved.
How to analyze business processes with Peter Drucker’s 5 Questions
1. What is our mission?

2. Who is our client?
3. What does the customer value?
4. What are our Key Results?
5. What’s our plan?
1- What is our mission?
Without understanding the reason for the company’s existence, it won’t be possible to determine which
processes are fundamental for it to fulfill its mission. Processes are changeable, the company mission
endures and must be attained through them.
Identify processes without which the mission would not be fulfilled, they should be on your list.
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2- Who is our client?
Remember that despite their great importance, it’s not just the end customer that should be part of this
business process analysis technique.
After all, if the company needs to deliver the highest possible value – perceived value – to the end
customer, with the goal that they pay for that delivery an amount that exceeds the operating costs, this
is all in order for the company to make a profit.
Profit for whom? For the shareholders! So there are many more stakeholders which must be considered
and accounted for at this time.
It’s also important to remember that there are for-profit organizations and that, in this case, the end
customer may be society as a whole, like a specific community, among others.
Identify the processes that add the most perceived value to your customers (of all types) and include in
your list of processes which should be prioritized.
3- What does the customer value?
One way of identifying what customers value is to thoroughly do market research.
But, follow the details in the previous question: value perception! This is very much related to the
positioning of the company. But remember: only an accurate collection of information can give you the
right answers to this question.
4- What are our Key Results?
At this stage of business process analysis, we’re talking about KPIs (Key Performance Indicators).
You need to check which processes are not meeting the stated goals and why. These, of course, should
also be on your list.
Here are some posts that might help you on this subject:
 Get to know 8 Process Performance Indicators (KPIs)

 How to create business process performance indicators
5 – What’s our plan?
Finally, what actions were defined by the organization to achieve its strategic objectives? All processes
that are linked to these actions would fill your list.
So, your list might start to get enormous, right? The truth is that good business process analysis techniques
recommend that you don’t lean on too big of an objective.
Taking into account each of these criteria, choose 4 or 5 at most priority processes, or maybe even fewer
processes if they’re very complex.
Check out this infographic that illustrates Drucker’s 5 questions, one of the most well-known techniques
of business process analysis:
2 )– Establish the team
Establish a team to help you with the business process analysis. The best people are those who already
work with the process on a daily basis. They know the steps, the information, the goals and, most
importantly, the flaws and bottlenecks of the process.
Some effective ways of interacting with the team are:
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 Interviews
 Brainstorming
 meetings
When assembling your team, it’s very important to consider which professionals will effectively help you
analyze business processes.
Therefore, in addition to qualified personnel who know BPM, remember to also involve:
 Leaders who are related to the chosen processes

 Employees who are motivated by the possibility of improvement
 A supporter of the process, preferably from top management, to empower the team
 Front-line employees, who deal with the process on a day-to-day basis
3 )– Create a business process diagram / flowchart
This process analysis technique is very useful, and can give you a real insight into how the process
happens. With standard symbols and tools, you can represent the process in a clear and practical way.
By doing this, it becomes much easier to see what’s right and what’s not working, and what are the
bottlenecks and improvement points.
Building a process diagram is one of the fundamental steps of the business analysis methodology, check
out a step-by-step plan on how to do one:
Drawing a process diagram step by step:
1. Define those who are responsible: process diagrams define responsibilities by means of lanes,
which are areas of the diagram in which the tasks of a team or position will be represented.
You’ll understand this better by reading the post we indicated at the end of this step by step
plan.
2. Include a process initiator event: every process starts with some event, it can be an email sent
by a client upon the arrival of a previous process part, for example.
3. Define tasks and their relationships: in each lane you should indicate the tasks that need to be
done, such as finding the part or answering the email request. Also indicate, through linking
elements, which task is next and who is responsible.
4. Signal the end of the process: in the same way that one event marks the beginning of the
process, another marks its end. It can be something like “request fulfilled” or “part delivered”.
4 – Define the AS IS process
With all the above information, define how the process happens now. It’s very important not to get
ahead, and stick with the actual situation, no matter how it is.
That is: understand how the process is taking place at this time, not how you would like it to be in the
future.
To do this, in this stage of business process analysis, you have to follow 3 main steps:
1. Interviews with the actors: is intended to represent the activities of the process, its sequence,
who is responsible, whether there is a need for permissions in other instances of the process
and if some new information is generated.
2. Analyze the process model: find out what the purpose of the process is, what performance
metrics are used, whether there are customer interactions, whether there are handoffs (passing
work or information from one person, team or system to another), what business rules are
applied, if there are bottlenecks, how the process is controlled, and other points.
3. Documentation: at this point, everything that has been analyzed must be properly reported in
appropriate documents so that the consultation and presentation can be made clearly, following
the defined notations.
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Read more: AS IS process mapping.
5 – Specify improvement points
You may already know, but it’s important to determine what are the necessary and possible
improvements. Keep in mind the strategic goals of the company in doing so, since all processes and
actions must have them as objectives.
Usually the points of improvement focus on the following aspects:
 Interaction with customers: these moments must always be perfect, especially with external
clients
 Activities that add high perceived value: these must always occur in the best way, in order to
deliver the highest possible perceived value to the final customer
 Handoffs: every time there’s an exchange of information or tasks between person and/or
system there’s a risk of errors occurring. The more handoffs there are, the more risk there is.
 Business Rules: these are standard procedures that facilitate the flow of the process and
prevent the loss of time in decision making, because they are clear and objective rules to define
how the process should run.
 Bottlenecks: find out why the process stops flowing at certain points and set ways of how to
avoid it.
6 – Model the process TO BE
Gather all the information and model the new process the way you want it to be and align it with the
company and its goals and objectives.
In fact, this step consists of designing the new improved process, one that will achieve the goals of the
organization more efficiently and effectively.
In the same way that we created a process diagram in the AS IS step, the TO BE step will also have one
as well as all the necessary documentation to transmit this information and knowledge when necessary.
Reflections
Directions: answer each questions by using the above statement.
1. Describe a time when you had to make an immediate decision on a critical issue.
2. While working on a team project, you notice that some of your coworkers are falling behind. What
would you do to help your team meet the deadline?
3. How would you deal with a demanding external stakeholder who keeps changing requirements
about a specific project you’re working on?
4. You want your manager to buy a new software that will help your work and you’re trying to choose
between two options. The first is more expensive, but has better reviews and the second has fewer
features, but is within budget. Which one would you recommend and how?
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Self-check
Directions: Reach each questions carefully choose the best letter that corresponds to your answer.
1. It is systematic, quantitative, and visual approach to addressing and evaluating the important
choices that businesses sometimes face.
a. Decision analysis c. Critical analysis
b. Operations management d. Risk analysis
2. It is influence diagrams, and payoff matrices find common use.
a. Pay off matrices c. Decision trees
b. Expected returns d. Risk tolerance
3. This will explain how you might adjust operations based on a changing market.
a. Use flow chart c. Build in flexibility
b. Regular monitor your goal d. Include production process section
4. It is use this for easy scanning of the plan and its sections.
a. Keep your audience in mind c. Include an index
b. Use an appendix d. Developed an operations goals
5. Which includes choices of structure (such as facilities and process) and infrastructure (such as
planning/control systems and work organization).
a. Last come operations c. Next-come order winning criteria
b. We start the business d. We move to marketing strategy
6. It provides the ability to improve products, services, and processes. To develop the strategy,
consider the business/corporate strategy and a market/needs analysis.
a. Operational strategy c. Infrastructure strategy
b. Reliability d. None of the above
7. This is a retailing giant managed to undercut many competitors on the price and variety of a wide
range of products.
a. Amazon c. Walmart
b. Apple computers d. FedEX
8. It is develop strong analytics and KPI dashboards to measure and optimize your operational efforts.
a. Track progress c. Gain insight from SWOT analysis
b. Take a global view d. Have a strong mission statement
9. It is an overall company strategy, driving the company mission and interconnected departments
a. Corporate c. Customer-driven
b. Core competencies d. Competitive priorities
10. This is strategies in product design, value, and innovation.
a. Product service development c. Corporate
b. Competitive priorities d. Core competencies
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TEL. NO. 7421570
References
Internet sources:
1. https://www.managementstudyguide.com/waiting-line-management.htm
2. https://www.google.com/search?q=process+analysis+meaning&oq=process+analysis&aqs=chro
me.3.69i57j0l5.8161j0j8&sourceid=chrome&ie=UTF-8
3. http://www.businessdictionary.com/definition/process-analysis.html
4. https://managementhelp.org/operationsmanagement/
5. https://www.smartsheet.com/operations-strategies-definitions-process-plans-pro-insights
6. https://www.investopedia.com/terms/d/decision-
analysis.asp#:~:text=Decision%20analysis%20(DA)%20is%20a,originating%20the%20term%20in%
201964.
7. University of Baltimore. “Tools for Decision
Analysis.” https://home.ubalt.edu/ntsbarsh/opre640a/partix.htm#rwida. Retrieved
May 27, 2011.
8. https://www.brighthubpm.com/project-planning/118413-use-decision-analysis-as-a-tool-to-
improve-the-quality-of-your-decisions/
9. https://slideplayer.com/slide/13123932/
10. https://www.superoffice.com/blog/customer-service-queues/
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COMPUTER COMMUNICATION DEVELOPMENT INSTITUTE

SIKATUNA ST., OLD ALBAY, LEGAZPI CITY

Noted by: Approved by:

Engr. Jay A. Dadea, MIT Ramon Severo. Ll. Moraleda. LLB

Bachelor of Science in Information Technology/Information System & Computer Science Department

Title Page ……………………………………………………………………………………………………………………………1

Course description ……………………………………………………………………………………………………………..3

Learning outcome ……………………………………………………………………………………………………………..3

Week 1 Operations Strategy…………………………………………………………………………………………….4

Core Operational Strategy Areas …………………………………………………………………………….5

Week 2 Decision Analysis…………………………………………………………………………………………………9

Decision Analysis (DA) ………………………………………………………………………………………9

Bachelor of Science in Information Technology/Information System & Computer Science Department

At the end of the session, the student is expected to:

Bachelor of Science in Information Technology/Information System & Computer Science Department

Information Sheet 1.0

The seven main functions of operations are:

The Role and Purpose of Operations Strategy

Bachelor of Science in Information Technology/Information System & Computer Science Department

Core Operational Strategy Areas

Way to categorize core strategies:

Another way to frame strategic areas is by these “distinctive” competencies:

Tips for Operations Strategies and Tactics

Bachelor of Science in Information Technology/Information System & Computer Science Department

Operations Strategy Examples

Types of Operations Strategies

Operations Strategy Framework

Bachelor of Science in Information Technology/Information System & Computer Science Department

 Cost: Ability to compete on low price

Steps to Write a Strategic Operations Plan

Bachelor of Science in Information Technology/Information System & Computer Science Department

Tips on Writing a Strategic Operations Plan

Robin Speculand provides these tips:

What Services Do Operations Strategy Consultants Offer?

 Map and assess their operations

Bachelor of Science in Information Technology/Information System & Computer Science Department

 Streamline operations for efficiency and cost reduction

Decision Analysis (DA)

Understanding Decision Analysis (DA)

Examples of Decision Analysis

A Step-By-Step Explanation of the Decision Analysis Process

1. Create a model structure. While there is

Bachelor of Science in Information Technology/Information System & Computer Science Department

Consulting and Reengineering

What is Operations Consulting?

Operations consulting: assisting clients in developing operations strategies and in improving

The Management Consulting Industry

Can be categorized in three ways:

Finders: members who find new business

 Finders: members who find new business

Economics of Consulting Firms

Three types of jobs:

 Brain surgery: requiring innovation and creativityGray

Where Operations Consulting is Needed

Bachelor of Science in Information Technology/Information System & Computer Science Department

Where Operations Consulting is Needed Continued

o Planning and Control Systems

 Supply chain management

When are Operations Consultants Needed

 When faced with a major investment decision

Stages in Operations Consulting Process

1. Sales and proposal development