BSTE 312

21/02/2024
D. Kruger
Class attendance

https://forms.office.com/r/Cpsdsz5D4R?origin=lprLink
 Remember to join a group for the Study Unit 3
presentations

• https://efundi.nwu.ac.za/x/d3YIIG
LEEREENHEID 1
OPERASIONELE
BESTUUR
STUDY UNIT 1
OPERATIONAL
MANAGEMENT
Informele assessering /
Informal assessment

•Password: KRUGER6576
https://b.socrative.com/teacher/#launch
Leergedeelte 1.3
Klassifikasie van
Operasionele Prosesse
Study Section 1.3
Classification of
Operational Processes
Classification of process types for the MANUFACTURER

• Project processes

• Jobbing processes

• Batch processes (job lots)

• Mass processes

• Continuous processes
Classification of operational processes for the SERVICE
PROVIDER

• Professional services

• Service shops

• Mass services
 Klasbespreking / Class discussion

Dominante operasionele proses /

Tipe onderneming / Type of business Dominant operational process
Spoorvervoer bv. Spoornet /
Rail transport eg. Spoornet

Banke bv. ABSA / Banks eg. ABSA

Haarsalon bv. Cutting Edge /

Hair Salon eg. Cutting Edge
Goudmyn bv. Anglo Gold Ashanti /
Gold mine eg. Anglo Gold Ashanti

Meubelvervaardiger / Furniture manufacturer

Drukker bv. Ivyline / Printer eg. Ivyline

Konstruksiefirma bv. ALS /

Construction firm, eg. ALS

Wapenvervaardiger bv. Denel /

Weapon manufacturer eg. Denel
Class discussion
Manufacturing vs construction

https://www.researchgate.net/figure/Differences-between-the-manufacturing-
industry-and-construction-OBrien-et-al-2008_tbl1_293178724
 Manufacturing vs construction
An Overview Of Manufacturing
• Manufacturing typically takes place
indoors, inside a plant factory or
specially designed facility.
• Generally, employees work in a
particular section of the manufacturing
process with little interaction with
those in other divisions.
• A combination of manual and labour
and automation are used to transform
the base materials into the final
product.
• Through the use of an assembly or
production line, the product is created
from start to finish and then sold to
distributors, retailers or consumers.
https://www.dailybulletin.com.au/business/58808-construction-vs-manufacturing-what-s-
the-difference
Construction Explained
• Construction, on the other hand, is
largely completed outdoors.
• Various materials are used to construct
a range of different types of structure.
• Construction typically relies on a lot of
manual labour using a range of
different tools and heavy machinery.
• In the construction industry, projects
are completed for a range of clients,
working on private, commercial and
government projects.
• The world of construction includes a
multitude of skill sets, trades and
specialists to work alongside each
other to bring a project to completion.
Manufacturing vs construction

Manufacturing of Ford Ranger Construction of mall of Africa

https://www.engineeringnews.co.za/arti
cle/ford-sa-set-for-october-start-for-
mass-ranger-production-2022-08-01
Manufacturing vs construction
Manufacturing of Ford Ranger Construction of mall of Africa
https://www.youtube.com/watch?v=Mx https://www.youtube.com/watch?v=74y
OfC3Fpdjs 9SNHGSqI
https://www.youtube.com/watch?app=d https://www.youtube.com/watch?v=gcsr
esktop&v=LOqOuIQ-vV0 SFo-g0s
List as many different processes taking place in each video.
Klaswerk / Class work
• Verdeel in pare; • Divide in pairs;
• Bestudeer die • Study the class work
klaswerk wat provided;
voorsien word; • The questions can be
• Die vrae kan tydens completed during the
die kontaksessie contact session;
voltooi word; • Final submission on
• Finale indiening teen Friday 23 Feb 2024.
Vrydag 23 Feb 2024.
 Leergedeelte 1.4
Die Operasionele
Ontwerp

Study Section 1.4

The Operational Design
1.4 Operasionele Ontwerp / Operational
Design
Na bestudering van LG 1.4 After studying SS 1.4 you
behoort jy in staat te wees should be able to:
om:
• Plan and motivate the
• Die operasionele ontwerp
operational design.
te kan beplan en motiveer.
1.4 Operasionele Ontwerp / Operational design
PROSESONTWERP /
PROCESS DESIGN

OPERASIONELE
ONTWERP
OPERATIONAL PRODUKONTWERP /
DESIGN PRODUCT DESIGN
 Klasbespreking / Class
discussion
• Dink aan nuwe produkte. • Think about new products.

• Hoe het hierdie produkte tot • How did these products came
stand gekom? into existence?

Onderskei tussen die volgende Distinguish between the

terme: following terms:
1. Konsep 1. Concept
2. Pakket 2. Package
3. Proses 3. Process
https://www.youtube.com/watch?v=201B82SoXYI
Nuwe produkte / New products
 Operational design
1. Product or service design
The design of new products or services.

2. Process design
The design of the processes to manufacture or deliver
these products or services.
Operational design
 The design of products and services
The competitive advantage of good design
• The design of a product begins and ends with the customer.
• The aim of satisfying the needs of the customer in the best
possible way.
• Expectations should be realised or exceeded.
• Increased sales will reinforce the competitive advantage of
the business.
The design of products and services

The components of products and services

• Concepts (expected benefit for the client)

• Package (product and service)

• Process (creation of the package)

 The components of products and services
Idea
- Shape
- Function
- Purpose
- Advantages of the design

Package
- Composition of products and services needed to support the
idea.

Process
- How the products and services of the package must be
delivered.
 Die fases in die ontwerp van produkte en dienste /
The phases in the design of products and services

KLASWERK CLASS WORK

• Dink aan ‘n nuwe produk of • Think about a new product or

diens wat onlangs op die mark service that recently appeared
verskyn het. on the market.

• Bestudeer die inligting op bl. • Study the information on p.

329. 329.

• Ontwerp ‘n diagrammatiese • Design a diagrammatic

voorstelling van die fases in die representation of the phases
ontwerp van produkte en in the design of products and
dienste. services.
The phases of design of products and services
• Idea / concept generation
Inside or outside of the business

• The screening process

Feasibility, acceptability, vulnerability.
Process of elimination: “design funnel".

• Preliminary design
The first attempt to specify the composition of the components of the product or
service.

• Evaluation and improvement

Evaluate the preliminary design – improve (cheaper and easier)

• Prototype and final design

The development of a prototype of the product or simulation of the service is necessary
to test it in the market. If the prototype is favourably received, the final design and
specifications can be compiled.

https://www.youtube.com/watch?v=LckQ4VVjHDs
 Concept generation
• New ideas can come from inside the business (research, staff
etc.);
• New ideas can also come from outside the business (clients,
competitors etc.).
 The screening process
• Not all ideas would necessarily lead to products and services;
• Ideas are evaluated based on design criteria such as
- Feasibility (how difficult is it?)
- Acceptability (is it worth it?)
- Vulnerability (risks?)
 Preliminary design
• As soon as ideas are sifted to one or two potential product or
services, the preliminary design must begin;
• The preliminary design specifies the compilation of the components
of the product or service;
• Specify the processes that will be required to manufacture the
product or service.
 4.
Evaluation and improvement
• The purpose is to evaluate the preliminary design so that it can
be improved;
• To make the production and sourcing process cheaper and
easier;
• Various techniques and methods are used in this step.
 5
Prototype and final design
• Last step – development of a prototype or simulation of the service so
that it can be tested in the market;

• If the prototype is improved and favourably received by the market, the

final design and specifications of the product and service can be
compiled.
/ Operational design
 The design of operational processes
1. The design of supply chains

2. The layout and flow of manufacturing and service-

provision facilities

3. The application of process technology

4. Job design and work organisation

 Supply network
• Providers of materials and services

• Intermediaries

• Final clients/customers
2. Layout and flow of facilities
• Physical arrangement of the resources

- Machines

- Equipment

- Personnel
 2. Layout and flow of facilities
Determine how the resources flow through the transformation process.

3 Steps
1. The selection of the process type
2. Selection of the basic layout type
3. Finalising a detailed design of the layout.

https://study.com/academy/lesson/process-product-fixed-position-layouts.html
 Basic layout types
• Fixed-position layout
The product cannot be shifted
The resources for transformation are taken to the receiver of processing.
https://www.youtube.com/watch?v=ekkeG7lIuKA

• Process layout
Similar processes are grouped together into sections, eg. carpentry.
https://www.youtube.com/watch?v=_iu1Am8R5J4

• Product layout
Processes required to manufacture a product or provide a service are
arranged in a consecutive order, for example an assembly line for cars.
https://www.youtube.com/watch?v=dfzeyOzKHto

• Cellular layout
Certain processes are placed in a cell, for example department stores.
https://www.youtube.com/watch?v=auF1o6HMY9I
Fixed-position layout
Prosesuitleg / Process layout
Produkuitleg / Product layout
Sellulêre uitleg / Cellular layout
 3. The application of process technology
• Machines
• Equipment
• Apparatus
That is used in the transformation process to transform
- Materials
- Information
- Clients
So that products can be manufactured or services provided.
3. Die aanwending van prosestegnologie
/ The application of process technology
Role of the operations manager with regards to the management of process
technology

• How can technology improve the operational

process?

• What technology is going to be used?

• How can new technology be integrated with existing

activities?

• Monitor the performance of the technology.

• Replace and upgrade existing technology.

 4. Job design and work organisation

The way in which human resources are managed in a

business has a fundamental effect on the effectiveness of
the operational function.

- Job design: how workers perform their various daily tasks.

WORK STUDY

- Method study (work methods) and

- Work measurement (how long does it take to perform a

specific task?)
 Leergedeelte 1.5
Operasionele Beplanning
en Beheer
Study Section 1.5
Operational Planning and
Control
1.5 Operasionele Beplanning en Beheer /
Operational Planning and Control
Na bestudering van LG 1.5 After studying SS 1.5 you
behoort jy in staat te should be able to:
wees om:
• Plan and motivate
• Operasionele beplanning
operational planning and
en beheer te kan beplan
control.
en motiveer;
Operasionele beplanning en beheer /
Operational planning and control
• Die aard van • The nature of
operasionele operations planning
beplanning en beheer and control
• Kapasiteitsbeplan- • Capacity planning
ning en beheer and control
• Voorraad- en • Inventory and supply-
voorsieningsketting chain planning and
beplanning en beheer control
• Kwaliteit beplanning • Quality planning and
en beheer control
Persoonlike verryking /
Personal enrichment
• Teken 'n breinkaart • Draw a mindmap of
van operasionele operational planning
beplanning en beheer and control by
deur die vier opskrifte utilizing the four
in die vorige skyfie te headings in the
gebruik. previous slide.
• Voeg sub-kategorieë • Add sub-categories
en kolpunte by met and bullets with the
die inligting in die information in the
opvolgende skyfies. subsequent slides.
Operational planning and control

A business needs to plan ....

• What must be produced.
Market forecasts can be used.

• how much and when to produce.

The quantity affects the size of the factory and how many raw materials / supplies are
needed? The timing is determined by the nature of the product, as well as consumer
requirements.

• what requirements the product must meet.

The quality requirements determine the type of materials, should they be imported, who are
the suppliers, are there certain international standards that must be met?
 The nature of Operational Planning and Control

• Operational planning and control focuses on al the activities that

are necessary to put the operational process in motion so that
products can be produced and/or services delivered = satisfaction of
clients' needs = ACTIVATION ACTIVITY.
The nature of Operational Planning and Control
Reconciliation with demand with supply
3 DIMENSIONS
1. Volume (quantity of products and services)
2. Timing (when products or services must be
produced or provided)
3. Quality (do products and services consistently meet
clients’ expectations?)

3 ACTIVITIES
a. Loading of tasks
b. Order of tasks
c. Scheduling of tasks
Capacity planning and control
Capacity planning and control
NATURE
Focus on the provision of manufacturing/service
delivering abilities of a specific operational process.

DEFINITION OF CAPACITY
The maximum level of value-added activity over a period
of time that the process can achieve under normal
operating circumstances.

Demand forecast is done to determine the necessary capacity:

1. Determine the total demand and necessary capacity;
2. Identify alternative capacity plans;
3. Choose the most appropriate capacity planning and
control approach.
Kapasiteitsbeplanning en –beheer /
Capacity planning and control
 Capacity planning and control
TECHNIQUES AND METHODS

• Moving average demand forecasting technique;

This technique is based on the availability of actual demand
data over preceding periods and can be used to forecast the
demand for the following period.
Especially suitable for applying to the demand for products where the demand pattern is stable over the short
term.

• Cumulative representations of demand and capacity;

A method that can be used to evaluate the effect of different
capacity plans graphically. (p. 274)
• Exponential leveling

• Demand forecasting accuracy leveling

• Queuing theory
 Inventory and supply chain planning and control

• Inventory: all the stored resources

(material/information/clients) required for the smooth
functioning of the operations process.
Inventory and supply-chain planning and control
Quality planning and control

• If products are of good quality, it can increase the INCOME of the

producer, since more products will be sold, but the COSTS can
also be decreased, since the repair costs are reduced.
Quality planning and control
DEFINITION

Consistent conformance to customers' / clients'

expectations.
NATURE

The aim of quality planning and control is to ensure

that the products or services that are manufactured
conform to design specifications.
Quality planning and control
 Klaswerk / Class work
• Die klas verdeel in 6 groepe.
• Elke groep bestudeer 'n stap in
kwaliteitsbeplanning en beheer.
• Die stap moet aan die klas
verduidelik word en prakties
toegepas word op 'n nuwe BMW.
• The class divides in 6 groups.
• Each group studies a step in
quality planning and control.
• The step must be explained to the
class and practically applied to a
new BMW.

https://www.youtube.com/watch?v=Jxn2sdZTLH0
Quality planning and control
STEPS

1. Defining the quality characteristics of the product or service.

2. Measuring the quality characteristics of the product or

service.

3. Setting standards for each quality characteristic of the

product or service.

4. Controlling quality against the set standards.

5. Identifying and rectifying the causes of poor quality.

6. Continuously improving quality.

Gehaltebeheer / Quality control

https://www.youtube.com/watch?v=kxSyIwzk7Y8
https://www.youtube.com/watch?v=zcJWF08FigU
Leergedeelte 1.6
Operasionele
Verbetering
Study Section 1.6
Operational
Improvement
1.6 Operasionele Verbetering /
Operational Improvement
Na bestudering van LG 1.6 After studying SS 1.6 you
behoort jy in staat te wees should be able to:
om:
• Evaluate Operational
• Operasionele Verbetering Improvement.
te kan evalueer
Operational improvements
• Any operational process can be improved;
• The current performance of an operational process has
to be determined first.
• Performance measurement is a prerequisite for any
improvement.
• To which extent does the present operations satisfy the
formulated objectives?
Operational improvements

• Performance standards

• Approaches to improvement

• Types of failures

• TQM

• ISO 9000
Operational improvements
Types of performance standards

• Historical performance standards

Present performance is compared to previous years.
• Target performance standards
Present performance is compared to pre-determined
standards.
• Competitors' performance standards
Present performance is compared to that of one or more
similar competitors (benchmarking).
• Absolute performance standards
Current performance is compared to the theoretical
maximum achievable performance standards.
Different approaches to improvement

• Breakthrough improvement
Dramatic and large-scale changes to the functioning of the
operations process.

• Continuous improvement
More regular, but smaller incremental changes.
Different approaches to improvement
Continuous improvement
Failure prevention and recovery
TYPES OF FAILURES
• Design failures
• Facility failures
• Staff failures
• Supplier failures
• Customer/client failures

FAILURE DETECTION AND ANALYSIS

Detection
➢ Process-monitoring
➢ Complaints and feedback questionnaires

Analysis
➢ Cause-effect diagrams.
Prevention and recovery of failures
Tipes falings / Types of failures
Prevention and recovery of failures
SYSTEMS-RELIABILITY IMPROVEMENT
When there is clarity about the causes and consequences of
failures, these failures must be prevented.
- Redesigning of products and services

- Redesigning manufacturing processes

- Regular maintenance and repairs

- Training or motivation programme.

RECOVERY OF FAILURES

Recovery procedures and contingency plans should have been

devised and put in place to minimise the potential detrimental
effects on customers/clients.
Total quality management (TQM)
DEFINITION
The responsibility for quality of the operations manager is
shifted to the entire business.
Totale gehaltebestuur (TQM) /
Total quality management (TQM)
Aims of TQM
• Meeting the needs and expectations of clients;

• Covering all parts of the business;

• Making each and every employee in the business quality

conscious;

• Identifying and accounting for all costs of quality;

• Doing things right the first time;

• Developing and implementing systems and procedures for

quality and the improvement of quality;

• Establishing a continuous process for improvement.

 Implementation of TQM
The following factors have to be taken into consideration:
❑ Integration of TQM with the overall business strategy.
SYSTEMS

❑ Top management and staff's involvement.

COMMITMENT

❑ Teamwork at improvement initiatives.

TEAMS

❑ Feedback about quality successes that have been achieved.

COMMUNICATION

❑ The creation of quality awareness

CULTURE

❑ Training of employees in quality techniques and methods

TECHNIQUES/METHODS
ISO 9000
A quality standard that is used worldwide today to lay down requirements for a business's
quality management system.

It contains recommendations about how a quality management system should be compiled for a
specific business.
GUIDELINES

- Definition of documentation
- Management responsibility
- Provision of resources
- Product realisation
- Measurement, analysis and
improvement.
ISO 9000
VOORBEREIDING / PREPARATION

Berei LG 1.7 (PRODUKSIESTELSELS) & LG 1.8

(PRODUKTIWITEIT EN KWALITEITSBEHEER) voor vir die

volgende kontakgeleentheid.

Prepare SS 1.7 (PRODUCTION SYSTEMS) & SS 1.8

(PRODUCTIVITY AND QUALITY CONTROL) for the next

contact session.
ONTHOU / REMEMBER
 K Y O U
THAN
a i e d a n k ie
B

© North-West University (2012)