STRATEGIC OPERATION MANAGEMENT
STRATEGIC OPERATION MANAGEMENT
DEPARTMENT OF INDUSTRY
Contents
TOC o "1-3" h z u INTRODUCTION PAGEREF _Toc138023339 h 3OPERATION MANAGEMENT PROCESS PAGEREF _Toc138023340 h 3INPUT OUTPUT PROCESS FLOW PAGEREF _Toc138023341 h 4
INTRODUCTIONThe Department of Industry under the Ministry of Industry, Commerce and Employment is an agency thriving to achieve industrial development with sustained share of contribution to the realization of economic development in the country. The Department establishes an atmosphere that is favorable for sustainable industry growth and development, investment attraction, green economy promotion, private sector involvement, and increased national economic contribution. This is realized through formulation of policies and plans for the expansion of the industrial sector and encouraging the expansion, diversity, and growth of industries for overall economic expansion. The agency also encourages industrial change through emerging technologies, investment, and innovation, support the expansion of Foreign Direct Investment (FDI) and promote Bhutan as an investment destination, create strategies, projects, and programs for industrial development after conducting investigations and analyses, establish an avenue to promote the private sector to drive industrial growth and development and lead the conversion of the industrial sector into a green industry.
OPERATION MANAGEMENT PROCESSOperation management is an established process of managing the operation of a business or an organization to achieve its production/performance targets. The effective management of an organization or business has gained acceptance of world leaders and is considered as the single most management tool for the success of an organization. Operation management is the management of process of day-to-day activities which enables the individual, a business firm, or an organization to process inputs to a product or services ready for consumption by the end users. The application of an operation management does not limit to the organization whose purpose is for profit generation but also applicable to not-for-profit organizations to enable them to provide the services effectively. In view of the above, the efficient management of operation of government organization is also expected to enhance public service delivery and benefit the citizen.
The operation management process in the Department of Industry, an agency for promotion and regulation of industrial development is focused on formulation of policies, plans, and strategies to streamline the processes involved in the delivery of public services. The Department of Industry under the Ministry of Industry, Commerce and Employment is managed under the leadership of a director to provide business development and support services. The core mandates and functions of the department is aligned to the plan targets of the Ministry which is aligned to the National Key Result Area (NKRA) in the Five-Year Plan targets. The Department has five divisions and an environment Service Section which are managed by a Chief supported by professionals. Collectively the division under the department is responsible for achieving their own key performance indicators aligned to the Departmental targets.
The operation management in the government organization involves following processes:
Planning: Planning of the activities with key performance indicators aligned to the overall performance indicator of the Department.
Budgeting: Preparing budget estimates in reference to the annual key performance indicators of the Department and seeking approval from the Ministry of Finance.
Execution of Activities: The planned activities supported by budget sanction from the Ministry of Finance are executed along with the regular activities which do not require additional budget.
Monitoring: The monitoring of the progress is carried out on continuous basis with monthly formal reporting at Departmental level and mid-year and annual review at the national level.
Evaluation: The evaluation of the performance of the Department against the planned performance indicators are carried out annually to determine the performance of the department and accordingly design interventions aligned to the performance of the Department.
INPUT OUTPUT PROCESS FLOWOperations management is concerned with those activities that enable an organization (and not just one part of it) to transform a range of basic inputs (materials, energy, customers requirements, information, skills, finance, etc.) into outputs for the end customer (Steve Brown, John Bessant, and Fu Jia, 2018). Every activity, whether it is a business operation, service provider or an organization, an input in the form of materials, skills, technology, and utilities are gathered and processed into an output. This process needs to be designed with an intention to reduce cost and enhance its productivity or service delivery. The scope and application of an operation management does not limit within the organization, but also covers related stakeholders including suppliers and consumers which are partners to the service delivery or the production of goods and services.
Type of Operation Operation Inputs Operation Process Operation Outputs
Industrial Promotion, facilitation, and Support Services Office Building
Office Equipment
Infrastructure
Furniture
Stationeries
Office Vehicles
Financial Resources
Human Resource
Clients business information or intent to operate business.
Utilities (water and energy)
Internet Connectivity
Online Licensing system
Strategic Planning
Resource Mobilization
Execution of plan programs
Collaboration with Stakeholder and networking
Research and Development
Business advocacy and awareness program
Capacity development programs License for establishment and operation of industries
Business consultation, guidance, and information
Business facilitation and support services
STRATEGIC OPERATION MANAGEMENT
Big picture of the operation in the organization
What strategic decisions will you make as a manager?
Why need to develop an operations strategy?
Optimization of the utilization of resources
Do very well.
Adopt change.
Know what the competitors are doing.
Gain comparative advantage.
Best output and provide to the consumers.
Hay and Wheelright Four Stages of Strategy
Plates Gregory Procedure
Organizational core competencies
What the customer wants
Outsource what you are not good at
Workforce
Facilities
Market Understanding
Financial Know-how
Technology
Business strategy
Marketing strategy
Operation Strategy
Finance Strategy
operations process in an organisation (of your choice) and look atwhatandhowtheSTRATEGICdecisionsare made by the operations team. Compare it with any of the models from the text (Figures 2.8, 2.9 and 2.10) or any other scholarly models you come across that will suit your organisation operations strategy and look at the gaps within the organisations process. Ensure you also have correctly cited the class exercise. By the end of this week, you should have at least 5 to 6 pages of the class exercise (which is optional!!!) done.
Finally, I would like to know if any one is keen to be the class representative, it will be first come first served.
3. This week you will be looking at Managing Services Operations. Most of the organisations that we work is service oriented and we are most likely involved in an experience economy where bundle of productsand servicesneed to be in place for customer satisfaction. Find out what services does your organisation manage and process map the role of service operations, and how would you apply the iceberg principle to your organisation.
It would be good to also figure out the Moment of Truth for the organisation and what are the challenges faced by the operations team.
Note all of this should be linked to scholarly concepts, theories and strategies.
Kind regards
4. For your class exercise, I would encourage you all to look at the supply management process and practices and develop a critical perspective on some approaches of your selected organisation. Identify the internal strategy of the organisations supply process and practised techniques for managing relationships within the supply chain. Also map your organisations supply strategy using the Karljics sourcing matrix. Maybe develop the input-output-model for supply chain process of your organisation. This should give you a good overall understanding of your organisations supply management strategy. What needs to be strategically managed from Supply Chain operations perspective. By the end of this week, all of you should have analysed your strategic operations, services, and supply chain management strategy.
Week 5 Exercise
Posted on: Thursday, 8 June 2023 09:53:32 o'clock AWSTDear All,
This week I would like you to look at majorissues with inventory and try to understand thestrategic significanceof managing inventory for either manufacturing or service sectors. Some organisations may have both manufacturing and services sectors for example car manufactures.
Look at techniques how the organisations can reduce inventory and problems with holding inventory. Also look at what is the strategy for managing inventory for example is it Enterprise Resource Planning or just a software developed by the organisation.
Research if lean operations, sustainable and green operations can be part of the strategy to manage inventory and what are the challenges at in-house inventory management/operations problems.
Note the whole purpose of this is to figure out the gaps and challenges in inventory management and find sustainable operations and supply chain management.
By doing this weekly exercise you should be able to complete 70% of assignment 1.
Kind regards
James
Week 6 Exercise
Posted on: Thursday, 15 June 2023 12:11:33 o'clock AWSTDear All,
This is the last exercise for the unit (as stated before this was to prep for assignment 1) and for this week, I want you to consider the layout and process choice. Though layout may be the last option, however, you need to understand the strategic importance of the layout and process choice of the selected organisation. You need to look at what the firm has done in the past and is it working well with the current market segment and make some changes to the process (the transformation) if required. Do you need to transform the process or product technology. If you are in the service sector look at customer interaction and customisation of the services provided.
Maybe you need to invest in technology to support the market and stay ahead of your competitors, hence appropriate investment is critical within the operations process and should be a holistic decision for the organisation.
We had very rich discussions in the class yesterday, and you can incorporate some of the challenges/issues, and the strategies mentioned by individual groups for this section of transformation if they are aligned to your organisation operations process.
After doing this final exercise, you need to ensure that you have proper recommendations for the gaps you have identified in the operations process.
Kind regards
James
Outline of the assignment
Operation Management (Week 1)
Department of Agricultural Marketing & Cooperatives, Bhutan operations management process of the and develop an input-output process flow map along with the discussion. Also, ensure that you do provide scholarly citations for the brief.
Strategy(Week 2)
Look atwhatandhowtheSTRATEGICdecisionsare made by the operations team. Compare it with any of the models from the text (Figures 2.8, 2.9 and 2.10) or any other scholarly models you come across that will suit your organisation operations strategy and look at the gaps within the organisations process. Ensure you also have correctly cited the class exercise. Kindly use Hays and Wheelswright model in the organization.
Managing Services Operations (week 3)
Most of the organisations that we work is service oriented and we are most likely involved in an experience economy where bundle of productsand servicesneed to be in place for customer satisfaction. Find out what services does your organisation manage and process map the role of service operations, and how would you apply the iceberg principle to your organisation.
It would be good to also figure out the Moment of Truth for the organisation and what are the challenges faced by the operations team. Note all of this should be linked to scholarly concepts, theories and strategies. Use this concept
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Supply management process (week 4)
Look at the supply management process and practices and develop a critical perspective on some approaches of your selected organisation. Identify the internal strategy of the organisations supply process and practised techniques for managing relationships within the supply chain. Also map your organisations supply strategy using the Karljics sourcing matrix. Maybe develop the input-output-model for supply chain process of your organisation. This should give you a good overall understanding of your organisations supply management strategy. What needs to be strategically managed from Supply Chain operations perspective.
Managing Inventory ( Week5)
look at majorissues with inventory and try to understand thestrategic significanceof managing inventory for either manufacturing or service sectors. Some organisations may have both manufacturing and services sectors for example car manufactures. Look at techniques how the organisations can reduce inventory and problems with holding inventory. Also look at what is the strategy for managing inventory for example is it Enterprise Resource Planning or just a software developed by the organisation. Research if lean operations, sustainable and green operations can be part of the strategy to manage inventory and what are the challenges at in-house inventory management/operations problems. Note the whole purpose of this is to figure out the gaps and challenges in inventory management and find sustainable operations and supply chain management.
Managing the transformation process
Though layout may be the last option, however, you need to understand the strategic importance of the layout and process choice of the selected organisation. You need to look at what the firm has done in the past and is it working well with the current market segment and make some changes to the process (the transformation) if required. Do you need to transform the process or product technology? If you are in the service sector look at customer interaction and customisation of the services provided. Maybe you need to invest in technology to support the market and stay ahead of your competitors, hence appropriate investment is critical within the operations process and should be a holistic decision for the organisation. Incorporate some of the challenges/issues, and the strategies mentioned by individual groups for this section of transformation if they are aligned to your organisations operations process. After doing this final exercise, you need to ensure that you have proper recommendations for the gaps you have identified in the operations process.
