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CHALLENGES AND TRENDS IN OPERATIONS MANAGEMENT

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Arief Aziez

on 4 July 2018

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Transcript of CHALLENGES AND TRENDS IN OPERATIONS MANAGEMENT

Operations management?
Operation means “the process of changing inputs into outputs thereby adding value to some entity”.
Value is add i.e.
Adding the form of inputs e.g. converting crude petroleum to petrol or converting raw food into a dish.

Lean Definition
Lean operation is one in which a better product developed or better service is delivered.
Eliminates waste through continuous improvement and focus on exactly what the customer wants.

National Technology Policies
National Biotechnology Policy
The National Biotechnology Policy envision that biotechnology will be a new economic engine for Malaysia, enhancing the nation’s prosperity and well-being.
To succeed, the policy aims to build a conducive environment for R&D and industry development whilst leveraging on the country’s existing areas of strength.

National Science and Technology Policy
The allocation of resources should be parallel to the national priorities for the country’s transformation into a knowledge-driven economy so as to maximize economic and social returns.
The Second National Science and Technology Policy provides a framework to enhance productivity and sustain growth as well as to strengthen synergistic partnership among the Government agencies, industries, universities and research institutions.
Others Issues in
Operations Management
Types of Waste
IP Commercialization Policy
To establish a common framework to regulate the ownership and management of Intellectual Property from the creation, protection, innovation, exploitation and technology transfer activities carried out by the Relevant Body
To promote and facilitate the protection of Intellectual Property in line with the National Intellectual Property Policy
To promote and facilitate the exploitation and commercialization of Intellectual Property generated from projects funded by the Government of Malaysia

LEAN MANAGEMENT IN OPERATIONS
Mohd Arif Abdul Aziz

Tools and Techniques of Lean
Visual workplace system
Five S workplace organization
Poka Yoke
Self Inspection
Autonomation
National Cyber-Security Policy
Has been designed to facilitate Malaysia’s move towards a knowledge-based economy (K-economy).
Was formulated based on a National Cyber Security Framework that comprises legislation and regulatory, technology, public-private cooperation, institutional, and international aspects.
Seeks to address the risks to the Critical National Information Infrastructure (CNII) which comprises the networked information systems of ten critical sectors.

The CNII sectors are:
National Defense and Security
Banking and Finance
Information and Communications
Energy
Transportation
Water
Health Services
Government
Emergency Services
Food and Agriculture
Aims to develop and establish a comprehensive programmed and a series of frameworks that will ensure the effectiveness of cyber security controls over vital assets. It has been developed to ensure that the CNII are protected to a level that commensurate the risks faced.
National Green Technology Policy
Green Technology is the development and application of products, equipment and systems used to conserve the natural environment and resources, which minimizes and reduces the negative impact of human activities.
To minimize growth of energy consumption while enhancing economic development.
To facilitate the growth of the Green Technology industry and enhance its contribution to the national economy.
To increase national capability and capacity for innovation in Green Technology development and enhance Malaysia’s competitiveness in Green Technology in the global arena.
To ensure sustainable development and conserve the environment for future generations.
To enhance public education and awareness on Green Technology and encourage its widespread use.
Product Design
The product or the service offered is the backbone of any enterprise.
Therefore, what and how to produce is the first step in an operational system.
The following considerations apply in designing a new product:
1.Reliability.
2.After sales service.
3.Quality of product.
4.Cost of product.
5.Product value.

Scheduling
Scheduling is important for batch production to smooth flow of materials through the production process.
Simply stated scheduling is a system of planning and keeping track of manpower, equipment and materials used.
It decides when to start work on a given order and by what date it should be completed.
Need to know PERT, CPM, Gantt Chart, MRP

Inspection
Product inspection ensures the quality of the product produced.
To ensure actual performance is accordance to the plan.
To reduce rework.

Inventory Control
A business requires to keep inventories of raw materials, goods in progress, and finished goods, both in stock and in transit.
Use MRP

Solutions To The Issues
Total Quality Management
Total Quality Management (TQM) is a process to quality improvement that engages systems, people, and processes.
TQM is a philosophy that emphasizes three principles for achieving high levels of performance and quality:
1.customer satisfaction,
2.employee involvement,
3.continuous improvement in performance (Krajewski, Ritzman & Malhotra, 2013).


Zero Defect
Focuses on getting the product right the first time, rather than spending extra time and money fixing poor-quality products.
Reinforce the worker that no defect is acceptable, and encourage people to do things right the first time.

Benchmarking
There are five (5) major steps recommended by Heizer and Render (2011) in developing a benchmark:
1.Determine what to benchmark,
2.Form a benchmark team,
3.Identify benchmarking partners,
4.Collect and analyze benchmarking information,
5.Take actions necessary to match or exceed the benchmark.
SERVQUAL Model
The SERVQUAL Model was developed by Zeithaml, Parasuraman, and Berry to represent the five most important dimensions of service quality on the factors that constitute maximum customer satisfaction.
(5) dimensions that customers use when evaluating service quality:
1.Tangibles: the appearance of physical facilities
2.Reliability: the ability to perform the promised
3.Responsiveness: the willingness to help customers
4.Assurance: knowledge and courtesy of employees
5.Empathy: caring to customers
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