Operations Management
Pertemuan ke 5 - Manajemen Bisnis & Kewirausahaan
By Heru Priyanto, ST, MBA
Business Model Canvas
Operation Aspect
Marketing Aspect
HR Aspect
Financial Aspect
What is Operations Management?

OM is defined as the design, operation and improvement
of the systems that create and deliver the firms
primary products and services
Input-Output Transformation Examples
System
Primary
Input
Resources
Transformatio
n Process
Output
Hospital
Patients
MD, Nurses,
Equipment
Health caring
Restaurant
Hungry
Customers
Food, Chef,
Waitress
Well prepared & Satisfied
served food
Customers
College/University High School
Graduates
Teachers,
Classrooms,
Books,
Broadband
Connectivity
Imparting
knowledge &
skill
Educated
Individuals
Department Store Shoppers
Displays, stock
of goods, sales
clerks
Attract shopper,
promote, filling
orders
Sales to satisfied
customers
Airline
Airplane, crews, Moving to
ticketing systems destination
Travelers
Healthy
Individual
On time,
satisfied
travelers
What about Telecommunication Operators?
System
Telco Operators
Primary
Input
Orang yg
butuh
komunikasi
jarak jauh
Resources
Pegawai
Jaringan
BTS
Server
Switching
Transmission
Transformatio
n Process
Menghubungkan
satu orang dgn
yg lain agar bisa
berkomunikasi
dgn suara,text,
gambar, video
Output
Orang yang
terpenuhi
/terpuaskan
kebutuhan
komunikasinya
Tangible
Physical Appearance
Intangible
Factory
Production
No Specific
Factory
Production First,
then
Consumption
Indirect
Consumption
Producer – Consumer
Interaction
Production &
Consumption at
the same time
Direct
SERVICES
PRODUCTS
Output: Is it a product or a service?
Process Analysis

Process: any part of an organization that takes inputs and
transforms them into outputs that, it is hoped, are greater of
value to the organization than the original inputs
Process Flowcharting

Flowchart symbols:
: Task or Operation
: Decision Points
: Storage Area or Queue or Waiting line
: Flow of material/ customers
Types of Process
Stage 1
Stage 2
Stage 3
Buffer
Multistage Process
Stage 1
Stage 3
Multistage Process with Buffer
Stage 3
Buffer
Different Products produces
Stage 3
Alternative Paths
Buffer
Stage 3
Buffer
Stage 3
Process Performance Metrics
Batch
Size
Time
/Unit
Run
Time
Setup
Time
Operati
on Time
Queue
Time
Throug
hput
Time
Operation Time = Setup Time + Run Time
Throughput Time = Average Time for a unit
to move through the system
Velocity = Throughput Time/Value Added
Time
Cycle Time = Average Time between
completion of units
Throughput Rate = 1 / Cycle Time
Standar
ds
Cycle
Time
Velocity
Efficiency = Actual Output / Standard
Output
Productivity = Output / Input
Efficienc
y
Time
Availabl
e
Throug
hput
Rate
Product
ivity
Utilizati
on
Time
Activate
d
Inputs
Utilization = Time Activated / Time
Available
Product Design Process
Marketing & Sales
Needs
Marketing
Product Development
New Product
Ideation
Manufacturing
Research
Technical Concept
Customer
Market System
Orders
Promotion
Product
Specification
Product Design
Calls
Sales
Production Order
Products
Process
Planning
Production
Designing for the Customers: Quality Function Deployment
Process Flow Structures




Job Shop : small batches of a large number different of
products. Mostly Custom Designed products
Batch Shop : standardized job shop. Stable line of
products.
Assembly Line : discrete part moving from workstation to
workstation at a controlled rate, following the sequence
to build the product. Ex: toys
Continuous Flow : like an assembly line, but in continuous
form. Conversion undifferentiated materials such as
petroleum, chemical
Total Quality Management


Managing the entire organization so that it excels on all dimension of
products and services that are important to customer
What is Quality ?
Six Sigma & ISO

Six Sigma Quality (from General Electric)



Methodology to eliminate defects in the products and
processes
Defect is any component that does not fall within the
customer’s spec limits. (3 )
ISO


ISO 9000 A series of standards agreed upon by the
International Organization for Standardization (ISO) . Adopted
in 1987.
ISO 14000 : to control the impact of an organization ‘s
activities and outputs on the environment.
Analytical Tools







Flowcharts
Run Charts
Pareto Charts
Check sheets
Cause & effect diagrams
Control Charts
Opportunity flow diagram
Forecasting

Forecasting types:
 Qualitative
 Grass roots
 Market research
 Panel consensus
 Historical Analogy
 Delphi Method
 Time series analysis
 Simple Moving Average
 Weighted moving Average
 Exponential smoothing
 Regression analysis
 Trend Projections

Causal relationships
 Regression analysis
 Econometric models
 Input/output models
 Leading indicators

Simulation
Inventory Control

Inventory Definition: is the stock of any item or resources
used in an organization

Inventory System: is the set of policies and controls that
monitor levels of inventory and determine what levels
should be maintained, when stock should be replenished,
how large orders should be.

The basic purpose of inventory analysis is to specify:


When items should be ordered
How large the order should be
Inventory Control

Why do we keep an inventory?






To maintain independence operation
To meet variation in product demand
To allow flexibility in production scheduling
To provide a safeguard for variation in raw material delivery
time
To take advantage of economic purchase order size
Inventory Cost




Holding Cost
Setup Cost
Ordering Cost
Shortage Cost
END OF THIS SECTION
Next Section : Human Resources Management