Monitor, Control and Improve

The role of the operations manager is to find ways to improve the performance of the operations process. 

Think of the medical model: a sick patient goes to the doctor. The doctor assesses the patient (taking a range of data / KPI) to determine the nature of the problem. The doctor then proposes a remedy - an intervention or corrective measure - to improve the patient's health. The remedy must be tailored to the illness (duh) - just like the strategy used to improve an operations process must directly relate to the cause of poor performance.

Operations managers undertakes this process through the functions of monitoring, controlling and improving.

Monitoring:

Monitoring involves the oversight of the operations process to systematically measure actual performance against forecasted performance.

Performance is measured by using Key Performance Indicators (KPIs) such as:

• Speed of production (number of units / time)

• Number and frequency of defects

• Customer satisfaction levels

• Customer waiting times

• Dependability / durability of output

• Costs incurred in process (cost per unit)

• Breakdowns and interruption to production

The operations manager must frequently review operational systems to identify areas that are inefficient (wasted time or resources), that cause ‘bottlenecks’ or ‘choke-points’, or tasks / processes leading to defects.

Controlling:

Controlling refers to making strategic interventions (corrective measures) in the operational process flow to address areas of concern identified in monitoring stage.

If actual performance in a KPI is worse than forecasted performance, the controlling stage should seek to rectify the problem. 

The operations manager could utilise Operations Strategies (in next section) to make improvements to the operations process. These could include:

• New technology

• Outsourcing

• Inventory management

• Supply chain management

• Quality management

• New product design and development

• Performance objectives 

Improvement:

Improvement refers to the broader aim of an operations manager; to always make refinements and improvement to operations processes.

‘Kaizen’ is the Japanese term that refers to the philosophy of ‘continuous improvement’; the drive to always target ways to lift operational performance.

The main objective of continuous improvement is to; 

• Maximise efficiency, 

• Maximise production,

• Maximise quality, and 

• Reduce costs. 

An operations process that targets these enables a firm to compete in their industry and maximise profitability.

Firms can undertake Research and Development (R&D) to devise new approaches to production (materials and technology) and to create new product adaptations in functionality and appearance. 

This universal business process is undertaken in every Key Business Function:

• Marketing

• Financial Management

• Human Resources