Operations Management
Operations management involves planning and coordination of work necessary to create and deliver products and services to customers. Operations management is about decision-making in planning, coordination management control, and improvement in the design, implementation, and execution of the organization's processes for creating and delivering value (products and services) to customers. Operations management processes include operations planning - setting operations goals and aligning these goals with the goals of workers under the manager's control; short-term capacity planning - involving considerations related to variations in capacity requirements due to seasonal, random, and irregular fluctuations in demand.
The management of effective capacity in terms of resource configurations in production systems can be seen as a three stage hierarchical process which focuses on the acquisition and allocation of limited resources to production activities so as to satisfy customer demand over a specified horizon. Analysis involves evaluating and assessing the impact (cost/benefit) on production capacity plan (or schedule) optimization of different alternative resource schedules/plans.
Simulation of Operations Management value creation and delivery processes enables management to analyze and evaluate design and effective capacity as well as optimizing the utilization of resources to inform good operations decisions and capacity plans that lead to successfully delivering the organization's mission. A good capacity plan enables the efficient use of resources by projecting production and/or service delivery needs. Successful operations lead to profits which constitute economic survivability of an organization. The simulation output can be analyzed and the results provided through analytical visualization charts and graphs, and reports to improve user understanding, and enable insight into improving the dynamic behavior of the organization.
Operations management involves planning and coordination of work necessary to create and deliver products and services to customers. Operations management is about decision-making in planning, coordination management control, and improvement in the design, implementation, and execution of the organization's processes for creating and delivering value (products and services) to customers. Operations management processes include operations planning - setting operations goals and aligning these goals with the goals of workers under the manager's control; short-term capacity planning - involving considerations related to variations in capacity requirements due to seasonal, random, and irregular fluctuations in demand.
The management of effective capacity in terms of resource configurations in production systems can be seen as a three stage hierarchical process which focuses on the acquisition and allocation of limited resources to production activities so as to satisfy customer demand over a specified horizon. Analysis involves evaluating and assessing the impact (cost/benefit) on production capacity plan (or schedule) optimization of different alternative resource schedules/plans.
- Short term Capacity Use – resource schedules in the form of detailed dispatch lists enables management of resources.
- Medium term Capacity Use – production and material schedules that synchronize material and capacity in order to reduce inventory and cost.
- Long term Capacity Development – Strategic plans for initiatives that involve major changes in customers, markets, product lines, suppliers, facilities, and facility capacity.
Simulation of Operations Management value creation and delivery processes enables management to analyze and evaluate design and effective capacity as well as optimizing the utilization of resources to inform good operations decisions and capacity plans that lead to successfully delivering the organization's mission. A good capacity plan enables the efficient use of resources by projecting production and/or service delivery needs. Successful operations lead to profits which constitute economic survivability of an organization. The simulation output can be analyzed and the results provided through analytical visualization charts and graphs, and reports to improve user understanding, and enable insight into improving the dynamic behavior of the organization.
Rightsizing Staffing Levels
Estimating the right staffing levels and labor requirements (rightsizing) is an operational planning function which involves systematic review of staffing mix and levels, tasks and work processes to determine the appropriate number (quantity) and mix of staff (workers) needed to meet organizational goals in areas such as medical practice, quick service and full service restaurants, barber shops and salons, etc. This process is organization-specific (i.e., for a specific medical practice for example) and is influenced by the expectations of the organization, internal limiting factors (constraints), organizational culture, strategic goals and objectives, and operational goals.
Rightsizing means managing employees as resources, at a level that better fits your organizational needs. Rightsizing involves creating a simulation model of the business operations that enables evaluation of the organization's value creation and delivery systems. The evaluation involves analysis of simulation results in the form of output models that inform decisions in the following areas:
Simulation Output & Analysis
The simulation output provides staffing resource utilization and workload information, and associated overall business (throughput) performance information to inform staffing decisions. Operations Analytics Simulation provides you the evidence to allow you to make bold, confident decisions because you are sure you are making the right choice.
Estimating the right staffing levels and labor requirements (rightsizing) is an operational planning function which involves systematic review of staffing mix and levels, tasks and work processes to determine the appropriate number (quantity) and mix of staff (workers) needed to meet organizational goals in areas such as medical practice, quick service and full service restaurants, barber shops and salons, etc. This process is organization-specific (i.e., for a specific medical practice for example) and is influenced by the expectations of the organization, internal limiting factors (constraints), organizational culture, strategic goals and objectives, and operational goals.
Rightsizing means managing employees as resources, at a level that better fits your organizational needs. Rightsizing involves creating a simulation model of the business operations that enables evaluation of the organization's value creation and delivery systems. The evaluation involves analysis of simulation results in the form of output models that inform decisions in the following areas:
- Benchmarking the current state - Determining if there are opportunities for change or improvement based on organizational data compared to peer groups.
- Analyzing current productivity - Understanding the current productivity levels of staff and support staff.
- Analyze current operational model - Determine the model by which the organization operates. This includes the staff number and function allocated to each position/role, customer (patient) check-in and check-out processes, customer record management, scheduling procedures and telephone processes.
- Analyze process performance - Create and run simulation models of the value creation and delivery operations processes; identify areas of capacity improvements and bottlenecks.
- Take action - Share the simulation data with decision makers and stakeholders, and act of any suggested changes
Simulation Output & Analysis
The simulation output provides staffing resource utilization and workload information, and associated overall business (throughput) performance information to inform staffing decisions. Operations Analytics Simulation provides you the evidence to allow you to make bold, confident decisions because you are sure you are making the right choice.
Equipment Utilization and Load
Businesses typically have a mix of production and services that collectively define the the value creation and delivery processes. Product-mix decisions are usually supported by analytical methods such as Linear Programming (LP). These decisions are usually made so that the market demand is met and the firm profit is maximized. However, the complexity, and stochastic and dynamic nature of real-world production and business systems often lead to production levels that are different from those determined by analytical methods. Analytical methods also have problems coping with the dynamic changes in the product-mix which usually requires enhancing system parameters and/or configuration 0f value creation and delivery processes.
Businesses typically have a mix of production and services that collectively define the the value creation and delivery processes. Product-mix decisions are usually supported by analytical methods such as Linear Programming (LP). These decisions are usually made so that the market demand is met and the firm profit is maximized. However, the complexity, and stochastic and dynamic nature of real-world production and business systems often lead to production levels that are different from those determined by analytical methods. Analytical methods also have problems coping with the dynamic changes in the product-mix which usually requires enhancing system parameters and/or configuration 0f value creation and delivery processes.
Optimizing Production and Service System Processes
Production systems' processes create and deliver products and parts to customers. The capacity of these processes is defined in terms of the output of products/parts per some specified interval. Service system processes offer services to customers. The service process capacity is defined holistically in terms of the throughput of the flow of customers (e.g., in retail, patients in health care, clients in barbershops/salons, guests in hotels, etc.) per specified time interval, The production and/or service system processes define a network of production and/or service centers conneted and coordidated by the processes. Production work centers are augmented with WIP inventory stores that act as buffers to bottleneck resources and work centers that constrain the flow of products through the system. Servicing centers are augmented with waiting areas; waiting areas may be introduced to act as buffers to bottleneck service centers that constrain the flow of customers in the service network. Anything that eases throughput by releasing the bottleneck potentially adds value to the system.
Production System Processes Simulation & Models
Creating a simulation experiment to investigate production (product manufacturing) effective capacity, and capacity decisions related to creation and delivery of value to customers involves:
The Production System's processes simulation enables managers and key operations staff to gain insight into the "real world" capacity problems facing the company, and improves their understanding of the factors that affect production performance. It enables the maximization of organization output subject to minimizing delays, reducing waiting times, reducing work in-process inventory levels, improving labor and equipment utilization, etc.
Service System Processes Simulation & Models
Creating a simulation experiment to investigate optimal organization service effective capacity for creating and delivering value to customers involves:
Service capacity simulation enables managers and key operations staff to gain insight into the potential "real world" problems that negatively impact optimum effective service capacity and the organization's ability to meet operations performance standards.
Production and Service Simulation Output Analysis & Visualization
These production systems and service systems processes can be analyzed systematically as part of whole organization workflow through simulation to identify potential bottlenecks and efficiencies improvements. Simulation enables users to explore maximizing organization output subject to minimizing delays through reducing/eliminating waiting times, improving labor and equipment utilization, etc.
The Service Delivery simulation output analysis product is an interactive visualization model of the organization's service delivery operations systems. Users can interact with the visualization to explore and examine the simulation results in areas such as:
The production simulation output analysis product is an interactive visualization model of the organization's production operations systems. Users can interact with the visualization to explore and examine the simulation results in areas such as:
Production systems' processes create and deliver products and parts to customers. The capacity of these processes is defined in terms of the output of products/parts per some specified interval. Service system processes offer services to customers. The service process capacity is defined holistically in terms of the throughput of the flow of customers (e.g., in retail, patients in health care, clients in barbershops/salons, guests in hotels, etc.) per specified time interval, The production and/or service system processes define a network of production and/or service centers conneted and coordidated by the processes. Production work centers are augmented with WIP inventory stores that act as buffers to bottleneck resources and work centers that constrain the flow of products through the system. Servicing centers are augmented with waiting areas; waiting areas may be introduced to act as buffers to bottleneck service centers that constrain the flow of customers in the service network. Anything that eases throughput by releasing the bottleneck potentially adds value to the system.
Production System Processes Simulation & Models
Creating a simulation experiment to investigate production (product manufacturing) effective capacity, and capacity decisions related to creation and delivery of value to customers involves:
- Creating product demand forecast model for products and services - This includes information about the average rates at which customers request for products and/or services including the breakdown of customer order request types (e.g., for a coffee shop regular coffee vs. espresso, for a barbershop haircut vs. shaves, etc.) – at different times of the day, and the orders' sizes
- Creating configuration model for the production and/or service delivery functional unit including the configuration model of the people and equipment resources.
- Creating configuration model for the products and services mix offered by the organization
- Creating configuration model for the workforce (people) and their roles as well as their schedules
- Creating configuration model for the equipment including operations and maintenance schedules
- Creating schedules for the organization's operating times and holidays.
The Production System's processes simulation enables managers and key operations staff to gain insight into the "real world" capacity problems facing the company, and improves their understanding of the factors that affect production performance. It enables the maximization of organization output subject to minimizing delays, reducing waiting times, reducing work in-process inventory levels, improving labor and equipment utilization, etc.
Service System Processes Simulation & Models
Creating a simulation experiment to investigate optimal organization service effective capacity for creating and delivering value to customers involves:
- Create product demand forecast model for products and services - This includes information about the average rates at which customers request for products and/or services including the breakdown of customer order request types (e.g., for a coffee shop regular coffee vs. espresso, for a barbershop haircut vs. shaves, etc.) – at different times of the day, and the orders' sizes
- Create configuration model for the production and/or service delivery functional unit including the configuration model of the people and equipment resources.
- Create configuration model for the products and services mix offered by the organization
- Create configuration model for the workforce (people) and their roles as well as their schedules
- Create configuration model for the equipment including operations and maintenance schedules
- Create schedules for the organization's operating times and holidays.
- Generate/Run operations process simulation models
Service capacity simulation enables managers and key operations staff to gain insight into the potential "real world" problems that negatively impact optimum effective service capacity and the organization's ability to meet operations performance standards.
Production and Service Simulation Output Analysis & Visualization
These production systems and service systems processes can be analyzed systematically as part of whole organization workflow through simulation to identify potential bottlenecks and efficiencies improvements. Simulation enables users to explore maximizing organization output subject to minimizing delays through reducing/eliminating waiting times, improving labor and equipment utilization, etc.
The Service Delivery simulation output analysis product is an interactive visualization model of the organization's service delivery operations systems. Users can interact with the visualization to explore and examine the simulation results in areas such as:
- Service Delivery output and throughput.
- Resource utilization and load factors - Labor utilization and load factors; Equipment utilization and load factors; Waiting Capacity utilization and load factors.
- Process capacity utilization and load/idle factors.
- Process bottlenecks and service delays.
The production simulation output analysis product is an interactive visualization model of the organization's production operations systems. Users can interact with the visualization to explore and examine the simulation results in areas such as:
- Production output and throughput.
- Resource utilization and load factors - Labor utilization and load factors; Equipment utilization and load factors; Storage utilization and load factors.
- WIP (Work-in-Progress) Inventory Levels and Control Policy Standards.
- Process capacity utilization and load/idle factors.
- Process bottlenecks and product delays.
Optimizing Effective Capacity and Product Mix
Businesses typically have a mix of production and services that collectively define the the value creation and delivery processes. Product-mix decisions are usually supported by analytical methods such as Linear Programming (LP). These decisions are usually made so that the market demand is met and the firm profit is maximized. However, the complexity, and stochastic and dynamic nature of real-world production and business systems often lead to production levels that are different from those determined by analytical methods. Analytical methods also have problems coping with the dynamic changes in the product-mix which usually requires enhancing system parameters and/or configuration 0f value creation and delivery processes.
Product Mix Analysis - Operations Management Simulation Methods
Operations management involves the planning and coordination of work. It is essentially concerned with the creation and delivery of products and services and with providing the best match of supply with demand. Operations management simulation is concerned with quantifying the utilization of the organization's "Operating System" and providing the best match (fit) of supply (of tangible resources) and demand. Operations simulation techniques can be used to determine the impact of product/service mix changes on effective operating system capacity in terms of system throughput (effective capacity), utilization of tangible resources, product/service delays, etc. Operations simulation enables managers and key operations staff to gain insight into the "real world" situations facing the company and improve their understanding of the factors that affect operational performance.
Creating Operations Simulation Models
Analyzing the impact of product/service-mix on operating system capacity involves creating simulation models of the joint configuration of resources and processes and ensuring the resulting competencies (capabilities) are aligned with the organization's market demands for products and services. Operating System Capacity refers to a system's potential to producing goods and services over a specified time interval.
Creating a simulation experiment to investigate organization Operating System capacity for creating and delivering value defined in terms of product/service-mix involves:
Simulation Output & Analysis
The simulation output product is an interactive visualization model of the organization's production operations systems. Users can interact with the visualization to explore and examine the simulation results in areas such as:
Visualization of operations management simulation output enables managers and key operations staff to gain insight into the "real world" situations facing the company and improve their understanding of the factors that affect operational performance. Users can examine the influence of changes to demand for products in the product mix as well as removal/addition of new products to the mix to be evaluated. Product mix decisions must often satisfy some capacity constraints such as:
Businesses typically have a mix of production and services that collectively define the the value creation and delivery processes. Product-mix decisions are usually supported by analytical methods such as Linear Programming (LP). These decisions are usually made so that the market demand is met and the firm profit is maximized. However, the complexity, and stochastic and dynamic nature of real-world production and business systems often lead to production levels that are different from those determined by analytical methods. Analytical methods also have problems coping with the dynamic changes in the product-mix which usually requires enhancing system parameters and/or configuration 0f value creation and delivery processes.
Product Mix Analysis - Operations Management Simulation Methods
Operations management involves the planning and coordination of work. It is essentially concerned with the creation and delivery of products and services and with providing the best match of supply with demand. Operations management simulation is concerned with quantifying the utilization of the organization's "Operating System" and providing the best match (fit) of supply (of tangible resources) and demand. Operations simulation techniques can be used to determine the impact of product/service mix changes on effective operating system capacity in terms of system throughput (effective capacity), utilization of tangible resources, product/service delays, etc. Operations simulation enables managers and key operations staff to gain insight into the "real world" situations facing the company and improve their understanding of the factors that affect operational performance.
Creating Operations Simulation Models
Analyzing the impact of product/service-mix on operating system capacity involves creating simulation models of the joint configuration of resources and processes and ensuring the resulting competencies (capabilities) are aligned with the organization's market demands for products and services. Operating System Capacity refers to a system's potential to producing goods and services over a specified time interval.
Creating a simulation experiment to investigate organization Operating System capacity for creating and delivering value defined in terms of product/service-mix involves:
- Create product demand forecast model for products and services - This includes information about the average rates at which customers request for products and/or services including the breakdown of customer order request types (e.g., for a coffee shop regular coffee vs. espresso, for a barbershop haircut vs. shaves, etc.) – at different times of the day, and the orders' sizes
- Create configuration model for the production and/or service delivery functional unit including the configuration model of the people and equipment resources.
- Create configuration model for the products and services mix offered by the organization
- Create configuration model for the workforce (people) and their roles as well as their schedules
- Create configuration model for the equipment including operations and maintenance schedules
- Create schedules for the organization's operating times and holidays.
- Generate/Run operations process simulation models
Simulation Output & Analysis
The simulation output product is an interactive visualization model of the organization's production operations systems. Users can interact with the visualization to explore and examine the simulation results in areas such as:
- Production output and throughput.
- Resource utilization and load factors - Labor utilization and load factors; Equipment utilization and load factors; Storage utilization and load factors.
- WIP (Work-in-Progress) Inventory Levels and Control Policy Standards.
- Process capacity utilization and load/idle factors.
- Process bottlenecks and product delays.
Visualization of operations management simulation output enables managers and key operations staff to gain insight into the "real world" situations facing the company and improve their understanding of the factors that affect operational performance. Users can examine the influence of changes to demand for products in the product mix as well as removal/addition of new products to the mix to be evaluated. Product mix decisions must often satisfy some capacity constraints such as:
- Resource capacity – Production to meet the product mix demands cannot use more resources than are available.
- Demand – Customer (end user and/or stock) demand for each product is limited, and production should not produce more of a product than is demanded because the excess production is wasted.
