GCM 372 Exam Review PDF

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GCM 372 – Exam ReviewWeek 2: Operations & Process Management History and DefinitionsOperations Management Is the strategic design & administration of Business Practices Focuses on converting materials and labour into goods and services How to achieve Operations Management? Plan Organ...

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GCM 372 – Exam Review Week 2: Operations & Process Management History and Definitions

Operations Management • •

Is the strategic design & administration of Business Practices Focuses on converting materials and labour into goods and services

How to achieve Operations Management? • • •

Plan Organize Assure

Operation Managers are responsible to: • • •

Acquire, develop, and deliver goods/services to clients Handle strategic issues and project management methods Manage inventory levels, quality control, materials handling, and maintenance policies

Good Operations Managers are responsible for: • • •

Continuous study of the use of raw materials and ensuring minimal waste occurs Utilize available data analysis, to determine when and how large of an inventory order to process and how much inventory to hold on hand Must understand the processes that are essential to what a company does and get them to flow and work seamlessly

Process Management • • • •

Is aligning processes with an organization’s strategic goals Designing and implementing process architectures Establishing process measurement systems that align with organizational goals Educating and organizing managers

A Production System •

Is an organized activity or set of activities

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A production system comprises both the technological elements and the organizational behaviour Operations is one of the major functions in an organization

*Operations is responsible for managing a production system*

Managing Manufacturing & Service Operations •

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When managing manufacturing and service operations, many types of decisions are made; operations strategy, product design, process design, quality management, capacity, facility planning (plant layout), production planning, and inventory control A leader in Operations must analyze the current situation and continuously find better solutions to improve effectiveness and efficiency of a manufacturing or service operation Henry Ford said: “Failure is simply the opportunity to begin again, this time more intelligently”

A History of Operations & Process Methods • • •

5000 BC: Sumerian priests created a system to record inventories, loans, taxes and business transactions 4000 BC: Egyptian Pyramids = Enough Said 1800’s: The industrial revolution began the concept of interchangeable parts, division of labour, & mechanization of production

The History of Taylorism’s “Scientific Management” • •

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Frederick Winslow Taylor in 1883 used the stopwatch to accurately measure time to perform each single task of a complicated job Taylor’s work included a scientific study of productivity and identified how to coordinate different tasks to eliminate wasted time, increase the quality of work, and maximize output Taylor then developed “the differential piece rate system” that; Offered different pay rates based on worker’s productivity (efficiency) and quality (effectiveness) with lower rates paid to those who failed to achieve the standard

In 1911, “The Principles of Scientific Management” was published •

Scientific management is a theory of management that analyzes and synthesizes workflows. Its main objective is to improve economic efficiency, especially labour productivity. Some characteristics include:

o o o o

The development of a true science in a task. The scientific selection of the worker. The scientific education and development of the worker. Friendly cooperation between management and the workers.

Pre-determined Motion Time Studies (PMTS) • • •

In 1912, PMTS was developed by Frank B. and Lillian M. Gilbreth PMTS allowed the use of standard predetermined tables of the smallest body movements (e.g. turning the wrists 900) and integrated them to predict work measurement without observing the task Work sampling was used to measure the random variables associated with the time of each task

Modern Day Process Management Methods • • •

The growth of the 20th century computer power led to the use of advanced mathematical and statistical tools in operations management Technology and Experience has supported the development of academic programs in industrial systems engineering disciplines, as well as fields of operations research and management science (as multi-disciplinary fields of complex problem solving) The continued advancement of faster and smaller (more compact) computers, intelligent systems and the internet opens new opportunities for operations, manufacturing, production, and service systems

Week 3: Setting Manufacturing Directions and Business Plan Framework

Business Plan • •

Is a written document that describes in detail how a business is going to achieve its goals. A business plan lays out a written plan from a marketing, financial and operational viewpoint.

S.M.A.R.T. Goals • • • • •

Specific Measurable Attainable Relevant Timely

A Good Business Plan includes: • • • • • •

Executive summary Products and services Financial planning Marketing strategy and analysis of market A budget Outline all the costs and downfalls of each decision a company makes

Mission Statement: •

Defines what an organization does

Vision Statement: •

Clarifies the aspirations of the organization and defines the direction it’s heading in

Strategic Planning: • •

Outlines the vision of the future Marketing & sales plan o Focused on a specific timeframe o Method for generating revenue

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o Emphasis on Market & Competitive Landscape Financial plan o A Comprehensive evaluation to predict the future financial state of the company o Cash flow, asset value and overall net worth o Raising capital o Acquisitions o Budgeting HR plan o Human resource planning is the continuous process of systematic planning to achieve optimum use of an organization's most valuable asset — its human resources. o HR department helps to maintain a company's core values and culture.

Operational Planning: • •

How a business will get there tactically Internal

KPIKPuous Monitoring •

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Financial indicators and ratios o Cash flow, profitability, & balance sheet o Market share o Global & local economy impacts Key Performance Indicators (KPI’s) Productivity ratios (NAPL Blue Book) Quality Control & Assurance Life Cycle Analysis/Assessment o A technique to assess environmental impacts associated with all the stages of a product's life from raw material extraction through materials processing, manufacture, distribution, use, repair and maintenance, and disposal or recycling.

Week 4: Environmental Operational Strategies and Policies Sustainability •

Sustainability means meeting our own needs without compromising the ability of future generations to meet their own needs.

History – 1980’s • • •

Japanese paper mills convert to Oxy-bleaching to prevent use of chlorine. Environmentalists protest at North American pulp and paper mills to demand change. Environmentalists demand recycled paper be used and some governments begin to listen.

History – 1990’s • • • •

3R’s get traction Cradle to the Grave Environmental Choice/EcoLogo (CAD) program gets traction Stewardship groups form in other industries such as paint, batteries and tires.

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ISO 14001 movement gains steam o ISO 14001 is the international standard that specifies requirements for an effective environmental management system (EMS).

History – 2000’s • • • • •

Environmental Management System (EMS) gains traction, early adopters started in the late 1990’s. Sustainability is the target. Cradle to the Cradle. Forestry Stewardship Council (FSC) is in. Corporate Social Responsibility (CSR) is in.

The Bottom Line • •

Refers to a company's earnings, profit, net income. Most companies aim to improve their bottom lines through two simultaneous methods: o Increasing revenues (i.e., generate top line growth) o Improving efficiency (or cutting costs)

Paper Makeready Use • • • • •

On average we need 100 sheets per plate for makeready. If we have a 4 colour process job running sheetwise, we will need 8 plates or 800 sheets. If we can reduce that to 75 sheets per plate, our total now becomes 600 sheets. The saving by using 100lb Flo Gloss Text, 25 x 38 – 200m @ $207.50/m is $41.50 for this one job. If you produce five jobs per day the saving is over $50,000 per year! Saving a few dollars per job will boost your bottom line!

Triple Bottom Line •

The triple bottom line (TBL) is a framework or theory that recommends companies to focus on social and environmental concerns just as they do on profits. The TBL believes that instead of one bottom line, there should be three: o People (Social) o The Planet (Environment) o Profits (Economic)

Corporate Social Responsibility (CSR) •

Corporate social responsibility (CSR) is a company’s commitment to manage the social, environmental and economic effects of its operations responsibly and in line with public expectations.

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CSR includes operational strategies to maximize benefits and minimize the downsides. CSR is the voluntary actions that business can take, over and above compliance with minimum legal requirements, to address both its own competitive interests and the interests of wider society.

What are the corporate benefits of considering the environment in operational decisions? • • • •

Reducing waste Positivity in the environment Meeting goals Having a sustainable business

Environmental Sustainability is… •

Meeting the needs of the present without compromising the ability of future generations to meet their own needs.

Economic Sustainability is… •

Human communities across the globe are able to maintain their independence and have access to the resources that they require, financial and other, to meet their needs, such as secure sources of livelihood.

Social Sustainability is… • •

Universal human rights and necessities are attainable by all people, who have access to enough resources in order to keep their families and communities healthy and secure. Healthy communities have just leaders who ensure personal, labour and cultural rights are respected and all people are protected from discrimination.

Greenwashing •

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Greenwashing was coined by environmentalist Jay Westerveld in 1986, back when most consumers received their news from television, radio and print media – the same outlets that corporations regularly flooded with a wave of high-priced, slickly-produced commercials and print ads. The combination of limited public access to information and seemingly unlimited advertising enabled companies to present themselves as caring environmental stewards, even as they were engaging in environmentally unsustainable practices.

3 R’s • Reduce. Purchase products that require less packaging or to limit the waste you are producing. • Reuse. Use a travel mug or reusable water bottle and avoid single-use bags. • Recycle. Paper, plastic, glass, electronics, and more can be processed into new products while using fewer natural resources and less energy.

Industry Programs • • •

Eco Logo – Environmental Choice Program FSC/SFI – Forestry Stewardship Council and Sustainable Forestry Initiative ISO – International Standards Organization

Environmental Choice Program •

Soy (vegetable) based inks

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o Made from soy beans rather than petroleum based o Takes longer to dry because of lack of solvents (VOCs) Environmental Choice/Ecologo o Helps consumers identify environmentally preferable products and services, based on ISO 14024 standard for ecolabelling. Products that display the EcoLogo have been verified by a third party to ensure their environmental claims are credible. o To obtain the Ecologo, a product or service must be made or offered in a way that:  Improves energy efficiency  Reduces hazardous by-products  Uses recycled materials  is re-usable or provides some other environmental benefit. o Certified products or services must meet or exceed any applicable industry specific safety and performance standards. o Costs of Certification  Auditing and Verification  Annual License Fees o Environmental Choice Paper will come to mean more than just recycled content. o The paper’s manufacturing process should contribute less to green-house gas emissions, acid rain production, harmful effluents to lakes, rivers and streams and put less demand on forest and energy resources. o When specifying Environmental Choice, you will also be specifying a higher standard of mill performance. o To be an Environmental Choice printer, the service must use inks with reduced quantities of harmful ingredients, such as heavy metals and VOCs, the process must minimize its use of water and ensure that wastewater is directed to sewage treatment facilities that meet strict quality requirements.

Sustainable Forestry • • •

Forestry Stewardship Council (FSC) o Prominent in Canada Sustainable Forestry Initiative (SFI) o Prominent in USA Programme for the Endorsement of Forest (PEFC) o Prominent in Europe

Forest Stewardship Council (FSC) • •

Forest management standards based on FSC's 10 Principles and Criteria of responsible forest management. Governance structure ensures that it is independent of any one interest group. o Requires an equal balance in power between its environmental, social and economic chambers and a balance between interests from all economic regions.

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10 FSC Principles o The Organization will comply with all laws, treaties and regulations. o Maintain and enhance the wellbeing of workers. o Uphold Indigenous Peoples’ land rights, etc. o Maintain and enhance the wellbeing of local communities. o Efficiently manage products and services. o Maintain, conserve and/or restore ecosystems. o Have a comprehensive management plan. o The organization will monitor and evaluate its activities. o Maintain High Conservation Values. o Management activities will be consistent with the organization’s values.

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The FSC chain of custody system allows the tracking of FSC certified material from the forest to the consumer. The FSC label therefore provides a link between responsible production and responsible consumption and helps the consumer to make socially and environmentally responsible buying decisions. Companies must be independently verified for FSC chain of custody certification. They are then eligible to label their products with the FSC logo.

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ISO 14000 • •

The ISO 14000 family of standards provides practical tools for companies and organizations of all kinds looking to manage their environmental responsibilities. ISO 14001:2015 and its supporting standards such as ISO 14006:2011 focus on environmental systems to achieve this. The other standards in the family focus on specific approaches such as audits, communications, labeling and life cycle analysis, as well as environmental challenges such as climate change.

Environmental Management System •

An Environmental Management System (EMS) is a set of processes and practices that enable an organization to reduce its environmental impacts and increase its operating efficiency.

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Helps an organization address its regulatory demands in a systematic and cost-effective manner. An EMS can also help address nonregulated issues, such as energy conservation, and can promote stronger operational control and employee stewardship. Creates an organized structure. Moves you from reactive mode to proactive mode, thinking ahead and anticipate events. Able to look at big picture-what impediments are there to future growth? Answering questions in advance is to your advantage. A good EMS is not just a shelf document but is a living document, one that goes on and on. An EMS helps with planning, implementation, assessment and corrective action, over period of time. 6 steps of the Environmental Management System: o Policy and Commitment  Develop environmental policies that establishes company commitment to managing and solving environmental issues. o Priority Issues  Review operations to determine the level of environmental impact associated with each operation. One or two priority issues are identified. o Goals and Targets  Goals and targets are established to address those issues. o Implementation  Activities are then implemented to address those issues. o Measurement  Activities are then measured to determine their effectiveness. o Corrective Actions  For targets not being met, corrective actions can be implemented. This cyclical approach to improving processes leads to continuous improvement and can lead to increased efficiency and profitability.

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Benefits of EMS o Reduce risk of environmental impacts. o Reduce business risks. o Elimination of duplicative efforts. o Greater operational flexibility. o Significant bottom line savings. o Favourable insurance coverage.

Balanced Scorecard Approach • •

A balanced scorecard is a strategic management performance metric used to identify and improve various internal business functions and their resulting external outcomes. The balanced scorecard involves measuring four main aspects of a business: o Learning and growth o Business o Processes o Customers o Finance

Carbon Footprint • •

Carbon footprint is the sum of all emissions of CO2, which was induced by your activities in a given time frame. Each of the following activities add 1 kg of CO2 to your personal carbon footprint: o Public transportation (train or bus) a distance of 10-12 km o Car ride, distance of 6 km (assuming 7.3 litres/100 km) o Fly with a plane a distance of 2.2 km o Operate your computer for 32 hours o Production of 5 plastic bags o Production of 2 plastic bottles

Carbon Neutrality •

Carbon neutrality, or having a net zero carbon footprint, refers to achieving net zero carbon emissions by balancing a measured amount of carbon released with an equivalent amount sequestered or offset, or buying enough carbon credits to make up the difference.

Carbon Offset / Carbon Trading • •

A carbon offset is a credit for greenhouse gas reductions achieved by one party that can be purchased and used to compensate (offset) the emissions of another party. Carbon offsets are typically measured in tonnes of CO2-equivalents (or CO2e) and are bought and sold through a number of international brokers, online retailers and trading platforms. o E.g. Wind energy companies often sell carbon offsets. The wind energy company benefits because the carbon offsets it sells make such projects more economically viable.

Facts About Paper Used for Print • • • • •

Just 11% of the world's lumber are used for paper (28% for lumber; 53% for fuel) 33% of paper comes from wood chips and sawmill scraps; another 33% comes from recycled paper 56% of all the forested land in the United States is privately owned. Nearly all wood used in the production of paper comes from trees grown on these privately-owned "tree farms" Print helps give private landowners a financial incentive to grow trees and not sell off their land for other uses

St. Joseph Communications • • •

Partner with Scouts Canada to plant trees on behalf of their customers. Offer customers a...