Operation Management #viralvideo #viral #trending #motivation #youtube #entrepreneurship

0:34 Good good morning, good afternoon, good evening where you are amazing students. So today I'm going to take you through the first module of your entrepreneurship program. I'm delighted to be in a position to to share with you my years of experience of entrepreneurship and and um running a social enterprise and also tutoring and lecturing. So um yep, put your seat belt on, stay tuned, and I do hope you find this extremely useful. So we're going to be looking at operation management. So here we go. So number one the learning

1:21 objectives today what we will be doing we'll be hoping that you can understand the fundamentals of operations management. So you'll be able to explain the role and the importance of operations in both manufacturing and service industries. You will also be able to identify how operations contribute to organizational strategy and competitiveness. Then you'll be looking at analyzing and improving operational processes, evaluating production and service delivery systems, applying techniques to enhance efficiency, quality and productivity. And thirdly, applying strategic operations and supply chain principles

2:09 and understanding and implementing operational strategies such as lean, agile, and just in time. And then manage supply chain components and inventory effectively. and then utilize tools and techniques for decision-m and therefore apply forecasting, scheduling and project management tools and using quantitative models to support operational decisions and then incorporate quality ethics and sustainability in operations. Now I think the key thing is that when you prepare you're in it to win it at the end of the day. So in entrepreneurship it's it's more than buying and selling. There's a foundation. I just want you to think about a tree. Think about a tree and

2:55 think about, you know, the soil under the tree. Think about the foundation. Think about the soil needs to to be watered to to to have those nutrients. And I think that for this journey of entrepreneurship, there's so many things. Think about an entrepreneurship cake. You got to put your flour in. You got to put your eggs in. You've got to put your vanilla essence in. You got to put your butter in. You've got to put your different types of flavor. You got to whisk everything together. Then it's got to be baked. You understand? So entrepreneurship is a journey. It's a real journey. And I'm really looking forward with my colleagues to be sharing this journey with you over the next few weeks. So as I said, fasten your seat

3:40 belts. And the first thing we'll be looking at is introduction to operations management. So what is it? So in short it's the planning, organizing and supervising of processes involved in the production of goods and services. It ensures that resources are used efficiently and that could be even your staff and that outputs meet quality standards. There must always be quality standards and also customer expectations. This discipline is vital for improving productivity, reducing cost, and maintaining competitiveness in both manufacturing and service industries. Let's look at the service industry. How many of you before you buy anything, you check whether Google, you

4:27 check Amazon for a review. I mean, I'm number one. If I want to buy a service or if I want to buy something, I will check my reviews. And let me tell you, if the reviews are not great, I am not buying. I don't care how good it looks. Do you understand? So those are all sort of things. So if you are a um um an organization or a business that deals with customers, are you checking your reviews as an example? Are you checking Trust Pilot? Are you checking, you know, where your reviews are? Are you answering customers who maybe have a problem or a query? Are you resolving them? All of those things are really important. Then we talk about marketing and sales. Listen, no matter how great your

5:13 business is or your service, if nobody knows about you, it it it's it's a goner. Do you understand? So, we must never underestimate the importance of marketing and sales. And what does marketing and sales do? Number one, it enhances efficiency. So, you know, you've got to do your market mix. You've got to look at, you know, your your your your product, your price, your promotion, all of that stuff. You look into it. So, the importance of marketing and sales is that it enhances optimal use of your resources such as time, labor, and materials. Then again, another important thing it does, it

5:58 improves products and service qualities. So, and service quality rather m ensuring that you maintain consistent standards to meet or exceed customer expectations. So, back to what I said before, how many of you how many of you would go to a company and and you would you would buy from them and if the product wasn't good, you understand? you would you would say right I'm going to go back you would like you likely would not so it's important then the importance of marketing and sales is also to reduce cost you have to streamline your processes to minimize waste and

6:45 operational expenses I give you an example if for example you have an organization and you have two people doing similar jobs and possibly one is not performing would not it be a idea to maybe streamline the roles into one as an example. And then another importance of marketing and sales is supporting strategic goals. You know what are the goals of the organization? What do you want to achieve? So you could say in quarter 4 we want to increase our turnover by 75%. You've got to have those strategic goals. And what does this do? It aligns operations with the organization's long-term objectives and vision. And then finally, the importance

7:31 of marketing and sales. It boosts competitiveness. I want to give you an example. Like listen, when it comes to logistic companies, we have a number, don't we? Think about them. We got FedEx, we've got at least the international ones, we got FedEx, we got um UPS, we've got DHL, and others. But one thing is for me personally, I'm not sure if you've experienced it, but DHL for me is always the wi is always a winner. You know, it's always a winner. Always a winner. Always a winner. So, you know, boosting competitiveness. It helps businesses respond effectively to market demands and stay ahead of competitors. How many of you have got a business idea on this call? I want you

8:18 to take a moment and think about it. Okay, great. You thought how many other people on planet Earth also have that same business. Think about it. There are 8 billion people on planet Earth. Everybody gets that light bulb moment. You understand? Everybody gets a light bulb moment. So, the key is is that you've got to stay ahead of the game. You know, I tell my students in in in the UK, my university students, I always say to them, I say, "Listen, what makes you extraordinary? Why should I buy from you? Why should I purchase from you?" That's key. All right. Hope you're still listening.

9:04 So, let's look at the fundamental concepts in operations management. Number one, difference between goods and services. So goods are tangible products that can be seen, touched, stored, and owned. Things like clothing, cars, furniture, they're usually produced, they're usually consumed, they can be inspected for quality prior to delivery. So let me tell you, many years ago, I had a really um a good friend. She's passed away now, but my friend um is was an um a girl from the eastern part of Nigeria who lived in the UK. So one day maybe about 15 years ago she said Lola I'm moving to China. I said China why she and then she shared with me that so

9:50 many of our people you know so many people want to buy things from China but there's a lack of quality control. So when they get their goods you know things are missing engine parts are missing. So she went with her daughter. She was a divorcee and lived in China for many years until she passed away. Now so we have tangible products that need inspection. They need to to be to be reviewed for quality. And then you have services which are intangible. You can't touch services you know such as banking, education, healthcare, etc. etc. They are typically produced and consumed simultaneously and their quality can be both subjective and

10:38 variable. So let's continue. So the key differences now the key differences are they are either tangible or intangible. So goods which are tangible and services are intangible. So if you have goods that are tangible that means you have inventory. They can like maybe you own clo you have a clothing brand you have a shoe brand you can store them you can put them in the storage and store them and count them when you sell one you take it off your inventory but your services cannot be stored so when you look at the production and consumption goods are produced first and consumed later and services occur at the same time and the

11:25 quality measurement is easier for good, harder for services. For with services, what do you think you need to do with services? You got to do qualitative and possible quantitative research. You got to do your surveys. Do you understand? You've got to rely on customer feedback. How did we do? You understand? So that's the differences, right? Another fundamental concept in operation management is number two the role of operations in achieving organizational goals. So operation management plays a central role in ensuring that an organization delivers value to its customers efficiently and effectively. Two really powerful words.

12:14 So powerful that I need to repeat them. efficiently and effectively. So, how does operational management support organizational goals? It does it by the following. Number one, improving efficiency. Streamlining processes to reduce waste and operational costs. Think of a restaurant. You understand? Can you imagine if you have a restaurant that sits maybe 50 people, why would you have 10 waiters? Why would you have five chefs as an example? You would find that they would possibly not have much work to do. So improving

13:01 efficiency is all about reducing waste and operational costs and then again enhancing quality. Let me give you an example. Let's look at the restaurant again. Let's say you're buying a particular um chicken from a particular supplier and yet customers when they eat their meal, you're noticing that they're leaving quite a bit of that chicken on the plate. And then as a restaurant, you should do your taste tests. I think the staff should be able to eat and also, you know, give their own taste test. And then when you do your taste test, you realize that this chicken is a bit tough. It takes a long time to cook. And then you might decide to change suppliers. So enhancing quality ensures

13:49 that there's a consistent output that meets customer expectations. So the other day I went to um I had a strategy meeting with one of my team members with one of my consultants and we went for um a uh we yeah we were at a um how are we we were at a hotel all day from morning till the evening. So we had coffee, tea, you know the usual and we ordered some soup. We ordered some side some nibbles. So when the soup came, it was mushroom soup. But when the soup came, I was looking forward to it. But guess what? The soup was likely just mushrooms and water. There was no taste and we sent it back and they removed it from our bill. So ensuring consistent output meets

14:37 customer expectations. If you're in the service industry, if you're in the tangible industry is is important because your customers will walk. So another important fundamentmental concept in operations management is supporting your strategy. Aligning your operational capabilities with your business strategy as an example fast delivery, lowcost production I mean if your production is too high what are you doing in business? How are you going to make profit? So it's important. Yeah. And then you must also be creative as an entrepreneur from the onset from the get-go. You are an an how would I put it? You are a creative innovative

15:22 individual but you've got to keep on being creative. Look at AI now. You know there's almost no business at all that is not using AI as an example. So you have to consistently drive innovation. What is new in your field of interest? What can you bring in? You cannot rest on your la Laurels as it were. You've got to cons consistently look for new ideas. So implementing new technologies and processes to stay competitive is really important. And then we have customer satisfaction. Listen, you may have heard this before, you hear it again from me now. The customer is always right. You've got to

16:09 deliver timely, highquality goods and services that meet market demand. Let me tell you, word of mouth is is is very powerful. Sometimes even more powerful than the word of than the word that is written. Customers will talk. Can you imagine? Just one negative social media post can destroy a business of 10, 15 years. So you've got to know what you're doing. So remember the fundamental concepts in operation management. Number one, you got to improve efficiency. You've got to enhance quality. You got to support strategy. You got to drive innovation. And you've got to treat your customer

16:54 like a king. And in these days of political correctness, treat your customer like a queen, too. Right? Another fundamental concept in operational management number three is the transformation process. Remember remember that we talked about the cake. What's your input? The input is the flour, the butter, the sugar. Whisk, whisk, whisk. The process is whisking. Put it whisking it all together. Some people whisk by hand. Some people, you know, they use a a cake, an electronic cake whis mixer, and then the output is putting it in the oven and then the cake is finished. Listen, if you bring the cake out before it's fully baked, it will give you a tummy ache. It's not fit

17:41 for purpose. So, the transformation process is the core concept of operations management. It refers to how organization convert inputs into outputs through a structured set of activities. So in short almost like a theory of change you understand. So you put in your inputs that's your resources used in production such as your raw materials, your labor, your equipment, your information, your capital. Let's look at that cake. you have a if you want to learn how to make a new recipe. You'll take a new recipe from YouTube or Google and then you'll read the the the recipe, you put all those raw materials together. That's part of your labor. The equipment is your measuring spoon. The

18:29 equipment is your cake whis whis whisker, your egg beater, etc., etc. And then the money that you've used which is your capital to buy all the ingredients. And then the process is actually the making of that cake the transformation. Cuz can you imagine butter eggs, sugar, flour, flavoring, etc. It's only when you put them all together that they come out as a cake. Prior to that, you can use them for different things. But your process right now, the transformation you require is that cake. And so that transformation is in short activities that convert inputs into finished goods or services. And I've

19:15 used the cake as the most simple definition. And this can include manufacturing, assembling, designing or service delivery. And then the output is your finished cake, you know. And then let's put it the icing on top. You bring it out the oven, you let it cool down, scrape it where it needs to be scraped. Then you have your sugar mix, your icing mix, and then the finished product is icing it and leaving it. Just look at a wedding cake, you know? Look at a six tier wedding cake, a five tier wedding cake. Look at how simply it started. You understand? So the final goods or services are what you deliver to your customers. in our case of the wedding cake, the bride and the

20:02 groom. So I hope that that was a simple enough explanation to empower you to understand inputs, process and services and outputs and se and then again we've got to look at how does our operation strategy strategy and competitiveness as priorities align. So how operations align with business strategy? So operations must be designed and managed in a way that support the overall business strategy of an organization. I mean you've got to have your vision. You got to have your mission. You've got to have your vision. If they're not aligning, if what you're doing is not

20:48 aligning, then you don't really have a business strategy. You've got to be working on your short-term goals and your long-term goals. So your business strategy strategy defines the long-term goals and direction of the company while operation strategy determines how you're going to do it. How you going to do it? So talk about the business strategy is all about the goals. What do you want to see? What direction do you want to go? But the operations part is how are you going to execute it? As an example, we need to get staff to execute it. We need to get equipment to execute it, etc. etc. And you need to do that through efficient processes and resource management. So in short, operations

21:34 translate strategic goals into action by shaping how goods and services are produced and delivered. Right? So types of operation strategies. Let's look at that. There are several common types of operation strategies each focusing on a specific competitive advantage. So the first thing is cost leadership. This is focusing on minimizing production and operational costs to offer low prices. So, in in um the UK, in America, we've got Walmart as a big supermarket that aims to really offer customers low prices. And in the UK, we also have a very cheap airline

22:21 called Ryan Air. They charge you so much extra. They'll charge you extra to print your boarding pass. They'll charge you extra for extra luggage. They'll charge you for food on board. But it's like a no thrills airline. and we put it under the banner of cost leadership. Then we have quality. So this emphasizes high standards and consistency to build trust and customer loyalty. Eg Bentley, eg the Rolex watch, eg the name brands, Louis Vuitton, Prada. I've heard once that one of the name brands because there was a default in bags, they burnt everything. They would rather waste stock than get their stock out to the

23:07 customer. Imperfect. And then we have flexibility. You know, they companies that aim to quickly adapt to changes in demand, customization or market trends like Zara. One thing about Zara as a as a as a as a clothing brand, they do not overstock. You understand? They have this they have this motto, when it's gone, it's gone. So if you see something in Zara, the clothes shop, if you love it, buy it because they don't overstock. They don't have they don't overstock particular brands. And then we have things like delivery, the speed and reliability, how quickly I spoke to you earlier about DHL. We know DHL to offer a great customer service. Everything is

23:54 done by satellite. They prioritize fast, dependable service and short lead times. And then we have like Amazon awesome and then we have things you know company like DHL. So that is the difference between operation or that is not the difference rather that's the type of operational strategies. Then we have competitive priorities in operation. So these are the key performance areas that an organization focuses on to gain an advantage in the marketplace. So these can include cost. Listen, do you always check cost before you buy something? So competitive

24:39 priorities include cost. Offering products or services at the lowest possible price. People are always looking for a bargain. You know, if people can get it for $100, why would they pay $200 for it? And then quality. People want good quality at an affordable price. So quality is all about delivering high performance defect-free products or consistent services. And then we've got time. You know, I have Amazon Amazon Prime. And if I order something today, I may get it in the night. If I order something today, I may get it in the e in the next day and I pay about a100 pounds a year for that

25:24 privilege. So time is, you know, time is money. Time is the currency of life. So time in that context offers speed of delivery and the ability to meet deadlines. We are all in a rush. I bet you when you go on a when you're looking on a Google page, if that page doesn't load up quickly, you're like next, next, next, next. And then we talk about flexibility. The ability to customize products, services, or respond to changes when you do your survey. If your customers don't like it, you know what a a lot of companies do? They do new and improved formula. You've got to break the status quo with your product and your service. You can't you can't, you know, you your product can't be the same

26:11 thing that it was 50 years ago unless it's Coke. Unless it's a secret recipe. Unless it's KFC, a secret recipe. But if it's not a secret recipe and you've got lots of competition, you got to continuously up your game. And that leads us nicely into innovation. Introducing new and improved products or processes. Listen, you can't be the same. Like I said, unless you're Coca-Cola. They have a secret recipe hidden. And if you're not Coca-Cola, you got to constantly up your game and think about how can we be more innovative. And then service. Service is powerful. You've got to provide excellent customer support and

26:58 after sales service. Okay. Now let's look at the type of processes, process mapping and improving operations. So the types of processes operations typically use four primary types of processes each suited to different production needs. Number one, a shop. So it involves smallcale production where each item is made to order. Then you have highly custom customized and flexible service such as a custom furniture manufacturer or a printing shop. The characteristics are low volume, high

27:44 variety and skilled workers. So that's one example. That's one example of a type of process. And what do they do? So the batch production involves producing a group or batch of products at a time. The items are produced in sets before moving to the next phase. Example a bakery producing a batch of cakes or a pharmaceutical company making pills. The characteristics are medium volume, medium variety, standardized processes within each batch. And then we have assembly line. You know the the factory type of process focused on the mass production of a single product in a continuous flow. The products move

28:31 through a set sequence of operations with minimal variations. The example automo automobile manufacturing or electronics assembly. The characteristics are high volume, low variety, high efficiency. And then we have that as a continuous flow. So it's used for products that are produced 247 in a continuous process. This process is often highly automated and designed for high volume low variety production. Example oil refining, water treatment or chemical production. The characteristics of same are very high volume, very low

29:18 variety and constant production. Okay. Okay. So that is the explanation of that. And then we have what we call process mapping. So process mapping is a visual tool used to document the steps in a process. Yeah. So think about it. You've got map. So think visual. It helps you to understand the flow of activities and to identify the areas for improvement. If you're not reviewing, you can't improve. It also helps you to map out processes to ensure that the desired results are achieved efficiently. So common techniques for process mapping and I know as great students you're going to

30:03 go and do your research include flowcharts, value stream mapping, also known as VCM and SIPO diagrams known as suppliers, inputs, process, outputs and customers. So these are techniques for process mapping. You've got to review your process to make sure it's efficient. remember to make sure that it is most productive and innovative. You can't just have a system that you do not look at, that you don't review. And then we have then we have flowcharts, a specific type of process map used to represent the sequent process. So you have symbols such as

30:49 ovals, rect rectangles, diamonds, and arrows. They're all used to depict start and end points, tasks, decisions, and a flow of materials and information. And then we have another type of process is bot process and process improvement all in one bottlenecks, capacity and process improvement. So bottlenecks occur when a specific step in the process limits the overall flow of production. And this is why it's so important to consistently review. It is the stage with the slowest cycle time or

31:36 limited capacity. So the impact bottlenecks red you know we talk about a bottleneck. So you know when you think of visualize a bottleneck nothing big can get out of it. you know anything bigger than the bottle is stuck. So a bottleneck occurs when a specific step in the process limits the overall flow of production. It is the stage when the slowest t with the slowest cycle time or limited capacity and it needs to be worked on. So the impact is that it can reduce the throughput and therefore lead to delay and efficiency. And that is why as an entrepreneur you've got to manage

32:21 these steps. But what are the solutions? The solutions are identifying and addressing the bottlenecks by improving machine performance or reallocating resources. This can help increase capacity and improve overall system performance. Okay. So, as I said, this introduction is your guide. I want you to go back and do your research and go back and read and reflect on everything I've said today. Another thing that's also important is in types of processes process mapping and improving operation is capacity.

33:07 So capacity refers to a maximum output that a system such as a machine, a process or a facility can produce within a given period. There is one key theme that is running through all that we're discussing today and that key theme is review. Everything needs review. So it's essential for businesses to understand and optimize your capacity because when you optimize capacity, the more money you can make and the more customer demand you can satisfy without overburdening resources. So strategies for capacity management can be balancing the capacity capacity rather adding resources or improving

33:56 process efficiency. Look at that factory issue that we looked at in the last couple of slides. If there's a bottleneck or there's something that's not working, it's for management to review and see how well can we be more productive. Great. Then another important aspect is process improvement. You know, we have to consistently improve. As I said, unless you're Coca-Cola or KFC with secret recipes, you can't afford to be nonchalant and you can't afford to be non-competitive. So process improvement aims to enhance

34:43 the efficiency and effectiveness of operations and nowadays people are are big on things such as lean minimizing waste. How can we as an organization be leaner? Do we need to print paper? Can we do everything digitally as an example? And then we have six sigma reducing variability and then we have kaizen continuous improvement. So all of these are process improvements to make organizations much more efficient. And when we look at tools for process improvement, we look at things like root cause analysis, parato analysis and

35:29 process redesign that can help eliminate bottlenecks and improve thoroughut throughput rather. So what I want you to do as good students is go and do a bit of research on lean. Go and do a little bit research on research on six sigma. Do a little bit of research on kaizen. Do a little bit of research on root cause analysis, parto analysis and process redesign. Very important for you to go and do that. Right. So that is the end of our first chapter. It's been a pleasure. As I said, I am here to support you through this recorded

36:15 um slide, but the work is up to you. And so we have some references, the power of process, how the right processes lead to success, Robin Benin Cara. And then we have how to build a business that lasts last 100 years Martin Reeves and the art of innovation by Guy Kawasaki. So I would suggest that you know read this go through these slides but the work is in your hands. Do you understand? The work is down to you. So as great students, innovative students, entrepreneurship students, you've got to do your your research. You've got to go and read up. So I would advise you to reflect but it's been a pleasure meeting you all today on this first chapter. I

37:03 look forward with my colleagues to sharing many many other chapters with you too. Take care. Bye-bye.