Monitoring, controlling and improvement

• Monitoring

  Is the process of measuring actual performance against planned performance

  Monitoring is arranged around the needs to measure key performance indicators

  Involves the measurement of all aspects of operations from supply chain management and the use of inputs, through to transformation process and outputs

  KPIs are predetermined variables that are measured so that appropriate control to operations processes can be made

  Monitoring KPIs gives operations managers a chance to measure how the business is going and to assess performance against targeted levels of performance
• Controlling


  Occurs when KPIs are assessed against predetermined targets and corrective action is taken if required

  Control requires operations management to take corrective action if there is any discrepancy between performance and goals

  Operations managers exercise control over the transformation process by setting challenging but reasonable performance objectives and targets which are then assessed regularly

  For example, operation management may redesign the facilities layout or adjust level of technology in order to correct the problem to improve quality
• Improvement Overall


  Refers to the systematic reduction of inefficiencies and wastage, poor work processes and the elimination of bottlenecks

  Bottleneck is an aspect of the transformation process that may slow down processing speeds or creates a backlog of incomplete processed products
• Improvement - in areas


  Improvement is sought in the following areas → time (flowing lead times and time wastage), process flows (smoothness between different production stages), quality (specification of output; lower defect rates/ warranty claims etc), costs (per unit of production plus fixed and variable expenses) and efficiency (reduced waste and greater productivity)