Escolar Documentos
Profissional Documentos
Cultura Documentos
MBL912L
IMPORTANT INFORMATION:
This module overview contains important information
about your module.
CONTENTS
Page
CONTENTS ............................................................................................................................................. 2
1
INTRODUCTION .......................................................................................................................... 4
PURPOSE AND BROAD AND SPECIFIC OUTCOMES FOR THE MODULE .............................. 5
2.1
Purpose ........................................................................................................................................ 5
2.2
3.1
Lecturer(s) .................................................................................................................................... 6
3.2
Area .............................................................................................................................................. 6
3.3
University ...................................................................................................................................... 7
4.1
4.2
4.3
4.4
TOPICS ........................................................................................................................................ 8
5.1
5.2
5.3
5.4
5.5
6.1
6.2
ASSESSMENT ........................................................................................................................... 18
9.1
9.2
9.3
9.3.1
9.4
9.5
Assignments ............................................................................................................................... 20
MBL912L
9.5.1
9.5.2
9.6
10
11
EXAMINATION ........................................................................................................................... 31
12
13
14
CONCLUSION............................................................................................................................ 31
INTRODUCTION
Dear Student
We have pleasure in welcoming you to this module in Operations Management and trust that
you will have a pleasant, stimulating and most successful year of study. Operations
management has to do with the way in which organisations deliver services and products. As
it is one of the compulsory subjects of first year MBL, what you learn in this subject will help
form a firm foundation for your MBL studies.
An understanding of operations management requires observation of real organisations and
their delivery systems. One of the traditional problems in studying operations management is
that there seems to be some confusion between operations management and operations
research the latter being a quantitative subject focused on the decision support and
quantification required in running and focusing operations.
Another problematic area for MBL students is that operations management utilises the
production environment as the basis of most of the underlying theory in the subject. This fact,
together with the tendency for operations management textbooks to focus on the theory and
cases of production environments, may make it difficult for students who are not familiar with
the production environment to grasp the basic concepts without significant self-study. The
various activities, case studies, exercises and assignments play an important part in affording
you the opportunity to learn.
The course focuses on assisting students to familiarise themselves with the concepts that will
form the basis of the study of operations. One would assume that by the time students reach
their second and third year levels of MBL, they will have mastered the theory.
The specific learning outcomes of this module are:
Operations management is about reality, about how the strategic intent can be achieved and
about the capacity management needed to deliver products and services. A theoretical
knowledge of operations management will not be sufficient you need to understand and be
able to analyse these principles in the real world. To enable all group members to grasp the
necessary theoretical framework and its practical implications, everybody should be exposed
to the practical side of things through, say, group visits to industry as well as group
discussions. The reflection exercises will also guide you through the learning process.
Case studies and their analysis, as well as thorough preparation for the examination, are vital
components of your studies. However, you will also be able to do "learning in action" when
you reflect on good or bad service at a restaurant, in a bank queue, or in trying to balance your
MBL commitments, your work and your personal life. It is up to you to make the most of these
opportunities.
The course requires that you update your knowledge on operations management by reading
current literature such as case studies, books, journals, magazines, business newspapers and
4
MBL912L
literature covering conferences and other workshops. I would also welcome interesting news
items on operations management from you, to be communicated via email.
I need to remind you that from your second year level you will be engaged in developing your
topic (MBL925R) for the third level research module (MBLREPP). Those students who have a
passion for operations management and want to research a topic in this field can start
consulting with me after the first study school.
Please note you will be expected to answer all questions and problems and
to review all case studies of the relevant chapters of the textbook.
2
2.1
Purpose
The purpose of this module is to enable students to acquire the basic competencies they need
to make effective decisions in order to manage efficiently the operations under their control.
2.2
Specific outcome 1
Managing operations in a global economy
Assessment criteria
The student will be required to explain with good practical examples and cases how operations
can be managed competitively in the global economy by:
Specific outcome 2
Developing and designing for effective and efficient operations management
Assessment criteria
The student will be expected to demonstrate the following:
Specific outcome 3
Managing the supply chain
Assessment criteria
The student will be expected to demonstrate the following:
Specific outcome 4
Promoting and maintaining effective operations
Assessment criteria
The student will be expected to:
design a framework for the promotion and implementation of quality to optimise customer
satisfaction
demonstrate an understanding of standards, standardisation, accreditation, certification
and common ISO standards such as ISO 9001, ISO 14001, OHSAS 18001, ISO 19011,
ISO 31000 and ISO 26000
3.1
Lecturer(s)
Office:
Telephone number:
E-mail address:
Fax number:
Lecturers can assist with enquiries of an academic nature only, such as enquiries about the
contents of assignments.
You must provide your student number, names as per your student registration and the
course code of this module (MBL912L) whenever you send us an enquiry.
3.2
Area
Please direct any administrative enquiries concerning the Management Systems area to our
administrative support staff.
MBL912L
Name
Telephone number
E-mail address
3.3
University
The contact points for any enquiries about administrative support are listed below. Remember
to use your student number as a reference whenever you contact the University.
Description of enquiry
Reception / Information Desk
Registrations
Prescribed Books
Programme Administration
Telephone
+27 11 652 0214/48
+27 11 652 0290
+27 11 652 0218
+27 11 652 0239
+27 11 652 0341/2
Library
EDS Support
myUnisa
Finance
E-mail address
Zinhle
Rakhomo
dlaminz@unisa.ac.za
sblregistrations@unisa.ac.za
Lebepe Terrance
lebepmt@unisa.ac.za
Princess Mthalane
mthalp@unisa.ac.za
Megan
Scheeper/Lindi
Ncongwane
scheema@unisa.ac.za/ncong
le@unisa.ac.za
edssupport@sbleds.ac.za
SBLfinance@unisa.ac.za
myUnisaHelp@unisa.ac.za
MODULE-RELATED RESOURCES
4.1
Prescribed books
1.
2.
Heizer, J. & Render, B. 2011. Operations management. 11th edition. Prentice Hall.
Meridith, J.R. & Mantel, S.J. 2006. Project management: a managerial approach. 8th
edition. New York: Wiley & Sons.
Various ISO standards (available as read-only on library site or alternatively obtain a
student CD of standards from the South African Bureau of Standards [SABS].)
3.
4.2
Recommended books
1.
Kruger, D., Ramphal, R.R. & Maritz, M. 2013. Operations management: an approach to
production and service industries. 3rd edition. South Africa: Oxford University Press.
Slack, N., Chambers, S. & Johnston, R. 2010. Operations management. 6th edition.
Prentice Hall. ISBN: 0273731602 or ISBN: 9780273731603.
Cameron, S. 2005. The MBA handbook: skills for mastering management. 6th edition.
Pearson.
Goldratt, E.M. and Cox, J. 2004. The goal: a process of ongoing improvement. 3rd
edition. North River Press.
2.
3.
4.
4.3
Students will be informed of electronic reserves and their availability if and when required.
Additional articles
Additional articles are intended to broaden your insight into the different topics. They will also be
linked through the EDS. These articles could be used for assignments, but will not form part of
the body of knowledge for assessment purposes. Informative articles and information submitted
by students will also be found here.
4.4
Web links
www.apics.org
www.sama.org.za
www.orssa.org.za
www.sapics.org
www.cips.org
www.informs.org
www.sasq.org.za
www.sabs.co.za
TOPICS
Tuition period
Time allocation: Before study school and completed at first group meeting.
5.1.2
Specific outcomes
After having completed this topic, students will be able to design project plans with limited scope
and short duration.
5.1.3
Critical questions
In order to succeed in the MBL, it is essential for you to be able to work as a group on
completing the assignments and other associated projects. Some of you might have had prior
exposure to project management and may be able to run a project. However, this is not always
the case and it has to be addressed.
You need to clarify the following issues in your group, as a common understanding may mean
the difference between a fruitful and positive experience and failure:
(1)
(2)
(3)
(4)
(5)
(6)
8
MBL912L
(7)
(8)
(9)
5.1.4
Self-assessment
After your first group meeting you should have a project plan and have determined the following:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
At regular intervals during the year, schedule a performance review session with your group
during which you reconsider your project plan and update it in order to address new constraints,
risks and required procedures.
At the end of the year or at the beginning of MBL2, conduct an audit of your groups
performance. What have you learned? How can you plan for the next year?
9
Reflection
The tools and processes used in project management can be a huge advantage not only for
completing the MBL course, but also in your own career. Keep in mind, however, that
complicated computer programmes will be of no use if you do not understand the basic
requirements of project management. Completing the assignment on time is not the only
requirement: you must achieve the marks envisaged within the bounds of your resource cost
constraints.
5.2
It is important to understand the principles of operations management (OM) in general and how
they apply in a global economy specifically. This is accomplished by understanding the
challenges of globalisation as they affect OM. It is also necessary to contextualise OM in terms
of the critical issues of a developing country: assumptions, risks, constraints, social culture,
business culture, infrastructure, customer insights, macroeconomic issues and environment
challenges.
5.2.1
Tuition period
Specific outcomes
After having completed this topic, students will be able to manage operations in a global
economy.
5.2.3
Critical questions
Operations management is the study of the system and network that actually deliver an
organisations products and services. As such, it is firmly entrenched in reality and reality
means that operations exist in a global economy. However, operations face some very real
issues in developing economies hence the need to understand them and the associated risks.
Some of the questions in this section are as follows:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
10
MBL912L
5.2.4
title of position
type of industry/organisation
qualifications required
job tasks
Now using the analyses draft a job and profile description of a typical operations manager.
Activity 2
Each member of the group is to collect at least 2 mission statements of well-known
organisations. As a group, discuss the mission statement and relate it to your experiences and
knowledge of the specific organisation. Is there a connection between the mission statement
and your personal views of the organisation?
Now rank them from the best to the worst.
What are the conclusions from the group discussion?
Activity 3
As a group, visit a local fast food outlet. Observe the product and service delivery processes
and aspects at least for an hour (make notes, take photographs and collect any other evidence).
Thereafter reconvene as a group and write up a short scenario detailing your observations.
Proceed to analyse all the positive and negative aspects of your experience at this fast food
outlet. Discuss the productivity of any equipment or people or processes you observed.
If your group were the actual owners of this fast food outlet, how would you improve the
operations and what steps would you take to raise the productivity?
5.2.5
Self-assessment
Answer the questions related to the following case studies in chapters 1 and 2:
Darden
Exercises
1.11; 1.13
Exercises for test preparation
Self-test (page 62); self-test (page 92)
5.2.6
Reflection
It is important to understand the principles of operations management (OM) in general and how
they apply in a global economy specifically. This is accomplished by understanding the
challenges of globalisation as they affect OM. It is also necessary to contextualise OM in terms
of the attendant issues of a developing country: assumptions, risks, constraints, social culture,
business culture, infrastructure, customer insights, macroeconomic issues and environment
challenges.
5.2.7
Conclusion
In the current globalisation drive, it is critical that the principles of OM be understood and
reviewed. The way in which effective OM is applied in developing countries is not the same as in
developed countries hence the need to contextualise, adapt and innovate.
5.3 Topic 3: Developing and designing operations
After having established the requirements and challenges of OM in terms of globalisation in a
developing country, it is essential to develop an appropriate operations strategy. Product life
cycle, forecasting, process planning, layout design and other aspects of design have to be
understood and contextualized.
Developing an operations strategy lays the foundation for developing and designing OM.
Product life cycle, forecasting, process planning, layout design and automation are key elements
in this. In developing countries, new technologies can be used to leapfrog and create a unique
OM value proposition.
5.3.1
Tuition period
Specific outcomes
After having completed this topic, students will be able to develop and design effective and
efficient processes, products, services and operations management.
5.3.3
Critical questions
What is forecasting?
What is the strategic importance of forecasting?
What are the seven steps in the forecasting system?
What are the different forecasting approaches?
What is a product life cycle?
Last updated: 17/12/2014
MBL912L
(6)
(7)
5.3.4
Activity 1
Briefly describe the different methods of forecasting. Then complete work exercise 4.2 (page
177 of the textbook) and exercise 4.46 (page 183 of the textbook).
Activity 2
Briefly discuss the possible business related consequences of a bad forecast.
Activity 3
Study the South Western University case study (page 184) and answer the questions that
follow.
Activity 4
Divide your group into four subgroups. Each subgroup will take a phase of the product life cycle.
The task will be to identify at least two products in each phase and to justify your choice. Each
subgroup will have to research the product to gather the relevant information. (Hint: study the
four phases on page 195 of the textbook.)
Activity 5
Study Temsa Globals Product Strategy (page 219). Answer the questions that follow. As an
additional question, provide a design to production strategy for introducing an environment
friendly bus and service improvement at Temsa Global. (Hint: study chapter 5.) Give an
indication of the chapters to be studied as well as articles and any other resource wherever
possible.
Activity 6
Study chapter 7 and then read the case on process strategy (page 330). Design a process for
Wheeled Coach. This design must show:
The process strategy
equipment
how the current process can be analysed
production technology
strategy for design of the services
improving service productivity
service technology
Activity 7
Review the Arnold Palmer Hospital case study (page 357) and answer the questions that follow.
Activity 8
Visit a factory and make a study of the different layout formats. If possible, make sketches or
take photographs. Use all this information to write a report on the productivity of the factory and
how it can be improved with different layouts. (Hint: study chapter 9.)
13
Activity 9
Visit 3 major stores (for example Woolworths, Pick & Pay, SPAR) and study their retail layouts.
Write a report on the similarities and differences and their impact on the customer.
5.3.5
Self-assessment
Exercises
7.12; 7.14; 7.20; 7.27; 9.3; 9.7; 9.14; 9.18; 9.22
Exercises for test preparation
Self test exercises page 188; page 222; page 240; page 360; page 430
5.3.6
Reflection
It is important to understand that developing and designing effective and efficient processes,
products, services and supporting operations structures is critical in a business environment. In
order to design and plan it is essential to forecast accurately, thus ensuring customer
satisfaction.
5.3.7
Conclusion
The student should be able to forecast, analyse trends, design products and processes, plan
capacity requirements and plan layouts for optimum operations performance.
5.4
MBL912L
(6)
How can one manage the risk of delivering the required products and services through
the network?
What are the key elements of JIT, and what changes are required for it?
Draw a supply network for a small neighbourhood supermarket.
What are the key drivers of outsourcing?
Describe the issues and challenges involved in materials requirements planning (MRP)
and capacity requirements planning (CRP).
15
5.4.6 Reflection
It is essential for operations in the supply chain to be managed effectively, efficiently and
profitably. Modern techniques such as JIT, Lean manufacturing and MRP have to be
contextualised and employed where applicable. The successful management of supply networks
is the secret to competitiveness in the manufacturing and services industries.
5.4.7 Conclusion
After having designed an OM system, managing operations in the corresponding supply chain
becomes the next central activity. Key areas include forecasting, aggregate planning, inventory
management, outsourcing, resource requirements planning, manufacturing operations
scheduling and understanding the supply network.
5.5 Topic 5: Promoting and maintaining effective operations
5.5.1 Tuition period
Time allocation: Before study school 2.
5.5.2 Specific outcomes
After having completed this topic, students will be able to use methodologies for promoting and
maintaining effective operations.
5.5.3 Critical questions
Quality management is one of the key elements in ensuring that an operation is well managed.
The concept of quality management is somewhat confusing, because there are many "quality
gurus" in the field and different views put forward in both academic and popular literature. The
following questions need to be considered:
(1)
(2)
(3)
(4)
(5)
(6)
16
MBL912L
Activity 3
Study chapter 16 and then read the case on ICICI Bank (page 681) and answer the questions
that follow.
Activity 4
Study chapter 17 and then read the case on Frito-Lay (page 700) and answer the questions that
follow.
Activity 5
Each member of the group should study at least two of the prescribed ISO standards. Then
have a group discussion with each member presenting on the scope, purpose and main
components of each standard. Thereafter debate the advantages and disadvantages of
implementing standards in a service organisation.
5.5.5 Self-assessment
The self-assessment questions include the following:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
5.5.6 Reflection
Without quality, OM is ineffective; hence the need to understand the key drivers of quality, cost
of quality, modern quality management and concepts of quality control.
5.5.7 Conclusion
Operations quality management and quality control are critical in OM. Organisations must
leverage world best practice in quality, while paying attention to local conditions, globalisation
demands and environmental concerns. Note that there are many other resources on the
following website: www.SASQ.org.za.
All study schools are held in Midrand. Attendance is compulsory and students will be advised
about the dates and venues well in advance. Students are responsible for their own
accommodation, travel arrangements and expenses incurred while attending the study schools.
Study schools give students an opportunity to network with fellow students and to interact with
academics.
Please note: the study schools for this module will not entail formal lectures. They will comprise
discussions and applications of concepts, group work and presentations.
17
6.1
Study School 1
Topic number
Topic description
6.2
Study School 2
Topic number
Topic description
Quality management
Use your my Studies @ Unisa brochure for general time management and planning skills. This
brochure is available at http://www.unisa.ac.za/contents/study2012/docs/myStudies-Unisa2014.pdf. We strongly recommend that you set a study programme for yourself for this year and
that you allocate sufficient time to work through the study guide, to study and read the relevant
sections of the prescribed books, to incorporate additional material if necessary, to do the
assignments, and to prepare for the examination.
You will need to spend at least 200 hours working on this module. This includes approximately
83 hours of reading and studying the learning material, 67 hours of doing activities and
assignments, and 50 hours of preparation for the examination. This includes attending the study
schools.
The activities are designed to promote the use of theory and concepts in the work area.
ASSESSMENT
The distributed distance learning elements comprise self-tuition and group work in which you
must do both prescribed and recommended reading, complete assignments, and contribute to
group activities.
9.1
There are different types of performance standards that one can use when assessing
performance. This module is based on the mastery of specified learning outcomes which, along
with assessment criteria, are included in this module overview. Standards for accrediting
qualifications are set by the South African Qualifications Authority (SAQA), which oversees the
National Qualifications Framework (NQF).
18
MBL912L
Assessment plays an important role in the learning process. The individual test and group
assignments form part of the formative assessment in this module and are used to assess your
progress during the year and to provide feedback which you can use to improve your future
performance in this module. In addition to being assessed on the learning outcomes of the
module, you will also be assessed on the critical cross-field outcomes (CCFOs) associated with
the module and with postgraduate studies in general. These CCFOs are generic outcomes that
inform all teaching and learning and they have been integrated with the formative and
summative assessment in this module. The following table indicates some of the CCFOs and
practical examples useful in assessing them:
CCFO
Example
For more information on the CCFOs, please visit the South African Qualifications Authority
(SAQA) website at http://www.saqa.org.za.
9.2
Assessment plan
To determine how well you have accomplished the learning outcomes for the module, you will
be assessed throughout the year by means of an individual test, two group assignments and an
examination. Assignments contribute 24% towards the final mark of this module. The individual
test is written during May, and contributes 16% towards the final mark. The weight of the year
mark is 40% and that of the written examination is 60%.
9.3
Due date
07 April 2015
18 May 2015
21 August 2015
Type
group
individual
group
Marks
100
TBC
100
19
VERY IMPORTANT
Please ensure that your assignments reach us on or before the due dates. Penalties will be
awarded for assignments received after the due date:
Assignments received up to 3 days after the due date will incur a 25% penalty.
Assignments received up to 6 days after the due date will incur a 50% penalty.
No assignment received 7 days or more after the due date will be marked. A mark of 0 will be
recorded on the system.
9.4
Submission of assignments
All assignments are to be submitted online using the Electronic Delivery System (EDS online).
For detailed information on how to use the EDS online and instructions about assignment
submission, please refer to the EDS Guide, which you received with your study package.
9.5
Assignments
We strongly recommend that students unfamiliar with the case method of learning visit the
publisher Online Learning Centre (OLC) at ww.mhhe.com/thompson. The OLC provides access
to a guide to case analysis. This guide explains what a case is, why cases are a standard part
of courses in strategy, how to prepare for a class discussion of a case, and how to prepare a
written case analysis.
All assignments are group assignments. Note, however, that repeaters of this module are
expected to submit individual assignments. Also note that we will adopt a very strong stance on
plagiarism for all assignments and may decide to take disciplinary steps against students who
plagiarise. Plagiarism is the act of taking the words, ideas and thoughts of others and passing
them off as your own. It is a form of theft that involves a number of dishonest academic
activities. An example of plagiarism is retrieving information from the internet and then copying
and pasting this information into your assignment and submitting it as your own work.
You may access the Policy for Copyright Infringement and Plagiarism from
http://www.unisa.ac.za/Default.asp?Cmd=ViewContent&ContentID=27715.
9.5.1 Group assignments
ASSIGNMENT 01(GROUP)
Topics 1 and 2
Due date: 07 April 2015
Technical requirements:
Maximum length: 40 pages, 12 Font, 1, 5 spacing (excluding appendices). Kindly note that markers will only
review the first 40 pages.
Referencing: Harvard Referencing Method
20
MBL912L
Question 2 [5 marks]
Recommend an international strategy for your GCE. Provide a motivation.
Question 3 [5 marks]
Discuss the OM challenges of your GCE with reference to those on pages 54 to 55 of the
textbook.
Question 4 [5 marks]
Calculate the productivity of your GCE. Explain how you arrived at this answer.
Question 5 [5 marks]
How would you describe the job and tasks of the operations manager in your GCE?
Question 6 [5 marks]
Where would you place the products and/or services on the product life cycle? Why?
Question 7 [15 marks]
Create a new product/service which will be appropriate for your GCE. Provide a report in which
you:
outline the reasons for the selected new product/service (5)
21
design a project plan and activities incorporating all the development stages shown on
page 197 of the textbook (10)
22
MBL912L
Question 5
The manager has requested you to present the advantages and disadvantages of
standardisation and comment briefly on the suitability of the following ISO standards in the
GCE:
ISO 9001
ISO 14001
OHSAS 18001
ISO 51000
ISO 31000
Your answers to the above will be assessed in terms of the level of communication displayed,
the insights and inferences drawn, and your ability to show the implications of the factors that
you have assessed and discussed. An answer that merely gives a list of events that have
happened or a synopsis of a situation, without showing insight into the reasons and results, will
not earn good marks. Your method of referencing must consistently follow the augmented
Harvard method.
9.5.2 Repeaters individual assignments
REPEATERS INDIVIDUAL ASSIGNMENT 01
Topics 1 and 2
Due date: 07 April 2015
Technical requirements:
Maximum length: 20 pages, 12 Font, 1,5 spacing (excluding appendices). Kindly note that markers will only
review the first 20 pages.
Referencing: Harvard Referencing Method
Read the following case study and answer the questions that follow.
Case: Cincinnati Veterans Administration Medical Center
(Case study is adapted from the information gathered by William Cahill, Troy Hall, and Rachel Whitaker, and the Cincinnati
Veterans Administration Medical Center.)
The Cincinnati VA Medical Center (CVAMC) provides health care to eligible veterans in Ohio,
southeast Indiana, and northern Kentucky. The CVAMC is an acute care, university affiliated
220-bed facility. It is a part of the Veterans Healthcare Administration of the Department of
Veterans Affairs.
Services Network 10 (VISN 10). The CVAMC works to provide a variety of services as needed
across the continuum of care for veteran patients, as well as trainee education and the pursuit
of new knowledge through research. The mission arises from Federal mandates to support
health care, education and research.
23
CVAMCs vision is to shape our future by breaking the traditional VA mold, building on our
strengths, and emerging as the health care center of choice for all Veterans. As pioneers of
change we will:
1. Establish the patient at the core of all processes with the focus on continuity of care leading
to optimal patient outcomes.
2. Develop a united team of competent, caring, empowered employees committed to providing
service that exceeds expectations.
3. Foster unprecedented labor/management trust and cooperation.
4. Create a proactive organisation that is responsive, streamlined, and personal.
5. Be recognised as an innovative, vital health care leader and educational resource in our VA
system and the Greater Cincinnati community.
The CVAMC is able to offer a variety of inpatient and outpatient healthcare services. The
Medical Service staff offers services in primary care, general internal medicine, and in multiple
medical subspecialties such as cardiology, nephrology, pulmonary, and gastroenterology. The
Surgery Service offers general surgical care and specialty care in such areas as urology,
orthopedics, vascular surgery and neurosurgery.
psychiatric and psychological support care for patients with a variety of programs including care
for patients with post-traumatic stress disorder, substance abuse, and serious mental illnesses.
The Neurology Service cares for patients with disorders of the nervous system. It has special
programs in epilepsy, neuromuscular disease, stroke, and movement disorders.
Physical
Medicine and Rehabilitation Service offers support for patients with acute and chronic
debilitating conditions. It offers programs in occupational, physical, and speech therapy as well
as chronic pain management and prostheses.
The CVAMC also provides specialty services in support of other medical centers within the
VISN. This includes surgical, psychiatric, neurological, and medical specialty care to patients at
Dayton, Chillicothe, and Columbus. Additionally, some specialised care is offered for veterans
from other areas of the state and country, including the production of special limb prostheses.
The primary customer is the veteran patient. Highest priority is given to veterans with medical
conditions or injuries related to their service in the military, and to those veterans with limited
resources who otherwise would have difficulty obtaining the care they need. CVAMC offers a
broad range of services to other eligible veterans as well. Other customers include the families
of veteran patients, the veterans support organisations (VSO), the trainees including residents
and medical students, and the staff at the other VISN facilities. There is a special relationship
with the University of Cincinnati. This involves all three major missions of this medical center.
The majority of the staff physicians have joint appointments with the University.
24
Some
MBL912L
specialised care is provided through sharing agreements with the University, including radiation
therapy, special radiological studies, and cardiac surgery. The CVAMC is a major teaching
center for many of the University's residents and medical students. The CVAMC also supports
researchers with joint appointments at the University.
unions and the Medical Center. Finally, there is a partnership between the Medical Center and
a local elementary school.
The 1,100 employees of the CVAMC include physicians, nurses, psychologists, dieticians,
social workers, therapists and other health care professionals. This number also includes those
members of the services that support the delivery of care including environmental management,
security, medical administration, finance, and acquisition personnel.
Physicians represent
approximately 10% of the full-time work force, while nursing personnel account for about onethird.
The main facility for the CVAMC includes the acute care bed services and clinic areas housed
in one building in Cincinnati. The inpatient facilities include two intensive care units, acute
medical and surgical services, and acute and intermediate term psychiatry services. Outpatient
facilities include clinics on three floors and a Patient Evaluation Area for patients with
emergencies. Full-scale laboratory, clinical pathology, and radiological services are available
on-site.
There are facilities for computerised fabrication of artificial limbs for patients with
amputations. Day treatment facilities are also available for patients with PTSD and substance
abuse. The CVAMC operates a nursing home and a domiciliary for homeless veterans at its
Fort Thomas location. The CVAMC also supports an outpatient facility in Bellevue, KY for
easier access for veteran patients in northern Kentucky. The CVAMC also offers specialty
services to other VAMCs in VISN 10 throughout reach programs at those facilities. One major
regulatory body is the Joint Commission for Accreditation of Healthcare Organizations. Other
regulatory bodies that review the activities of the CVAMC include the Nuclear Regulatory
Commission, the College of Pathology, The Environmental Protection Agency, and OSHA.
Veteran patients require accessibility to care. This includes the need to be seen at a location
convenient to them, as much as possible. Additionally, they must be able to get an appointment
with their clinicians within a reasonable period of time. A thirty-day limit for specialty clinic
consultation has been targeted as a key customer service standard. Patients do not want to
have to wait for long periods on the day of their appointments. They need access to the latest
technology and specialty skills as appropriate for their medical conditions. This is important
even if the CVAMC does not have the necessary equipment or personnel on site. The CVAMC
must then contract for those services. Veteran patients need to have continuity of care. They
25
want to see the same clinician each visit to develop rapport with someone who understands
their particular needs. They want that provider to be aware of the results of any specialty
consultations or hospitalisations. These patients deserve the availability of a range of services
to meet their needs. They recognise the need for interdisciplinary approaches to solve some of
their health problems. They demand to be heard during medical decision-making and want their
end-of-life wishes respected.
The families of veteran patients need to be informed about the care of their loved ones. They
want to be able to participate in educational activities. They wish to be able to support the
patient when treatment decisions are being made. They want convenient access to care for the
veteran patients, as they are often responsible for getting the patient to the appointments.
The veterans services organisations play a key role in supporting veteran patients.
They
demand that the veterans needs be met. To this end, they require access to top management
of the CVAMC in order to discuss their concerns.
The trainees demand access to teaching facilities. They want to be able to assist in the care of
patients with a variety of health conditions.
experienced staff. They demand access to the latest technology and treatments. They want to
be able to interact with researchers to gain a better understanding of their patients conditions
and options for care.
The staff at other VISN facilities needs to be able to take advantage of the expertise and
equipment at the CVAMC when these are not readily available at their own sites. They want
access for their patients that are timely and convenient. They demand timely reports of these
evaluations and wish to be included in medical decision making.
The University demands satisfaction of its teaching requirements for the trainees.
The
University requires regular monitoring of the trainees progress. University staff also monitors
the trainees evaluation of their experience while at the CVAMC.
MBL912L
system in the market, with a variety of services for its veteran patients across the continuum
from outpatient to inpatient. It currently provides care to approximately 21,000 veteran patients,
but this represents only about a 10% penetration of its target market. This limited penetration is
due in part to years of restricted eligibility to receive care at this facility. Because of its role of
supporting veterans with limited resources, it has been viewed at times as a provider of last
resort.
Federal regulations restrict the ability to advertise, limiting the ability to market its
services. The CVAMC also faces a declining population of veterans in its service area.
The CVAMC has a number of competitors in the region. These include all of the major medical
facilities which provide inpatient or outpatient care. These compete with the CVAMC mostly for
patients with insurance or Medicare coverage. Veteran patients with limited resources may also
go to places other than the CVAMC, since some support for indigent care is available.
Additionally, the other VA medical centers in the state can compete with the CVAMC for veteran
patients. Funding of these centers depends in part on the number of veteran patients served.
The CVAMC must be ready to compete with these other facilities, inside and outside of the
VHA, if it is to succeed.
There are several factors of importance when competing in this health care market.
The
reputation for quality may be a critical factor for some patients. Cost is a major factor for many
veteran patients, since they have little or no out-of-pocket expenses for care provided at the
CVAMC. Accessibility is critical, since patients are often unwilling to tolerate long waits for
appointments or long delays on the day of their visits. Many patients show strong preferences
for local access to care, the ability to avoid bridge or downtown traffic, and ease of parking.
Continuity of care is important to many patients. Many patients want their providers to be able
to coordinate their visits and tests, with good communication of results among their providers.
Staff courtesy, empathy and efforts to educate the patients may also be factors of importance to
health care customers.
Change continues to affect the health care market. Recent changes in federal reimbursement
of medical facilities under the Balanced Budget Act have caused financial strain among health
care providers. The VHA is funded separately, but is not immune to budget cutting activities in
Congress.
The insurance companies have also been aggressively trying to reduce their
increased the demand for services. The costs of pharmaceuticals and medical technology
continue to rise. Changes in coverage of medications have forced some patients to consider
different sources for their healthcare. CVAMC must attend to these changes if it is to prosper in
this changing health care environment.
27
The major new initiative for the CVAMC is to improve access to care by the placement of
outpatient facilities at sites more convenient to veteran patients. This process started with the
planning for and implementation of the community based outpatient clinic (CBOC) in Bellevue,
KY. Analysis of postal code information for eligible veterans in the region showed that there is a
high concentration of patients in the three counties of northern Kentucky. Focus groups were
held with patients from this area that showed that these patients strongly disliked having to
cross the Ohio River for their healthcare. An adequate site was found for a clinic in northern
Kentucky. Since its opening, enrollment with patients new to the system has occurred rapidly.
In view of this success, the demographic data was reviewed for consideration of two more
veterans service centers.
approved. These should help the CVAMC to meet its targets of increased patient enrollment as
well as improved access to care.
The Mental Health Service has undertaken an initiative to improve access to its targeted group
of veteran patients in the northern suburbs of Hamilton County. This will also improve access to
care and utilisation of CVAMC resources as these patients begin to use other services.
The CVAMC has taken part in a new VISN case management program. This involves assigning
a nurse to patients in certain high-risk categories. The categories of risk were determined by
review of resource utilization including days of hospitalization. The case manager is trained to
improve coordination of care and assure appropriate preventative measures are taken to
improve the health state of the patient, limiting the use of scarce resources.
Major research programs are helping the CVAMC achieve its missions. The medical center is
one of three sites funded nationally as a Patient Safety Center of Inquiry to look at how
mistakes occur and how they can be limited in the delivery of health care. The Mental Health
Service has recently received further funding from the National Institutes of Health to study
substance abuse management. These programs help to fund staff positions while improving
the quality of care that we are able to offer to veteran patients.
The computerised system for automated production of prostheses represents a new service that
is not available elsewhere in the VISN. Additionally, it is far superior in cycle time to any system
available anywhere else in the region. This system allows the CVAMC to offer its patients with
amputations unparalleled service. The shorter cycle time increases the chances that the veteran
patient will be able to ambulate well after an amputation procedure. The system allows us to
provide similar service for veteran patients at other facilities within the VISN and beyond,
without the need for these patients to travel to Cincinnati.
28
MBL912L
Another area receiving great attention at this time is achieving increasingly strict customer
service standards. These help focus attention of all employees on the issues of importance to
veteran patients. These standards have associated monitors and measures, with benchmarks
from health care systems nationally.
The major unique factor at the CVAMC is the strategic planning process. This occurs at the
Quorum, a quarterly meeting of managers from all services as well as representatives of major
customer groups. Results of prior initiatives are reviewed. The group decides whether the
resources should continue to be assigned to those projects. New initiatives are considered in
view of changes in the environment and customer needs. The large size of the group improves
organisational buy-in for initiatives. The monitoring activities of this group have allowed the
elimination of some committees including the Quality Assurance Committee. The size and
nature of this strategic planning group is unusual for a health care organization. The quarterly
meetings allow the medical center to respond more quickly to change. This process will be
important in the future success of the CVAMC.
Questions
[10]
2. Provide a suitable strategy and outline the operations requirements to support such a
strategy.
[20]
3. What factors will be considered to ensure a suitable location for CVAMC? Discuss the
methodology used to select such a location. List all your assumptions.
[15]
4. Explain how service efficiency can be improved. List all your assumptions.
[15]
Question 1 [20]
Review the Darden Global supply chains case study and answer the questions given (page
491).
Question 2 [20]
Using suitable examples, show the impact of technology on operations management. (Research
and information-gathering visits to organisations are expected as part of this exercise.)
Question 3 [20]
Standardisation is critical for operations in a modern organisation. Do you agree with this
statement? Fully motivate your answer.
Question 4 [20]
CVAMC in assignment 1 wants to become world class. Provide a report on how it can get this
status with the necessary operations requirements. (Hint: you will need to conduct research on
world class requirements.)
(2
9.6
Marking guideline/matrix/rubric
The following template will be used in the overall assessment of your assignments:
10
30%
30%
10%
20%
Correct references
10%
More information about the form and scope of assessment, as well as the dates, will be
supplied well in advance.
30
MBL912L
11
EXAMINATION
Open book examinations will be written during October/November. The duration of the
examination is four hours. The examination will consist of one or more case studies and specific
questions related to the case(s). All reading material set out in this module overview, together
with all material covered at the study schools, should be reviewed for the examination. You are
allowed to bring all reading materials to the examination except electronic devices.
Examination eligibility will be according to the rules and procedures applicable to the MBL.
Students will be required to adhere to the Unisa examination timetable, as well as the
designated Unisa examination centres. Students may be required to write more than one
module per day during the examination period.
12
The my Studies @ Unisa brochure contains an A-Z guide of the most relevant study
information. This brochure is available at
http://www.unisa.ac.za/contents/study2012/docs/myStudies-Unisa-2014.pdf
13
SOURCES CONSULTED
3.
Heizer, J. & Render, B. 2011. Operations management. 11th edition. Prentice Hall.
Meridith, J.R. & Mantel, S.J. 2006. Project management: a managerial approach. 7th
edition. New York: Wiley & Sons.
Various ISO standards.
14
CONCLUSION
1.
2.
I trust you will enjoy this module. Feel free to furnish me with any comments that may improve
this overview.
Prof. R.R. Ramphal
GRADUATE SCHOOL OF BUSINESS LEADERSHIP
UNISA
31