SOM L8 Handout

BB215010S Systems and Operations Management
Lecture 7: Soft Systems Methodology: Root definitions; CATWOE and requirements

Assignment focus: Learning Outcomes
Assignment focus
Lecture 8
Introduction Introduction
1 Operations 2 SSM 3 Recommendations 4 Mgt issues Self-managed Learning
Review the content for your report: 1. Apply appropriate models to the organisation to critically analyse how systems and operations are currently managed. 25% 2. Apply the techniques of soft systems methodology to analyse the current issues in the organisation. Through this analysis summarise the main business requirements of the organisation. 25% 3. Explain how the organisation can improve quality management; business improvement and excellence in their systems and operations. 25%
Assignment focus: Learning Outcomes

Assignment
Introduction
Review the content for your report (Contd.): 4. Identify the relevant people and management issues that may arise in implementing your quality management; business improvement and excellence recommendations (in 3). 15% 5. Report Style and Academic Rigour Your report should be written in good business English and be well structured and presented . 10% Understand how to structure your report.
11Operations Operations
2 SSM 3 Recommendations 4 Mgt issues Self-managed Learning
Individual assignment Must not exceed 3,000 words (Penalty Deduction of 10% of total marks) Must include a word count on the cover sheet Submission date 9th. May 2012 Wednesday 5 pm
1. Systems and Operations Management Analysis and Evaluation

Introduction
Atokowa Advantage
Introduction 1 Operations 2 SSM 3 Recommendations 4 Mgt issues Self-managed Learning
Apply appropriate models to the organisation to critically analyse how systems and operations are currently managed. 25% This may include (but is not limited to) applying and/or analysing: the input-process-output models; 4Vs typology; business process mapping; the decision-making hierarchy; systems levels; the role of systems to support business processes and Pareto analysis. Tip. You need to bring this together in a report that flows well so you will highlight the main points you think are important from models/techniques you apply.
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Example

Atokowas organisation structure
Introduction 1 Operations 2 SSM 3 Recommendations 4 Mgt issues
Newcastle
Atokowas outlets
Self-managed Learning
Example
Purchasing and Supply Chain Main warehouse
Head Office Retail Operations Marketing & HRM Finance

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Example
Designing and managing supply networks

Introduction Supply side Second tier First tier supplier supplier Demand side First tier Second tier customer customer Introduction End customer 1 Operations 2 SSM Physical distribution management Logistics Materials management Supply network management (Supply chain management)
Information flow Physical flow 9
Atokowa supply networks

Supply side First tier supplier Demand side Retail outlets End customers Retail customers
Purchasing and supply management
3 Recommendations 4 Mgt issues Self-managed Learning Purchasing and supply management Physical distribution management Logistics Business customers
Materials management Supply network management (Supply chain management)

Information flow Physical flow 10
Example
Source: Slack et al (2010)
Source: Slack et al (2010)
Operations in the Organisations

Introduction
Atokowa operations
Operations
Core Functions
2 SSM 3 Recommendations 4 Mgt issues
Marketing and Sales Product/service Development

Support Functions
Core Functions
Responsible for fulfilling customer requests for service through the production and delivery of products and services. Responsible for communicating the organisations products and services to its markets in order to generate customer requests for service. Responsible for creating new and modified products and services in order to generate future customer requests for service. Accounting and Finance Human Resource Sourcing and Purchasing Logistics and Supply
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Operations
B2B and B2C operations
Marketing and Sales Product/service Development

Support Functions
Customer Service & pricing
Atokowa range of products Technology and IT? HR policies? Purchasing & Suppliers Warehousing & Store management 12
Accounting and Finance Human Resource Sourcing and Purchasing Logistics and Supply
Example

Atokowa Retail operations
Introduction
Transformation Process in Operations

Introduction
Transformed resources Materials Information Customers
Outputs are products and services that add value for customers
1 Operations 2 SSM 3 Recommendations
Environment
Transformed resources Materials Information Customers
What are Atokowas transformed resources?
What are Atokowas outputs?
Retail
Outputs (Products Services)
Inputs (Resources)
Transforming resources Facilities Staff
Transformation process
Environment
Resources that act upon the transformed resources
Outputs (Products Services)
Customers
4 Mgt issues Self-managed Learning
Inputs (Resources)
Transforming resources Facilities Staff What are Atokowas transforming resources?
Customers Business Customers
Materials processing Information processing Customer processing

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Example
What are being processed in Atokowas retail outlets?

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Three levels of analysis

Introduction
Analysing Atokowa operations

Introduction
Supply network
Supply network
Flow between operations
1 Operations 2 SSM
Operations management is concerned with the flow of transformed resources between operations, processes, where External operations interact with internal processes to form the external supply network Processes form an internal supply network and become each others customers and suppliers
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Flow between operations
Example Supply chain operations
Operation
Operation
Flow between processes 3 Recommendations 4 Mgt issues Self-managed Learning
Flow between processes
Warehousing to retail outlets
Process
Example
Flow between resources
Process
Movement of stocks
Flow between resources
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A typology of operations and processes

Introduction
A typology of operations and processes in Atokowa

Introduction
The 4 Vs
Low Volume of their product High High
How many products or services are made by the operation? Low Volume of their product High High
2 SSM
How many different types of products or services are made by the operation? High Variety of their product Low
High
Variety of their product
Low
3 Recommendations 4 Mgt issues
How much does the level of demand change over time? High Variation in demand for their output Low
High
Variation in demand for their output
Low
Example
High
Degree of visibility which the customers have Low

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How much of the operations internal working are exposed to its customers? Degree of visibility High which the customers have Low
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What are Ayokowas perspectives on operations strategy
Introduction 1 Operations
Social, 2 SSM environmental and economic 3 Recommendations performance
Four perspectives on operations strategy

Introduction
1. Top-down perspective What the business wants operations to do 4. Operations resources perspective What operations resources can do 3. Market requirements perspective What the market position requires operations to do
1. Top-down perspective What the business wants operations to do? 4. Operations resources perspective What operations resources can do? 3. Market requirements perspective What the market position requires operations to do?
Operations Performance objectives Self-managed
4 Mgt issues
Operations strategy
2. Bottom-up perspective What day-to-day experience suggests operations should do
Operations Performance objectives Self-managed
4 Mgt issues
Operations strategy
2. Bottom-up perspective What day-to-day experience suggests operations should do?
Learning
Learning
Example
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Source: Slack et al, 2010
Source: Slack et al, 2010
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The five operations performance objectives

Introduction Strategy 11Operations Operations
What are the five operations performance objectives of Atokowa?

Introduction 1 Strategy Operations
1. Quality 5. Cost
Performance objectives
1. Quality? 5. Cost?
Performance objectives
2. Speed
2. Speed?

4. Flexibility
3. Dependability
Self-managed Example Learning
4. Flexibility?
3. Dependability?
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Process mapping symbols

Introduction
Flow process chart

Introduction
Process mapping symbols derived from Scientific Management

Operation (an activity that directly adds value) Inspection (a check of some sort) Transport (a movement of something) Delay (a wait, e.g. for materials) Storage (deliberate storage, as opposed to a delay)
Process mapping symbols derived from Systems Analysis

Beginning or end of process Activity Input or Output from the process
Direction of flow Decision (exercising discretion)

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Look for ways to improve the process/ reduce the steps. o What is wasteful in the process? o Can some tasks be done simultaneously?
Description of activity 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Totals 7 8 5 5
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Flow process chart at Atokowa Retail outlets

Flow process chart at Atokowa Warehousing and Distribution
Example
Look for ways to improve the process/ reduce the steps in Atokowas retail operations. o What is wasteful in the process? o Can some tasks be done simultaneously?
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
Description of activity Product scanned into EPOS system Products are totalled Payment is taken Write transaction into the ASIS Store manager monitors the record Etc.
Example
Look for ways to improve the process/ reduce the steps in Atokowas warehousing and distribution operations. o What is wasteful in the process? o Can some tasks be done simultaneously?
Description of activity 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Totals 7 8 5 5 Goods arrive at warehouse Goods counted Goods entered into the WMS Send goods to its specific location Goods stored in specified location Receive delivery requests through EDI
Totals
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Four Major Types of Systems

Strategic Level Systems
Current Atokowa Information System
Operational Level Systems
Executive Support Systems (ESS)
1 Operations 2 SSM
Management Information Systems (MIS) Management Level Systems Decision Support Systems (DSS)
Atokowa Stock Information System (ASIS) Warehouse Management System (WMS)
3 Recommendations 4 Mgt issues
Transaction Processing Systems (TPS)
EPOS
Example
Finance and HR & Payroll System

Source: Laudon & Laudon (2012)
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Enterprise Application Architecture

What is lacking in Atokowas Enterprise Application Architecture?

1 Operations 2 SSM
Suppliers, Business Partners
Processes Enterprise Systems Processes Processes Knowledge Management Systems
Customers, Distributors
Suppliers, Business Partners
Supply Chain Management Systems
Customer Relationship Management Systems
Processes Enterprise Systems Processes Processes Knowledge Management Systems
Customers, Distributors
3 Recommendations 4 Mgt issues Self-managed Learning
Supply Chain Management Systems
Customer Relationship Management Systems
Example Functional Sales and Areas Marketing Manufacturing & Production Finance & Accounting Human Resources
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Functional Sales and Areas Marketing
Manufacturing & Production
Finance & Accounting
Human Resources
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Source: Laudon and Laudon (2010), Figure 2.6
Source: Laudon and Laudon (2010), Figure 2.6

Atokowa Current data from customer feedback cards
Introduction 1 Operations 2 SSM 3 Recommendations 4 Mgt issues Self-managed Learning 120.0% 100.0%
Paretos Law (80/20 rule)

Introduction
80.0% 60.0% 40.0% 20.0% 0.0% Frequency (%) Cumulative Frequency (%)
Example
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Current sales at Atokowa (2010-2011)

Introduction 1 Operations 2 SSM 60.0% 3 Recommendations 4 Mgt issues Self-managed Learning 40.0% 20.0% 0.0% Frequency (%) Cummulative (%) 4 Mgt issues Self-managed Learning 3 Recommendations 120.0% 100.0% 80.0% Introduction 1 Operations
2. Systems and Operations Management Analysis and Evaluation

Apply the techniques of soft systems methodology (rich picture building; root definitions; CATWOE analysis and/or conceptual models) to analyse the current issues in the organisation. Through this analysis summarise the main business requirements of the organisation. 25% Tip. Make sure you make the issues clear and align these to SPECIFIC business requirements, focused on the case.
2 SSM 2 SSM
Example
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7 stage model of SSM

Introduction 1 Operations Introduction
Rich Picture Example

Lines round parts of the picture show possible systems to be considered
1. Find out about problem situation
7. Take action to improve the problem situation
1 Operations
2 SSM 2 SSM
6. Define changes systematically desirable; culturally feasible
2 SSM 2 SSM
2. Express the problem situation
5. Compare models and the real world
Real World
3. Define some issuebased and primary task root definitions relevant to the situation
Source: Checkland and Poulter (2006)
4. Develop conceptual models
Systems Thinking about Real World
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Source: P.J. Lewis, 'Rich Picture building in the SSM, European Journal of Information Systems
36
Introduction Example 1 Operations 2 SSM 3 Recommendations 4 Mgt issues Self-managed Learning
Introduction Example 1 Operations 2 SSM 3 Recommendations 4 Mgt issues Self-managed Learning

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SSM: Stage 3 of the 7 Stages

CATWOE
2 SSM 2 SSM
Root Definition A full root definitions core transformation would be a system to do P by Q in order to achieve R What to do (P)? How to do it (Q)? Why do it (R)? It tells us what the system will do, how it is to be done, and why it is being done (its long term aims). The root definition will be a short paragraph which will contain all the necessary information to describe the system including do P by Q in order to contribute to achieving R
2 SSM 2 SSM
C - Clients or customers; A - Actors who carry out the activities within the system; T - Transformation, or the changes that take place in converting the inputs to outputs; W - Worldview, or how the system is perceived from a particular viewpoint; O - Owner of the system; E - Environmental constraints, or the world that surrounds and influences the system.
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What is Atokowas Root Definition and CATWOE?

Introduction 1 Operations 2 SSM 3 Recommendations 4 Mgt issues
Definition to Model
Root definition? ... C - Clients or customers? A - Actors who carry out the activities within the system? T - Transformation, or the changes that take place in converting the inputs to outputs? W - Worldview, or how the system is perceived from a particular viewpoint O - Owner of the system? E - Environmental constraints, or the world that surrounds and influences the system?
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fenceThe fence-painting system: Final 1 Appreciate colour model

scheme of the property
2 SSM 2 SSM
3 Recommendations 4 Mgt issues Self-managed Learning 11 Monitor 1-8
3 Decide colour to paint the fence
2 Decide the scope of the fence painting task to be undertaken 4 Obtain materials: - paint - brushes, etc.
12 Take control action
5 Paint the fence 7 Monitor 1-5
Example
10 Define measure of performance: effectiveness
9 Appreciate householders aspirations for the system
6 Define measures of performance: -Efficacy Efficacy -- Efficiency -
8 Take control action
Source: Checkland and Scholes (1999) Soft Systems Methodology in Action, John Wiley and Sons, England
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3. Systems and Operations Management Recommendations
Introduction 1 Operations 2 SSM
Recommendations 3 Recommendations
Atokowas Definition to Model?

Introduction 1 Operations 1 2 SSM 3 Recommendations 4 Mgt issues Self-managed Learning 11 Monitor 1-8 5 12 Take control action 3
Explain how the organisation can improve quality management; business improvement and excellence in their systems and operations. Your recommendations should be specific and focused on the organisation. 25% Tip. Make sure you consider operations processes and systems technology in your recommendations. Consider your previous analysis and make recommendations to improve their organisation.
4 8 Take control action
Example
10 Define measure of performance: effectiveness
7 Monitor 1-5
9 Appreciate householders aspirations for the system
6 Define measures of performance: -Efficacy Efficacy -- Efficiency -
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Atokowas Business Process Reengineering?

Introduction 1 Operations 2 SSM
Recommendations 3 Recommendations
4. Systems and Operations Management Recommendations

Introduction 1 Operations 2 SSM 3 Recommendations
Explain how the organisation can improve quality management; business improvement and excellence in their systems and operations. Your recommendations should be specific and focused on the organisation. 25%
Identify the relevant people and management issues that may arise in implementing your quality management; business improvement and excellence recommendations (in 3). Explain how these issues could be managed. 15% Tip. Consider the implementation of your recommendations in the organisation what people and management issues may arise and how can you manage those issues? This section may draw on theories from your other management modules.
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Coming lectures Business excellence o Business process re-engineering (BPR) o Total Quality Management )TQM) o Lean o Six Sigma
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Mgt Issues 44Mgtissues Self-managed Learning
Atokowas people and management issues?

Introduction 1 Operations 2 SSM 3 Recommendations Mgt Issues 44Mgtissues Self-managed Learning
Report Style and Academic Rigour

Identify the relevant people and management issues that may arise in implementing your quality management; business improvement and excellence recommendations (in 3). Explain how these issues could be managed. 15% Coming lectures Operations improvement o People issues o Operations managers and HR strategy o Job design
4 Mgt issues Self-managed Report style Learning
Your report should be written in good business English and be well structured and presented. It should be set out as a business report, including an executive summary; introduction and conclusion. It should be written as a report for the CEO of the business, not as if it is an assignment. Your report should clearly include the academic insight, i.e. the concepts and the supporting references involved, indicated in the report and listed in the references and bibliography. 10%
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Example of Title Page

Introduction 1 Operations 2 SSM 3 Recommendations 4 Mgt issues Self-managed Report style Learning
Preliminaries

An analysis of the systems and operations management practices at Atokowa organisation and recommendations to improve their business. Name: ID No.: Due date: Name of lecturer/tutor:
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Title page Executive summary

o
Summary of report, its purpose and recommendations Give a brief background to the company and outline its problems, your recommendations and any assumptions noted.
Contents Page
Example
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Example of Executive Summary

Example of Executive Summary (contd.)

Executive Summary
(Overview of the case, assumptions made, major problems identified and recommended solutions) The report analyses and evaluates the systems and operations management practices at Atokowa organisation. This report includes the application of appropriate models and soft system methodology techniques to improve ............... (Give a brief background to the company and outline its problems). The organisation, Atokowa Advantage are a major player in the stationery and office supplies industry in Australia. The organisation is having some concerns about its business ...
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(Briefly state the resulting findings and what the analysis revealed) The findings of the report showed that management of Atokowa Advantage can ..... (Briefly state your conclusions and any assumptions noted). The report concludes that the systems and operations management practices play a vital role in . (Briefly state your recommendations) This report recommends that .............
Example
Example
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Example of Contents Page

Table of Contents

Introduction
Example
Executive Summary...................................................i Table of Contents ..ii List of Tables .. xxxxxxx .. List of Figures .... xxxxxxx .. Introduction ...1 Purpose...............................1 Background.. Discussions .. Problem identification and analysis........... Generation and evaluation of alternative solutions............................................................. Recommendations...................................................... Implementation.......................................................... Conclusions .. Appendices .. References
Introduction
o o
Page numbers in Roman numerals
1 Operations 2 SSM 3 Recommendations 4 Mgt issues Self-managed Report style Learning
Purpose or objective of writing the report Background information of organisation, context of topic or problem including the structure adopted for the report the logical structure or framework that is followed in the rest of the report
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Example of Introduction
Introduction
Purpose (Purpose or objective of writing the report) This purpose of this report is to provide an analysis of Background (State the background information on why the analysis has been undertaken Justify the importance and its potential impact). Atokowa organisation is facing business challenges that ....
Discussion
Problem identification and analysis o Identify all the major problems in the case try to identify the underlying causes of the problems, not just the symptoms o Link each problem identified to relevant theory and also to actual evidence from the case o State clearly which are the major problems or key issues that must be solved first just a short concise statement of what are the major problems to be solved and not some other minor problems you identified.
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Example
55
Examples of Problem statement

State the problem objectively. Focus on the existing facts Address: What is not working? What is not right? Why is it an issue?
Example
Examples: o The organisation is not achieving its targeted profit levels. o Productivity levels are not being achieved at various operation levels. o The pick and deliver process in our warehousing is slow.
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Generation and evaluation of alternative solutions o Identify and evaluate a number of the more appropriate solutions (at least 2 3 for each major problem identified) o Each alternative solution should be briefly outlined and then evaluated in terms of its advantages and disadvantages (Note: You must evaluate alternatives) o In this section it is not necessary to state which alternative is considered best This will be done in Recommendations section o Do not integrate or recommend theory in this section Practical solutions to the problems are required.
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Recommendations
o
Implementation
Formulate and describe how the recommended solutions will be implemented and over what time scale. 5W2H WHAT, WHERE, WHY, WHEN, HOW, HOW MUCH and WHO. What: State the strategy Why: State the Objective
How Where When Who How Much State how State where State by when it State who State the it is going it is going to is going to start is going expected to be done be done or be completed to do it impact
o o
State which of the alternative solutions are recommended for implementation Justify your choice, explaining how it will solve the major problems identified earlier. Integration of relevant theory is essential here The recommendations should be expressed in order of importance.
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Example of Conclusion

Conclusion
o
Conclusion
Example The report concludes that systems and operations management practices play a vital role in improving organisations business in light of strong competition .... It has been shown that the company can benefit from implementing .. This study further suggested that good management of can lead to better .. .. that in turn enhance ...
State the logical deductions drawn from your discussions Sum up the main points and give your personal opinion on the matter State the implications, if any.
Example
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These should be on separate pages
Appendices (if any)
References Must be in alphabetical order and according to the Harvard Referencing System.
Questions
4 Mgt issues
Self-managed Self-managed Learning Learning
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BB215010S Systems and Operations Management

Lecture 7: Soft Systems Methodology: Root definitions; CATWOE and requirements

Assignment focus: Learning Outcomes

1. Systems and Operations Management Analysis and Evaluation

BB215010S Systems and Operations Management

Lecture 7: Soft Systems Methodology: Root definitions; CATWOE and requirements

Head Office Retail Operations Marketing & HRM Finance

Designing and managing supply networks

Atokowa supply networks

Purchasing and supply management

Materials management Supply network management (Supply chain management)

Source: Slack et al (2010)

Source: Slack et al (2010)

Operations in the Organisations

2 SSM 3 Recommendations 4 Mgt issues

Marketing and Sales Product/service Development

B2B and B2C operations

Marketing and Sales Product/service Development

Customer Service & pricing

BB215010S Systems and Operations Management

Lecture 7: Soft Systems Methodology: Root definitions; CATWOE and requirements

Transformation Process in Operations

Transformed resources Materials Information Customers

1 Operations 2 SSM 3 Recommendations

Transformed resources Materials Information Customers

What are Atokowas transformed resources?

What are Atokowas outputs?

Outputs (Products Services)

Customers Business Customers

Materials processing Information processing Customer processing

What are being processed in Atokowas retail outlets?

Three levels of analysis

Analysing Atokowa operations

Flow between operations

Flow between operations

Example Supply chain operations

1 Operations 2 SSM 3 Recommendations 4 Mgt issues Self-managed Learning

Flow between processes 3 Recommendations 4 Mgt issues Self-managed Learning

Flow between processes

Warehousing to retail outlets

Flow between resources

A typology of operations and processes

A typology of operations and processes in Atokowa

Variety of their product

3 Recommendations 4 Mgt issues

Variation in demand for their output

Degree of visibility which the customers have Low

BB215010S Systems and Operations Management

Lecture 7: Soft Systems Methodology: Root definitions; CATWOE and requirements

Four perspectives on operations strategy

Operations Performance objectives Self-managed

Operations Performance objectives Self-managed

Source: Slack et al, 2010

Source: Slack et al, 2010

The five operations performance objectives

What are the five operations performance objectives of Atokowa?

4 Mgt issues Self-managed Learning

4 Mgt issues Self-managed Learning

Self-managed Example Learning

Process mapping symbols

Flow process chart

Process mapping symbols derived from Scientific Management

Process mapping symbols derived from Systems Analysis