BSBFLM405B

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FRONTLINE MANAGEMENT
BSBFLM405B IMPLEMENT OPERATIONAL PLAN WELCOME
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WORKSHOP STRUCTURE
SECTION 1 IMPLEMENT OPERATIONAL PLAN SECTION
2 IMPLEMENT RESOURCE ACQUISITION SECTION 3
MONITOR OPERATIONAL PERFORMANCE
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ASSESSMENT

• Assessment for this unit will be based on
• Your workshop participation and contribution
  levels.
• The completion of the learning activities during
  the workshop.
• Completion of this final assessment task.

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UNIT OVERVIEW

• To complete this unit you must be able to
• Collect, analyse and use information to design,
  monitor and evaluate operational and contingency
  plans
• Utilise systems and procedures that contribute
  to the management of quality
• Consult effectively with colleagues and
  specialist resource managers to acquire and
  supply resources for operations
• Link Key Performance Indicators (both
  organisational and individual) with operational
  plans
• Recruit, select and induct employees in line with
  HR polices and practices
• Analyse and interpret budget and financial
  information to monitor profit/productivity
  targets
• Manage performance records and identify and
  rectify performance issues
• Analyse, interpret and negotiate ideas for
  variation/ improvement of operational plans

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SECTION 1 IMPLEMENT OPERATIONAL PLAN

• In this section we will discuss
• The interaction between goals, resources,
  operational plans and results.
• Tools you will take away from this session
  include
• Understanding of the connections between data,
  information and knowledge
• Knowledge of the various tools that can be used
  to gather collate and analyse information
• The ability to utilise information in the design,
  development and implementation of operational
  and contingency
• The ability to link plans and KPIs in order to
  control operations processes.

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PLANNING TO ACHIEVE GOALS
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OPERATIONAL PLANS
Operational plans co-ordinate, instruct and
direct specific work areas within an
organisation. They relate directly to day to
day operations In many organisations operational
plans focus on efficiency.
Effective plans achieve goal oriented results.
Efficiency does not necessarily achieve
operational goals.
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FOR INTERACTIVE DISCUSSION

• What are the differences between efficiency and
  effectiveness?
• Why should planning address effectiveness
  measures before efficiency measures are
  implemented?

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OPERATIONS AND PRODUCTION
Operations management means directing the
transformative process by which inputs are
converted to outputs Production.
Controls
RECEIVER
SENDER
Constraints
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What does your organisation produce i.e. what
are your organisation's outputs? What are the
organisations core processes? How do your core
processes map against your organisations goals
its vision and mission?
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ACTIVITY 1

• Discuss in groups
• Record
• Present
• Time 45 minutes

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RESOURCES

• Planning is, itself, a process. It requires
  resource
• inputs
• Qualitative and quantitative data from internal,
  external, formal or informal sources
• Tools that are used to gather, monitor, evaluate,
  analyse and incorporate information into plans
• Expertise and organisational skills which convert
  data into the information and knowledge which
  support operational plans.

Outputs of the planning function are effective
and useable plans and process designs.
Outcomes are quality, consistency, productivity,
profitability and customer satisfaction goal
achievement.
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• Discuss in groups
• Respond
• Present
• 15 minutes

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GANTT CHART
Planned processes for building a new timber
finishing machine
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MILESTONE CHART EXAMPLES
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PERT DIAGRAMS
Special project Pert diagram
Source Thiagi
Alternative Pert diagram outline
Project finish
Project start
Critical path
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• How are, or could, these tools be used in your
  workplace operations?

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PERFORMANCE INDICATORS

• A major component of planning is the process of
  determining the key results areas and key
  performance indicators required for operational
  success.
• (KPIs) are defined target performance levels
  based on specific determinations the
  measurable standards and work specifications that
  will enable achievement of the organisation's
  outcomes.
• They equip planners and managers with the tools
  to identify success and to identify divergence
  from targets.

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• Do you have clear
• understanding of your
• Organisations KPIs?
• How do you know whether the organisations
  performance is meeting expectations?

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THE BALANCED SCORECARD
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RISK MANAGEMENT
Planning necessarily includes making allowance
for situations which might threaten or prevent
the achievement of goals and objectives.
Threats might come from either internal or
external sources. Contingency plans centre
around risk, risk management and continuity the
minimisation of negative impacts on operations
and outcomes.
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• What business activities are
• covered by contingency plans
• in your organisation?
• Who develops contingency plans?
• How do you and the other workers
• in your organisation know what they are?
• What situations might cause a need for
  contingency action in your section/division/team?
  
• Are your plans reactive or pro-active?
• How are the requirements of the contingency plans
  for your section/division communicated to
  employees?
• How is the withdrawal of the contingency plan
  communicated to employees?

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SECTION 2 IMPLEMENT RESOURCE ACQUISITION

• In this section we will discuss
• Methods and tools used to recruit and select
  staff, enabling a match between staff and the
  organisation's objectives.
• Physical resource acquisition and disbursement.
• Tools you will take away from this session
  include
• Understanding of the need to comply with both
  legislative and organisational requirements
  regarding recruitment, induction and training
• The ability to apply cost effective measures to
  the acquisition and distribution of physical
  resources which have a direct bearing on
  productivity.

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RECRUITMENT AND SELECTION
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THE SCREENING PROCESS
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In a panel interview which personnel do you
consider should make up the panel? Why?
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QUESTIONING

• Open
• Closed
• Probing
• Hypothetical
• Leading
• Loaded

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AVOID DISCRIMINATION
Recruit for
Knowledge Skills Experience
Select for
Diversity Transferable skills Attitude Initiative
Enthusiasm Motivation Acceptance of
change Cultural fit
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Each Australian state has legislation regarding
equal employment, anti-discrimination and social
justice. Similar legislations, covering Sex
Discrimination, Racial Discrimination,
Affirmative Action and Equal Employment
Opportunity, exist at the federal level.

• What do each of these legislations mean?
• How do they impact on recruitment and selection
  and on work operations?

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• Which of the following questions can be asked in
  an interview
• What is/was your last employment position?
• Why do you wish to leave that job?
• Are you married?
• Do you consider you have/had good relationships
• with work colleagues at your current/ previous
  job?
• Do you consider you have/had good relationships
• with management at your current/ previous job?
• What country are you from?
• Do you have any children?
• Have you ever been arrested?
• Did you enjoy your previous job?
• Have you ever undergone psychological treatment?
• What are your weaknesses?
• What are your strengths?
• Which church do you attend?
• Have you ever been convicted of a criminal
  offence?
• What additional studies have you undertaken?
• What sort of work does your husband/wife do?

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What information do new employees in your
workplace need? Does your organisation have a
formal induction process? Is there an inductee
handbook available for all new personnel? How
quickly are new employees inducted? Where do you
think the value of induction lies? As a
Frontline manager you will have at least some
measure of responsibility for induction of new
employees in your section/division/team. If the
current processes and procedures are inadequate,
how can you change them?
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• Individually and in groups of 3
• Respond
• Record
• Discuss
• 45-50 minutes

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RESOURCE ACQUISTION
Directing and managing resources is an operations
management function. Productivity and
quality are directly related to resource
management.
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What goods and services does your organisation
outsource?
Why is there a perception that these supply needs
are best met by external sources, rather than by
the development of internal processes and sources?
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What sorts of relationships do you and your
organisation build with suppliers? How do, or
should, you go about building effective supplier
relationships? Is it best to use external
suppliers with whom you have built effective
relationships, or should you constantly shop
around for the cheapest deal?
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• What procedures are in place
• in your organisation to manage
• and minimise waste?
• What would constitute misuse of resources and how
  are resources controlled to avoid misuse in your
  organisation?
• Who is responsible for monitoring resource use?

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INVENTORY
Inventories aid with the control of resources.
Inventory procedures are related to 4 different
operational stages
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What inventory processes are used in your
organisation? What are the processes and
procedures for ordering of materials in your
section/divisions? Do they consistently ensure
supply of inputs as required?
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SECTION 3 MONITOR OPERATIONAL PERFORMANCE

• In this section we will discuss
• The application of monitoring and control tools
  to operations and productivity improvement.
• Tools you will take away from this session
  include
• The ability to use budgets as planning and
  performance monitoring tools
• Understanding of mentoring, coaching and other
  support systems which can be utilised when
  performance does not meet expectations
• Appropriate methods of documenting work practices.

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PRODUCTIVITY IMPROVEMENT
Businesses are vitally concerned with
productivity improvements which lead to increased
profitability. Process controls enable the
monitoring and evaluation of operations to ensure
that plans achieve intended outcomes and
improvement opportunities are identified and
implemented.
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• Discuss in groups
• Respond
• Record
• Present
• 20 Minutes

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• Discuss in groups
• Respond
• Record
• Present
• 20 Minutes

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FORECASTING AND BUDGETING
Chaos
Change
Likely events Organisational impact
Costs benefits
Budgeting
Accurate decision making
Turbulence
Uncertainty
Environmental conditions Internal - External
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BUDGETS

• Budgets are data management tools.
• Budgetary information is used for
• forecasting
• planning
• communication
• resource management and disbursement
• monitoring and evaluation of organisational
  activities.

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BUDGET DEVELOPMENT

• Budgets act as financial controls. To develop a
  budget, you need information.
• Ask
• What are the expected results?
• What resources are required?
• What are priority areas?
• Is there real need for this expenditure?
• Where does money need to be injected to ensure
  continuing success?
• What new areas need resource allocations?
• Where will the capital and resources come from?
• Who will be responsible?
• How will the budget be used to monitor
• operations?

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BUDGET TYPES

• Some of the budgeting processes used
• in organisations might include
• Zero based budgeting
• Life cycle budgeting.
• Budget purposes might include
• Opportunities budgets
• Operating budgets

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CASH FLOW CYCLE
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PROFIT AND LOSS
Profit and Loss reports show the gross and net
profits/losses for a reporting period, in
accordance with organisational policy,
procedures and accounting requirements.
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• Discuss in groups
• Respond
• Record
• Present
• 20 Minutes

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BREAK EVEN ANALYSIS
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FINANCE AND OPERATIONS

• Financial calculations are used to answer
• Operations questions such as
• What volume of profit can be expected from a
  given sales volume?
• What sales volume is required to produce a
  desired result?
• What effect will a change in selling prices have
  on profits?
• How would a proposed change in capacity affect
  profit potential?
• What other changes/fluctuations will affect our
  bottom line?

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• In groups
• Respond
• Record
• Present
• 10 Minutes

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REPORTING AND RECORDING
Each organisation will have recording and
reporting procedures and tools which suit their
needs. Information management systems are
designed to keep records of process performance,
financial activities, individual performance,
customer and other stakeholder inputs. Records
(including financial records) inform plans and
support proposals for improvements and changes to
plans.
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VARIATIONS AND IMPROVEMENTS
Variations to processes (operations) will, in
many cases require a formal proposal. They
might require a sponsor someone in upper
management to support and negotiate on behalf of
them - and someone to authorise the
improvement. Improvements might relate to
purchases, new opportunities or changes in
processes, systems or Resource allocations.
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SUMMARY

• Operations plans enable the effective management
  of resources, people and processes the work
  activities which are mapped against clear,
  achievable KPIs
• Monitoring of work practise, productivity
  targets and financial controls provides the
  necessary information for improvement and
  increased profitability
• Operations and quality outputs are dependent on
  quality, cost effective resources both
  physical and human
• Budgets are tools which enables planned
  resource allocation and monitoring of production
  targets
• Where performance does not meet expected
  standards, intervention must be initiated
• Appropriate recording systems enable tracking of
  progress and the dissemination of results and
  information that can inform new plans and support
  proposals for variations to plans

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ASSESSMENT

• Assessment for this unit will be based on
• Your workshop participation and contribution
  levels.
• The completion of the learning activities during
  the workshop.
• Completion of this final assessment task.