SOM L8 Handout

8/2/2019 SOM L8 Handout

1/11

BB215010S Systems and Operations Management

Lecture 7: Soft Systems Methodology:

Root definitions; CATWOE and

requirements

Assignment focus

Lecture 8

1

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

Self-managed

Learning

Assignment focus:Learning Outcomes

Review the content for your report:

1. Apply appropriate models to the organisation to

critically analyse how systems and operations arecurrently 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%

Introduction

2

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

Self-managed

Learning

Assignment focus:Learning Outcomes

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.

Introduction

3

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

Self-managed

Learning

Assignment

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 Operations

4

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

Self-managed

Learning

1. Systems and Operations ManagementAnalysis and Evaluation

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; thedecision-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.

1 Operations

5

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

Self-managed

Learning

Atokowa Advantage

6

Example


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requirements

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

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Learning2. Bottom-up

perspective

What day-to-day

experience suggests

operations should

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

Four perspectives on operations strategy

19

Operations

strategy

Source: Slack et al, 2010

Social,environmental

andeconomic

performance

OperationsPerformance

objectives

Self-managedLearning

1 Operations 1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

Self-managed

Learning2. Bottom-up

perspective

What day-to-day

experience suggests

operations should

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?

What are Ayokowas perspectives onoperations strategy

20

Operations

strategy

Source: Slack et al, 2010


andeconomic

performance

OperationsPerformance

objectives


Example

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

Self-managed

Learning

The five operations performanceobjectives

Performanceobjectives

1.

Quality

2.

Speed

3.

Dependability

4.Flexibility

5.

Cost

21

Strategy


andeconomic

performance



2 SSM

Introduction

3 Recommendations

4 Mgt issues

Self-managed

Learning

What are the five operations performanceobjectives of Atokowa?

Performanceobjectives

1.

Quality?

2.

Speed?

3.

Dependability?

4.Flexibility?

5.

Cost?

22

Strategy


andeconomic

performance

Self-managedLearningExample

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

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Learning Delay (a wait, e.g. for

materials)

Operation (an activity

that directly adds value)

Inspection (a check ofsome sort)

Transport (a movement

of something)

Storage (deliberate storage,

as opposed to a delay)

Process mapping symbolsderived from Scientific

Management

Decision (exercising

discretion)

Process mapping symbolsderived from Systems Analysis

Direction of flow

Input or Output from the

process

Activity

Beginning or end of

process

Process mapping symbols

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2 SSM

Introduction

3 Recommendations

4 Mgt issues

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Learning

Description of activity

Totals

8

1

2

4

5

6

7

9

10

3

18

11

12

14

15

16

17

19

20

13

26

22

23

24

25

21

7 8 5 5 1

Flow process chart

24

Look for ways toimprove the

process/ reduce

the steps.

o What iswasteful in the

process?

o Can some tasks

be done

simultaneously?

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1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

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Learning


Totals

8

1

2

4

5

67

9

10

3

18

11

12

14

15

16

17

19

20

13

26

22

23

24

25

21

7 8 5 5 1

Flow process chart at Atokowa Retailoutlets

25


process/ reducethe steps in

Atokowas retail

operations.

o What is

wasteful in the

process?

o Can some tasks

be done

simultaneously?

Product scanned into EPOS system

Products are totalled

Payment is taken

Write transaction into the ASIS

Store manager monitors the record

Etc.

Example

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

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Learning


Totals

8

1

2

4

5

67

9

10

3

18

11

12

14

15

16

17

19

20

13

26

22

23

24

25

21

7 8 5 5 1

Flow process chart at AtokowaWarehousing and Distribution

26


process/ reduce

the steps inAtokowas

warehousing anddistribution

operations.o What is wasteful

in the process?o Can some tasks

be donesimultaneously?

Goods arrive at warehouse

Goods counted

Send goods to its specific location

Receive delivery requests through EDI

Goods entered into the WMS

Goods stored in specified location

Example

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

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Learning

Four Major Types of Systems

Source: Laudon & Laudon (2012) 27

Executive Support

Systems (ESS)

Management Information

Systems (MIS)

Decision Support

Systems (DSS)

Transaction

Processing

Systems (TPS)

Strategic

Level Systems

Management

Level Systems

Operational

Level Systems


2 SSM

Introduction

3 Recommendations

4 Mgt issues

Self-managed

Learning

Current Atokowa Information System

EPOS

Atokowa StockInformation System

(ASIS)

Warehouse

ManagementSystem (WMS)

Finance and HR

& Payroll System

28

Example

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

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Learning

FunctionalAreas

Enterprise Application Architecture

Source: Laudon and Laudon (2010), Figure 2.6

Sales andMarketing

Manufacturing &Production

Finance &Accounting

HumanResources

Processes

Knowledge

ManagementSystems

Supply ChainManagement

Systems

CustomerRelationshipManagement

Systems

Processes

Processes

EnterpriseSystems

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Customers,

Distributors

Suppliers,

Business Partners1 Operations 1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

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Learning

FunctionalAreas

What is lacking in Atokowas EnterpriseApplication Architecture?

Source: Laudon and Laudon (2010), Figure 2.6

Sales andMarketing

Manufacturing &Production

Finance &Accounting

HumanResources

Processes

Knowledge

ManagementSystems

Supply ChainManagement

Systems

CustomerRelationshipManagement

Systems

Processes

Processes

EnterpriseSystems

30

Customers,

Distributors

Suppliers,

Business Partners

Example


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requirements

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

Self-managed

Learning

31

Paretos Law (80/20 rule)


2 SSM

Introduction

3 Recommendations

4 Mgt issues

Self-managed

Learning

Atokowa Current data from customerfeedback cards

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

Frequency (%)

Cumulative Frequency

(%)

32

Example

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

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Learning

Current sales at Atokowa (2010-2011)

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

Frequency (%)

Cummulative (%)

33

Example

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

Self-managed

Learning

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

34

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

Self-managed

LearningSystemsThinking

aboutReal World

Real World

7 stage model of SSM

Source: Checkland and Poulter (2006)

1. Find out aboutproblem situation

2. Express theproblem situation

3. Define some issue-based and primary task

root definitionsrelevant to the situation

4. Develop conceptualmodels

5. Comparemodels and the

real world

6. Define changessystematically desirable;

culturally feasible

7. Take action toimprove the

problem situation

35

2 SSM

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

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Learning

Rich Picture

Example

Source: P.J. Lewis, 'RichPicture building in the SSM,European Journal ofInformation Systems

Lines round parts ofthe picture show

possible systems tobe considered

36

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2 SSM

Introduction

3 Recommendations

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Learning

37

Example

Rich Picture

Example

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

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Learning

38

Example

Rich Picture

Example

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

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Learning

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 describethe system including do P by Q in order tocontribute to achieving R

SSM: Stage 3 of the 7 Stages

39

2 SSM

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

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Learning

CATWOE

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.

40

2 SSM

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

Self-managed

Learning

What is Atokowas Root Definition andCATWOE?

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?

41

Example

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

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Learning

Definition to Model

1111AppreciateAppreciateAppreciateAppreciate colourcolourcolourcolour

scheme of thescheme of thescheme of thescheme of thepropertypropertypropertyproperty

2222Decide the scope of theDecide the scope of theDecide the scope of theDecide the scope of the

fencefencefencefence painting taskpainting taskpainting taskpainting taskto be undertakento be undertakento be undertakento be undertaken

3333DecideDecideDecideDecide colourcolourcolourcolourtotototopaint the fencepaint the fencepaint the fencepaint the fence

4444Obtain materials:Obtain materials:Obtain materials:Obtain materials:---- paintpaintpaintpaint

---- brushes, etc.brushes, etc.brushes, etc.brushes, etc.

5555PaintPaintPaintPaint

the fencethe fencethe fencethe fence

7777MonitorMonitorMonitorMonitor

1111----5555

8888TakeTakeTakeTake

controlcontrolcontrolcontrolactionactionactionaction6666

Define measuresDefine measuresDefine measuresDefine measuresof performance:of performance:of performance:of performance:

-EfficacyEfficacyEfficacyEfficacy----- EfficiencyEfficiencyEfficiencyEfficiency

The fenceThe fenceThe fenceThe fence----paintingpaintingpaintingpaintingsystem:system:system:system:FinalFinalFinalFinalmodelmodelmodelmodel

Source: Checklandand Scholes (1999) Soft Systems Methodology in Action,John Wiley and Sons, England


1111----888812121212

Take controlTake controlTake controlTake controlactionactionactionaction

10 Define10 Define10 Define10 Definemeasure ofmeasure ofmeasure ofmeasure of

performance:performance:performance:performance:effectivenesseffectivenesseffectivenesseffectiveness 9 Appreciate householders 9 Appreciate householders 9 Appreciate householders 9 Appreciate householders

aspirations for the systemaspirations for the systemaspirations for the systemaspirations for the system

42

2 SSM


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requirements

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

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Learning

Atokowas Definition to Model?

1111

2222

3333

4444

5555


1111----5555

8888TakeTakeTakeTake

controlcontrolcontrolcontrolactionactionactionaction6666

Define measuresDefine measuresDefine measuresDefine measuresof performance:of performance:of performance:of performance:

-EfficacyEfficacyEfficacyEfficacy----- EfficiencyEfficiencyEfficiencyEfficiency


1111----888812121212

Take controlTake controlTake controlTake controlactionactionactionaction

10 Define10 Define10 Define10 Definemeasure ofmeasure ofmeasure ofmeasure of

performance:performance:performance:performance:effectivenesseffectivenesseffectivenesseffectiveness 9 Appreciate householders 9 Appreciate householders 9 Appreciate householders 9 Appreciate householders

aspirations for the systemaspirations for the systemaspirations for the systemaspirations for the system

43

Example

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

Self-managed

Learning

3. Systems and Operations ManagementRecommendations

Explain how the organisation can improve quality

management; business improvement and excellence

in their systems and operations. Your

recommendations should be specific and focused onthe 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.

3 Recommendations

44

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

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Learning

Explain how the organisation can improve quality


in their systems and operations. Your

recommendations should be specific and focused on

the organisation. 25%

Coming lectures

Business excellence

o Business process re-engineering (BPR)

o Total Quality Management )TQM)

o Lean

o Six Sigma

3 Recommendations

45

Atokowas Business Process Reengineering?

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

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Learning

4. Systems and Operations ManagementRecommendations

Identify the relevant people and management issues

that may arise in implementing your quality


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.

4 Mgt Issues

46

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

Self-managed

Learning

Identify the relevant people and management issues

that may arise in implementing your quality


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

47

Atokowas people and management issues?

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

Self-managed

Learning

Report Style and Academic Rigour

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%Report style

48


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requirements

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Learning


Preliminaries

Title pageExecutive summary

o Summary of report, its purpose and

recommendations

o Give a brief background to the company and

outline its problems, your recommendations and

any assumptions noted.

Contents Page

Report style

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1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

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Learning

Example of Title Page

BB215010S

Systems and Operations Management

An analysis of the systems and operations

management practices at Atokowa organisation and

recommendationsto improve theirbusiness.

Name:

ID No.:

Due date:

Nameof lecturer/tutor:

50

Example

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

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Learning

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

aboutits business ...

Example of Executive Summary

51

Example

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

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Learning

Example of Executive Summary (contd.)

(Brief ly state the result ing findings and what the

analysis revealed)

The findings of the report showed that management

of Atokowa Advantagecan .....

(Briefly state your conclusions and any assumptions

noted).

The report concludes that the systems and operations

managementpracticesplay a vital role in .

(Briefly state your recommendations)

This reportrecommendsthat .............

52

Example

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

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Learning

Example of Contents Page

Table of ContentsExecutive Summary...................................................iTable of Contents ..iiList of Tables ..

xxxxxxx ..List of Figures ....

xxxxxxx ..Introduction ...1

Purpose...............................1Background..

Discussions ..Problem identification and analysis...........Generation and evaluation of alternativesolutions.............................................................

Recommendations......................................................Implementation..........................................................Conclusions ..Appendices ..References

Pagenumbers

inRoman

numerals

53

Example

1 Operations

2 SSM

Introduction

3 Recommendations

4 Mgt issues

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Learning


Introduction

o Purpose or objective of writing the report

o 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

Report style

54


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requirements

1 Operations

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Introduction

3 Recommendations

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Learning

Introduction

Purpose

(Purpose or objective of writing thereport)

This purpose of this report is to provide an analysis of

Background

(State the background information on why the

analysis hasbeen undertaken Justify the importance

and its potentialimpact).

Atokowa organisation is facing business challenges

that....

Example of Introduction

55

Example

1 Operations

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Introduction

3 Recommendations

4 Mgt issues

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Learning


Discussion

Problem identification and analysis

o Identify all the major problemsin the case tryto 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.

Report style

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1 Operations

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Learning

State the problem objectively. Focus on the

existing facts

Address:

Whatis not working?

Whatis not right?

Why is i t an i ssue?

Examples:

o The organisation is not achieving its targeted profit

levels.

o Product ivity levels are not being achieved at

various operation levels.

o The pick and deliver process in our warehousing

is slow.

Examples of Problem statement

57

Example

1 Operations

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3 Recommendations

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Learning


Generation and evaluation of a lternative 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

Recommendationssection

o Do not integrate or recommend theory in this

section Practical solutions to the problems are

required.

Report style

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1 Operations

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Introduction

3 Recommendations

4 Mgt issues

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Learning


Recommendationso State which of the alternative solutions are

recommended for implementation

o Justify your choice, explaining how it will solve the

major problems identified earlier.

o Integration of relevant theory is essential hereo The recommendations should be expressed in

order of importance.

Report style

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1 Operations

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Introduction

3 Recommendations

4 Mgt issues

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Learning


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.

60

What: State the strategy

Why: State the Objective

How Where When Who How Much

State how

it is going

to be done

State where

it is going to

be done

State by when it

is going to start

or be completed

State who

is going

to do it

State the

expected

impact

Report style


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Introduction

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Learning


Conclusiono State the logical deductions drawn from your

discussions

o Sum up the main points and give your personalopinion on the matter

o State the implications, if any.

Report style

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Learning

Example of Conclusion

Conclusion

Example

The report concludes that systems and operationsmanagement practices play a vital role in improving

organisationsbusinessin light of strong competition

....

It has been shown that thecompany can benefit from

implementing..

This study further suggested that good management

of can lead to better ..

.. that in turn enhance ...

62

Example

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Introduction

3 Recommendations

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Learning


These should be on separate pages

Appendices (if any)

References

Must be in alphabetical order and according to

the Harvard Referencing System.Report style

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Introduction

3 Recommendations

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Learning

Questions


64

SOM L8 Handout

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