Slide 1
Operations Management
WFP Logistics, We Deliver
Slide 2
Lesson Plan: Operations Management
LEARNING OBJECTIVES:
By the end of the session, participants will be able to:
 Describe the resources required to manage an emergency operation
 Describe the main activities of a manager in emergency operations
 Describe the requirements to get a supply chain operating
Structure
Timing
Introduction
5 minutes
Activities
Explain lesson objectives
Phases of a Response
10 minutes
Discuss the management of an operation (tracking commodities, managing resources,
monitoring and evaluating and supply chain optimization)
Exercise: Question and Answer
30 minutes
Facilitator asks a series of questions to the class and follows up with examples and
explanations after asking each question.
• In one sentence, explain what management means to you? / What are the 5 key
activities of a manager? / What you need to get your supply chain working / List the
differences of supply chain management between the push and the pull
configuration of your operation
Managing the Situation
30 minutes
Discuss the management of people, assets, financial resources
Working with Others
10 minutes
Discuss the benefits of working with others (info sharing, joint planning and
assessments, shared infrastructure, resource mobilization and shared expertise)
Lesson End/Plenary
5 minutes
Total Lesson Length
90 minutes
EVALUATION / RECAP QUESTIONS:
The facilitator should ask the questions below, or similar questions to the class to recap
the lesson to ensure participants have understood the lesson content.
 What are the key activities of a manager?
 What are the key elements for managing people?
 What are some of the benefits of working with others?
Facilitators should familiarize themselves with the lesson well in advance of the training to become familiar with
the content, exercise requirements (printing etc.) and timing of the lesson. It is important to become familiar with
the lesson objectives. This slide is meant only for the facilitator and should not be printed in the participant work
book and should not be displayed in class. In the following slide the lesson objectives are displayed and this should
be used to introduce the lesson and give a brief overview of what participants can expect for the lesson. When
practicing the lesson prior to the training, facilitators should use the timing listed in this slide to ensure they have
enough time for each element to avoid facilitating the lesson too quickly or running out of time.
Slide 3
Lesson Objectives
By the end of this lesson, you will be able to:
1
Describe the resources required to manage an
emergency operation
2
Describe the main activities of a manager in
emergency operations
3
Describe the requirements to get a supply chain
operating
Slide 4
Phases of a Response
Plan
Develop
Operational
Planning
Execute
Mobilize /
Implement
Manage
Set-up
Implementation
Manage,
Monitor &
Evaluate
Operational
Operations
Management
Link with Programmes
•
•
•
•
•
•
•
•
Facilitator does not need to go into detail with this slide, but to refresh participants mind as it was covered in the operational
planning lesson and the logistics planning lesson.
It is important to distinguish between the different phases of planning (link this lesson 2.2 – Operational Planning),
mobilize/implement and set up (link this to lesson – 3.2 Logistics Planning) and management phase (link this to this lesson
Operations Management)
Plan (Operational Planning)
Develop – Concept of operations, procurement plans, logistics plans, budgets, HR structure, Reporting systems, mode
identification
Execute/Implement/Set-up (Logistics Planning)
Mobilize – Human resources
Implement – Concept of operations, logistics plans, budgets, tracking and reporting systems
Set-up – Logistics bases, logistics & procurement activities (warehousing, transport, fleet etc.)
(Click) Manage
Manage – Budgets, human resources, logistics & procurement activities (warehousing, transport, fleet etc.)
Track – Commodities and assets
Monitor & Evaluate – Logistics & procurement activities
Optimize – Elements and overall supply chain
Slide 5
Operations Management
In groups, in one sentence, explain what
management means to you?
5 minutes
“the art of getting things done through people”*
*Mary Parker Follet, 19th Century
After 2 to 3 minutes, facilitator should ask teams to come up with their proposal. It is important that the facilitator
notes that there is no right or wrong answer, and that definitions vary among different schools of thought.
The facilitator then clicks to display the proposed solution: “the art of getting things done through people”.
Getting things done: Ultimate goal is achieving the objective
People: Management will always involve teamwork to achieve those objectives
This was one of the first ever definitions of management, attributed to Mary Parker Follet in the late 19 th century.
More recent examples place more emphasis on the resources available; Operations Management is a sub-branch
of management that focusses much more on the efficient use of material resources.
Alternative definition that facilitator may use: “the organisation and coordination of activities in order to achieve
defined objectives”; (courtesy of The Business Dictionary online)
Slide 6
Operations Management
Achieving the objectives through people and resources.
What are the five key activities of a manager?
5 minutes
Planning
Organizing
Directing
Controlling
Communicating
Elements of good
management
Group work 5 minutes:
Before going in detail in the 5 key elements on managing a supply chain, let’s look at what are the 5 key activities
of a manager.
To help you, see the first (click and planning will appear)
After the quick debrief click to show the next one: organizing and so on
Insist that on all the 5 “managing” we have to bear in mind these 5 key activities
(Click) Planning
means examining future trends, predicting requirements, thinking what is to be done; how, when, where and who
will do it. It then involves developing a plan of action to put it all into practice.
(Click) Organising
means channelling resources (e.g., manpower, machinery, materials, money) to put the plan into action. It is about
establishing the mechanisms for coordinating human behaviour.
This element involves the activities of delegating and allocating work and jobs.
(Click) Directing
means maintaining the level of activity of people; winning their commitment, motivating them, training and
building them into an effective team; unifying and harmonising all the actions.
The manager’s role is in informing, supporting and co-ordinating.
(Click) Controlling
means seeing that everything occurs as it should and taking corrective action where necessary to rectify any
deviation. The emphasis is on: measuring, monitoring, evaluating.
(Click) Communicating:
None of the above elements will work correctly if we cannot communicate our plans effectively to those with
whom we need to work.
Slide 7
Getting Things Done
In groups, define what you need to mobilize a
supply chain in emergencies.
5 minutes
They need people, assets, financial resources + working together with others (internally and externally)
Slide 8
Operations Management
Getting things done through people.
The situation
People
Managing
Assets
Financial Resources
Working with others
To our initial definition we can add getting things done “Through people working together” in a given situation
Slide 9
Managing the Situation
In groups, list the differences of supply chain
management between the push and the pull
configuration of your operation
5 minutes
Before going to the exercise:
We have different phases in emergency operations: Preparedness, operation (divided in push and pull), recovery
etc….
And we have also different types of programs: Development, protracted, emergency.
For the 2 first ones (development, protracted) we can consider that we are in a pull configuration, as all your
supply chain is in place, or as you have enough time to set it up before starting your program.
In that given presentation we will focus on emergency where you have push, then pull consideration.
Then we go to the exercise
The main difference is that you focus on effectiveness only:
At that stage, you should ask the difference between effectiveness and efficiency:
• Effectiveness: Doing the right things: you ‘ don’t care” about cost, procedures etc… just to have the goods
delivered. Taking risk
• Efficiency: Doing the things right: following proper systems and procedures and costs cautious.
Then the last question: When do you swift from Push to pull
Answer:
There is no timeline defined, but the idea is to move as quickly as possible. But basically, when country team in
place has a good understanding of the situation, enough people in place (able to take decisions, infrastructures
and contracts in place.
Of course, in managing the situation, you have also to take care of the environment, mainly political and security
situations
Slide 10
Managing People
To have the right people at the right time at the right place
1
Staff Recruitment
2
Leading Teams
3
Appraisal & skills development
4
Stress Management
• Recruiting and selecting people
What work do we have that we need people to do? What do we need the people to do? What type of people do
we need (skills, knowledge, physical attributes)? How will we find the people we need? How will we select the
right people? What action do we need to take after selection?
• Planning, organising and leading teams and individuals.
Planning the work of individuals and teams. Setting work objectives. Define objectives/responsibilities. Set
performance standards. Agree targets. Controlling work. Motivating teams and individuals.
The basis for motivation is having our needs satisfied. - Copyright 2006 © Fritz Institute. All Rights Reserved.
• Tell people what you expect. Give clear direction and set goals/objectives.
• Uncertainty is a stress factor. Remove it! Share information.
• Give work to people which they enjoy doing/do well.
• Make work "do-able " encourage and support them.
• When working, give "feedback" - Give praise and reinforce success (i.e. continually, not just once per year).
• If correcting weaknesses, then criticise behaviour not attitudes/personality.
• When they have done what you want, give rewards
• Set a good example - Be the right role model, through your own behaviour
• Listen to your people and learn from them. Generate a "showing interest" climate.
• Appraising Performance, Training and developing teams and individuals.
Performance appraisals are important for staff motivation, attitude and behaviour development, communicating
organisational aims, and fostering positive relationships between management and staff. Performance appraisals
provide a formal, recorded, regular review of an individual's performance, and a plan for future development. In
general done annually or at the end of a specific task/mission. And can link to training and/or coaching/mentoring
to improve performance in actual job to support promotion
• Identifying and managing stress
We have to recognise that once in the field, especially during the early phases of an emergency relief programme,
we will be working in some of the most stressful situations people encounter.
The main issues concerning stress are:
Identifying Stress Symptoms. Dealing With Stress. Preventing and Minimising Harmful Stress.
Some of the signs of stress amongst your team would include:
Restlessness. Anxiety. Irritability. Emotional emptiness. Aggressiveness, hatred. Problems concentrating. Physical
complaints. Drugs and alcohol consumption. You should recognise the onset of stress, and then seek guidance on
the best way to approach this when it is detected.
Slide 11
Managing Assets
Managing the flow
Flow of goods from supplier to beneficiaries
Flow of information across the supply chain
Managing Assets:
A chain consists of links that are connected together. If we place a chain under pressure by applying a force at
either end, the chain will break at its weakest point. In other words a supply chain is as strong as its weakest link.
So it is important for the overall supply chain manager to make sure that:
Each link is working in an efficient and effective manner with all control mechanisms in place
They are working in a coordinating manner
What to look for in each link of the supply chain:
Always bearing in mind: Delivery the right goods at the right time to the beneficiaries
Main management point within the supply chain
Procurement:
• Contracts protect the interest of the organisation
• Contracting follows organisations procedures
• Follow up on performance of suppliers
• Action taken if bad performance
Warehouse/Inventory
• Safety and security within the warehouse
• Proper flow of documentation within the warehouse (Stock, bin card etc…)
• Proper stacking and cleanliness in the Warehouse
• Periodic inventory control
• Report discrepancies and take necessary actions
Transport
• Contracts protect the interest of the organisation
• Follow up on performance of suppliers
• Action taken if bad performance
• If managing own fleet: Log book, fuel consumption control etc.…
(Click) Emphasize the importance of flow of Goods and Information
Slide 12
Managing Financial Resources
Controlling
Defining, controlling and investigating variances of costs
Remember the 5 keys elements of good management: Planning, organising, directing, controlling, communicating
Planning
in finance is budgeting. Will see next slides basic budget frame for supply chain management
Organising:
Making each part of the supply chain responsible for their own budget
Directing:
harmonizing the action amongst the supply chain for best use of money
Controlling:
Budget vs expenses on track. Look at variances ( both lower or higher) and take corrective action
Communicating:
make sure all stakeholders of supply chain ( internal & eternal) are up to date . Finance and management also of
course.
Managing costs:
• Define the costs (budgeting), control the cost and how to investigate variances of cost against that planned for.
• Aim to be auditable and accountable.
• All kinds of procedures and regulations exist that specify the rules that must be followed to ensure that the
organisation is financially accountable.
Slide 13
Budgeting
Variable
Indirect
Costs
Fixed
Direct Costs
Will go more in detail only on budgeting and controlling. Budgeting:
Fixed costs
are costs which do not change as a result of the level of activity. Over a long period fixed costs will have to be changed if activity and
volumes alter radically. However, in the short term, management can do little about the level of fixed costs.
Example:
Warehouse:
The rent and rates. Insurance premiums. Heat, light, phone rentals. The basic wages of the staff
Transport:
Licences and vehicle insurance. Garage rent and rates. Driver basic wages
Variable costs can vary with the level of activity.
Example:
Warehouse:
Staff overtime. Temporary labour. Short-term hire of equipment. Requirements of extra pallets, cages strapping etc. Maintenance of
equipment.
Transport:
Drivers' expenses. Maintenance and tyres. Fuel and oil. Tolls, ferry charges etc. Relief vehicle hire. Breakdown costs.
Direct Cost
This is a cost, which can be directly charged to a cost unit - an activity or item. It is also a cost, which can be charged to a particular
operating area or cost centre
Indirect Cost
A cost, which is incurred but cannot be identified with a specific cost centre or unit (often Overhead cost for example)
Slide 14
Controlling
Variance Analysis
Corrective Action
Financial Records
Senior managers
are likely to want reports on a periodic basis, which give them reassurance that the operation is meeting or
surpassing its objectives, or which show what managers are doing when the operation is not in line with these
targets.
Operating managers
require more detailed reports that show comparisons between actual results and expected results. These reports
show the numeric impact of the everyday activities within the supply chain.
Managers at all levels will use these comparisons or variances to help monitor and control the costs of the
programme.
(Click) Variance analysis:
• Actual this month, budget this month and variance (difference).
• Cumulative actual for the year, cumulative budget for the year and variance (difference)
• Original budget for the year and latest estimate.
(Click) Corrective action
It is important to follow up regularly to be able to take any decision when the variance is significant. It could be for
several reasons: under or over estimation of needs.
During emergencies, the situation is volatile, so your budget should/could be revised accordingly.
An example of a decision to be made:
If there is a change to the supply chain plan that necessitates you reviewing your level of activity, you will need to
make a judgement on whether to increase the fixed costs or whether you are able to able to incur the costs of
extra work within the variable costs area only.
Examples of this situation would be if:
• The vehicles are poorly utilised and the extra work could be accommodated within the present fleet and within
the normal work cycle.
• The opportunity is there to utilise runs when the vehicle is empty, e.g., returning from a delivery run.
• Whether the vehicle could be used at additional times within the work cycle, for example if the vehicles are
only used during the day, would the situation allow you to run vehicles at night - the only extra costs would be
variable ones.
(Click) Financial records
The following records should be maintained:
• Organisation needs copies of all orders placed on suppliers and the invoices associated with them.
• Copies of any Lease and Hire agreements entered into by the operation.
• An asset register maintaining a record of all physical assets
• Records of all wages and payments made.
• Any taxes paid or due to be paid, including any sales, value added or local income taxes.
• Copies of any estimates, quotations or tenders submitted in respect of contracts that either have been or are
going to be placed. This should include all tenders etc. not just the successful ones.
• Copies of proof of delivery/receipt documents for all goods received and also all goods delivered.
• Any other records required for audit purposes.
Slide 15
Working Together
Information Sharing
Resource Mobilization
Joint Assessments
Capacity Building
Joint Training
Shared Expertise
Joint Planning
Shared Infrastructure
Just to emphasize:
• Together is often better than alone. Don’t forget to think about how to get the most in working together
• There are a number of different types of organisations who are involved in different ways, and who play
different roles in humanitarian aid.
• As a first step to collaboration with other actors in the field and whether in a general context or supply chain
specific, information can be shared including that on objectives, roles and responsibilities.
Adding to sharing of information, as suggestions, go through the following points:
• Sharing data and information.
• Assessing supply chain requirements to meet beneficiary needs.
• Setting mutual standards of supply chain assistance.
• Mobilising external resources to support the logistics operation.
• Building local and national capacities within the supply chain.
• Joint training of logistics staff.
• Joint contingency planning ('what if?').
• Joint strategic, operational and logistics supply chain planning.
• Sharing their experts.
• Sharing logistics infrastructure (communication and transport).
• Implementing joint logistics operations
Slide 16
Recap Lesson
Recap Lesson
Questions:
1
What are the key activities of a manager?
2
What are the key elements for managing people?
3
What are some of the benefits of working with
others?
Slide 17
Questions
WFP Logistics, We Deliver