The framework of managing operations

4.  The framework of managing operations

The first aspect to point out is that «The Savings Bank of the Russian Federation (Sberbank)» and «Computacenter Plc» completely different company and from different industries. However, some of the approaches to managing operations for both of these companies are the same – Total quality management, Process management and Projects Processes. Total quality management is about continuous performance improvement of individuals, of groups and organizations. (Gopal K. Kanji. 1995 Total quality management: proceedings of the first world congress.p. 3) There are three principals that companies follow: customer satisfaction, employee involvement and continues improvement in quality. If we consider Sberbank’s we can see Poor service quality in terms of decision-making time, process and procedure complexity, communication and bank-to-client interaction levels, as well as general convenience and functionality of the branches. There is a low level of automation and too much manual labour. Operations and support functions are decentralised. As a result, many bank systems and processes are poorly scalable and growing business volumes do not lead to efficiency growth. According to Herman Gref CEO and Chairman of the Management Board, in 2009, Sberbank accelerated its efforts to resolve one of its main issues – the transformation of operations. 2009 was the first year of the new Sberbank Development Strategy’s implementation. The strategy was designed to make Sberbank a leading world financial institution, not only in terms of transaction volumes, but more importantly in terms of service levels. The mission of the bank is ambitious: «We want to be one of the best financial services companies in the world.» At the present time the bank chooses a «modernization» scenario in order to improve process management. Process management is the selection of the inputs, operations, work flows, and methods that transform inputs into outputs. KRAJEWSKI, LEE J. RITZMAN LARRY, P. 2002.). According to «First year review strategy» (document avalaible at http://www.sbrf.ru/common/_en/img/uploaded/ir/docs/Sberbank % 20Strategy % 20-%20First-Year % 20Review.pdf) there are a lot of new services and product introduced, for example Credit insurance product; new organizational structure introduced, IT and operational function consolidated; customers started to use interactive banking center.

Let’s consider Computacenter. The goal of company’s activities is to provide services to customers that save them money and help them be more productive. In other words, satisfy their needs. To do such job the company involves all capacity, such as high skill workers (staff hold more than 200 vendor and industry accreditations and certifications), and over 25 years’ of practical IT ‘know how’. It is very important for customers to be ensure that they rely on professionals That is why Computacenter is continuing to invest to invest across all of its businesses in order to extend their performance capabilities. I want mention that employee achievements are recognized through a service excellence award scheme known as Excellence in Action (EIA).[13] Computacenter is ISO 9001:2000 certified by the British Standards Institution. ISO 9001 is a standard that focuses on 20 aspects of quality program for companies that design, produce, install, and serve products. These aspects include management responsibility, quality system documentation, purchasing, product design, inspection, training, and corrective action.[14] In fact it is one of the most exhaustive and hard standard to achieve.

5.  The mix of managing operations concepts

In previous chapters we consider two different companies: One from bank industry and another one from IT – industry. Despite the fact that they are absolutely different they have the same mix of managing operations concepts: Total Quality Management and Process Management, mainly because both of them are introduce service operations. It is fact that every organization has processes that must be designed and managed effectively and more over have high quality of performance. Quality is an attitude or the meaning of excellence. Sberbank places prime importance on achieving a maximum customer focus and becoming a service-orientated company. As was mention in chapter 3 Total quality management is a system for a customer focused company that involves all employee in continual improvement of all aspects of the organization. Computacenter concerns about satisfaction of the each customer. Senior Management monitors training requirements that required standards are maintained. Computacenter remains committed to involving all employees in significant business issues.

Bibliography

1.  http://www.sbrf.ru/en/about/bank_today/

2.  Annual report of Sberbank. 2009.

3.  ROWBOTHAM, F. AZHASHEMI, M. GALLOWAY, L. 2007. Operations management in context. 2^nd edn. Butterworth-Heinemann.

4.  KRAJEWSKI, LEE J. RITZMAN LARRY, P. 2002. Operations management: strategy and analysis. 6^th edn. Prentice Hall.

5.  RIBERA, J. 2010. Understanding Operations Management. [WWW]. http://www.skolkovo.ru/content/view/347/382/lang, en/

6.  BROWN S. 2005. Strategic operations management. 2^nd edn. Oxford: Elsevier Butterworth-Heinemann Linacre House.

7.  NIGEL S., CHAMBERS S., JOHNSTON R. 2010. Operations Management: AND MyOMLab. 6th edn. Pearson Education Ltd.

8.  GIBSON P. 2006. Cruise operations management. Elsevier Inc.

9.  GREASLEY, A. Operations management. 2008. Sage Publication Ltd.

10.  HILL T.2004. Operations Management. 2nd edn. Palgrave Macmillan

11.  ROBERT H. LOWSON. 2003. Srtategic operations management. The new competitive advantage. Routledge.

12.  RONEN B., PASS S. 2008. Focused operations management: achieving more with existing resources. New Jersey: John&Sons, Inc. Hoboken.

13.  SIMON A. BURTONSHAW-GUNN. 2010. Essential Tools for Operations Management: Tools, Models and Approaches for Managers and Consultants. A John Willey&Sons, Ltd, Publication

14.  SLACK N., CHAMBERS S., JOHNSTON R. 2005. Operations & Process Management: Principles and Practice for Strategic Impact. Financial Times/ Prentice Hall.

15.  STEVENSON W.J. 2008. Operations Management. 10th edn. McGraw-Hill Higher Education.

16.  WALLER D. 2003. Operations Management: A Supply Chain Approach. 2nd edn. Cengage Learning EMEA

17.  BICHENO, J. ELLIOT, B. 2002. Operations management: an active learning approach. Oxford: Blackwell Publishers Ltd.

18.  GOPAL K. KANJII. 1995. Total quality management: proceedings of the first world congress. London: Chapman & Hall.

[1] ROWBOTHAM, F. AZHASHEMI, M. GALLOWAY, L. 2007. Operations management in context. 2^nd edn. Butterworth-Heinemann.

[2] KRAJEWSKI, LEE J. RITZMAN LARRY, P. 2002. Operations management: strategy and analysis. 6^th edn. Prentice Hall.

[3] RIBERA, J. 2010. Understanding Operations Management. [WWW]. http://www.skolkovo.ru/content/view/347/382/lang,en/

[4] BROWN S. 2005. Strategic operations management. 2^nd edn. Oxford: Elsevier Butterworth-Heinemann Linacre House

[5] BICHENO, J. ELLIOT, B. 2002. Operations management: an active learning approach. Oxford: Blackwell Publishers Ltd. p.17

[6] http://www.sbrf.ru/en/about/bank_today/

[7] Annual report of Sberbank. 2009. p. 11

[8] http://en.wikipedia.org/wiki/Computacenter

[9] http://www.computacenter.com/who_we_are/

[10] Annual Report Computacenter.2009. p. 2

[11] Annual Report Computacenter.2009. p. 2

[12] http://www.computacenter.com/who_we_are/quality/

[13] http://www.computacenter.com/who_we_are/quality/

[14] KRAJEWSKI, LEE J. RITZMAN LARRY, P. 2002. Operations management: strategy and analysis. 6^th edn. Prentice Hall. p.267