...≈√ F M A G u i d e l i n e s on Operational Risk Management These guidelines were prepared by the Oesterreichische Nationalbank in cooperation with the Financial Market Authority Published by: Oesterreichische Nationalbank (OeNB) Otto-Wagner-Platz 3, 1090 Vienna, Austria Austrian Financial Market Authority (FMA) Praterstraße 23, 1020 Vienna, Austria Produced by: Oesterreichische Nationalbank Editor in chief: Günther Thonabauer, Communications Division (OeNB) Barbara Nösslinger, Staff Department for Executive Board Affairs and Public Relations (FMA) Editorial processings: Chapter I and III: Roman Buchelt, Stefan Unteregger (OeNB) Chapter II and IV: Wolfgang Fend, Radoslaw Zwizlo, Johannes Lutz (FMA) Design: Peter Buchegger, Communications Division (OeNB) Typesetting, printing and production: OeNB Printing Office Published and printed at: Otto-Wagner-Platz 3, 1090 Vienna, Austria Inquiries: Oesterreichische Nationalbank Communications Division Otto-Wagner-Platz 3, 1090 Vienna, Austria Postal address: Post Office Box 61, 1011Vienna, Austria Phone (+43-1) 40420-6666 Telefax (+43-1) 40420-6696 Austrian Financial Market Authority (FMA) Executive Board Affairs & Public Relations Division Praterstraße 23, 1020 Vienna, Austria Phone (+43-1) 24959-5100 Orders: Oesterreichische Nationalbank Documentation Management and Communications Services Otto-Wagner-Platz 3, 1090 Vienna, Austria Postal address: Post Office Box 61, 1011Vienna, Austria Phone...
Words: 50825 - Pages: 204
...Operations Management Course contact information • Instructor Dr. Chetan Soman Office & Phone: 4-J, 4839 e-mail: chetan@iimahd.ernet.in Objective of course: To gain an appreciation of the strategic importance of operations and how operations relate to other business functions To develop a working knowledge of the concepts and methods related to designing and managing operations Organizational Functions Finance Secures financial resources at favorable prices and provides funds for operations. Marketing Assesses customers’ wants, and promote organizations goods or services. Operations Creates products & services 4 What is Operations? • Operations – processes that produce goods and services • Processes – fundamental activities of organizations that use resources to transform inputs into goods and services Operations as a Transformation Process INPUT Material Machines Labor Management Capital OUTPUT Goods Services TRANSFORMATION PROCESS Feedback Transformation Processes Physical Locational Exchange Physiological Psychological Informational (manufacturing) (transportation/ warehouse) (retail) (health care) (entertainment) (communications) Food Processing Industry Inputs Raw Vegetables Metal Sheets Water Energy Labor Building Equipment Processing Cleaning Making cans Cutting Cooking Packing Labeling Output Canned vegetables Hospitals Inputs Doctors, nurses Hospital Medical Supplies Equipment...
Words: 1280 - Pages: 6
...APPROACHES TO MANAGEMENT Dr.M. Thenmozhi Professor Department of Management Studies Indian Institute of Technology Madras Chennai 600 036 E-mail: mtm@iitm.ac.in APPROACHES TO MANAGEMENT 1) 2) 3) 4) 5) 6) 7) 8) 9) Empirical Approach Human Behaviour Approach Social System Approach Decision Theory Approach Mathematical Approach Socio-Technical Systems Approach Systems Approach Contingency Approach Operational Approach REASONS & PROBLEMS 1) Semantic problems in management literature. 2) Contributions from different disciplines. 3) Misunderstanding of principles. EMPIRICAL APPROACH • • • – – – – Study of managerial experiences and cases(mgt) Contributors: Earnest Dale, Mooney & Reiley, urwick. Features Study of Managerial Experiences Managerial experience passed from participationer to students for continuity in knowledge management. Study of Successful & failure cases help practicising managers. Theoretical research combined with practical experiences. • – Uses Learning through experience of others • – – Limitations No Contribution for the development of management as a discipline Situations of past not the same as present. HUMAN BEHAVIOUR APPROACH • – – Organisation as people a) Interpersonal Behaviour Approach - Individual Psychology b) Group Behaviour Approach - Organisation Behaviour • – – – – Features Draws heavily from psychology & sociology. Understand human relations. Emphasis on greater productivity through motivation...
Words: 749 - Pages: 3
...QANT 610 Summary Submitted to : Dr. Brain Amouzegar Submitted by : Jo- Wei Angie Chen (0869366) Green Initiatives Reap Positive Environmental and Economic Benefits: by Stuart Williams, Check Free, Fiserv The article aims to explain the significance of green initiatives taken by the financial and investment organisations in order to provide impetus to the movement to counter changing world climate. The article starts with the focus on the strategies put in place by various organisations like paperless bills, online access to the facilities, electronic applications for the consumers and formation of policies that cut down the use of paper and transportation to reduce the carbon footprints. Although the economic crisis has taken the status of being the most important issue for the financial institutions but they have realised that green initiatives not only make them more admired organisations by the consumers but also enable to be more profitable by garnering the positive brand image among the consumers as well as by making savings by cutting down the costs incurred during offering the conventional modes of services. The article also throws light on the advent of various organisations like Payit Green Alliance which enable the consumers and the organisations to understand the importance of making a change from paper based services to online applications. Various consumer surveys determined that most consumers want to make a shift to methodologies which ensure...
Words: 956 - Pages: 4
...As consumers, we expect the products we purchase from vendor to function as intended. Even after investing huge amount of money on resources we are unable to produce a quality of goods and services which may be due to lack of proper inspection in supply chain or in product that comes from vendor. To know about the quality of product first we need to inspect about the product. Inspection means the act of looking at something closely in order to learn more about it, to find problems, and to compare goods and services to a standard. Inspection can occur at three phases which are before production, during production, and after production but the quality inspector should follow a pre-established checklist that is based on the product specifications and nature of product. Inspection is the quality control appraisal activity and should be done in the earlier stage before the production of goods because the company can choose better materials and suppliers that can provide good quality of materials As for making electronic calculators that contain a chip purchased from a local vendor there requires quality of inspection because chip is main processing part for the calculator to perform its activities as consumer always expects the product they buy functions well. Before, purchasing chips from vendor First I will search bundles of vendor and will analyze the sources of supply in terms of price, quality, reputation and the confident that the vendor has technical competences to undertake...
Words: 552 - Pages: 3
...defines the long term plans for the company, whereas the operations function focuses on specific competitive priorities in order to meet the organisations long term plan. Prime Bank of Massachusetts had decided on a long term plan for the bank focusing on customer services and they needed the operations function to implement this long term plan through planning & control systems, workers and quality. Problems such as not having enough phone lines for the 24 hours customer service could cause customers to become irritated if they cannot get through on the phone and therefore lose the bank customers, if the operations management put in enough phone lines to meet with the banks customers demand and ensure that calls are answered in a timely fashion this could increase customer satisfaction. (Class Notes – Chapter 2, Operations Management) Part 2 The operations management decisions that are involved in the operation of a bank are the workers and the layout of facilities. The bank needs to carry out a staff needs analysis. This will give the bank the information they need in relation to what staff they need and at what time of the day or night. In addition to this if the bank implemented the plans of James Rogers by adding the service of on line banking this may reduce the staff requirement in the bank as many of its customers may be able to carry out their transactions on the internet. In turn, if the online banking is put in place this may reduce pressure on the banks current...
Words: 810 - Pages: 4
...Fundamental of Operation Management 1 1 FUNDAMENTAL OF OPERATION MANAGEMENT 2 Operation Management OVERVIEW What you will learn in this unit: what is operations management? operations management heritage. the roles of operation managers. the function of operations within the organisation. service operations management. manufacturing operations management. Fundamental of Operation Management 3 1.0 INTRODUCTION Operations Management is the science of managing and integrating different form of resources and transform it into service delivery or a product. It involves three core functions of an organisation, basically: finance, operation and marketing. Operations Management heritage was developed from the practice of production management and it encompasses the full spectrum of managerial roles and responsibilities. Both manufacturing and service based operations management has two set of distinct characteristics. 4 Operation Management 1.1 WHAT IS OPERATIONS MANAGEMENT? Operations Management is a set of activities that create value in the forms of goods and services by transforming input into outputs. The types of activities carry out would depend on the nature of the organisation and their business focus. For example a manufacturer’s key focus is to generate output of physical goods, which requires the utilisation of raw material, labour, machinery and management capabilities in order to create an economic value. The key word in understanding...
Words: 1670 - Pages: 7
...TERMS OF REFERENCE This report has been compiled by Anisa Suleman in accordance with the brief obtained from Mr R.H. Salisbury for the purpose of obtaining a percentage of the semester mark. The topic of discussion is to prepare a comprehensive operations management report for a new enterprise located in a timber supply chain. My objective is to devise an enterprise that will be able to add value and develop core competencies that enable it to compete successfully with similar enterprises competing in the same market taking into account all ten Operation Management Strategies. The report must be clear and concise and include an executive summary, introduction, body, conclusion, recommendations and references. Due date: 29 April 2014 EXECUTIVE SUMMARY The enterprise will be a dynamic and growing sawmill enterprise; the new company’s strategies are formulated according to my operations plan and this plan involves gaining a good customer base and competitive advantage in the market. My objective is to prepare a report that describes the operations management of this new enterprise in terms of the ten OM strategic decision areas that I have devised. The name I have chosen is KZN Timber Pine and it’s a sawmill facility where logs are cut into board or planks. The process takes place in multiple steps and the planks are prepared using various machines. Logs are stripped of the bark and the wood is cured before being cut into planks. Planks go through a process of drying...
Words: 5841 - Pages: 24
...Operational Management: Roles and Goals All organizations produce products, services, or a combination of both, regardless of size, being public or private, not-for-profit, or for-profit. Because of this, every organization has an operations function. Managing finite resources in the production and delivery of the products and services requires operational management (Slack, Chambers, & Johnston, 2010). Operations managers are the individuals responsible for this function of the organization. In health care, operations management has roles and goals in managing these resources. The ambiguity of the type of goals and focus that exists in health care can make the operations manager’s goals challenging. This is why the proper roles are critical in achieving the goals. Goals Health care operations management is a discipline of management that utilizes scientific or quantitative principles to determine the most productive and efficient methods of delivering patient care (Langabeer, 2008, p. 6). Health care’s organization is complex and its relationships are ambiguous. The various departments seem to be independent from one another and have competing goals, such as financial, logistical, educational, academic, societal, or community (Langabeer, 2008, p. 19 - 20). The health care operations manager’s goals have to synch these various goals to create teamwork and unity. This will allow the organization to maintain and control of costs. There are five distinct goals...
Words: 576 - Pages: 3
...Currently, there have been reports that the country is experiencing problems with their ATM machines. Customers are unable to use their ATM cards to access their accounts. The administrative sector is also having problems involving registration of clients to their newly introduced Advance Credit cards. The process has become strenuous for its customers. This study aims at identifying the problems and resolving it through operations management theories in gaining global competitiveness. According to the theories of operations management, organizations can solve their problems in three distinct ways. The six-sigma approach suggests identifying the defects and solving them afterwards. The lean approach, similarly advocates for the identification of defects though it focuses more on the wastes. After identification of such wastes, it is plausible to eliminate them. Contrary to that, the theory of constraints suggests that in every organizational structure, there is a limit. Identification of these constraints should be solved by redesigning the operational process. Furthermore, drawing examples from banks, which have suffered similar problems,...
Words: 3423 - Pages: 14
...qwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjk...
Words: 403 - Pages: 2
...A company should be concerned to satisfy its customers’ requirements for fast and dependable services at reasonable price, as well as helping its own suppliers to improve services they offer. There are five basic performance objectives and they apply to all types of operation: • Quality • Speed • Dependability • Flexibility • Cost (Slack, N. et al, 2001). These operations performance objectives are analysed here in accordance to TMC. 1) Doing things right by providing error free goods and services, which will satisfy the customers, is known as ‘quality’. According to the case study, Toyota’s vehicles consistently rank near the top in third-party customer-satisfaction surveys. Being voted by many market research and surveys as the car of the year for several years it shows that, Toyota has a successful record worldwide. Because of the good quality Toyota’s success kept going, where in 1995, Toyota was the best car in the Middle East. Also, TMC has produce a good quality cars that are quit and do not emit unpleasant fumes, such as more than 40 emission-control systems and dozens of technologies that have improved passenger-car safety (Ahmed, A., 2003, Coursework). 2) An other performance objective is speed, which means by doing things fast, to minimise the time between the order and the availability of the product or service that gives the customer e speed advantage. The TMC’s techniques are focussed operations that reduce complexity by using simple and...
Words: 1635 - Pages: 7
...Organizational Trends According to Organizational Behavior (OB, 2005), decision making is defined as the process of choosing a course of action for dealing with a problem or opportunity. There are several steps that occur in the decision making process. First, one must recognize and define the problem or opportunity. Second, one must identify and analyze alternative courses of action and estimate their effects. Third, choose a preferred course of action. Fourth, implement the preferred course of action. Finally, evaluate the results and follow up as required. This process seems to be fairly simple but can become extremely complex when outside factors are considered. As the Information Age come about an increasing amount of work-related stress can be linked to technology. The ease of information access and the troubles generated by this information has had a profound effect on stress in the workplace. The effects of ethics on decision making and the impact technology has on work-related stress are both trends in organizational behavior that vary according to the times in which each occurs. Decisions are usually made using a structured method which allows the decision maker to rationalize his or her options and analyze the situation so that the best decision can be made. When ethical dilemmas are introduced, the process if often becomes complicated and can result in the normal process being foregone in favor of emotional or rash decisions. Often risk and uncertainty is present...
Words: 1086 - Pages: 5
...Management Accounting Research 19 (2008) 324–343 Operation of management control practices as a package—A case study on control system variety in a growth firm context Mikko Sandelin ∗ Helsinki School of Economics, Department of Accounting and Finance, P.O. Box 1210, FIN-00101 Helsinki, Finland Abstract This empirical case study examines the operation of management control practices as a package in a growth firm context by paying particular attention to the couplings among cultural, personnel, action and results controls. The analysis focuses on two different management control packages in the face of similar contingencies at different points of time. The paper argues that the functionality of a control package depends on internal consistency, specifically on the reciprocal linkages of design and use between a primary mode of control and other control elements. Moreover, it argues that control package variety is driven by the way in which the management responds to functional demands. Two different control packages are considered equifinal to the extent of limited operational complexity, whereas an accounting-centric control package is also sufficient in the face of increasing levels of operational complexity. © 2008 Elsevier Ltd. All rights reserved. Keywords: Management control package; Control system variety; Internal consistency; Functional demands; Equifinality; Growth firm 1. Introduction This empirical case study examines the operation of management control...
Words: 13689 - Pages: 55
...Gary Kaplan was trying to achieve change at Virginia Mason. He envisioned the transformation of Virginia Mason Medical Center into the quality leader in health care and sought to lead the organization toward this vision. When Dr. Kaplan joined VMMC what attracted him to the medical field was a collaborative team approach and Virginia Masons’ unique culture that was created in the early 1900’s. With time VMMC started to face challenges, competition was fierce and VMMC soon began to experience financial troubles. In addition, its employees were unhappy and the staff morale around the hospital was declining. Kaplan noticed that change had to be made to the way VMMC ran its hospital. Kaplan proposed that VMMC follow Toyota Production System management method to restructure the way it ran its physicians, nurses and support staff. He felt that NMMC’s goals were similar to Toyota, especially putting the customer/patient first, focus on quality and safety, and a commitment to employees. Kaplan was trying to achieve this change while keeping the unique culture that VMMC began with so many years ago. 2. How does the Toyota Production System fit into his strategy? Dr. Kaplan and executives at VMMC had created a strategic plan focused on becoming the quality leader in healthcare; however he lacked a system to achieve this goal. Kaplan felt the Toyota Production System (TPS) was an appropriate match for the VMMC because of the similarities in goals that they both shared and desire to achieve...
Words: 365 - Pages: 2
