An introduction to                                Active Operations ManagementConfidential© AOM International 2012, all ri...
The Issue We Address            The most significant cause of lost productivity in a service            environment is ind...
Reactive Operations Management                     Work In                                      Productivity %            ...
AOMi Proposition                                                 Method                Technology                         ...
AOMi Proposition                                                 Method         Technology                                ...
AOM Accelerates Development of Capability in     Control         Accelerate Capability and Control                        ...
Active Operations Management                     Work In                                      Productivity %              ...
Productivity ImprovementConfidential© AOM International 2012, all rights reserved.   8
Performance Improvement and ControlConfidential© AOM International 2012, all rights reserved.   9
The Implementation Process         •   It takes 12 – 16 weeks to implement AOM         •   AOM projects payback in 5 – 8 m...
AOM Method                                                  Review                                                        ...
Forecast and Plan                    w/c                                                                                  ...
Control and Review   Summary Report                                                                                       ...
Cost, Quality and Service…. in one place                                                                                  ...
Balance                                                               Reduce                                              ...
Balance                                                 Customer Outcome                                    Quality       ...
Sample Team Return on Investment                                                 Break-even 6                             ...
About AOM International                UK Partnership, formed in 2005                Offices in Canada, US, Australia, Sou...
Some of our ClientsConfidential                                     Public   19© AOM International 2012, all rights reserv...
An introduction to                                                    Workware™Confidential© AOM International 2012, all r...
Simple and Comprehensive InformationConfidential© AOM International 2012, all rights reserved.   21
PlanConfidential© AOM International 2012, all rights reserved.   22
Different Plan View – A SummaryConfidential© AOM International 2012, all rights reserved.   Public   23
Capacity Planning        Team                                           Mon       Tue       Wed        Thu        Fri     ...
Team Leader Checks          Look at performance patterns          and trends over timeConfidential© AOM International 2012...
Skills MatrixConfidential© AOM International 2012, all rights reserved.   Public   26
A Summary Report…Confidential© AOM International 2012, all rights reserved.
Controlling to PlanConfidential© AOM International 2012, all rights reserved.   Public   28
An introduction to                               Workware™ Real-time ManagementConfidential© AOM International 2012, all r...
Workware™ Real-Time ManagementConfidential© AOM International 2012, all rights reserved.   Public   30
Workware™ Real-Time ManagementConfidential© AOM International 2012, all rights reserved.   Public   31
www.activeops.com         Where this document has been classified as Protected, Confidential or Restricted, the informatio...
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AOM overview

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Active Operations Management International provides organisations with a structured and consistent operations management capability that is the catalyst for achieving operational excellence.

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  • The method resulted from the founders applying change management to service operations . Innovative simulation training and desk-side coaching enabled the method to gain traction, but a reliance on spreadsheets affected momentum. A robust tool for supporting the use of the method was needed and so Workware TM was built .
  • Shows productivity of service teams – i.e. pace of work Build shows how this correlates with the amount of work 'in' No balancing of work-load Large peaks and troughs of demand Some time lost due to low productivity (below standard rate) Increased stress due to times of extreme work-load Work is being managed by amount of work in, and not by managers
  • This highlights the smoothing of productivity (pace) of work at a level between the average and previous highest achieved. This creates an environment where staff understand what is expected of them every day (lower stress), where the decreased variation allows for better resource planning ( if we know the pace of work we can plan better for delivery of forecast work volumes), at a level of average output which is higher than previously achieved without expecting staff to work at the high extremes of productivity. This approach allows active control of what is being done yes Instead of allowing work to 'flow through' business process without being managed, active operations management takes control: Stay on top of what work is coming in, and who will be available to perform the work Prioritise work Actively allocate work between teams Decide how long to spend on things, what quality to perform at, how fast to respond
  • Active Operations Management is a powerful capacity planning and management solution that enables businesses to radically improve performance through accurate matching of resources to work across their enterprise It provides front line operations managers with a practical and powerful toolset for managing performance Structured planning Simple controlling against plan Consistent data for reporting In addition to delivering typically greater than 15% productivity gains, establishing AOM across a business provides the framework for safer implementation of other organisational and process changes
  • AOM International Leaders in Active Operations Management Methodology and Workware™ software Deployed since 1994 Over 20,000 people 'Capacity Planned' by Workware™ every day HQ in Reading Franchises in Australia, North America
  • Proprietary and Confidential
  • AOM overview

    1. 1. An introduction to Active Operations ManagementConfidential© AOM International 2012, all rights reserved.
    2. 2. The Issue We Address The most significant cause of lost productivity in a service environment is individuals not having the right amount of work to do in the time available Warwick Business School The difference between the best performing team leaders and the average is method not willingness or working hard Institute of Operations Management AOM helps service organisations to deliver radical improvement in operations control leading to significantly better levels of quality, productivity, and service delivery. AOM improves control, releases capacity, and increases strategic choice.Confidential© AOM International 2012, all rights reserved. 2
    3. 3. Reactive Operations Management Work In Productivity % 300 200 150 200 100 100 50 0 10 20 30 DaysConfidential© AOM International 2012, all rights reserved. 3
    4. 4. AOMi Proposition Method Technology Training / CoachingConfidential© AOM International 2012, all rights reserved.
    5. 5. AOMi Proposition Method Technology AOM Training / CoachingConfidential© AOM International 2012, all rights reserved.
    6. 6. AOM Accelerates Development of Capability in Control Accelerate Capability and Control Average 31% gain over 15 months Typically Majority of between 25 and processing 40% wasted organisations capacity through poor planning and controlConfidential© AOM International 2012, all rights reserved. 6
    7. 7. Active Operations Management Work In Productivity % 300 200 150 200 100 100 50 0 10 20 30 DaysConfidential© AOM International 2012, all rights reserved. 7
    8. 8. Productivity ImprovementConfidential© AOM International 2012, all rights reserved. 8
    9. 9. Performance Improvement and ControlConfidential© AOM International 2012, all rights reserved. 9
    10. 10. The Implementation Process • It takes 12 – 16 weeks to implement AOM • AOM projects payback in 5 – 8 months • Typical ROI of 200% over the first 12 months • Proven to provide sustainable results Simulation Data capture Short-term Medium and long Post-implementation Mobilisation planning and Accreditation training and reporting range planning review control 2–3 weeks 12–16 weeks +2 months +3 months Benefits realisation beginsConfidential© AOM International 2012, all rights reserved. 10
    11. 11. AOM Method Review Forecast Control PlanConfidential© AOM International 2012, all rights reserved. 11
    12. 12. Forecast and Plan w/c Total / Birmingham Croydon Manchester Leeds Glasgow Chelmsford Others 20/2/12 Balance Global +7 -2 +2 -2 +2 -6 +4 +5 Schemes +2 +4 +1 -14 +8 -8 +3 -4 New Bus +1 -12 +5 -2 +3 +8 +2 +5 PIU -4 -7 +4 +3 -2 +3 +9 +6 Profin +4 -4 +2 +2 +6 -4 -2 +4 Motor -2 +1 -3 -2 +4 -2 -1 -5 Others +4 +5 +2 -1 +2 -1 +3 +14 Total / Balance +12 -15 +13 -16 +23 -10 +18 +25Confidential© AOM International 2012, all rights reserved.
    13. 13. Control and Review Summary Report Actual vs Type Item Unit Week 1 Week 2 Week 3 Week 4 Plan Actual plan% workload W Work In Hrs 78,069.00 59,685.00 58,152.00 51,120.00 725,600.00 247,026.00 34% W Work Out Hrs 78,668.00 60,244.00 59,456.00 52,649.00 249,123.00 251,017.00 101% W WIP Hrs 328.00 355.00 490.00 357.00 390.00 357.00 92% W Diverted Hrs 28,965.60 20,137.30 20,167.80 15,879.40 121,000.00 206,150.10 170% Resources W Staff complement Hrs 120,176.00 85,237.70 82,378.70 71,724.50 359,000.00 359,516.90 100% W Annual Leave Hrs 10,410.30 7,471.80 6,489.90 8,030.20 31,000.00 32,402.20 105% W Flexitime Hrs 350.54 - 203.20 - 139.70 101.70 100.00 109.34 109% W Overtime Hrs 635.70 437.30 515.00 794.90 2,300.00 2,382.90 104% W Lend staff Hrs 1,546.10 1,433.10 1,859.30 1,790.90 5,600.00 6,629.40 118% W Borrwed staff Hrs 860.80 932.80 1,157.30 837.54 3,700.00 3,788.44 102% W Temporary staff Hrs - - - - - W Downtime Hrs 36.50 55.20 53.20 24.60 230.00 169.50 74% Time worked Hrs 106,418.70 75,230.30 72,624.40 61,786.60 320,000.00 316,060.00 99% Core Time Hrs 77,453.10 55,092.20 54,546.50 45,907.80 240,000.00 232,999.60 97%Confidential© AOM International 2012, all rights reserved.
    14. 14. Cost, Quality and Service…. in one place Actual vs Type Item Unit Week 1 Week 2 Week 3 Week 4 Plan Actual plan% Cost Productivity (%) % 102 109 113 115 111 110 101% Utilisation (%) % 73 73 72 74 75% 65% 113% Cost per standard hour £ 13.38 12.7 12.8 12.41 12.3 12.65 97% Quality Overall Error rate % 4.70% 5.20% 6.30% 5.80% 5% 5.60% 88% Key stage error % 2.10% 4.25% 6.54% 1.78% 2% 4.60% -30% Key stage error % 21.20% 24.40% 10.70% 15.80% 14% 18.30% 69% Service Overall timliness % 78.20% 81.90% 83.65% 79.21% 90% 81.40% 110% Key Promise A % 72.12% 78.45% 81.58% 76.32% 91% 78.90% 113% Key Promise B % 89.10% 88.20% 89.00% 91.00% 91% 87.90% 103%Confidential© AOM International 2012, all rights reserved.
    15. 15. Balance Reduce Reduce effort Enhance / increase Enhance / increase Quality Service CostConfidential© AOM International 2012, all rights reserved.
    16. 16. Balance Customer Outcome Quality Service CostConfidential© AOM International 2012, all rights reserved.
    17. 17. Sample Team Return on Investment Break-even 6 monthsConfidential© AOM International 2012, all rights reserved.
    18. 18. About AOM International UK Partnership, formed in 2005 Offices in Canada, US, Australia, South Africa, Oman, India and the UK AOM implemented in 37 countries as at March 2011. Queens Award Winner for Enterprise 2011Confidential© AOM International 2012, all rights reserved. Public 18
    19. 19. Some of our ClientsConfidential Public 19© AOM International 2012, all rights reserved.
    20. 20. An introduction to Workware™Confidential© AOM International 2012, all rights reserved.
    21. 21. Simple and Comprehensive InformationConfidential© AOM International 2012, all rights reserved. 21
    22. 22. PlanConfidential© AOM International 2012, all rights reserved. 22
    23. 23. Different Plan View – A SummaryConfidential© AOM International 2012, all rights reserved. Public 23
    24. 24. Capacity Planning Team Mon Tue Wed Thu Fri Sat Total Start WIP End WIP DOKO 0 0 0 0 0 0 0 68 Capacity 56 excesses or Indexing +6 +15 +22 +23 +15 0 +81 178 195 shortages K&H -20 11 +3 1 -13 0 -18 0 0 (in hours) Mobil & BSP 0 +1 +1 +2 +1 0 +5 0 0 Payroll +1 0 0 +3 0 0 +4 0 0 RODE 0 0 0 0 0 0 0 30 9 Resources & Archiving Scanning -14 -16 -16 -24 -24 0 -94 4 0 can be Total -27 +11 +11 +4 -21 0 -22 shared across • This approach is used at different levels of the organisation and across teams, WIP different time frames: can be run up or down – Weekly team capacity planning in order to – Monthly departmental planning balance the plan – Longer range planning / forecasting at operating unit levelConfidential© AOM International 2012, all rights reserved. Public 24
    25. 25. Team Leader Checks Look at performance patterns and trends over timeConfidential© AOM International 2012, all rights reserved. Public 25
    26. 26. Skills MatrixConfidential© AOM International 2012, all rights reserved. Public 26
    27. 27. A Summary Report…Confidential© AOM International 2012, all rights reserved.
    28. 28. Controlling to PlanConfidential© AOM International 2012, all rights reserved. Public 28
    29. 29. An introduction to Workware™ Real-time ManagementConfidential© AOM International 2012, all rights reserved.
    30. 30. Workware™ Real-Time ManagementConfidential© AOM International 2012, all rights reserved. Public 30
    31. 31. Workware™ Real-Time ManagementConfidential© AOM International 2012, all rights reserved. Public 31
    32. 32. www.activeops.com Where this document has been classified as Protected, Confidential or Restricted, the information contained within the document is confidential and should be treated as such. The document constitutes the intellectual and proprietary property of AOMi and is protected by intellectual property laws and international intellectual property treaties. Whilst the author has made every effort to provide accurate information at the time this document was produced, neither AOMi or the author assumes any responsibility for errors (unless explicitly contractually agreed between AOMi and the recipient of this document), or for changes that occur after production. Copyright © 2012 Active Operations Management International LLP (AOMi). All rights reserved. Active Operations Management International LLP Forbury Court 12 Forbury Road Reading Berkshire RG1 1SB Tel: +44 (0) 118 907 5000 Fax: +44 (0) 118 907 5001Confidential© AOM International 2012, all rights reserved.

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