2016 OPERATIONS MANAGEMENT FRAMEWORK - dpsa.gov.za

1 2016. OPERATIONS . MANAGEMENT . FRAMEWORK . 2016. OPERATIONS . MANAGEMENT . FRAMEWORK . Prepared by the Department of Public Service and Administration. August 2016. ISSN: to be allocated once online Published by: Department of Public Service and Administration Address: Batho Pele House, 549 Edmond Street, Pretoria Website: Editing, design and layout by: Submerge Publishers cc Copyright 2016 Department of Public Service and Administration. All rights reserved. This FRAMEWORK is intended for use by South African governmental institutions. No other entity may use or reproduce this FRAMEWORK by any means (graphic, electronic or mechanical), including photocopying, recording, taping or by any information storage retrieval system without the written permission of the Department of Public Service and Administration.

2 This applies except in the case of brief quotations embodied in critical articles and reviews. iv OPERATIONS MANAGEMENT FRAMEWORK HOW TO. this FRAMEWORK 4 main chapters, 4 OPERATIONS MANAGEMENT FRAMEWORK quadrants There are four main chapters in this document, each representative of the four identified OPERATIONS MANAGEMENT FRAMEWORK quadrants: 1 2 3 4. OPERATIONS OPERATIONS OPERATIONS OPERATIONS strategy design planning analysis and and control improvement 13 building blocks within the 4 quadrants Building Blocks Within these chapters/quadrants we find 13 building blocks. A separate guideline and methodology is presented for each of the building blocks. 8 toolkits within the 13 building blocks In support of each building block, toolkits are included to further enrich the information on how to develop certain building blocks within an institution.

3 8 toolkits are available for service delivery model, business process MANAGEMENT , standard operating procedures, service standards, service delivery charters, OPERATIONS forecasting, OPERATIONS planning, and OPERATIONS control and adjustment. WELCOME. A. welcome As mandated by the National With this OMF, the DPSA envisages Development Programme (NDP) and to empower and enable governmental the Medium-Term Strategic FRAMEWORK institutions to institutionalise OPERATIONS (MTSF), the Department of Public Service MANAGEMENT . and Administration (DPSA) was tasked with identifying and researching solutions In addition to the OMF, the DPSA. to bridge the gap between strategy and developed the following mechanisms to delivery of services. The non-existence support implementation of the OMF: of OPERATIONS MANAGEMENT principles in governmental institutions was identified as -- The OMF web-enabled system the root cause of the service delivery gap.

4 -- Video clips on the institutionalisation and development of OPERATIONS The result of this research was the MANAGEMENT development of the first edition of the -- Institutional support and capacity Operation MANAGEMENT FRAMEWORK building to priority governmental (OMF) and its supporting toolkits. Through institutions extensive consultations, the initial FRAMEWORK and supporting toolkits evolved Thank you to everyone who contributed to into the OMF and supporting toolkits this publication through consultations and being presented. any other means. The purpose of the OMF is to assist The OMF team governmental institutions to plan, structure, execute and continuously improve their OPERATIONS for the effective and efficient delivery of services.

5 In terms of the Public Service Regulations of 2016, the DPSA now requires governmental institutions to establish an OMF consisting of the following: -- A service delivery model -- Managed and mapped business processes for all services -- Standard operating procedures for all services -- Service standards for all services -- A published service charter v vi OPERATIONS MANAGEMENT FRAMEWORK DEFINITIONS. common terms Batho Pele allows public service institutions to Batho Pele, a Sesotho word which means implement LKM successfully and develop People First , is an initiative that was benchmarks. launched in 1997 to transform the public service. It is an approach to get public Operational planning servants committed to serving service Operational planning is the day-to-day beneficiaries and to find ways to improve and month-to-month planning for what service delivery.

6 Your institution is doing. Business process OPERATIONS control MANAGEMENT Operational control regulates the day- Business process MANAGEMENT is a to-day output relative to schedules, disciplined approach to identify, design, specifications and costs. execute, document, measure, monitor, and control both automated and non- OPERATIONS MANAGEMENT automated business processes to achieve consistent, targeted results aligned with FRAMEWORK The OPERATIONS MANAGEMENT FRAMEWORK the institution's strategic goals. (OMF) is a tool created by the Department of Public Service and Administration Business process mapping (DPSA) that provides structure Business process mapping is the initial and guidance to all public service description of a business process in managers in executing their operational graphic form.

7 Responsibilities. Core functions OPERATIONS managers An institution's core function is creating OPERATIONS managers are those and delivering products and services responsible for managing the resources to service beneficiaries in line with their which comprise the OPERATIONS functions. requests/needs/demands. Forecasting Organisational functional Forecasting is the initial phase of assessment managing the ongoing activities of the Organisational Functionality Assessment operation. (OFA) is a process to assess and diagnose, based on evidence, whether all Learning and knowledge the necessary service delivery enablers are in place to support delivery processes MANAGEMENT in an optimal and accountable manner. The purpose of learning and knowledge MANAGEMENT (LKM) is to provide conceptual clarity and leadership that DEFINITIONS AND ACRONYMS.

8 Productivity SMART standards Productivity is traditionally defined as the The Specific, Measurable, Achievable, ratio between output and input. Realistic, Time-bound, Empowering and Revisable (SMARTER) goal- Service setting system is a criteria used to A service is the action of helping or doing help individuals or institutions set more work for someone. It is an action that attainable goals. The mnemonic acronym fulfils a function. In terms of Government, stands for the following: a service fulfils a need of the public by performing specific tasks or work for Specific service beneficiaries (the general public or Is the service standard specific? Does other governmental institutions). it mention what is being measured, for example, does it refer to a specific quantity, quality, timeframe and cost?

9 Service beneficiary and service provider Measurable A service beneficiary is any person, Is the service standard measurable? team, institution or company to whom If it is vague rather than specific, it will your team provides products, services not be measurable, for example, if we or information. A service provider is any simply state that we should be more person, team, institution or company courteous to our service beneficiaries;. that provides your team with products, we will not be able to measure the level services or information. They can be of courtesy. Courtesy will need to be internal or external to the institution. unpacked in terms of response times or reduced complaints in order for it to be measurable. Service delivery model A Service Delivery Model (SDM) is Achievable a document that describes how an Is the standard achievable with the current institution will deliver on the services and resources, or are additional resources products that were identified during the available and affordable in order to strategic planning process.

10 Achieve the standard, for example, if we set a standard of processing social grant Service delivery charter applications within two days, it certainly The service delivery charter (Statement is specific and measurable, but is it of Public Service Commitment) sets out achievable with the available human and governmental institutions' commitment financial resources? to providing services at specified levels in order to affect strategic developmental Realistic outcomes within the constraints of Is the standard realistic in terms of current available resources. or past performance? If we look at the previous example of processing social Service standards grant applications within two days, we A service standard is a reasonable and must ask if it is realistic, knowing what measurable expectation from the side procedures and protocols need to be of the service beneficiary and an honest followed.