Presentation on Operations Management - the · PDF fileLeading the Public Service to Higher...

Leading the Public Service to Higher Productivity

Presentation on Operations

Management

26 November 2013


PROBLEM STATEMENT

Despite existing enabling legislative environment for continuous service delivery improvement:

▫ Non-existent service delivery models

▫ Poor mapping of services

▫ Deficient standard operating procedures

▫ Deficient unit costing

▫ Outdated Service Charters outlining the standard of

services citizens can expect

▫ Poor measurement & management of productivity

▫ Weak institutionalisation of SDIPs


RESPONSE BEHAVIOURAL CHANGE INTERVENTIONS: BATHO PELE


WHAT IS OPERATIONS MANAGEMENT

“The activities, decisions and responsibilities of managing the production and delivery of products and

services” In any organisation, both core functions (creating and delivering products and services to customers/citizens in line with their requests/needs/demands); & support functions (finance & accounting; HR) manage PROCESSES: all managers are “OPERATIONS” MANAGERS – they all should strive to give quality services to their (internal/external) stakeholders/citizens and they should do this efficiently and effectively (in context)

Source: Pycroft et al, 2010, Operations Management


WORKING DEFINITION

The combination of knowing what services to

deliver; agreeing on how to deliver these services

and developing and implementing the following: ▫ a service delivery model

▫ clearly mapped and coordinated business processes

▫ documented standard operating procedures

▫ unit costing for services

▫ acceptable service standards;

▫ an agreed service charter;

▫ productivity measures and improvements

▫ service delivery improvement plans


TOTAL BENEFIT

• Enable departments to

deliver quality services to

the public/internal

stakeholders consistent with

demand (quantity, speed) in

a simplified, flexible,

effective (utilitarian value),

efficient (costing) and

seamless manner.


ENABLING LEGISLATIVE FRAMEWORK

• Constitution, 1996: Efficient, economic and effective

use of resources – Chapter 10, 195(1)

• WPTPS, 1995 & WPTSD (BP), 1997: A transformed

Public Service will be judged on its effectiveness in

delivering quality services which meets the basic needs

of all

• Public Service Act & Regulations, 1994

• PAIA, 2000

• PAJA, 2000

• PFMA, 1999: Warns against developing strategic plans

in isolation – linked to SDIPs


(Draft) Productivity

Management Framework for

the South African Public

Service

26 November 2013


Introduction

• Recent emphasis on Public Service productivity.

“The idea of a highly productive public service is to meet the basic needs of our people as well as contribute towards the development of our economy”.

Deputy President Kgalema Motlanthe at the Government Leadership Summit, 03 April 2013

http://www.thepresidency.gov.za/pebble.asp?relid=16


Introduction

“...transform the public service to a high productivity machinery capable of fast tracking the implementation of the NDP and cutting the 17 years of implementation to 10.”

Minister Lindiwe Sisulu, Media Breakfast, CTN Int. Convention Centre, 07 March 2013


Introduction

• Traditionally, productivity is defined as ratio between output and input measure of how efficiently and effectively inputs (labour, financial resources and infrastructure) are translated into outputs (goods and services).

• Provide public goods and services to 52 million citizens ( ) with limited inputs ( ).

We simply must deliver more with less!


Value a Productivity Management

Framework

• “Value/Importance” is known but a PMF will be useful insofar as it:

Easy to understand; Practical at the operational level; Takes account of the multiplicity of factors

influencing service productivity; Identifies and measures those factors that

can be affected by managerial interventions


Definition of Public Service Productivity

• A more comprehensive definition is: The creation of citizen satisfaction through the

generation and application of knowledge and skills to produce products and make services available (and accessible) that meet the quality needs and standards of the citizens and are consistent with social, environmental and economic goals of the citizen.

• Thus:

Public Service Productivity =


Multi-factors impacting on productivity

14

PUBLIC SERVICE PRODUCTIVITY

Reliability, Responsiveness,

Assurance

Service

Demand/Need

Citizen

Expectations

Service Quality

Citizen Satisfaction Service Quantity

Employee

Competence and

Capability

Citizen Consultation

Capacity of

Facility/Current

Output Quantity

Working

Environment

Access Norms and

Standards

Resource

Availability

(human and

financial)

Operations Management

Systems & Processes



• Collation of factors

Sub-factor Description of Factor Dimensions Indicators

Labour Performance (60%)

This is the cost of labour

and whether the outputs

that have been set for

personnel through the

organisational PMDS have

been met in the specified time. Also taking into account

employee wellness (work

environment) and health-risk factors.

Cost of labour Working days of labour force. Personnel performance in

relation to set targets in a set time. Work environment (physical, social and psychological)

Ratio of salary cost to total budget Days absent (sick) Performance aggregate for SMS, MMS, and lower level employees Number of employees that went for counseling and support % score in employee satisfaction survey Ergonomics (calculation of space

utilisation: ratio of employee numbers to office space)



Sub-factor Description of Factor Dimensions Indicators

Operational Performance (20%)

Operating process and

systems impacts on service

delivery optimisation

congruent with citizen

demand, expectations and satisfaction.

Specification of mandated services. Optimisation of service delivery

through critical path analysis and

knowledge of service costs,

standards, access norms and

standards, and service delivery improvement plans.

% score in implementation of

service access norms and standards (ANS) % score in implementing

Operations Management Framework

Citizen

Participation Performance (20%)

Indicating citizens

perceptions of service quality

Citizen feedback on service delivery implementation Implementation of Batho Pele principles

% score in citizen feedback on service delivery performance % score in citizen feedback on

implementation of Batho Pele principles


17

Matrix Approach: Assessment Table...

Measure/Indicator 1 2 3 4

Sub-Factor Weight Micro-factor Highest Lowest

Labour

Performance

(60%)

10% Ratio of salary cost to total annual budget

10% Days absent (sick)

10% Performance aggregate for SMS, MMS, and lower level employees

10% Number of employees on counseling and support

10% % employee satisfaction from surveys

10% Ergonomics (ratio of employee numbers to office space)


18

Matrix Approach: Assessment Table....



Operational Performance (20%)

10% % score in implementation of

service access norms and standards (ANS)

10% % score in implementing

Operations Management Framework



Citizen Participation Performance (20%)

10% % score in citizen feedback on service delivery performance

10% % score in citizen feedback on

implementation of Batho Pele principles


19

Matrix Approach

• Step 1: Determine the weight for each sub- factor

Sub-factor Weighting

Labour 60%

Operational 20%

Citizen Participation 20%

Total 100%


20

Matrix Approach

• Step 2: Determine the scores for each productivity micro factor:

Since both the weighting and number of levels for each micro-factor may vary, scores for

each indicator should be determined as follows:

Individual Indicator =

Determining Scores for Micro-factors (Indicators): For ease of measurement, a total score of 1 000 points is used.

Sub-factor

Weighting

Total Score

For Each Indicator

Level

Achieved

Score for

Each Productivity Level

Labour Performance (60%) (600) Ratio of salary cost to total budget 10% 100 1 100

Days absent 10% 100 1 100

Performance aggregate for SMS, MMS, and lower level employees 10% 100 1 100

Number of employees on counselling and support 10% 100 1 100

Employee satisfaction survey scores 10% 100 1 1000

Ergonomics (ratio of employee numbers to office space) 10% 100 1 1000


21

Operational Performance (20%) (200)

% score in implementation of service access

norms and standards (ANS)

10% 100 1 100

% score in implementing Operations

Management Framework

10% 100 3 34

Citizen Participation Performance (20%) (200)

% score in citizen feedback on service delivery

performance

10% 100 1 100

% score in citizen feedback on implementation of

Batho Pele principles

10% 100 1 100

Total 100% 1 000* 934


22

Matrix Approach

• Step 3: Determine the range of scores for the total productivity level achieved:

LEVEL OF PRODUCTIVITY RANGE OF SCORES %

High Productivity 800 to 1 000 81-100%

Medium Productivity 700 to 799 70-80%

Average Productivity 500 to 699 50-70%

Low Productivity 349 to 499 35-49%

Unproductive

0 to 348 0-34%


Matrix Approach

• Assumptions: Matrix Approach

Assumptions If false, recommendation

The environment, operational systems and processes

are in place that enable and support officials to optimise

the use of resources (inputs) at their disposal.

The creation of a

conducive environment

including measures to fill

vacancies, improve

infrastructure quality, and

the implementation of set

norms and standards for

operational efficiency and

effectiveness.

Productivity can be improved by better management

(better allocation of resources).

The emphasis is largely on people (officials and

citizens).


Thank you

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