Think of
operations
management
as the hinge
between strategy
and day-to-day
accomplishments
August 2008
Figure 1. Operations management is part of a business foundation
16 Northeast DairyBusiness PRO-DAIRY August 2008
The controlled magic occurs in the processes at center. Whether
its developing a ration, mixing and delivering feed, measuring
consumption or assessing feed conversion, trained, observant and
motivated people are critical.
This process approach to operations management may also
help an operations manager develop a Hazard Analysis of Critical
Control Points (HACCP) plan for the system. Instead of waiting
until measured outputs have declined, applying HACCP principles
means measures are routinely taken among steps within the process.
Correcting problems earlier in a process often means minimizing
losses in outputs.
The operations manager also recognizes that other systems
external agents such as housing and milking directly influence the
process. In the case of the feeding process, housing ventilation will
affect dry matter intake and outputs such as milk harvest.
The milk:feed ratio is another external agent influencing the
feeding process. It may dictate that a dairy limit certain feed inputs
as cost destroys any marginal return in outputs. Astute operations
managers may continue to feed at a loss to sustain production, pre-
serving base milk quantity when price conditions improve.
Critical actions
Figure 3 presents another view of the feeding system. This is an
at a glance summary of all the critical actions within a system, as
well as some output measures typically used to track performance.
As a control tool, measuring real-time performance of process
steps, such as forage quality, trumps measuring output solely.
Process steps tend to be dairy specific, so top-notch operations man-
agers develop their own measures. These should lead to acceptable
outcome measures, ranging from dry matter intake to peak produc-
tion in this example.
Help people prosper
Given that people in the process drive operations management,
creating new and better ways to help them prosper in their jobs
is the focus of many articles in The Manager. Some examples:
Production-oriented discussion groups provide ideas and opinions
from other dairies dealing with similar issues. Profit teams help
bring additional ideas and insight to business strategy and opera-
tions. Employee/management team meetings help assure two-way
communication and synergy. Employee training, most often using
task-related standard operating procedures (SOPs), requires one-on-
one human interaction.
While the remaining articles in the section also involve people,
they emphasize the if you dont measure it, you cant manage it
aspects of operations management. Usable records and the relatively
new Dairy Profit Monitor are examples of critical tools used to
decide how to improve a process that might be throttling perfor-
mance.
It may work to think of operations management as a hinge
between strategy and day-to-day implementation of that strategy in
a repeatable and organized way. Suffice it to say that high-perform-
ing operations managers have unparalleled job security its that
important to a thriving business.
THE MANAGER
Figure 2. Everything hinges on the person in the process
Figure 3. Critical actions in the feeding system and output measures
FYI
John Conway is a dairy production manage-
ment specialist with Cornells PRO-DAIRY
program. Contact him at 607-547-2536 or
jfc6@cornell.edu.
For a document that shows crop and dairy
production systems, go to the PRO-DAIRY
website: www.ansci.cornell.edu/prodairy and
look for a link to the information.
August 2008 PRO-DAIRY Northeast DairyBusiness 17