MBA ALERTS in EMAIL:

(Study Material) Management Study Material (Operations Management Controls)

Operations Management Controls

Eight functions that are the responsibility of operations management:

1. Computer operations
Controls over computer operations govern the activities that support the day-to-day execution of either test or production systems

3 types of controls must exist:
(a) those that prescribe the functions that either human operators or AOF must perform
(b) those that prescribe how jobs are to be scheduled on the hardware/software platform
(c) those that prescribe how hardware is to be maintained in good operating order

2. Communications network protocol
Network operations govern the activities of wide area and local area networks

3. Data preparation and entry
Data preparation and data entry facilities should be designed to promote speed and accuracy and to maintain the well-being of keyboard operators.

4. Production Control performs 5 major functions:
(a) receipt and dispatch of input and output
(b) job scheduling
(c) management of service-level agreements with users
(d) transfer pricing/chargeout control
(e) acquisition of computer consumables

5. File library
Management of an organization’s machine-readable storage media performs 4 functions:
(a) ensuring that removable storage media are stored securely in a clean environment
(b) ensuring that storage media are used only for authorized purposes
(c) maintaining storage media in good working order
(d) locating storage media appropriately at either on-site or off-site facilities

6. Documentation and program library
Maintaining the documentation needed to support computer operations and managing the inventory of acquired or licensed software

7. Help desk/technical support
Main responsibilities:
(a) assisting end users to employ end-user hardware and software
(b) providing technical support for production systems by assisting with problem resolution

8. Capacity planning and performance monitoring to ensure that unauthorized activities are not happening, systems performance is acceptable, and whether more hardware and software resources are needed.

9. Outsourced operations
4 types of controls needed:
(a) ongoing evaluation of the financial viability of the outsourcing vendor
(b) ensuring compliance with the outsourcing contract’s terms and conditions
(c) ensuring the ongoing reliability of controls in the outsourcing vendor’s operations
(d) maintaining procedures for disaster recovery with the outsourcing vendor