What is Operations Science (OS)?
An introduction to the science that links process and value.
👋 Hey, Kyle here! Welcome to The Influential Project Manager, a weekly newsletter covering the essentials of successful project leadership.
Today’s Overview:
Traditionally, construction project managers have relied on metrics like cost, schedule, quality, and safety to measure performance. But these metrics often overlook the critical factors such as variability, work prerequisites, and work-in-process (WIP), which is really what drives project outcomes.
To address this gap, we can apply Operations Science (OS) principles to the design of construction production systems.
Operations Science is the study of the transformation of resources to create and distribute goods and services. In this article, I’ll introduce you to the concepts and terminology of OS, setting the stage for you to make a bigger impact on your projects.
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What is Operations Science?
Filed under: Construction, Project Management
Ever wondered if there’s a science behind organizing and managing projects effectively?
Well, there is, and it's known as Operations Science (OS).
I’m guessing for most readers, the concept of a dedicated science for operations seems new.
Operations Science focuses on the practical side of transforming resources into finished products. This might sound technical, but it’s all about making the process easier and more efficient.
Operations Science (OS) is the study of transformation of resources to create and distribute goods and services. OS focuses on the interaction between demand and production and the variability associated with either or both. OS also describes the set of buffers (inventory, capacity and time) required to synchronize demand with production. - Project Production Institute
In construction project management, which you’re likely familiar with, Operations Science is incredibly relevant. It helps us oversee every part of a building project, from scheduling—which maps out what needs to be done and when—to the actual construction, turning plans into real, tangible assets.
Here’s a simple way to see it:
Scheduling: Determine the project's demand and timelines.
Production: The physical construction process where raw materials become part of a new building.
Think of your project as a temporary production system. Different teams—the concrete crew, steelworkers, framers, and designers, etc.—all work together under this system to efficiently complete the project.
You might not realize it, but the top 1% of project managers, executives, and superintendents—those who have led multi-million dollar projects—use Operations Science naturally. They may not use the specific terminology, but they excel by applying its principles.
My goal today is to bring the other 99% up to speed.
This newsletter is your gateway to learning Operations Science. It’s designed to introduce you to the basic terminology, help you learn more, and empower you to lead your projects more effectively.
Let’s get started.
How Other Industries Use Operations Science
Operations Science is well-known in several industries for its role in improving efficiency and effectiveness.
Although it's not yet widespread in construction, it's a foundation in industries where precision and efficiency are critical.
Look at these areas where it's already making a big impact:
Manufacturing: Perhaps the most famous example is Toyota. This automotive giant uses principles of lean manufacturing—a core aspect of Operations Science—to make their processes as efficient as possible, which allowed them to cut costs and maintain high quality.
Healthcare: In hospitals, Operations Science streamlines everything from patient care to the supply chain for medications. By optimizing these processes, healthcare providers can treat more patients quickly and effectively.
Retail: Major retailers like Walmart and Amazon implement Operations Science to manage their extensive inventories and ensure rapid delivery to customers. Their strategies include everything from efficient stocking methods to advanced online order processing systems.
Airlines: Companies like Delta and Southwest Airlines use Operations Science to manage flight schedules, maintenance, and crew assignments to keep flights running on time and to reduce downtime for planes.
In each of these cases, Operations Science is the secret sauce that helps companies link their processes directly to the value they deliver to customers.
💡 Key Definitions & Ideas
To get you started with Operations Science, let’s break down the key terms and concepts.
These will help you connect processes with value in your projects:
Buffer
A means or device used to cushion against fluctuations in business activity. It helps align process output with demand when they don’t sync up. Types include:
Inventory—transformation occurs before demand
Time—transformation occurs after demand
Capacity—exceeding average demand.
Bottleneck
The stage in a production system with the highest utilization, often the limiting factor in process throughput.
Capacity
The maximum rate at which tasks or products can move through a system. Excess capacity helps keep inventory and backorders manageable.
Constraint
In Project Production Control, a constraint is a task that must be completed before the next phase can proceed. This differs from its use in traditional production to mean bottleneck.
Cycle Time
The average time from when a job is released into a station or line to when it exits. This includes time spent producing the item and the wait stages between active work times.
Demand
The need specified by customers for products or services at a given rate.
Flow
The movement of materials or resources through a production process, measured in units per time period.
The rate of flow for a process is called its throughput.
Inventory
Accumulated resources within or between processes. Inventory between two or more flows is called “stock” while inventory within a flow is called work in process or “work in process.”
Little’s Law
The relationship between system throughput (TH), cycle time (CT), and work in process (WIP).
Cycle time is a dependent variable. WIP is a leading indicator of CT.
Production System
A defined series of operations within a broader network that produces outputs to meet external demand.
Process
A series of operations designed to transform inputs into finished goods or services.
Product Process Map
A tool to expose the interactions between the stakeholders involved in the production system.
Example:
Schedule
A plan showing when and in what order tasks should be completed. In construction, schedules help set and track milestones.
Supply Chain
A network of processes and storage points designed to deliver goods or services to customers.
Stock
Completed transformations ready to meet demand immediately.
System
A collection of interconnected parts working together as a whole, such as a manufacturing assembly line.
Takt Plan
A visual plan that shows the flow of production, incorporates buffers, and aims for efficiency in process and duration.
Takt Time
The time interval between successive units of output, calculated by dividing allowable production time by the number of units needed.
Throughput (TH)
The average output per unit time from a process. Example: Throughput could refer to the rate at which concrete is poured, completing an average of two floors per week.
Throughput is related to Cycle Time (CT) and Work in Process (WIP) by Little's Law.
Wait-to-Match-Time (WTMT)
The time that parts or tasks spend waiting for their counterpart(s) at an assembly operation.
Work in Process (WIP)
Work in process or “WIP” is the set of items or activities that are partially transformed within any given process.
Value Stream
The complete flow of work from initial production through to delivery to the end user, including all necessary design and engineering.
Variability
The difference between the intended outcome of an action or procedure in your production process, and the actual result. Sources of variability can be difficult to isolate, and they're just as likely to be attributable to materials, equipment, and human performance.
These definitions are just the beginning of your journey into Operations Science.
Bookmark this page for easy reference as you start applying these principles to become more influential and valuable in your projects and organizations.
📚 Operations Science Resources
Until next week,
Kyle Nitchen
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