module 1 competing with operations

8/3/2019 Module 1 Competing With Operations

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Module 1:

Competing with Operations

Process

PowerConcepts


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Presentation

Game Plan Course Introduction and Rules of

Engagement

What is Operations Management?

Linking Operations to Strategy


ProcessPowerConcepts


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Course Intro andRules of Engagement



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Instructor Introduction


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Learning from your

mistakes is smart.

Learning from otherpeoples mistakes isgenius.




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StudentResponsibilities


The heavy lifting is up to you!


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Active learning

OM Concepts

Quantitative Tools

Experiential Learning

Course web site: use it

Paperless is good!

Rules for test session

The Syllabus is ourcontract

Course ManagementPhilosophy


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Syllabus talk!


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What is OperationsManagement?



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Operationsis . . .


The answer to the question,What does your company do?

Processes that add value to goods or

services for customers.


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OperationsManagement is . . .


the systematic design, direction, andcontrol of processes that transform inputs

into services and products for internal and

external customers.

a business discipline that applies concepts

from other fields, including strategicmanagement, industrial engineering, and

operations research.


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OM is important toyou because . . .

Process management is important inall business disciplines.

Any performance issue regarding abusiness is grounded in operations.

Intelligent discussion of operationshelps you win in a job interview!



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Linking Operationsto Strategy


A business is like a house built from the top down.

Strategy

People Process Technology

Execution


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Linking Operationsto Strategy


Corporate strategy: provides an overalldirection that serves as the framework for

carrying out all organizational functions.

Operations strategy: defines corporate

strategy execution, and drives the

development of a customer-centric culture.


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What isa Process?


ActivityInputsOutput:

Value to the

Customer


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What isa Process?



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Core Processes andSupport Processes



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Core Processes andSupport Processes



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Manufacturingvs. Services



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Two Kinds ofCustomers



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ASupply ChainPerspective


Source: Supply Chain Council. 2008. SCOR Version 9.0 Overview

Processes can be linked to form a supply chain: interrelated processes across

different firms that produce products and services to meet customer needs.


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Cost

Quality

Delivery

Flexibility


Competing WithOperations


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CompetitivePriorities


TABLE 1.2 | DEFINITIONS, PROCESS CONSIDERATIONS, AND EXAMPLES OF COMPETITIVE PRIORITIES

COST Definition Process Considerations Example

1. Low-costoperations

Delivering a service or aproduct at the lowestpossible cost

Processes must be designed andoperated to make them efficient

Costco

QUALITY

2. Top quality Delivering an outstandingservice or product

May require a high level of customercontact and may require superiorproduct features

Ferrari

3. Consistentquality

Producing services orproducts that meet designspecifications on aconsistent basis

Processes designed and monitoredto reduce errors and prevent defects

McDonalds

TIME

4. Delivery speed Quickly filling a customersorder Design processes to reduce leadtime Dell

5. On-time delivery Meeting delivery-timepromises

Planning processes to increasepercent of customer orders shippedwhen promised

United ParcelService (UPS)

6. Developmentspeed

Quickly introducing a newscience or a product

Cross-functional integration andinvolvement of critical externalsuppliers

Li & Fung


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CompetitivePriorities


TABLE 1.2 | DEFINITIONS, PROCESS CONSIDERATIONS, AND EXAMPLES OF COMPETITIVE PRIORITIES

FLEXIBILITY Definition Process Considerations Example

7. Customization Satisfying the unique needsof each customer bychanging service orproducts designs

Low volume, close customer contact,and easily reconfigured

Ritz Carlton

8. Variety Handling a wide assortmentof services or productsefficiently

Capable of larger volumes thanprocesses supporting customization

Amazon.com

9. Volume flexibility Accelerating or deceleratingthe rate of production ofservice or products quicklyto handle large fluctuationsin demand

Processes must be designed forexcess capacity

The United StatesPostal Service(USPS)


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Order Winners andOrder Qualifiers



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CompetitivePriority Metrics



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Quantitative Focus:Productivity Metrics


Labor Productivity

Labor productivity =

Output ($ or Units)

Units of Labor (Hrs)

Multifactor Productivity

Multifactor productivity =

Value of Output ($)

Labor ($) + Materials ($)+ Overhead ($)


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Productivity Metrics &Competing with Ops


Process design

Process evaluation Process management

Process control Process improvement


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PresentationRecap

Course Introduction and Rules

of Engagement

What is Operations Management?

Linking Operations to Strategy




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Module 1:


Process

PowerConcepts

module 1 competing with operations

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