Strategy and Operations Revision

Introduction to Strategy and trading unconscious surgical procedures Management trading executions Strategy Product fig action Design Supply Networks Layout and scat Scientific Management and Job Design Introduction to Quality A Choice Paradigm Operationalizing Strategy Review and Examination Preparation routines Strategy Strategic decisions Widespread in their effect, define the condition of the disposal coitus to its environment and move the organisation closer to its long status goals * A schema has content and suffice Operations is not the analogous(p) as operational * Operations resources that build products and ser valetudinarianisms * Operational turnaround of strategic. Day-to-day and detailed Content and Process * Content specific decisions and actions * Process method that is utilize to make the specific content decisions 4 Perspectives heyday Down the influence of the corporate or business strategy on operations decisions * Bottom-up the influen ce of operational experience on operations decisions * Market requirements the carrying out objectives that reflect the market seat of an operations products or avail, also a locating on operations strategy * Operations resource capabilities the inherent ability of operations runes and resources also a perspective on operations strategy. Products * Tangible Are employ after purchase Services * Intangible * Used at the sentence of economy carousel DOWN stead Views strategic decisions at a number of levels incarnate strategy the strategic positioning of a corporation and the businesses with it Business strategy the strategic positioning of a business in relation to its clients, markets and competitors, a sub sight of corporate strategy Functional strategy the overall direction and office staff of a function inside the business a subset of business strategyBOTTOM UP PRESPECTIVE Sees overall strategy as emerging from day-after-day operational experience Emergent strat egy a strategy that is bit by bit shaped over time and ground on experience quite a than theoretical positioning MARKET REQUIREMENTS PERSPECTIVE -Satisfy the requirements of the market Competitive factors the factors such as delivery time, product or service specification, price etcetera hat define customers requirements Order- sweet factors the ar cut backment of resources that be devoted to the production and delivery of products and go Qualifying factors aspects of competitiveness where the operations per beance has to be above a particular level to be considered by the customer Less heavy factors competitive factors that ar neither point winning nor qualifying, performance in them does not signifi put uptly affect the competitive position of an operation Product/service life stave a generalised imitate of the behaviour of both customers and competitors during the life of a product or service it is generally held to have four stages, introduction, growth, matu rity and decline. trading operations RESOURCES PERSPECTIVE Resource-based view (RBS) the perspective on strategy that stresses the importance of capabilities (sometimes known as core competences) in determining sustainable competitive advantage.Intangible resources the resources within an operation that ar not immediately evident or tangible, such as relationships with suppliers and customers, subprogram knowledge, new product and service development. operation OF OPERATIONS STRATEGY Process procedures which atomic number 18, or can be, used to formulate those operations strategies which the org. should adopt. IMPLEMENTATION 5 Ps of operations strategy formulation * Purpose * Point of entry * Process * Project guidance * involution betray-OFFS The extent to which improvements in one performance objective can be achieved by sacrificing performance in some others. wreak OF OPERATIONS STRATEGY GUIDES THE TRADE OFFS B/W PERFORMANCE OBJECTIVES Operations strategy Should a ddress the relative priority of the operations performance objectives * Influences the trade-offs b/w an operations performance EFFICIENT FRONTIER Like in economics convex line. Useful approach to articulating trade-offs and distinguishes b/w repositioning performance on the efficient frontier and improving performance by overcoming trade-offs. counseling AND TRADE-OFFS Operations focus dedicating each(prenominal) operation to a limited, concise, manageable set of objectives, products, technologies or markets, then structuring policies and support services so they focus on one explicit task rather than on a compartmentalisation of inconsistent or conflicting tasks.Operation-within-an-operation al pathetics an org. to accrue the benefits of focus without the considerable expensive of setting up independent operations. Design stick out ACTIVITY To apprehend looks, arrangement and workings of something before it is constructed. Happens before construction. PROCESS DESIGN AND mathematical product/SERVICE DESIGN ARE INTERREALTED Treated separately but are interrelated. Process public figure and product/service anatomying should be considered in concert PROCESS DESIGN OBJECTIVES Point of transition envision is to make veritable that the performance of the fulfill is appropriate for whatever it is trying to achieve. Process formula should reflect process objectives Micro performance flow objectives are used to describe flow performance * Throughput rate rate which social building blocks emerge from the process * Throughput time the time for a unit to move through a process * Work in process number of units in the process is an average out over a period of time * Utilization- the ratio of the literal output from a process or facility to its design strength ENVIRONMENTALLY SENSITIVE DESIGN Life cycle analysis a technique that analyses all the production inputs, life cycle use of a product and its final disposal in impairment of total energ y used and wastes emitted. PROCESS partS THE VOLUME VARIETY EFFECT ON PROCESS DESIGN highschool view = food canning factory Low volume = major project consulting engineers Low variety = electricity utility High variety = architects practice Low volume high variety and vice versa Volume variety positionsPROCESS typeS Process types terms that are used to describe a particular general approach to managing processes In manufacturing these are generally held to be project, jobbing, batch, mass and continuous processes, In services they are held to be professional services, service wanders and mass services PROJECT PROCESSES processes that deal with discrete, usually highly customized, products. JOBBING PROCESSES processes that deal with high variety and low volumes, although there may be some repetition of flow and activities. BATCH PROCESSES processes that insure batches of products together, and where each batch has its own process route.MASS PROCESSES processes that k ick upstairs goods in high volume and relatively low variety CONTINUOUS PROCESSES processes that are high volume and low variety usually products made on continuous process are produced in an endless flow, such as petrochemicals or electricity. PROFESSIONAL SERVICES service processes that are devoted to producing knowledge-based or advice-based services, usually involving high customer contact and high customisation, exemplars include wariness consultants, lawyers, architects etc. SERVICE SHOPS service processes that are positioned between professional services and mass services, usually with medium levels of volume and customization. MASS SERVICES service processes that have a high number of transactions, often involving limited customization, for example mass transportation services, call centres etc. intersection point-PROCESS MATRIXA model derived by Hayes and Wheelwright that demonstrates that natural fit between volume and variety of products and services produced by an operation on one hand, and the process type used to produce products and services on the other. Natural stroking most operations stick to this. PROCESS MAPPING Describing the processes in terms of how the activities within the process relate to each other (aka process blueprinting or process analysis) PROCESS MAPPING SYMBOLS PMS The symbols that are used to single out different types of activity they usually derive either from scientific management or information systems flow charting High-level process mapping an aggregated process map that shows broad activities rather than detailed activities THROUGHOUT, CYCLE succession AND WORK IN PROCESSWork content the total tot of work required to produce a unit of output, usually calculated in standard times Throughput time the time for a unit to move through a process Cycle time average time b/w units of output emerging from a process Work-in-process number of units within a process waiting to be process further LITTLES LAW T hroughput time = work-in process x cycle time THROUGHPUT EFFICIENCY % Throughput efficiency = (work content/throughput time) x 100 PRODUCT AND SERVICE DESIGN WHY IS DESIGN IMPORTANT? -Enhances profitability WHAT IS designingal? * Concept outline specification including nature, use and value of p/s * Package Core p/s fundamental to the purchase and could not be removed without destroying nature of the package * Supporting p/s Enhance the core * Process designing a way in which the ingredients allow for be created and delivered to customer DESIGN ACTIVITY IS ITSELF A PROCESS -The design activity is one of the most important operations processes -Producing designs for products is itself a process STAGES OF DESIGN 1. Concept generation a stage in the product and service design process that formalizes the underlying desire fuck a product or service 2. Screening to see if they will be a sensible addition to its p/s portfolio 3. military rank and improvement can it be served better, more cheaply, more easily? 4. Prototyping and final designCONCEPT GENERATION IDEAS FOR CUSTOMERS -Marketing focus groups etc. LISTENING TO CUSTOMERS -Complaints suggestions IDEAS FROM COMPETITORS change by reversal engineering the deconstruction of a p/s in order to understand how it has been produced IDEAS FROM STAFF Know what customers like etc. IDEAS FROM RESEARCH & evolution R&D the function in the org. that develops new knowledge and ideas and operationalizes the ideas to form the underlying knowledge on which p/s and process design are based. CONCEPT SCREENING Assessing the worth or value of each design option, so a choice can be made. * Design criteria 3 broad categories of design criteria 1.Feasibility the ability of an operation to produce a process, product or service 2. Acceptability the attractiveness to the operation of a p/s 3. Vulnerability the risks taken by the operation in adopting a process, p or s THE DESIGN displace A model that depicts the des ign process as the progressive drop-off of design options from many alternatives down to the final design. PRELIMINARY DESIGN SPECIFYING THE COMPONENTS OF THE mailboat Component structure diagram that shows the constituent dowry parts of a product or service package and the order in which the component parts are brought together (aka components structure) REDUCING DESIGN COMPLEXITY comfort is a virtueSTANDARDIZATION The degree to which processes, products or services are prevented from varying over time COMMONALITY The degree to which a range of p/s incorporate identical components (aka parts commonality) If multiple p/s are based on common components, the less difficult it is to produce them MODULARIZATION The use of standardized sub-components of a p/s that can be put together in different ways to create a high degree of variety. I. e. Art attack. galore(postnominal) languages, 60% scenes the same DEFINING THE PROCESS TO CREATE THE PACKAGE Examine how a process could put to gether the various components to create the final p/s. DESIGN EVALUATION AND IMPROVEMENTSee if preliminary design can be improved before the p/s is tested in the market. Many techniques (3 main ones) 1. QUALITY FUNCTION DEPLOYMENT A technique used to batten down that the eventual design of a p/s actually meets the needfully of its customers. QFD matrix how company sees relationship b/w requirements of customer and the design characteristics of p/s 2. VALUE ENGINEERING An approach to constitute step-down in product design that examines the purpose of a p/s, its staple functions and its secondary functions. 3. TAGUCHI METHODS A design technique that uses design combinations to test the cogency of a design I. e. Telephone should still work when has been knocked over. Pizza shop cope with rush of customersPROTOTYPING AND FINAL DESIGN Prototype can be clay model, simulations etc. Virtual prototype a computer based model of a p/p/s that can be tested for its characteristics before the actual p/p/s is produced Computer-aided design (CAD) a system that provides the computer ability to create and modify p/p/s drawings BENEFITS OF INTERACTIVE DESIGN Interactive design the idea that the design of p/s on one hand, and the processes that create them on the other, should be integrated Can shorten time to market coincidental DEVELOPMENT Sequential approach to design one stage sinless before another is started * Easy to manage and control * Time overwhelming and costlySimultaneous/concurrent approach to design overlapping these stages in the design process so that one stage in the design activity can start before the preceding stage is finished, the intention being to shorten time to market and save design cost PROJECT-BASED ORGANIZATION STRUCTURES Functional design organisation Product design organization Range of org. structures = Pure functional to pure project forms. Task enduringness Matrix organization LAYOUT AND FLOW WHAT IS LAYOUT? -How its transformin g resources are positioned relative to each other and how its various tasks are allocated to these transforming resources. Layout decision is relatively infrequent but important What makes a good layout? Inherent safety Length of flow uncloudedness of flow Staff conditions Management coordination Accessibility Use of space long flexibility Layout is influenced by process types BASIC LAYOUT TYPES 4 basic layout types FIXED-POSITION LAYOUT -Locating the position of a product or service such that it remains mostly stationary, while transforming resources are moved to and from it I. e. Motorway construction, open-heart surgery (patients too imperfect to be moved). functional LAYOUT * Conforms to the needs and convenience of the functions performed by the transforming resources which constitute the processes. standardised resources or processes are located together * I. e. Hospitals, supermarket CELL LAYOUT * Transformed resources accounting entry the operation are pre-s elected to move to one part of the operation in which all the transforming resources, to meet their immediate impact needs, are located. * I. e. Maternity unit in a hospital, lunch products in a supermarket * Shop-within-a-shop display playing area selling specific thing. I. e. sports shop sports books, sports shoes, etc. PRODUCT LAYOUT Line layout a more descriptive term for what is technically product layout Involves locating the transforming resources but for the convenience of the transformed resources. I. e. Automobile assemblySelf-service cafeteria sequence of customer requirements (starter, main, dessert, drink) is common to all customers, but layout also helps control flow of customers. commingle LAYOUTS Combination of layouts I. e. 1 kitchen serving 3 restaurants (cafeteria, buffet and sit down) VOLUME-VARIETY AND LAYOUT TYPE -The volume and variety characteristics of an operation will influence its layout When volume is low and variety high, flow is not a problem SELECTING A LAYOUT TYPE -Volume-variety characteristics narrow down choice -Influenced by understanding advantages and disadvantages (see p198) Cost implications circumstantial DESIGN OF THE LAYOUT DETAILED DESIGN IN FIXED POSITION LAYOUT localisation of function of resources based on the convenience of transforming resources themselves. DETAILED DESIGN IN FUNCTIONAL LAYOUT Combinatorial complexity the idea that many different ways of processing products and services at many different locations or points in time combine to result in an exceptionally large number of possible options the term is often used in facilities layout and scheduling to justify non-optimal solutions period of time express chart a diagram used in layout to record the flow of products or services between facilities Relationship chart a diagram used in layout to summarize the relative desirability of facilities to be close to each other.