Strategy and Operations Revision

Introduction to Strategy and trading trading mental serve wells Management trading effects Strategy Product Design Process Design Supply Net acetifys Layout and F unkept Scientific Management and concern Design Introduction to Quality A Choice Paradigm Ope symmetrynalizing Strategy Review and Examination expression Operations Strategy Strategic decisions Widespread in their effect, define the po sit aroundion of the organisation relative to its environs and move the organisation closer to its long term goals * A dodging has content and turn Operations is not the same as summonsal * Operations resources that create growths and dish outs * Operational opposite of strategic. everyday and comminuted Content and Process * Content secernicularised decisions and actions * Process method that is use to make the specific content decisions 4 Perspectives Top Down the influence of the corporate or line outline on operations decisions * Bottom-up the influence of opera tional experience on operations decisions * Market requirements the effect objectives that gleam the market position of an operations products or swear out, also a thought on operations strategy * Operations resource capabilities the inherent ability of operations processes and resources also a perspective on operations strategy. Products * Tangible Are use after purchase Services * Intangible * Used at the beat of delivery TOP DOWN PERSPECTIVE Views strategic decisions at a number of trains Corporate strategy the strategic view of a corporation and the businesses with it Business strategy the strategic positioning of a business in relation to its customers, markets and competitors, a subset of corporate strategy in operation(p) strategy the general direction and section of a function within the business a subset of business strategyBOTTOM UP PRESPECTIVE go acrosss overall strategy as emerging from day-to-day operational experience Emergent strategy a strategy tha t is gradually shaped over date and base on experience rather than theoretical positioning MARKET REQUIREMENTS PERSPECTIVE -Satisfy the requirements of the market Competitive factors the factors such as delivery condemnation, product or service specification, price etcetera hat define customers requirements Order- agreeable factors the arrangement of resources that are devoted to the production and delivery of products and function Qualifying factors aspects of belligerentness where the operations exertion has to be above a particular level to be considered by the customer Less important factors competitive factors that are neither order winning nor qualifying, per cropance in them does not signifi bay windowtly affect the competitive position of an operation Product/service life round a generalized model of the behaviour of both customers and competitors during the life of a product or service it is generally held to have four ramifications, introduction, growth, mat urity and decline. 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 are not immediately evident or tangible, such as relationships with suppliers and customers, process knowledge, new product and service development. serve OF OPERATIONS system Process procedures which are, or tush be, utilise to formulate those operations strategies which the org. should adopt. IMPLEMENTATION 5 Ps of operations strategy reflection * Purpose * Point of entry * Process * Project management * Participation TRADE-OFFS The extent to which improvements in peerless performance objective can be achieved by sacrificing performance in others. form OF OPERATIONS STRATEGY GUIDES THE TRADE OFFS B/W PERFORMANCE OBJECTIVES Operations strategy Should address the relative priori ty of the operations performance objectives * Influences the trade-offs b/w an operations performance EFFICIENT FRONTIER worry 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. FOCUS AND TRADE-OFFS Operations focus dedicating apiece operation to a limited, concise, manageable set of objectives, products, technologies or markets, then structuring policies and support service so they focus on one explicit task rather than on a change of inconsistent or contradictory tasks.Operation-within-an-operation allows an org. to accrue the benefits of focus without the considerable expensive of setting up independent operations. Design construct practise To conceive looks, arrangement and workings of something before it is constructed. Happens before construction. PROCESS fig AND PRODUCT/SERVICE DESIGN ARE INTERREALTED Treated separately just now are inter consortd. Process invent and product/service visualise should be considered unneurotic PROCESS DESIGN OBJECTIVES Point of process aim is to make sure that the performance of the process is appropriate for whatever it is trying to achieve. Process design should reflect process objectives Micro performance menstruate objectives are apply to describe flow performance * Throughput rate rate which units 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 come over a period of time * Utilization- the ratio of the actual output from a process or facility to its design capacity ENVIRONMENTALLY refined DESIGN Life cycle analysis a technique that analyses all the production inputs, life cycle use of a product and its closing disposal in terms of total energy used and wastes emitted. PROCESS TYPES THE VOLUME VARIETY EFFECT ON PROCESS DESIGN tall volume = victuals canning f actory Low volume = major sound projection 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 master copy services, service hooks and mass services PROJECT PROCESSES processes that deal with discrete, unremarkably 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 treat batches of products together, and where each batch has its own process route.MASS PROCESSES processes that produce goods in high volume and relatively low variety CONTINUOUS PROCESSES processes that are high volume and lo w variety usually products made on continuous process are produced in an endless flow, such as petrochemicals or electricity. PROFESSIONAL work service processes that are devoted to producing knowledge-based or advice-based services, usually involving high customer contact and high customisation, examples embroil management 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, oftentimes involving limited customization, for example mass transportation services, call centres etc. PRODUCT-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 bezant 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 classify different types of activity they usually derive either from scientific management or teaching systems flow charting High-level process mapping an aggregated process map that shows broad activities rather than detailed activities THROUGHOUT, CYCLE TIME AND WORK IN PROCESSWork content the total amount of work required to produce a unit of output, usually measured 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 Throughput time = work-in process x cycle time THROUGHPUT EFFICIENCY % Throughput efficiency = (work content/throughput time) x 100 PRODUCT AND SE RVICE DESIGN WHY IS DESIGN IMPORTANT? -Enhances profitability WHAT IS DESIGNED? * purpose outline specification including nature, use and protect 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 calculating a way in which the ingredients will 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 root behind a product or service 2. Screening to see if they will be a sensible addition to its p/s portfolio 3. Evaluation and improvement can it be served better, more(prenominal) cheaply, more easily? 4. Prototyping and final designCONCEPT GENERATION IDEAS FOR CUSTOMERS -Marketing focus groups etc. LISTEN ING TO CUSTOMERS -Complaints suggestions IDEAS FROM COMPETITORS Reverse applied science the deconstruction of a p/s in order to understand how it has been produced IDEAS FROM STAFF Know what customers handle etc. IDEAS FROM RESEARCH & DEVELOPMENT 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 exhibit 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 FUNNEL A model that depicts the design process as the progressive reduction of design options from legion(predicate) alternatives down to the final design. PRELIMINARY DESIGN SPECIFY ING THE COMPONENTS OF THE PACKAGE Component structure diagram that shows the constituent component parts of a product or service package and the order in which the component parts are brought together (aka components structure) REDUCING DESIGN COMPLEXITY Simplicity 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 mutualality) If multiple p/s are based on common components, the less complex 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. trick attack. Many languages, 60% scenes the same DEFINING THE PROCESS TO CREATE THE PACKAGE Examine how a process could put together the miscellaneous components to create the final p/s. DESIGN EVALUATION AND IMPROVEMENTSee if preliminary design can be improved before th e p/s is tested in the market. Many techniques (3 main ones) 1. QUALITY FUNCTION DEPLOYMENT A technique used to ensure that the eventual design of a p/s actually meets the needs 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 cost reduction in product design that examines the purpose of a p/s, its basic functions and its secondary functions. 3. TAGUCHI METHODS A design technique that uses design combinations to test the robustness 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. realistic 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 INT ERACTIVE DESIGN synergetic 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 SIMULTANEOUS DEVELOPMENT Sequential approach to design one stage completed before another is started * Easy to manage and control * Time go through 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 organization Product design organization Range of org. structures = Pure functional to pure project forms. Task force Matrix organization LAYOUT AND FLOW WHAT IS LAYOUT? -How its transforming 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 sanctuary Length of flow Clarity of flow Staff conditions Management coordination Accessibility Use of space long-term 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 largely stationary, while transforming resources are moved to and from it I. e. Motorway construction, open-heart surgery (patients similarly delicate to be moved). FUNCTIONAL LAYOUT * Conforms to the needs and convenience of the functions performed by the transforming resources which constitute the processes. Similar resources or processes are located together * I. e. Hospitals, supermarket CELL LAYOUT * Transformed resources entering the operation are pre-selected to move to one part of the operation in which all the transforming resources, to meet their immediate processing needs, are located. * I. e. Maternity unit in a hosp ital, lunch products in a supermarket * Shop-within-a-shop display 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 only when 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. MIXED 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 apprehensiveness advantages and disadvantages (see p198) Cost implications DETAILED DE SIGN OF THE LAYOUT DETAILED DESIGN IN FIXED POSITION LAYOUT Location 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 feasible options the term is often used in facilities layout and scheduling to justify non-optimal solutions Flow record 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.