02: Operations strategy Flashcards
Ops n competition: range
- Some Cos just fix worst problems
- Some Cos adopt best practices
- Some Cos link ops to strat
- Some Cos s as Amazon compete on excellent ops
operations strategy in 3 steps
- identify competitive priorities
- decide in decision areas
- build competitive capabilities
Tradeoffs in competitive prios/capabilities
Impossible triangle:
- Quality
- Price
- Time
Other tradeoffs:
Low price against quality, or available variety
Speed against flexibility or quality
Personalized attention against volume of customers
Other newer theory: Sand cone model of cum. capabilities
- Cost efficiency
- agility
- flexibility
- dependability
- quality
Cos like Toyota fill out from bottom.
Structural (3+1) vs Infrastructural (3+3) Decision Areas
Structural Decision Areas
- Facilities = location,size,focus,layout..
- Capacity = ability to meet demand
- Process technology
- Supply network = make-or-buy,networkconfig…
Infrastructural Decision Areas
- Planning and control
- New product development
- Quality
- Work organization
- Human resources
- Performance measurement
5 types of (production) processes in order of decreasing volume n flow
- continuous eg energy
- assembly line = mass production of discrete products eg cars
- batch production eg pharma, furniture
- job shop eg specialised surgery
- project eg big new SW, naval building
+ can be mixed
+ similar process industries can learn from each other
Possible Customer Order Decoupling Point process types:
- Engineer to Order Eg custom SW
- Make To Order eg lightning stock
- Assembled To Order eg pizza
- Make To Stock eg mass produced food
Customer Order Decoupling Point =
+ 4 possibilities
+ 2+2 determining factors
cut bw forecasting n order-driven activities over 4 activities:
it can be at:
- design/engineer
- make
- assemble
- deliver
it depends on:
- process constraints >>
- delivery service requirements >>
- << product market constraints
- << inventory considerations
convergent vs divergent (Production) processes
+ T point
many parts to 1 product VS 1 product to many varieties (via combination & custom.)
- can be combined
T point: point with explosion of variation = The point where the product goes from one or a few variants to many
Process mapping: 5 techniques
Flow diagram = A drawing used to analyse the flow of people and materials
Swim Lane Diagram = Most useful for process problems associated with functional divisions and waiting time
Process Chart = A general-purpose table, that uses symbols, time and distance to analyse and record process activities
Service Blueprint = Focuses on the customer, the provider’s interaction with the customer, and on the activities of the provider
Value Stream Map = A current state map shows any present inefficiencies in the process, and a future state map proposes waste reduction
Process mapping: 2 guidelines
- combination of science and art
- must be a team exercise involving all the important stakeholders with a holistic, systems thinking approach
- done to develop vision for change
Traditional types of layout
3 traditional types
+ new trend
- Functionallayout/Jobshop/processlayout
- Product layout (U shape, I shape / assembly line layout
Cell manufacturing / group technology
Flexible manufacturing systems
- Fixedpositionlayout/projectlayout
+ Digital Factory / Virtual Factory
=> simulation SW to design layout
3 impacts of layout
costs
revenues
strategy
