2. OM Strategies and Decisions Flashcards
Agenda of this lesson
Theory
Terminology
“Strategy” and vision, mission, …
What exactly to expect (to hope for) ?
Building operations management strategies
Process technology strategy
Process technology: critical reflection
Assessment of process technology
Difference between operational and operations
What is operational and what is operations
test
operational: detailed, localised, short term, day to day–
operations: resources creating goods & services (tangible: materials, people, technology, buildings,
patents … ‐ intangible (capabilities): supplier relationships, knowledge/experience, R&D capabilities, …)
and processes (how to use/organize these resources)
Management: the next few months will we do that, more daily bassis –Strategy a long future
test1
strategy ↔ management
What is strategy, its characteristics?
strategy: longer term, higher level of abstraction, higher level of analysis and control, on a more aggregated level
Strategy”and vision, mission
- Description of the strategy level, what and how do we want to achieve?
V-M-BO-SO
Setting broad objectives that helps an organization to fulfill its mission.
Planning the pathway in a high‐level way.
Stressing long‐term rather than short‐term objectives.
Focusing on the big picture.
Ignoring the specifics of day‐to‐day activities
Vision is the dream
Strategy, how to achieve the vission, here we discussed what we have seen or to do in the vision
7. Decisions
The structure of the decisions, what are the levels
Unstructured - Semistructured-structured
What exactly to expect (to hope for) ?
What is of what is the strategy?
is a coherent, unifying and integrative* pattern of decisions;* determines and reveals the organizational purpose; selects the businesses the organization is in or is to be in; attempts to achieve a long term sustainable advantage in each of its businesses; engages all the hierarchical levels (corporate, business
and functional) of the firm and defines the nature of the economic and non‐economic contributions it intends to make
What is the strategy Cycle
F-I-M-C
FIMC
Strategy should be comprehensive, coherent, in‐line with mission and addressing critical issues.
Strategic objectives are a means to an end, not an end themselves. They should be challenging, but not impossible
They should not be limiting or restrictive.
Strategy is looking at the long(er) term, not the short term.
Strategy should not be “distracted” by the day‐to‐day activities.
OPERATIONS IMPLEMENT THE STRATEGY!
Performance objectives and Competitieve factors
What are the performance objectives: Q-S-D-F-C
What are the Decisions Areas: C-SN-PT-D&O?
BUILDING OPERATIONS MANAGEMENT AND STRATEGIES (AGENDA)
1.-What are the 4 perspectives
TD-MR-BU-OR
Operations strategy is the total pattern of decisions that shape the long‐term capabilities of any type of operation and their
contribution to overall strategy, through the reconciliation of market
requirements with operations resources”
Whats the difference between swot and tows
- Explain Swot and Tows
SW-OT—-SO - OW - ST - WT
-
The TOWS has the same acronyms but is simply written backward. It differs from the SWOT as it takes the analysis of the organization and it makes actionable tasks out of them by converging attributes from both the x and y-axes. The four new squares will be labeled SO (Strengths & Opportunities, SW (Strengths & Threats), WO (Weaknesses & Opportunities), and WT (Weaknesses & Threats).-
* -TOWS matrix is a variant of a SWOT analysis, but focuses in the internal strengths and weaknesses, and the external opportunities and threats that an organisation or business. It can be used to develop strategic internal/external options and is a practical tool to be used within the fields of marketing and administration.
Strategies - Operations
Hayes & Wheelwright, explain?
What are the Structural and infrastructural strategic decisions?
Structural
Related to tangible resources, such as buildings, equipment, processes, supply chain integration more physical things
→ capacity, facilities, process technology, vertical integration, …
Infrastructural
Related to systems used to enhance the utilization and control of structural resources
→ human resources, quality control, production planning, …
Activities that take place within operation structure
What is Process technology strategy, and what are the important aspects that the “Operations strategy needs to have
- the set of decisions that define the strategic role that direct and indirect process technology can play in the overall operations strategy of the organization and sets out the general characteristics
that help to evaluate alternative technologies” - Operation strategy:
Need to understand process characteristics, to characterize
process** technologies,** to assess (predict) the impact of **new
technologies **on operations and performance objectives
Process technology: critical reflections
What is the technology roadmap
A technology roadmap (TRM) is an approach that provides a
structure that attempts to assure the alignment of developments (and
investments) in technology, possible future market needs and the new
development of associated operations capabilities.”
Advantes or Benefits of roadmapping
1. Collective Knowledge of the peopple (expertise) constructing the map
2. Opportunities and Challenges.
3. Integration through tools SWOT
4. Flexibility (helpful to solve a lot of problems)
5. Eficiency
6. Responsive
**Process technology: Charateristics of operations: Impact of (volume an
What are the impact of volume and variaty on the production and machines
High volume, low variety production: dedicated technology/equipment
Low volume, high variety production: general purpose technology/equipment
**Process technology:
What does scalability implicates?
- Initial investment (and TCO) and cost/unit larger, more expensive ‐ cheaper
- Quid changes in demand ?
volume flexibility, variation flexibility - Risks ?
one large machine vs two smaller ones –redundancy - Quid technological evolution ?
economic lifetime
**Process technology:
What is the coupling / connectivity: The benefits and the challenges
- increased coupling of activities (and systems) that were previously separated –needs hardware & software component
- benefits
fragmentation (physical, organizational) losses avoided
better synchronization (less WIP) - challenges
capital costs
vulnerability
**Process technology:
What are the benefits and challenges with degree of automation (activities, decisions)
- benefits
more automation, less FTE, more consitent Q
IIOT potential - challenges
capital intensive
less flexibility
legacy systems
Assessment of process technology
How does the assessment should be doen?
S_O-T_I-Ra_Mc-Ms
Assessment must be structured and as objective as possible
Criteria can be both tangible and intangible
Criteria can be rated with yes/no, a numerical value or on a Likert‐like scale
Many assessment are multi‐criteria, multi‐stakeholder assessments
Important aspects are
feasibility (multi‐dimensional)
risks
Assessment of process technology
What is Feasibility and in some field examples
¿Qué es la factibilidad?Pues es aquella que dispone de los recursos que se utilizarán para poder realizar los objetivos y metas de un proyecto planteado.
Además permite la orientación de decisiones que vayan en pro del proyecto, incrementando las posibilidades de que todo sea un total éxito.
Aspects of the economic evaluation, Myopic model??
Net present value (NPV) is used to calculate the current value of a future stream of payments from a company, project, or investment.
To calculate NPV, you need to estimate the timing and amount of future cash flows and pick a discount rate equal to the minimum acceptable rate of return.
What are important aspects for the Economic Evaluation, of a machine
- PBP.the amount of time it takes to recover the cost of an investment.
- NPV is used in capital budgeting and investment planning to analyze the profitability of a projected investment or project. NPV is the result of calculations used to find the current value of a future stream of payments.
- Look always at a Total Cost Ownership.
*Myopic
Maintenance strategy formulation process
What are the Maintenance strategy formulation process?
- Strategic Analysis
- Identification of Strategic issues, objectives & alternatives (mix of strategic options)
- Selection of Best Strategy Alternative
A holistic approach to business strategy harnesses the power of knowing exactly who is doing what, why they’re doing it and how the expected outcome will affect the entire company. This top-level view of a business is essential for developing a comprehensive strategy that plays to the strengths of each department. It also avoids potential workflow problems and poor interdepartmental communication.
Strategic Analysis
Which aspects has to been considered at this stage?-W-W-T-H
What - Why - Tools - How
Identification of Strategic issues, Objectives & Alternatives (mix of strategic options)
W-W-T-H
- What ? Visualization of issues, objectives & alternatives
*Why ? Identification of – Interrelationships between - Tools Cognitive mapping
- How ? Multi‐disciplinary team + facilitator
Reports, brainstorm sessions, interviews,
Selection of Best Strategy Alternative
W-W-T-H
What ? Multi‐criteria decision making method (MCDM)
Why ? Finding the “best” alternative
Tools ANP (analytical network process)
How ? Mathematical modeling (Matlab) – Software packages
