DIRECT Flashcards
What is operations management?
Set of activities that create value ( delivery of promise) in the form of goods/services by transforming inputs into outputs.
What is operations strategy?
Pattern of strategic decisions which shape the long-term capabilities. It sets the objectives and activities for operations management.
Main and supporting functions
- marketing
- product design and development
- operations function
- HR
- finance
4V’s
4 V’s are the design characteristics of the operations strategy. Although all operations transform inputs into outputs they all have a different approach depending on the 4V’s.
4V’s listed
volume, variety, visibility, variation in demand
5 Performance objectives
Cost, Quality, Speed, Dependability, Flexibility
Significance of DMO
How to manage resources (input), design and manage processes ( throughput), in order to deliver value ( output) without waste.
Hill’s framework
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Operations strategy
operations strategy concerns the pattern of strategic decisions and actions which set the role, objectives and activities of operations’.
Structural decisions attributes
Facilities (location, size, focus of resources)
Capacity (shift patterns, working hours and staffing levels)
Process technology (automation, equipment)
Supply network (in-house, outsourced, suppliers)
Structural decision definition
the physical attributes of operations; the hardware
Infrastructural decision definition
the people and systems of operations; the software
Infrastructural decision attributes
Planning and control Quality Work organization HR New product development Performance Measurement
3 levels of strategy
corporate, business, functional
Operations strategy consists of
structural and infrastructural decisions
Effective operations managements 5 benefits
1, reduce costs 2, customer satisfactions 3, reduce risk 4, reduce investment 5, basis for future innovation
4 stages of the process of operations strategy
formulation, implementing, monitoring, control
op. strategy should be
comprehensive, coherent, correspond to stated objectives and indetify the critical issues
2 fundemantal types of variablity
variability in demand (guests-variation in arrival time, demand)
variation in time taken to perform ( processes, lack of material, rework, bad delivery)
variability results in ….
inefficiency! simultaneous waiting and resource under-utilization, over-production?
effects of variability
higher throughput time lower utilization (higher cost) affects inventory level affects process of input reduces effective capacity
7 types of waste
over-production inventory motion process transport waiting time defectives
process hierarchy
work instruction
procedure
sub-process
process
bottleneck + effect
the weakest lik, sets the beat for the whole operation
effect: the overall throughput time will increase
DIRECT
Steering operations and processes
