FIRST LECTURE Flashcards
what is operation management
the operation of handling and working with resources to produce and deliver product and services
difference between transforming and transformed resources
tranformed: the ones that we are changing and trandsfering resources: the ones wee need
the three important functions
marketing, the product/service development and operations function
inputs transformed
transformed inputs are the one that are treated, this can include: information, material, customer
two blocks of transforming resources
these resources act upon the transformed resources, FACILITIES (buildings, equipment, process of te operation)
STAFF (people who operate, who maintain and plan operation)
how can outputs be caharacterised
they can be both product and service
what is a process
process in an arrangement of resources and activities that transform inputs into oupiuts and satisfy internal and external customers
idea of hierarchy of operations
from small to larger process operations
how to operations and processes differ
Volume, Variety, Variation in the demand, Visibility
operation can be viewed in two ways
as function or as an activity
The 4 D of operations manager
Direct- the overall stategy of the operation
Design- the operations resources and processed, determining the physical form, shape
Deliver- the delivery to customers
Develop- improve product and processes
Volumer low
low repetition, each performs more of each task, high unit cost
High volume
high specialisation, repetition, low unit costs, capital intensive
Variety low
Well defined, routine, regular, standardise
high variety
flexible, complex, match customers needs
variation in demand high
changing capacity, anticipation, flexibility, in touch with the demands
variation in demand low
low flexibility, stable, routine, high utilisation, low unit costs
visibility low
time lag between production and consumption, centralisation , standardisation, low contact skill
high visibility
short waiting tolerance, contact with customer, needed customer skills, high unit cost, satisfaction governed by customer perception
hotel and car manufacturing example
car is : high volume, low variety, low variation, low visibility
the five competitive dimensions
quality, speed, dependability, flexibility, cost
the concept of productivity in numbers
output divided by input, plus them together (multiple within each other) then the number should be bigger than 1, if yes it is the percentage
if we take a look at the firm the spider web
the five factors: the close to the tip the better
tradeoffs
all performance objectives, to some extend, trade off against each other, the two variety and cost efficient, IMPROVING CAN SOME TIMES BE DONE ONLY WITH SACRIFICING OTHER
3 STEPS of strategy
implement strategy, support strategy (developing capabilities which allow the org to improve and refine its strategic goals), driving strategy (giving long term advantage to strategy)
market requirements and operations strategic decisions
market requirements: reliability, good service, low price, operations strategic decisions: remote locations, free drinks,
difference between operations management and strategy
time:operations strategy is long term
level of analysis: micro is operations (factory level) and macro in strategy( in all business blocks)
level of aggregation: detailed in operation management and aggregated in operations strategy
level of abstraction: concrete in operation and philosophical in operation strategy
what is the role of the operations function
implementer of strategy, supporter od strategy, driver of strategy
Hayes and Wheelwrights four staged of operations contribution
Internal neutrality, Externally neutrality. Internally supportive, Externally supportive
Internal neutrality
the company’s goal is being ignored
external neutrality
company is measuring itself with other organisations and trying to implement best practices
internally supportive
wants to be the very best in the market, achieving by having a view of the companies competitive or strategic goals, supporting resources
externally supportive
being ahead of the market, ahead of competitors
increasing strategic impact upwards
holding the organisation back, as good as competitors, clearly the best in the industry, redefining industry expectations
top down strategies and bottom up strategies
setes overal direction for operations, bottom uú: emerges strategy ideas by time
market requirements based strategies
what market position requires to do
order-winning factors
things which directly and significantly contribute to winning business things
qualifying factors
aspects of competitiveness where the operations performance has to be above a particular level to be considered by customers
minimum standards that a company, supplier, or product must meet to be considered viable for a specific process, partnership, or market. THEY ARE ESSENTIAL, not competitive
PRODUCT SERVICE LIFEYCYLE
introduction, growth, maturity, decline
introduction
offering something new, few competitors, needs are not well understood
growth stage
competitors may enter, quality is important
maturity stage
early competitors left marker, get costs down to mantain profits, demand starts to level off. costa and productivity issues and dependable supply are operations main concern
decline stage
more competitions leave marker, operations objective are cost
the 3 judgement of operations at 3 levels
societal, strategy, operations
3 bottom lines
societal, environmental, finance
what we consider in societal level
social, economic, environment
consideres in strategic level
risk and resilience, capital utilisation, service and revenue , efficiency and cost, capability for innovation
operational level
quality, speed, dependability, flexibility and cost
why is organisation performance vital in any org?
operations management can either make or break,
how can operations performance be measures
scorecard approach
how do operations perfronace objective trade off against each other
are the xtent to which improvements in one performance objective can be achieved by sacrificing performance in others
operations and operational
operations is the converting resources into products and services and operational is the opposite of strategic this is day to day
what is strategy ?
setting broad objectives towards overall goal, planning the path, long term
process of operations strategy
the method that is sued ti make the specific decisions
the three stages
implement strategy, support strategy, driving strategy
implement
implementing
support strategy
developing the capabilities which allow to improve and refine, organise staff to understand
driving strategy
giving the strategy a unique and long term advantage
market requirements
