Operations as a Competitive Weapon

Transcription

1 Operations as a Competitive Weapon 1 Andy Guo FedEx Why are they successful? Fast On-time deliveries Relatively low cost Technology in shipment tracking 2 Andy Guo

2 Operations is The systematic design, direction and control of processes that transform inputs into services and products for internal, as well as external, customers. Inputs Transformation Processes (Adding value) Outputs 3 Andy Guo Processes Processes should add value. Processes can be broken down into sub-processes, which in turn can be broken down further. Any process that is part of a larger process is considered a nested process. Each process and each nested process has inputs and outputs. 4 Andy Guo

3 Nested Processes Advertisement Design and Planning Process Creative design process Receive work request Assemble team Prepare several designs Receive inputs from Account Executive Prepare final concept Revise concept per client s inputs Media planning process Receive work request Prepare several media plans Receive inputs from Account Executive Prepare final plan Revise plan per client s inputs 5 Andy Guo Value Chains Value chains are an interrelated series of processes that produce a service or product to the satisfaction of customers. Value chains may have core processes or support processes. Core processes deliver value to external customers. Support processes provide vital inputs for the core processes 6 Andy Guo

4 Core Processes relationship processes Identify, attract, and build relationships with external customers and facilitate the placement of orders. New service/product development processes Design and develop new services or products from inputs received from external customer specifications. Order fulfillment processes The activities required to produce and deliver the service or product to the external customers. Supplier relationship processes Select suppliers of services, materials and information and facilitate the timely and efficient flow of these items into the firm. 7 Andy Guo Support Processes Internal Value-Chain Linkages Firms have many processes that support the core processes. Support processes External suppliers Supplier relationship process New service/ product development process Order fulfillment process relationship process External customers 8 Andy Guo

5 The Operations System External environment or client participation Input Workers Managers Equipment Facilities Materials Services Land Energy Operations and transformations Information on performance 5 Outputs Goods Services 9 Andy Guo Operations as a Function Types of Organizations Manufacturing Wholesaling Construction Retailing Transportation Bank Health care Government Functions Accounting Marketing Finance Operations Human resources Distribution Engineering Skill Areas Quantitative methods Organizational behavior General management information system Economics International business Business ethics and law 10 Andy Guo

6 Viewing Operations as Process Company Staff Finance Marketing Sales Function View Services Personnel scheduling Marketing Strategies Service Staff Finance Marketing Sales Process View Services customer as hindrance factor rigid organizational structure first priority is structural creation process control by coordination manager customer orientated goals flexible organizational structure first priority is process optimization flexible process control by workflow manager 11 Andy Guo Viewing Operations as an Order Fulfillment Process Other Sources Demand management Capacity Planning Production Logistics Inbound Logistics Procurement Vendor Sales Planning (Forecast) MPS MRP Detailed Schedule Receiving s Order Manufacturing Order Release Cost Account Payable Production Control Financial & Accounting Vender Payment Inventory Storage Outbound Logistics Delivery Account Receivable Human Resource Payment Information Technology Integrated Logistics 12 Andy Guo General Ledger Project

7 Changing Challenges for OM Past Causes Future Local or national focus Batch (large) shipments Low-bid purchasing Low-cost, reliable worldwide communication and transportation networks Cost of capital puts pressure on reducing investment in inventory Quality emphasis requires that suppliers be engaged in product improvement Global Focus Just-in-time shipments Supply-chain partners 13 Andy Guo Changing Challenges for OM Past Causes Future Lengthy product development Standardized products Job specialization Shorter life cycles, rapid international communications, computeraided design, and international collaboration Affluence and worldwide markets; increasingly flexible production processes Changing sociocultural milieu. Increasingly a knowledge and information society. Rapid product development Mass customization Empowered employees, teams, and lean production 14 Andy Guo

8 Operations : Different Perspectives Competitive priority cost, time, quality, flexibility Supply chain management inbound logistics, outbound logistics, production logistics Information integration IT, ERP, Supply chain management, EC Decision support and knowledge management simulation, models, case study 15 Andy Guo Information Integration Business Value Business Strategy S U P P L I E R S Supply Chain e-commerce Knowledge Enterprise Resource Planning Business Intelligent e-business Enabling Web+IT Integration Relationship C U S T O M E R S Technology Value 16 Source: IBM Andy Guo

9 Addressing the Challenges in Operations Managing Value Chains Using Operations to Compete Operations As a Competitive Weapon Managing Processes Process Strategy Process Analysis Supply Chain Strategy Location Inventory Operations Strategy Project Process Performance & Quality Constraint Forecasting Sales & Operations Planning Process Layout Resource Planning Lean Systems Scheduling 17 Andy Guo Operations Strategy Design Operation 18 Andy Guo