Transcript PROD 2800 PRODUCTION AND OPERATIONS MANAGEMENT Gestion …

UCL ESPO/IAG/POMS
PROD 2800
PRODUCTION AND OPERATIONS MANAGEMENT
Gestion de la production et des opérations
Per AGRELL
[email protected]
Lecture 1
Outline
Presentation
– Instructor
– Course outline
– Grouping
What is OM?
Processes and products
Manufacturing Strategy
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Course outline
Operations Strategy
L2
E2
L6
E2
– Competition, positioning, strategic trade-offs
Product and Process Design
– Process analysis, project design, quality
Planning and Control Methodology
L 12 E 6
– Long-range, medium-range and short-range planning
Supply Chain Design
L6
E4
– Inter-firm coordination, theory of constraints, chain design
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Learning methods
Text book
Lectures
26 h
– On-line material
– Readings
– Assignments
Exercise sessions
14 h
– Cases
Case Summary
Case Presentation
Case Report
www.poms.ucl.ac.be
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What is operations management?
Operations Management
– Production (transformation) system
Physical
Locational
Exchange
Storage
Physiological
Informational
– System design, operation, improvement
– Systematic analysis of organizational processes
Services and goods
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Core services
COST
FLEXIBILITY
Basic
service dimensions
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operations
management
QUALITY
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DELIVERY
Value-added services
CONSULTANCY
INFORMATION
Differentiating
service dimensions
7
operations
management
FIELD
SUPPORT
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SALES
SUPPORT
Operations strategy
1. Business objectives
2. Market strategy
3. How are orders won on the market?
4. Choice of technology
5. Infrastructure
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Order qualifiers and order winners
Order qualifiers
– Qualifies the firm as a potential vendor
Order winners
– Successfully differentiates the firm for competitors
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Competitive dimensions
Price
Quality
– Conformance
Delivery
– Speed
– Reliability
Flexibility
– Volume flexibility
– Product flexibility
– Mix flexibility
Design
Value-added services
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Manufacturing strategy
1. Market segmentation in product groups
2. Market assessment per group
3. Find Qualifiers and Winners for each group.
4. Translate Winners into process requirements.
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Process dimensions
Process Requirements
– Process Type
– Order Regime
Core Capabilities
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Process flow classification
Project
Jobbing
Batch
Line
Continuous processing
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Production order regimes
Design to order (DTO)
– Specific design and manufacture for all customers
Engineer to order (ETO)
– Changes to standard products are offered and produced
Make to order (MTO)
– Production of standard product on receipt of order/call-off
Assemble to order (ATO)
– Components MTS. Assembly made on receipt of order.
Make to stock (MTS)
– Production to forecast. Order met from inventory.
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Product-process matrix
Low
Volume,
One of a
Kind
I.
Job
Shop
II.
Batch
III.
Assembly
Line
Few
High
Major
Volume,
Multiple
High
Products, Products,
Higher StandardLow
Volume
ization
Volume
Flexibility (High)
Unit Cost (High)
Le Prof
cafe
Le Sablon
IV.
Continuous
Flow
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Sugar
Refinery
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Flexibility (Low)
Unit Cost (Low)
Process positioning
Horizontal Integration
– Vendors
– Joint ventures
Vertical Integration
The Virtual Enterprise?
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Implications of process choice
Products and Markets
Type of product
Product range
Customer order size
Rate of product
introductions
– Order winners?
– Order qualifiers?
Investment and Cost
–
–
–
–
–
–
–
–
Infrastructure
– Organizational control
– Organizational style
– Required support expertise
Manufacturing
– Nature of process
technology
– Focus
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Level of capital investment
Level of inventory
Level of WIP
Cost drivers
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Strategic fit
Commitment
Communication
Credibility
Coherence
Focused manufacturing
PWP
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Examples
Sports car market
– European, road-use, private
Competition
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–
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Porsche
Ferrari
Jensen
Honda etc.
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OM challenges
Bundling
Value-added focus
Ex: Automotive
Yesterday
Car
Today
Car + maint.
Maintenance
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Tomorrow
Transport.
Recapitulation
Definition of OM
Manufacturing strategy (Hill)
– OQ, OW, process choice, implications
Product-Process Matrix (Hayes-Wheelwright)
Strategic fit (Skinner)
– Focus, PWP
Service operations strategy
– Bundling, integration, disintermediation
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