Transcript 15.2 Single - Factor (One - Way) Analysis of Variance

Chapter 2 –
Operations Strategy
Chapter 1 Review
1. The role of operations is to:
2. What are three types of transformation processes?
3. TorF: Scientific management used motivation theory.
4. What are three ways that E-business impacts
operations?
5. Productivity is defined as what?
6. What is one reason a firm may find it difficult to enter
a new industry?
2000 by Prentice-Hall, Inc
2
Strategy
A common vision that unites an
organization, provides
consistency in decisions,
and keeps the organization
moving in the right direction.
2000 by Prentice-Hall, Inc
3
Strategy Formulation
1.
2.
3.
4.
Define a primary task
Assess core competencies
Determine order winners & order qualifiers
Positioning the firm
2000 by Prentice-Hall, Inc
4
Competitive Priorities
 Cost
 Quality
 Flexibility

The ability to adjust to changes in product
mix, production volume, or design
 Speed
2000 by Prentice-Hall, Inc
5
Competing on Cost
 Eliminate all waste
 Invest in



Updated facilities & equipment
Streamlining operations
Training & development
2000 by Prentice-Hall, Inc
6
Competing on Quality
 Please the customer

Understand
customer attitudes
toward and
expectations of
quality
2000 by Prentice-Hall, Inc
7
Competing on Flexibility
 Produce wide variety of
products
 Introduce new products
 Modify existing products
quickly
 Respond to customer
needs
2000 by Prentice-Hall, Inc
8
Competing on Speed
 Fast moves
 Fast adaptations
 Tight linkages
2000 by Prentice-Hall, Inc
9
Operations Role in Corporate Strategy
 Provide support for overall strategy of a
firm
 Serve as firm’s distinctive competence
 Must be consistent
 Must be consistent with overall strategy
2000 by Prentice-Hall, Inc
10
Strategy and the Internet
 Create a distinctive business
strategy
 Strengthen existing
competitive advantages
 Integrate new and traditional
activities
 Must provide a unique value
to the customer
2000 by Prentice-Hall, Inc
11
Strategic Decisions in Operations
Products
Services
Capacity
Human
Resources
Facilities
Figure 2.2
Sourcing
2000 by Prentice-Hall, Inc
Processes and
Technology
Quality
Operating
Systems
12
Products & Services
 Make-to-order

Made to customer specifications after
order received
 Make-to-stock

Made in anticipation of demand
 Assemble-to-order

Add options according to customer
specification
2000 by Prentice-Hall, Inc
13
Processes & Technology
 Project

One-time production of product to customer order
 Batch production

Process many jobs at same time in batches
 Mass production

Produce large volumes of standard product for
mass market
 Continuous production

Very high volume commodity product
2000 by Prentice-Hall, Inc
14
Product-Process Matrix
High
Continuous
Production
Volume
Mass
Production
Batch
Production
Projects
Low
Low
Figure 2.3
Standardization
2000 by Prentice-Hall, Inc
High
15
Service-Process Matrix
High
Service
Factory
Volume
Mass
Service
Low
Service
Shop
Professional
Service
Low
Figure 2.4
Standardization
2000 by Prentice-Hall, Inc
High
16
Capacity & Facilities
 How much capacity to provide
 Size of capacity changes
 Handling excess demand
 Hiring/firing workers
 Need for new facilities
2000 by Prentice-Hall, Inc
17
Human Resources








Skill levels required
Degree of autonomy
Policies
Profit sharing
Individual or team work
Supervision methods
Levels of management
Training
2000 by Prentice-Hall, Inc
18
Quality
 Target level
 Measurement
 Employee involvement
 Training
 Systems needed to ensure quality
 Maintaining quality awareness
 Evaluating quality efforts
 Determining customer perceptions
2000 by Prentice-Hall, Inc
19
Sourcing
 Degree of vertical integration
 Supplier selection
 Supplier relationship
 Supplier quality
 Supplier cooperation
2000 by Prentice-Hall, Inc
20
Operating Systems
 Execute strategy daily
 Information technology support
 Effective planning & control
systems
 Alignment of inventory levels,
scheduling priorities, & reward
systems
2000 by Prentice-Hall, Inc
21
Strategic Planning
Mission and
Vision
Voice of the
Business
Marketing
Strategy
Figure 2.5
Corporate
Strategy
Operations
Strategy
2000 by Prentice-Hall, Inc
Voice of the
Customer
Financial
Strategy
22
Policy Deployment –
Hoshin planning
 Focuses employees on common
goals & priorities
 Translates strategy into measurable
objectives
 Aligns day-to-day decisions with
strategic plan
2000 by Prentice-Hall, Inc
23
Derivation of an Action Plan
Reduce production
cycle time by
30%
Reduce queue
time by 50%
Reduce setup
time by 50%
Cut lot sizes in
half
Increase electronic
transactions by 30%
Reduce business
cycle time by 50%
Redesign supplier
quality reporting process
Reduce
purchasing
cycle time by
30%
Figure 2.6
Set up supplier
education groups
Reduce supplier
base by 50%
What
Who
When
Measure
Resource
Improve
work
flow
Billy
Wray
9-1-03
Average
queue
time per
job
$5,000
...
...
...
...
...
...
...
2000 by Prentice-Hall, Inc
24
Balanced Scorecard
 Finance — How should we look to our
shareholders?
 Customer — How should we look to our
customers?
 Processes — At which business processes must
we excel?
 Learning and Growing — How will we sustain
our ability to change and improve?
2000 by Prentice-Hall, Inc
25
Mobil’s Strategy Map
Revenue Growth Strategy
Finances
Customers
Processes
Volume growth
Create new products &
services
Personal growth
Align goals
Figure 2.7
Win-win dealer
More relations
premium brands
Delight the customer
Nongasoline
products &
services
Clean/safe/fast
Convenience store
Learning and
Growth
Net margin
Develop business skills
Build best-in-class
franchise
Teamwork, quality
Functional excellence
Strategic & job skills
2000 by Prentice-Hall, Inc
Deliver products on
spec, on time
Inventory management
Process improvement
New technology
26
Issues and Trends
 Global markets,




sourcing, operations
Virtual companies
Greater choice
Emphasis on service
Speed and flexibility
2000 by Prentice-Hall, Inc
 Supply chains
 C-commerce
 Technological
advances
 Knowledge
 Environment and
social
responsibilities
27
The Changing Corporation
CHARACTERISTIC
20TH CENTURY
CORPORATION
Organization
Focus
Style
Source of strength
Structure
Resources
Operations
Products
Reach
Financials
Inventories
Strategy
Leadership
Workers
Job expectations
Motivation
Improvements
Quality
The Pyramid
Internal
Structures
Stability
Self-sufficient
Physical assets
Vertical integration
Mass production
Domestic
Quarterly
Months
Top-down
Dogmatic
Employees
Security
To compete
Incremental
Affordable best
2000 by Prentice-Hall, Inc
21ST CENTURY
CORPORATION
The Web
External
Flexible
Change
Interdependencies
Information
Virtual integration
Mass customization
Global
Real-time
Hours
Bottom-up
Inspirational
Employees, free agents
Personal growth
To build
Revolutionary
No compromise
28 2.1
Table