Transcript Slide 1

Innovation and Operations
April 2010
Richard Noble
1
Innovation and Operations
Learning Outcomes
At the end of this session you should be able to:•
appreciate that the nature of design is context dependent;
•
•
•
recognise the importance of innovation in operations management;
recognise the importance of sales volume in product design;
recognise the importance of design in the process of making and
delivering a product or service- three illustrations
recognise that much of innovation is not patentable
Sunday Times appointments
have an understanding of a number of approaches to design and
process management- called TRIGGERS for innovation.
•
•
•
But first a reminder about Operations Management
2
Reminder- the activities of
Operations Managers
objectives
Relation to
Transformed
resources;
Operations
strategy
Materials
Information
Customers
input
Transforming
Resources;
design
Operations competition
strategy
improvement
Operations
management
Planning and control
output
Goods and
Services
Facilities
Staff
3
A good design
• Meets customer requirements
» Dyson light weight
» On site service
• Is simple to make/produce• -- Management Today
» Pulley blocks HMS Victory p116
4
A trigger
-Total Quality Management
1. Customer defines the quality
2. Top management leadership
3. Quality as a strategic issue
4. All employees responsible for quality
5. Continuous improvement
6. Shared problem solving IBM
7. Statistical quality control
8. Training & education for all employees
+
Quality improvement is the MOST powerful mechanism to
change anything
5
TQM In Service situations
•
•
•
•
•
Inputs similar to manufacturing
Processes & outputs are different
Services tend to be labour intensive
Quality measurement is harder
Timeliness is an important feature
» So why are have the differences even discussed
» See the3M case study page 452?
6
Hampshire Fire and Rescue ServiceI
Lllustration 1.
Fire Service
Innovation in the Fire Service.
Innovation is the successful exploitation of new ideas.
These ideas improve the way we do things and the things we
make: the things that allow a business to remain competitive.
Some ideas are small and iterative; others can create an entire
paradigm shift.
Evidence shows that businesses that have the awareness to
continually create, evaluate and successfully exploit their new
ideas are more likely to survive and prosper in the competitive
global economy
http://www.dti.gov.uk/innovation/innovation-dti/page11863.html
Making Hampshire Safer
Hampshire Fire and Rescue Service
Motivators for Innovation
•
•
•
•
•
•
Communication
Empowerment
Feedback
Recognition
Sense of value
Investors in People
Hampshire Fire and Rescue Service
Innovative Ideas
•Community Fire Wardens
•Environmental Audits
•Fire Setters Intervention
•Young Firefighters Association
•Local Fire Intervention Education
•Rapid Response Vehicles
•Partnership Working
Making Hampshire Safer
Hampshire Fire and Rescue Service
Without Innovation Which Generates Prevention
Ideas.
We Will Always Have To Deal With This
Making Hampshire Safer
Illustration 2.
NHS- A Big business
• 1.33 m direct employees
• 575 trusts/organisations
• 305 m primary care appointments
• 686 m prescriptions
• 17.8 m A&E attendances
• 13.4 m out-patient visits
• 5.4 m operations
Why innovate?
“He that will not apply new remedies must
expect new evils, for time is the great
innovator.”
Francis Bacon
“This Government formally committed the NHS
to becoming an innovative organisation when
it published the NHS plan back in 2000.”
Lord Warner, Parliamentary Under-Secretary of State in the
Lords, April 2004
“As the NHS is a service, driven first and foremost
by science and scientific advances, innovation
should be a natural part of our business.”
Rt Hon John Hutton MP, Minister of State (Health), June 2004
Innovation
• Introducing into practice new ideas (or ideas
new to you) which lead to improvements in
efficiency, effectiveness or better value for
money
• Intellectual property (IP) includes services,
systems devices, diagnostics, consumables
and therapeutics
• Innovative staff let down by:
– Not capturing their ideas
– Wasting assets by not implementing them
– Resistance to innovative ideas for service
development, drugs and products from other
healthcare systems and healthcare industries in
the UK and internationally
Research and
development
• Funded by Department of Health’s
R&D directorate
• Examples
– Serious Hazards of Transfusion
(SHOT)
• Barcode reading device
– South West Hub
• Blood transfusion wastage cut, saving
£20m per year
People
• IiP
• Improving Working Lives (IWL) – work/life
balance
• Child-friendly policies
• Agenda for Change (A4C)
• Knowledge and skills framework
– Competency based
– Appraisals and personal development
– Training
– Reward and recognition
General
• NHS Direct
– Telephone
– Online
• Walk-in centres and treatment centres
– Run by commercial companies on behalf of
NHS
Illustration 3
University-What form can Innovation take?
• Product
-Research
Academic papers
Books
• New courses or services
MSc Health and Well being
• Process
– New ways of delivering courses
• eLearning, Work-Based learning, Problem-Based learning
• Position
• Positioning University in different markets
• Internal Structure of University
Process - DCQE
– “The central aim of DCQE is to enhance the quality of the
student learning experience and promote student success. Its
mission is to play a central role in advising, guiding, supporting
and developing staff and students through the dissemination,
promotion and embedding of good practice in academic
departments”
– T&L Conferences
– Workshops & seminars
Supply Chain Management
THE SUPPLY CHAIN
The
Operation
Information on price, products,
location, delivery etc
BPR on whole sectors -Ebay
19
Ohno’s seven Wastes of•
•
•
•
•
•
overproduction -making too much too early or just in casewaiting -time not being used effectively
transporting (e.g. double handling)
inappropriate processing e.g. ‘ using a hammer to crack a nut’
unnecessary inventory( excessive safety stock)
unnecessary motions(relates to the ergonomics of the workplacebending, reaching, more than two turns to loosen a nut)
• defects (quality failure- scrap, rework , complaints )
• NEW WASTES- waste of untapped human potential, waste
of inappropriate systems, wasted energy, pollution waste.
20
Agile supply chains
•
•
•
•
•
Agility- ‘ adaptable, flexible responsive business capable of rapid adaptation
in response to unexpected and unpredicted changes and events market
opportunities and customer requirements. Time compression is key to agility
in SC
Drivers to agility/lean- as before plus emphasis on mass customisation (big
differences in taste even in small area like W. Europe), rapid rates of
technological innovation
Lean has been viewed as an enabler to agility
Advantages: inventory held at generic level- fewer stock keeping variants/
less inventory in total.
See DELL illustration page 130
‘Leagile’
21
Innovation as an Operations
Process itself
• See slide 3
Inputs
Time,
People,
IT
Ideas
The
Innovation Process
(efficiency)
Outputs
New Products and
Services.
Patents
Journal articles
Books
Repaired car
(effectiveness)
Indeed -Paul Trotts whole book?
22
A Design Spectrum
Product- process- service -SCM –organisation- controls- business sector
The story todayIf you INNOVATE you will be successful
To manage all this is very difficult
23
References
• Chapter 4 of Paul Trotts book. Dell p130, 3M p452,
Pulley blocks HMS Victory p115
• Slack et al (2007) chapter 15
• Sunday Times- Appointment section March 14 2010
• Management Today April 2008 ( Keeping things simple &
managing complexity)
24