Transcript Document
Fashion Operations Management Introduction Neil Towers Aspects of product and service design Interpretation of expectations Product or service design Marketing Expectations Operations Product or service specification Customer Product or service A Typology of Operations EXAMPLES Electricity generator factory Gourmet restaurant Pioneering surgery Taxi service Bespoke tailor University tutorials Corporate tax advice Department store Electricity utility Financial audits Emergency service London underground Health care "Cook at your table" restaurant Dentist Music teacher EXAMPLES High High VOLUME VARIETY Low Television plant Fast food restaurant Routine surgery Mass rapid transport Low Off-the-peg suit plant University lectures Financial audits Jeans shop High VARIATION IN DEMAND Low Bread bakery Consultancy advice Shopping mall security Trucking operation VISIBILITY Most manufacturing Prepackaged sandwich maker Dental technicians Distance learning High Low Operations both Operations Contributes directly to competitiveness Gives the potential for other areas to contribute Technology Marketing Operations Lower prices (or higher profits) Faster customer response Cost Speed Quality Error-free products and services Dependability On-time deliveries Flexibility Wider variety More customisation More innovation Cope with volume fluctuations Direction, extent and balance of vertical integration Should excess capacity be used to supply other companies? Raw material suppliers Component maker Assembly operation Wholesaler Retailer Narrow process span Wide process span Upstream vertical integration Downstream vertical integration Total and Immediate Supply Networks “Second tier” Suppliers “First tier” Suppliers “First tier” Customers “Second tier” Customers The Operation Supply side of the network The Immediate Supply Network Demand side of the network The Total Supply Network Internal Supply Networks The operations function can provide a competitive advantage through its performance at the five competitive objectives Quality Being RIGHT Speed Being FAST Dependability Flexibility Cost Being ON TIME Being ABLE TO CHANGE Being PRODUCTIVE Volume-variety characteristics Low VARIETY Low Low VOLUME High Fixed position layout Process layout Cell layout Product layout The location of operations Supply-side factors Operation Demand-side factors Labour costs Labour skills Land costs Suitability of site Energy costs Image Transportation costs Community factors Convenience for customers Operations strategies have an ethical dimension Product/service design - customer safety, recyclability of materials, energy consumption. Network design - employment implications and environmental impact of location. Layout of facilities - staff safety, disabled customer access. Process technology - staff safety, waste and product disposal, noise pollution, fumes and emissions. Job design - workplace stress, unsocial working hours. Capacity planning and control - employment policies. Inventory planning and control - price manipulation. Five challenges for operations managers Globalization Social responsibility Environmental responsibility Operations Managers Technology Knowledge management