Advanced Operations Management - S2

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Advanced Operations Mgmt - S2The strategic role &objectives of operations

Benefits of excelling

Subtopic

Polar diagrams

Newspaper Collection (NC) - General Recyling (GR) svcs

required & actual police performance

taxi svc - bus svc

Stagepoint

technical svcs - Production svcs

broad strategic objectivesfor stakeholder groups

Society

Customers

Employees

Shareholders

Suppliers

Competitive objectives

Cost

influenced by

Internalperformanceof operation

vol & delivery changes

frenquent new products / svcs

4 Vs

Visibility

Variation

Variety

Volume

HospitalsBus companyAutomobile plantSupermarket

staff costs

technology & facilities costs

bought in materials & svcs

Being productive

minimum price, highest value

minimum cost, maximum value

high margin

Flexibility

benefits

reliable delivery

dependability

on spec products & svcs

quality

speed

ability to get out of stock items

ability to adjust no. of customers served

introduce new goods

ability to reschedule manufacturing priorities

ability to adjust no. of vehicles manufactured

wide range of goods stocked

introduce new models

ability to reschedule trips

ability to adjust frequency of svc

serve large no. of locations

introduce new routes & excursions

ability to reschedule appts

adjust no. of patients treated

treatments

wide range

introduce new

Being able to change

frequent new products,maximun choice

ability to change

delivery flexibility

volume flexibility

mix flexibility

product / svc flexibility

Dependability

prevents lateness casing disruption & wasted time & effort . ie save costs

prevents late delivery slowing down hroughput speed

Eg.

parking availability

reasonable queuing times

minimised out of stock goods

predictability of opening hrs

on-time delivery of spares to svc ctrs

on-time delivery of vehicles to dealers

constant availability of seats

keep to published timetable

test results, X-rays, etc as promised

keeping appt times

minimize cancellation of appts

Being on time

dependable delivery

reliable operation

Speed

Interpretations

reduces need to manage transformed resources as they pass through operations -> save costs

maintain dependability

short delivery lead-time

immediate availability of goods

total transaction time

minimize time to deliver spares to svc ctrs

delivery leadtime to dealers

Bus company

journey time

test results (X-rays, etc)

treatment time

Being fast

quick delivery

Fast throughput

Quality

Benefits

Internally

prevents errors causing wasted time & effort, therefore saving cost

prevents errors causing internal unreliability & low dependability

prevents errors slowing down throughput speed

Externally

avoids customer complaints

enhance product / svc in the market

Eg

Supermarket

good condition goods

appropriate & attractive decor

clean & tidy store

Automobile plant

parts made to spec

reliable product

all assembly to spec

Bus Company

accurate & user friendly timetable

buses

quiet & fume-free

clean & tidy buses

Hospital

courteous, friendly & helpful staff

consult & keep patients informed

appropriate treatment

Meanings

conformance with which the product or service is produced

specification of a product or service

Being right

error-free products & services

error-free processes

Assessment of contribution

externally supportive

internally supportive

externally neutral

internally neutral

Can be defined by aspirations

4 stage model

Strategic role

Driving

develop long-term capabilities

provide foundation of strategy

be innovative

Supporting

contribute to decisions

understand strategy

be appropriate

Implementing

explain practicalities

operationalise strategy

be dependable

Role

Driver

Supporter

Implementer