krajewski om9 ppt 01mod

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1 1Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

CCOMPETINGOMPETINGWITHWITH

OOPERATIONSPERATIONS1

ForFor Operations Management, 9eOperations Management, 9ebyby

Krajewski/Ritzman/MalhotraKrajewski/Ritzman/Malhotra 2010 Pearson Eduation 2010 Pearson Eduation

PowerPoint !lidesPowerPoint !lides

by "e## $eylby "e## $eyl


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1 3Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Across the OrganizationAcross the Organization

aterial !

"ervice #nputs

"ales

$evenue

Product !

"ervice %utputs

&inance

'c(uires financialresources and capital

for inputs

arketing

)enerates salesof outputs

%perations

Translatesmaterials andservice into

outputs

"upport &unctions

'ccounting #nformation "ystems *uman $esources +ngineering

&igure 11


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1 -Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

A Process ViewA Process View

+xternal environment

#nformation onperformance

#nternal and externalcustomers

Processes andoperations

1

2

3

-

.

#nputs

/orkers anagers

+(uipment

&acilities

aterials

0and

+nergy

%utputs

)oods "ervices

&igure 12


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1 .Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

A Process ViewA Process View

Physical, durable output %utput can be inventoried

0ow customer contact 0ong response time apital intensive uality easily measured

#ntangible, perishable output %utput cannot be inventoried

*igh customer contact "hort response time 0abor intensive uality not easily measured

ore like amanufacturing

process

ore like aserviceprocess

&igure 13


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1 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

The Supply Chain ViewThe Supply Chain View

"upport Processes

+xternalsupplier

s

+

xternal

custome

rs

"upplierrelationshipprocess

4ew

service5productdevelopment

%rderfulfillmentprocess

ustomer

relationshipmanagement

&igure 1-


7/241 6Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

The Supply Chain ViewThe Supply Chain View

ore processes are sets of activities thatdeliver value to external customers

1 "upplier relationship process

2 4ew service5product development process

3 %rder fulfillment process

- ustomer relationship process

"upport processes provide vital resourcesand inputs to the core processes



Support ProcessesSupport Processes

T'80+ 11 9 +:'P0+" %& ";PP%$T P$%+""+"

apital ac(uisition The provision of financial resources for theorgani


9/241 >Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Operations StrategyOperations Strategy

"pecifies the means by which operationsimplements corporate strategy and helpsbuild a customer?driven firm

orporate strategy provides an overalldirection that serves as the framework forcarrying out all the organi


10/241 1ACopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.


&igure 1.

orporate "trategy

+nvironmental scanning ore competencies ore processes )lobal strategies

arket 'nalysis arket segmentation 4eeds assessment

ompetitive Priorities ost uality Time

&lexibility

4ew "ervice5Product Bevelopment Besign 'nalysis Bevelopment &ull launch

%perations "trategy

Becisions anaging processes anaging supply chains

ompetitive apabilities urrent 4eeded Planned

Performance)apC

4o

Des



Corporate StrategyCorporate Strategy

+nvironmental scanning

Beveloping core competencies

1 /orkforce

2 &acilities

3 arket and financial know?how

- "ystems and technologies

Beveloping core processes

)lobal strategies



Market AnalysisMarket Analysis

arket segmentation

4eeds assessment

"ervice or product needs

Belivery system needs

Eolume needs

%ther needs



Competitive PrioritiesCompetitive Priorities

T'80+ 12 9 B+#T#%4", P$%+"" %4"#B+$'T#%4", '4B +:'P0+" %& %P+T#T#E+

P$#%$#T#+"

%"T Befinition Process onsiderations +xample

1 0ow?costoperations

Belivering a service or aproduct at the lowestpossible cost

Processes must be designed andoperated to make them efficient

ostco

;'0#TD

2 Top (uality Belivering an outstanding

service or product

ay re(uire a high level of

customer contact and may re(uiresuperior product features

&errari

3 onsistent(uality

Producing services orproducts that meet designspecifications on aconsistent basis

Processes designed andmonitored to reduce errors andprevent defects

cBonaldFs

T#+

- Belivery speed uickly filling acustomerFs order

Besign processes to reduce leadtime

Bell

. %n?timedelivery

eeting delivery?timepromises

Planning processes to increasepercent of customer ordersshipped when promised

;nited Parcel"ervice G;P"H

Bevelopmentspeed

uickly introducing a newscience or a product

ross?functional integration andinvolvement of critical externalsuppliers

0i ! &ung


14/241 1-Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Competitive PrioritiesCompetitive Priorities

T'80+ 12 9 B+#T#%4", P$%+"" %4"#B+$'T#%4", '4B +:'P0+" %& %P+T#T#E+

P$#%$#T#+"

&0+:#8#0#TD Befinition Process onsiderations +xample

6 ustomi


15/241 1.Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Order Winners and uali!iersOrder Winners and uali!iers

"

ales

GIH

'chievement of competitive priority

0ow *igh

%rder /inner

&igure 1

"ales

GIH

'chievement of competitive priority

0ow *igh

%rder ualifier

Threshold



"sing Competitive Priorities"sing Competitive Priorities

ustomer relationship

Top (uality

onsistent (ualityBelivery speed

Eariety

4ew service development

Bevelopment speed

ustomi




%rder fulfillment0ow?cost operations

Top (ualityonsistent (uality

%n?time delivery

Eariety

At an airline




"upplier relationship0ow?cost operations

onsistent (uality

%n?time delivery

EarietyEolume flexibility

At an airline


19/241 1>Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.


T'80+ 13 9 %P+$'T#%4" "T$'T+)D '""+""+4T %& T*+ 8#00#4) '4B P'D+4T P$%+""

ompetitive Priority easure apability )ap 'ction

0ow?cost operations ost perbillingstatement

IAA713 Target isIAA

+liminate microfilming andstorage of billing statements

/eeklypostage

I16,AAA Target isI1-,AAA

Bevelop /eb?base process forposting bills

onsistent (uality Percenterrors inbillinformation

A>AJ 'cceptable 4o action

Percenterrors inpostingpayments

A6-J 'cceptable 4o action

Belivery speed 0ead time

to processmerchantpayments

-7 hours 'cceptable 4o action

Eolume flexibility ;tili7J Too high tosupportrapidincrease involumes

'c(uire temporary employees

#mprove work methods


20/241 2ACopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Trends in Operations ManagementTrends in Operations Management

Productivity improvement

)lobal competition

+thical, workforce, and environmental

issues



Productivity #mprovementProductivity #mprovement

+:'P0+ 11alculate the productivity for the following operationsK

a Three employees process AA insurance policies in a weekThey work 7 hours per day, . days per week

"%0;T#%4

a 0abor productivity LPolicies processed

+mployee hours

L L . policies5hourAA policies

G3 employeesHG-A hours5employeeH



Productivity #mprovementProductivity #mprovement

+:'P0+ 11alculate the productivity for the following operationsK

b ' team of workers makes -AA units of a product, which issold in the market for I1A each The accounting department

reports that for this =ob the actual costs are I-AA for labor,I1,AAA for materials, and I3AA for overhead

"%0;T#%4

a ultifactor productivity L

Ealue of output

0abor cost M aterials costM %verhead cost

L L L 23.G-AA unitsHGI1A5unitH

I-AA M I1,AAA M I3AA

I-,AAA

I1,6AA



ApplicationApplication

alculate the year?to?date labor productivityK

alculate the multifactor productivityK

This Dear 0ast Dear Dear 8efore 0ast

&actory unit sales 2,62,1A3 2,-6.,637 2,16.,--6

+mployment GhrsH 112,AAA 113,AAA 11.,AA

"ales of manufacturedproducts GIH

I->,33 I-A,731 N

Total manufacturing

cost of sales GIH

I3>,AAA I33,AAA N

!actory unit sales

employment

This Dear

2,62,1A3L 2-5hr

112,AAA

0ast Dear

2,-6.,637 L 21>15hr

113,AAA

Dear 8efore 0ast

2,16.,--6L I17>15hr

11.,AAA

sales o! m!g products

total m!g cost

This Dear

I->,33L 126

I3>,AAA

0ast Dear

I-A,731L 12-

I33,AAA


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C

OM as a Set o! $ecisionsOM as a Set o! $ecisions

#n practice, managersmake strategic andtactical decisions

1 +ach part of theorgani

krajewski om9 ppt 01mod

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