om global operations strategy hr 2011
DESCRIPTION
Operations ManagementTRANSCRIPT
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5/27/2018 OM Global Operations Strategy HR 2011
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Operat ionsManagement
Operat ions Strategy ina Global Environment
PowerPoint p resentat ion to accompany
Heizer/Render
Princip les of Operat ions Management, 7e
Operation s Management, 9e
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Precondi t ions
Streng ths and weaknesses of com pet itors andpossib le new entrants into the market
Current and p rospective environmental,technological , legal, and econom ic issues
The product l i fe cyc le
Resou rces avai lable with in th e f i rm and with inthe OM funct ion
Integration of OM strategy with companysstrategy and w ith other fun ct ion al areas
One mus t understand :
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Product L i fe Cyc le
Product designanddevelopmentcr i t ical
Frequentproduct andprocess des ignchanges
Shor t product ionruns
High product ioncosts
L imi ted models
Attent ion toqual i ty
Intro du ct ion Grow th Maturi ty Decl ine
OM
Stra
tegy
/Issu
es
Forecast ingcr i t ical
Product andprocess
rel iabi l i ty
Compet i t iveproductimprovementsand opt ions
Increase capacity
Shi f t towardproduct focus
Enhancedis t r ibut ion
Standardization
Less rapidproduct ch anges
more minor
changes
Opt imumcapaci ty
Increasingstabi l i ty ofprocess
Long product ionruns
Productimprovementand cost cut t ing
Li t t le prod uctdif ferentiat ion
Costminimizat ion
Overcapaci tyin theindust ry
Prune l ine toel iminatei tems notreturninggood marg in
Reducecapaci ty
Figure 2.5
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Strategy
Analys is
SWOT Analys is
InternalStrengths
InternalWeaknesses
ExternalOpportuni t ies
ExternalThreats
Mission
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Strategy Development Process
Determine Corpo rate Mission
State the reason for the firms existence and identify thevalue it wish es to create.
Form a Strategy
Bui ld a compet i t ive advantage, such as low pr ice, design, orvo lume flexibi l i ty, quali ty, quick delivery, depend abil i ty, after-
sale service, broad p rodu ct l ines.
Environmental Analys is
Identi fy th e streng ths , weakness es, oppo rtun it ies, and threats.Understand the environment, custom ers, indus try, and com pet i tors.
Figure 2.6
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Strategy Development and
Implementat ion
Ident i fy c r i t ical success factors
Bui ld and staff the organizat ion
In tegrate OM w ith o ther act iv i t ies
The operations managers job is to implementan OM strategy, pro vide compet i t iveadvantage, and inc rease produc t iv i ty
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Southwest A ir l ines CSF
Courteous, butLim ited Passenger
Service
StandardizedFleet of Boeing737 A irc raft
Compet it ive Advantage:Low Cost
Lean,
Product iveEmployees
Short Haul, Point-to-
Point Rou tes, Often toSecond ary Airpo rts
HighAircraf t
Uti l ization
Frequent,Reliable
Schedules
Figure 2.8
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Act iv ity Mapp ing
Courteous, butLim ited Passenger
Service
StandardizedFleet of Boeing737 A irc raft
Compet it ive Advantage:Low Cost
Lean,
Product iveEmployees
Short Haul, Point-to-
Point Rou tes, Often toSecond ary Airpo rts
HighAircraf t
Uti l ization
Frequent,Reliable
Schedules
Figure 2.8
Au tomated t icketing machines
No seat assignments
No baggage transfers
No meals (peanu ts)
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Act iv ity Mapp ing
Courteous, butLim ited Passenger
Service
StandardizedFleet of Boeing737 A irc raft
Compet it ive Advantage:Low Cost
Lean,
Product iveEmployees
Short Haul, Point-to-
Point Rou tes, Often toSecond ary Airpo rts
HighAircraf t
Uti l ization
Frequent,Reliable
Schedules
Figure 2.8
No meals (peanu ts)
Lower gate cos ts atsecondary airpo rts
High number of f lightsreduces emp loyee idle t ime
between f l ights
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Act iv ity Mapp ing
Courteous, butLim ited Passenger
Service
StandardizedFleet of Boeing737 A irc raft
Compet it ive Advantage:Low Cost
Lean,
Product iveEmployees
Short Haul, Point-to-
Point Rou tes, Often toSecond ary Airpo rts
HighAircraf t
Uti l ization
Frequent,Reliable
Schedules
Figure 2.8
High number of f lightsreduces employee idle t ime
between f l igh ts
Saturate a city w ith f l igh ts,lowering adm inis trat ive
costs (advertis ing , HR, etc.)per passenger for that c i ty
Pilot tra in ing requ ired on
on ly one type of aircraftReduced maintenance
inventory required becauseof only one type of aircraf t
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Act iv ity Mapp ing
Courteous, butLim ited Passenger
Service
StandardizedFleet of Boeing737 A irc raft
Compet it ive Advantage:Low Cost
Lean,
Product iveEmployees
Short Haul, Point-to-
Point Rou tes, Often toSecond ary Airpo rts
HighAircraf t
Uti l ization
Frequent,Reliable
Schedules
Figure 2.8
Pilot tra in ing requ ired ononly one type of aircraf t
Reduced maintenanceinventory required because
of only one type of aircraftExcel lent suppl ier relat ions
with Boeing has aidedf inancing
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Act iv ity Mapp ing
Courteous, butLim ited Passenger
Service
StandardizedFleet of Boeing737 A irc raft
Compet it ive Advantage:Low Cost
Lean,
Product iveEmployees
Short Haul, Point-to-
Point Rou tes, Often toSecond ary Airpo rts
HighAircraf t
Uti l ization
Frequent,Reliable
Schedules
Figure 2.8
Reduced maintenanceinventory required becauseof only one type of aircraf t
Flexible emp loyees andstandard planes aid
schedul ing
Maintenance personnel
t rained only one type ofaircraft
20-m inute gate turnarounds
Flexible union
contracts
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Act iv ity Mapp ing
Courteous, butLim ited Passenger
Service
StandardizedFleet of Boeing737 A irc raft
Compet it ive Advantage:Low Cost
Lean,
Product iveEmployees
Short Haul, Point-to-
Point Rou tes, Often toSecond ary Airpo rts
HighAircraf t
Uti l ization
Frequent,Reliable
Schedules
Figure 2.8
Au tomated t icketingmachines
Empowered employees
High employee
compensat ionHire for att i tude, then train
High level of stoc kownership
High number of f lightsreduces employee idle t ime
between f l ights
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Reasons to Global ize
Reasons to Global isze
1. Reduce costs (labo r, taxes, tar i f fs , etc.)
2. Imp rove supp ly chain
3. Prov ide bet ter goods and serv ices
4. Understand markets
5. Learn to improve operat ions
6. At t rac t and retain g lobal talen t
Tangible
Reasons
IntangibleReasons
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Match Product & Paren t
Braun HouseholdAppl iances
Firestone Tires
God iva Chocolate
Haagen -Dazs IceCream
Jaguar Au tos
MGM Mov ies Lambo rgh in i Autos
Alpo Pet foods
1. Vo lk swagen
2. B ridges tone
3. Campbell Soup4. Ford
5. Gil lette
6. Nestl
7. Pil ls bu ry
8. Sony
1. Great Br it ain
2. Germany
3. Japan
4. Un itedStates
5. Sw itzer land
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Four In ternat ionalOperat ions Strateg ies
CostR
educ
tion
Cons
idera
tions
High
Low
HighLow
Local Respon siveness Considerat ions(Quick Respon se and/or Differentiation)
International Strategy
Import/export orl icense exist ing
productExamples
U.S. SteelHarley Davidson
Student led learning
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Four In ternat ionalOperat ions Strateg ies
CostR
educ
tion
Cons
idera
tions
High
Low
HighLow
Local Respon siveness Considerat ions(Quick Respon se and/or Differentiation)
Standardized prod uct Economies of s cale Cross-cultu ral learning
ExamplesTexas Instruments
Caterpi l larOtis Elevator
Global Strategy
International Strategy
Import/export orl icense exist ingproduct
ExamplesU.S. SteelHarley Davidson
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Four In ternat ionalOperat ions Strateg ies
CostR
educ
tion
Cons
idera
tions
High
Low
HighLow
Local Respon siveness Considerat ions(Quick Respon se and/or Differentiation)
Standardized prod uct Economies of s cale Cross-cultu ral learning
ExamplesTexas Instruments
Caterpi l larOtis Elevator
Global Strategy
International Strategy
Import/export orl icense exist ingproduct
ExamplesU.S. SteelHarley Davidson
Mult idom estic Strategy
Use exist ingdomest ic mod el global ly
Franchise, joint ventures,
subsid iar ies
ExamplesHeinz The Body ShopMcDonalds Hard Rock Cafe
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Four In ternat ionalOperat ions Strateg ies
CostR
educ
tion
Cons
idera
tions
High
Low
HighLow
Local Respon siveness Considerat ions(Quick Respon se and/or Differentiation)
Standardized prod uct Economies of s cale Cross-cultu ral learning
ExamplesTexas Instruments
Caterpi l larOtis Elevator
Global Strategy Transn ational Strategy
Move m aterial, people, ideasacross nat ional bound ar ies
Economies of s cale Cross -cultural learning
Examples
Coca-ColaNestl
International Strategy
Import/export orl icense exist ingproduct
ExamplesU.S. SteelHarley Davidson
Mult idom estic Strategy
Use exist ingdomest ic mod el global ly
Franchise, joint ventures,
subsid iar ies
ExamplesHeinz The Body ShopMcDonalds Hard Rock Cafe