View
228
Download
0
Category
Preview:
Citation preview
7/30/2019 Strategy & Process Analysis
1/13
Developing Operations StrategiesCorporate Objectives Requirements to meet Competition
Functional Areas
Operations
Business Strategies MarketingBusiness Plan Finance/Accounting
Marketing Plan Engineering
Production Plan SWOT analysis Others
Other Plans
Operations Objectives
Operation
Long- Range Decisions about products, Processes and Facilities
Positioning Production SystemFocus of Factories or Service Facilities
Product/Service Design and Development
Technology Selection and Process Development
Allocation of Resources to Alternatives
Facility Planning: Capacity, Location and Layout
7/30/2019 Strategy & Process Analysis
2/13
Operations Strategy Framework:
From Customer Needs to Order FacilitiesStrategic Vision
Customer Needs
New Products Current Products
Performance Priorities &
Requirements
Quality Dependability FlexibilityNew Product Price Speed After Sale
Development Service
Enterprise Capabilities
Operations Capabilities
Supplier Capabilities
Technology Systems People Distrib
R&D CIM JIT TQM - ution
Financial Support Platforms InformationManagement HRD Management
7/30/2019 Strategy & Process Analysis
3/13
Operations Strategy and Competitiveness
A strategy is a broad, long-term plan, conceived in order to
to achieve business objectives. These are developed at three
levels: The corporate level
The business level
The functional level
The functional level includes marketing, finance, and
human resources.
One of the key objectives of any business organization is to
reach a position where it is able to attract more customers
than its competitors. The characteristics of of a companys
operations function are important in determining its choiceof products and markets, and the elements of competitive
strength. Operational strengths can be used effectively as
competitive weapons.
Product/Process Expertise
Quick Delivery - Flexible Capacity
7/30/2019 Strategy & Process Analysis
4/13
Characteristics of To-days Business:
1. Shorter Product Cycle
2. Production Flexibility
3. Low-cost Process
4. Convenience and Location
5. Product Variety and Facility Size
6. Quality
Characteristics of the Product life Cycle
Sales
volume
Start-up Rapid Growth Maturation Commodity
Stages on decline
7/30/2019 Strategy & Process Analysis
5/13
Process Analysis
The term processcan be described as a set of tasks that
transform inputs into useful outputs. Detailed process
planning entails planning the steps of the process itself.A process usually consists of
(1) a set of tasks, (2) a flow of material and information that
connect the set of tasks, and (3) storage of material and
information.
Task: Each task in a process accomplishes, to a certaindegree, the transformation of input into the desired output
Flow: The flow of material involves the transfer of a product
from one task to it s next task. The flow of information helps
in determining how much of the transformation has beendone in the previous task and what exactly remains to be
completed in the present task.
Storage: When neither a task is being performed nor a part
being transferred, the part has to be stored. Goods in
storage, waiting to be processed by the next task often
7/30/2019 Strategy & Process Analysis
6/13
called work-in-process inventory.Process Flow Charting:
It focuses on the specific processes that raw materials, partsand subassemblies follow as they move through the
plant. Most common management tools used in planning
the process flow are:
assembly drawings
assembly charts
route sheets and
flow process charts
A flow process uses standard American Society of
Mechanical Engineers (ASME) symbols to denote whathappens to the product as it progresses through productive
facility. The symbols for the various processes are explained
at the side of the chart. As a rule, the fewer the delays and
storages in the process, the better the flow.
7/30/2019 Strategy & Process Analysis
7/13
A typical Flow Process ChartFeet Moved Dec. Min. Key
Materials received Storagefrom suppliers
0.250 Inspect Inspection95 1.500 to finish dept Transportation
0.060 Apply corrosive Operationtreatment
60 1.000 To raw stores
In raw stores
1.000 To drill press
40 90.000 Wait for drilloperator(setup)
0.236 Drill holes
94 1.500 Finish drill press
7/30/2019 Strategy & Process Analysis
8/13
Note:
An assembly drawings is simply an exploded view of the
product showing its component parts
An assembly chart (Gonzinto Chart)uses the informationpresented in the assembly drawing and defines how parts
go together, their order of assembly, and often the overall
material flow pattern.
An operation and route sheet specifies operations and
process routing for a particular part. It conveys such
information as the type of equipment, tooling, and
operations required to complete the part.
Process SelectionProcess engineering refers to the tactical planning activities
that regularly occur in manufacturing. Process selection,
in contrast, refers to the strategic decision of selecting which
kind of production processes to have in the plant.
7/30/2019 Strategy & Process Analysis
9/13
Types of Processes
At the most basic level. The types of processes can be
categorized as under:
Conversion processesChanging basic material into useful product.
Example: Iron ore to steel sheets
Fabrication processes
Changing raw material into some specific form.
Example: Forming sheet metal into a container or reactor.Assembly processes
Putting together many parts or components into a final
useful product.
Example: Engine or vehicle or compressorTesting processes
This is not, strictly speaking, a fundamental process, but it
is so widely mentioned as a stand-alone major activity that
it is included in some of the processes.
Example: Spectrometer for testing composition of metal.
7/30/2019 Strategy & Process Analysis
10/13
Process Flow Structures: (Product -Process Matrix)
It refers to how a factory organizes material flow using one
or more of the process technologies listed above.
Job Shop: Production of small batches of a large numberof different products, most of which require a different
set or sequence of processing steps.
Example: machine tool shops and plans that make
custom-designed PCBs or commercial printing.
Batch: A somewhat standardized job shop. Such a structure
is generally employed when a business is relatively stable
line of products, each of which is produced in periodic
batches, either to customer order or for inventory. Most of
these items follow the same flow pattern through the plant.Example: Heavy equipment, specialty chemicals.
Assembly line: Production of discrete parts moving from
workstation to workstation at a controlled rate, following
the sequence needed to build the product.
Example: Manual assembly of toys and appliances
7/30/2019 Strategy & Process Analysis
11/13
automobile assembly. When other processes are employed
in a line fashion along with assembly, it is commonly
referred to as production line.
Continuous flow: Conversion or further processing ofundifferentiated materials such as petroleum, chemicals, or
soft drinks. As on assembly lines, production follows a
predetermined sequence of steps, but the flow is continuous
rather than discrete.
Example: Sugar, Glass, Cement.
Measuring Product Development Performance:
There is some evidence that generating a steady stream of
new products to market may be extremely important toongoing profitability. To succeed, firms must be responsive
to changing customer needs and the moves of their
competitors. The ability to identify opportunities, mount the
development effort, and bring to market new products and
processes quickly is critical. Firms must bring new products
7/30/2019 Strategy & Process Analysis
12/13
and processes to market efficiently. Measures of product
development success can categorized into those that relate
to the speed and frequency of bringing new products on
line, to the productivity of the actual development process,
and to the quality of the actual products introduced. Taken
together, time, quality, and productivity define the
performance of development, and in combination with other
activitiessales, manufacturing, advertising, and customer
servicedetermine the market impact of the project and itsprofitability.
The following exhibit shows in detail the performance
measures for development projects.
7/30/2019 Strategy & Process Analysis
13/13
Performance Measures Impact on
Dimension Competitiveness
Time-to- market Frequency of new product introductions Responsiveness to
Time from initial concept to market customers/introduction competitors
Number started and number completed Quality of design-
Actual versus plan close to market
Percent of sales coming from new Frequency of
products projectsmodel life
Productivity Engineering hours per project Number of projects-Cost of materials and tooling per project freshness and breadth
Actual versus plan of line
Frequency of projects
- economics of
development
Quality Conformancereliability in use ReputationcustomerDesignperformance and customer loyalty
satisfaction Relative attractiveness
Yieldfactory and field to customersmarket
share
Profitabilitycost of
ongoing service
Recommended