Pre Zen Tare Gianni.ind Mang

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    Industrial management

    Gurghian Alexandru

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    Managing for results

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    Operations are a critical succes factor for most

    organizations and can be a key element in

    their competitive advantage. Viewing the

    operational system as a transformation

    function that adds value to inputs to create

    output helps to identify non value adding

    activities as well as way to produce faster,better and/or cheaper results.

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    A three-pronged view of strategy integrates

    the domains of operation management sale

    marketing and finance accounting to create a

    value proposition that is distinctive

    understood and feasible. The resource-based

    view of the firm in general and VRIO analysis

    in particular can facilitate decision to enhanceor develop resources for further competitive

    advantage.

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    A practical approach to operations

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    Applying system thinking can broaden amanagers perspective beyond a particularsubsystem and provide new insights to improve

    each efectivness. As results an organization canavoid suboptimization and encourage data baseddecision making and improve operationalrobustness. Like any system a business operation

    is a dynamic purposeful for action of componentsand material and information flow among thesecomponents.

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    Organizational system tend to be complex

    with multiple systems numerous feedback

    loops and permeable boundaries with the

    environment. Understanding key factors in a

    operations environment puts the manager in a

    better position to anticipate changes and

    avoid suboptimal decision.

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    Organizational performance

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    New product and service development is integral to anorganization performance. It is a funnel like processthat typically progresses from idea generation tofeasibility analysis and case development. Source of

    ideas can be customer driven or technology driven.Typical tradeoffs in design factors include choicebetween product service features, flexibility andefficiency, inventory levels and responsiveness, hiringand using overtime and risk and reward. A key

    consideration in organizational performance is the totalcost of ownership which represents a trade-offbetween short and long term costs.

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    Product per service delivery processes

    typically range from a project form to a job

    shop batch process assembly line or

    continuous flow depending on the volume

    level of technological investment and life cycle

    stage of the product. Service offerings can be

    categorized by both the labor intensity andthe extent of the interaction and

    customization with customers.

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    Quality across the organization

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    Quality is defined as the totality of features

    and characteristics of a product or service that

    bear on its ability to satisfy stated and implied

    needs. The basic principle for managing

    quality across an organization are to focus on

    the customer, promote team-work and

    empowerment within the organizationemphasis continuous improvement identify

    value added and waste, and reduce variability.

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    Six Sigma lean production and total qualitymanagement are all management systemsused to improve quality across the

    organization. They follow the same basicprinciple and employ many of the sametechnique in implementation. The ISO 9000standard also pertain to management across

    the organization but they are more of anevaluation and certification tool than animplementation approach.

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    Process effectiveness

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    Effective process are designed with thedesired results in mind and the designaddresses process form and capacity

    requirement resource need its the extent ofcustomer involvement, variability source, andinterdependences. When assessing existingprocess a criteria based evaluation should

    consider simplification opportunities for wasteelimination, visual control and excessinventory.

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    Process can be difficult to change because the

    people involved may be unable to

    reconceptualize the process, be invested in

    individual job design or limited possibilities byprotecting their position. Fear is an important

    factor to consider, be clear about the expected

    benefits of changing the process.