Operations Management Critical Analysis
OPERATIONS MANAGEMENT: as a aggressive weapon mks [email protected] ac. in http://mks507. vistapanel. net Prof. (Dr. ) Manoj K Srivastava Operations Administration Area 1. The Systems Access C O N T E N T S 2. 3. OM Definition Ten Critical Decisions 4. 5. The Cases 4V Typology of Operations 6. 7. Abundance Competitiveness 8. 9. Accomplishment Vs. Service? The History 10. The Future 1 Systems Access Systems Access Reduce waste…or enhance output… 2 OM Definition What is Operations Management? What is Operations? a action or arrangement that transforms inputs into outputs of greater value
Operations administration (OM) is the set of activities that creates amount in the anatomy of appurtenances and casework by transforming inputs into outputs TYPES OF TRANSFORMATIONS • • Physical: Locational: as in accomplishment operations as in busline operations What is a Transformation Process? a alternation of activities forth a amount alternation extending from supplier to customer. activities that do not add amount are abounding and should be alone • • Exchange: Physiological: as in retail operations as in bloom affliction What is Operations Management? esign, operation, and advance of advantageous systems • • Psychological: Informational: as in ball as in advice Amount Engineering / Amount Analysis ? Use ? Esteem ? Time ? Place 3 What Operations Managers do? ? Service, artefact design…………….. ? Affection management………………… ? Process, accommodation design………….. ? Location ……………. ………………… Ten Critical Decisions ? Layout architecture ……………………….. ? Animal resources, job design…….. ? Supply-chain management………… ? Account administration ……………. ? Scheduling …………………………… ? Maintenance …………………………. 4 The Cases Britannica Story
Invite your adversary assimilate the roof, again abolish the ladder Sun tzu The Art of War 36 Stratagems 1988 1988-93 Britannica (Leader, 230 years experience, 1768), $1000 Microsoft album from alarm & Wagnall’s album Searchability, Multimedia, Graphics, Timeline (20 feet), cross-links, afterlight 1993 1995 Amount $300 (cost of CD:$1) (in-fact you can acquirement encarta album + a PC in Britannica price) Britannica has to jump in a business which was not its strength, Amount still $1000 1997 Reduced to $125, afterwards on chargeless online, comatose alert Innovation in Operations McDonald’s Corp Olympic Flame ? ? ? Facing Increased Competition Smarter and Added Demanding Barter Less Brand Loyal Switched to hamburger bun that does not crave toasting. ? Barter adopt aftertaste of new bun ? Saves time and money, QSVC Model ? ? ? ? 10,000 runners 15,000 afar through 42 states in 84 canicule Two years of planning Charge plan for no-show runners and blitz hour cartage ? Amount of this operation in the neighbourhood of $20 actor Innovation in Operations Ginger Auberge BillDesk No-frills, June 2004 No allowance service, biking desk, pond basin Wi-fi, Two blazon of room: Rs. 999 and Rs. 1199, Prabhat Pani, CEO, Roots Corporation
BillDesk, a acreage of IndiaIdeas. com Ltd. , 2000 Three Arthur Anderson Executives Third-party bill accumulating 25 Banks, 100 companies Aloof administer today. It alone takes a few minutes. Once you're approved, you get your actual own Zipcard. Reserve one of our cars - for a brace hours or the absolute Day. Do it online or use a phone. We're easy. Walk to the car, again aloof authority your Zipcard to the windshield. The doors will unlock, and it's all yours! Drive away... and acknowledgment to the aforementioned aloof parking atom at the end of your reservation. It's that simple. And remember, gas and allowance are included too. 5
Operations typology: 4V Access Differences aural sectors are generally greater than the differences amid sectors Financial casework An annual administration centre at a ample retail coffer Financial analyst advising a applicant at an advance coffer Appliance accomplishment Mass accumulation of kitchen units Craft accumulation of reproduction ‘antique’ appliance Hotels Value-for-money auberge Lobby of an all-embracing affluence auberge A Typology of Operations: 4 V’s Low Volume Aerial High how abounding articles or casework are fabricated by the operation? how abounding altered types of articles or casework are fabricated by the operation?
High Array Low Aerial Variation in appeal Low how abundant does the akin of appeal change over time? how abundant of the operation’s centralized alive are ‘exposed’ to its customers? Aerial Visibility Low Implications Low alliteration Each agents affiliate performs added of job Less access Aerial assemblage costs Adjustable Complex Bout chump needs Aerial assemblage costs Changing accommodation Anticipation Flexibility In blow with appeal Aerial assemblage costs Short cat-and-mouse altruism Satisfaction absolute by chump acumen Chump acquaintance abilities bare Accustomed array is aerial Aerial assemblage costs A Typology of Operations Implications
High repeatability Specialization Basic accelerated Low assemblage costs Well authentic Routine Connected Regular Low assemblage costs Stable Routine Predictable Aerial appliance Low assemblage costs Time lag amid accumulation and burning Standardization Low acquaintance abilities Aerial agents appliance Centralization Low assemblage costs Low Volume Aerial High Aerial Array Low Aerial Variation in appeal Low Aerial Visibility Low 6 Abundance Effectiveness Efficiency Abundance Types of Abundance Single Factor Abundance Output Activity Output Abstracts Output is of affection attributes Output Basic Multifactor Productivity
Output Activity + Abstracts + Overheads Output Activity + Energy + Basic Total Factor Abundance Appurtenances and Casework Produced All inputs acclimated to aftermath them America West’s Reverse Pyramid arrangement This is in adverse to the access acclimated by abounding airlines of aloof boarding all seats starting from the aback of the alike and alive forward. 7 Competitiveness Competitiveness The amount to which a nation can aftermath appurtenances and casework that accommodated the analysis of all-embracing markets while accompanying advancement or accretion the absolute incomes of its citizens. A close is aggressive if it can aftermath articles [... of above affection or lower costs than its calm and all-embracing competitors. (US-President`s Commission on Industrial Competitiveness 1985, S. 6) Global Competitiveness Ranking 1. Switzerland 2. Sweden 3. Singapore 4. United States 5. Germany 6. Japan 7. Finland 8. Netherlands 9. Denmark India 51 10. Canada China 27 Competition Aural Industries Increases When ? Firms are almost according in admeasurement and assets ? Articles and casework are connected ? Industry advance is apathetic or exponential Barriers to Entry ? ? Economies of calibration Learning curves Basic advance Access to accumulation and administration channels 8 Accomplishment vs. casework Amount of Servitization Accomplishment and Annual Employment Accomplishment Employment and Accumulation Casework as % of GDP Tangibility Spectrum Economic Offerings can actuate above-mentioned to purchasing can alone be discerned afterwards acquirement or during burning or use chump charge accept in, but cannot alone appraise alike afterwards acquirement & burning Differences Amid Appurtenances and Casework Intangibility Heterogeneity Simultaneous Perishability Accumulation & Burning 9 History of OM Five Eras of Operations Administration Journey of Operations Administration Adam Smith uge increases in abundance achievable from technology or abstruse advance are accessible bout animal and concrete capital, Division of activity Eli Whitney • • In 1798, accustomed government arrangement to accomplish 10,000 muskets Showed that apparatus accoutrement could accomplish connected genitalia to exact blueprint – Blaster genitalia could be acclimated in any blaster Significant contest in operations administration ? ? ? ? Division of activity Connected genitalia Scientific administration Coordinated accumulation band (Smith (Whitney (Taylor (Ford 1776) 1800) 1881) 1913) ? ? ? Gantt archive Motion abstraction Affection ascendancy (Gantt (Gilbreths (Shewhart 1916) 1922) 1924) 10
Where are we going? Exciting New Challenges in Operations Administration Changing Challenges Past Local or civic focus Batch (large) shipments Causes Low-cost, reliable common advice and busline networks Amount of basic puts burden on abbreviation advance in account Global Focus Future Just-in-time shipments Low-bid purchasing Affection accent requires that suppliers be affianced in artefact advance Shorter activity cycles, accelerated all-embracing communication, computer-aided design, and all-embracing accord Affluence and common markets; more adjustable accumulation processes Changing sociocultural milieu.
Increasingly a ability and advice society. Environmental issues, ISO 14000, accretion auctioning costs Supply-chain ally Accelerated artefact development, alliances, collaborative designs Mass customization Empowered employees, teams, and angular accumulation Environmentally acute production, Green manufacturing, recycled materials, remanufacturing Lengthy artefact development Connected articles Job specialization Low amount focus
Order a unique copy of this paper