Enterprise Delivery System (EDS)

The Enterprise Delivery System (EDS)

• EDS is defined by customers' expectations regarding quality, delivery, and price
• EDS starts with the input of mobilized resources which proceeds to the Throughput, where input converts to output.
• Output is then experienced by customers through goods or services.
• EDS outcomes encompass customer satisfaction, revenue generation, and realized profits

Managing Operations

• Operations management includes activities, decisions, and responsibilities related to managing production and delivery resources

Advantages of Effective Operations

• Cuts costs for producing efficient products and services
• Increases revenue with good quality and customer service
• Reduces investment needed by increasing operational capacity
• Provides a base for innovation via operations knowledge

Critical Sub-Processes

• Nine critical sub-processes in the transformation process are:
  • Technology Application and Utilization
  • Operating Workflow
  • Layouting
  • Production Programming and Scheduling
  • Quality Control
  • Operating Systems and Procedures
  • Operations Management, Supervision, and Control
  • Worker Motivation, Skilling, Deployment, Compensation, and Control
  • Support Services

Technology Application and Utilization

• Managers must understand how technology works and utilize it properly
• The technology provider should transfer technical information, train operators, provide after-sales, supply parts, and give advice.

Operating Workflow (OWF)

• OWF should follow technology rationale
• Guiding principles dictate OWF

OWF Guiding Principles

• OWF must be efficient in time, movement, and use of resources
• OWF must have balanced capacity allocation

Layouting

• Operating workflow should translate to an appropriately designed/executed plan.
• Key layout principles include:
  • Physical layout must allow goods to move from step to step with minimal distance/time
  • Minimal crisscrossing of goods withing space
  • Should capture the atmosphere as desired
  • Layout must be easy to see, follow, monitor

Production Programming and Scheduling (PPS)

• PPS determines types of goods/services, sizes/packaging, machinery/equipment, quantity and timing.
• Determining factors are:
  • Market demand in volume expectations, trends, seasonality
  • Capital investment and financing needs
  • Product line profitability and capacity utilization
  • Number of products and market segments/complexity of production system

Quality Control

• Customer expectations towards quality, delivery and price must be matched
• Quality, Delivery, and Productivity must be part of measurement at every stage of EDS
• Input must conform to standards

Operating System and Procedures

• Managing and controlling the EDS occur in distinct phases:
  • Pre-operations
  • Operations Proper
  • Post-operations
• Operations managers select/source/store materials, recruit manpower, maintain facilities, improve operations, assure quality, and manage costs

Operations Focus

• Good operations should focus on:
  • Creating metrics of performance
  • Perfecting methods
  • Optimizing resources

HR Function Levels

• The Human Resources Function has two options:
  • Strategic HR which manages change direction
  • Operational HR which creates admin systems for efficient management/work environment