Operations Management Strategy & Performance PDF

Jorge Julião 1 ENTER THE WORLD OF OPERATIONS And get to know your business 2 summary operations management - introduction to operations management - cross-functional relationships of operations management...

Jorge Julião 1 ENTER THE WORLD OF OPERATIONS And get to know your business 2 summary operations management - introduction to operations management - cross-functional relationships of operations management - economic contribution of operations management operations strategy & performance - operations strategy & KPIs of operations - performance objectives - ‘qualifiers’ & ‘order winners’ - influence of customers, competitors and life cycle 3  change of business paradigm lean mass mass production manufacturing customization (beginning XX) (final XX) (beginning XXI) the pass today demand is higher than supply high competition “globalisation” ex. Ford assembly line (Ford T) ex. just-in-time ex. agile manufacturing technology + technology technology + management tech. + management + innovation 4  exemplo da happy hour num bar: objetivo technology - reduzir o custo fixo através da amortização strategic competitors objectives business questions relacionamento com os fornecedores (procurar fornecedores com preços mais baixos) strategic operations how to buy? competitiveness materials management strategy e positioning information what to produce? clients A procura tem flutuações when to produce? design improvement suppliers input operations output processes & layout? resources management products & clients services demand how to reduce costs? facilities planning & control needs & wishes human how to improve? resources ……….. transformation process https://www.youtube.com/watch?v=nc li94xodm8&list=PLqNLhv3ax3GB8P6Ufn4L after _Oobp0KWQys-L 5  operations strategy improvement ex. performance ex. capacity analysis, strategy improvement, risk operations definition management associado à eficiência; garantir management addresses direct develop A direção define a estratégia a entrega ao menor preço possível how organizations produce and distribute goods and services design deliver [after 1] garantir eficácia project planning & control ex. layout, flow, process analysis ex. aggregated desenhar o projeto planning, inventory 6  Design a store layout which gives smooth Design elegant Ensure that the jobs of and effective flow products which can be all staff encourage flat-packed efficiently their contribution to business success Site stores of an Continually examine appropriate size in and improve the most effective operations practice locations Maintain cleanliness and Monitor and enhance safety of storage quality of service to Arrange for fast area customers replenishment of products [after 1] Source: Shutterstock.com/Diego cervo 7 it´s a major function at companies (manufacturing & services) se uma organização tem um projeto, então tem operações ERP - enterprise resource planning - software empresarial que as empresas usam para gerir os seus recursos SAP - é o ERP mais utilizado internacionalemtente 8  accounting product marketing operations & finance development attracting manage alms translate perform church believers collection sacred writings weddings fast food advertising on pay the design cook restaurant TV suppliers hamburgers hamburgers furniture design new assemble sell to retail pay staff manufacturer furniture furniture develop make and process identify needs collect capital products distribute 9  engineering/ product/service technical capabilities and constraints of the development function operations process function analysis of new technology options understanding of process accounting technology needs new product and service ideas and finance provision of capabilities and function relevant constraints of the data operations process operations financial analysis for function performance and decisions market requirements marketing understanding of human function resource needs understanding provision of systems for of infrastructural design, planning and and system control and needs improvement recruitment development and training human resources information function technology (IT) function 10  supply network level Studios Promotion Flow between operations agency example a programme Casting Broadcasting company and video agency supply network Programme/ video maker Creative agency Flow between processes operation Programme level and video operation Engineering process Marketing Finance & Production Post accounting unit production level and sales Flow between resources Set & props the programme and video manufacture operation 11  capabilities for future innovation como fazer melhor com menos recursos opportunities for process learning lower secure costs process enhanced revenue efficiency service melhor serviço ao cliente, maior confiabilidade com o operations cliente excellence melhorar a capacidade de utilização reduced errors, higher capacity better resilience utilization lower capital lower ‘operational’ risk requirements definir parâmetros de controlo; forma de reduzir defeitos --> retirar amostras e testar reduzir tempo morto (não está a ser utilizado); os gestores têm de arranjar formas de aumentar a utilização 12 13  key strategic influences on decisions decision making what business to be in? economic environment corporate what to acquire? social environment business you should strategy how to allocate cash? political environment be in independentemente de se ter a mesma estratégia corporativa, a estratégia de negócio será diferente what is the mission? customer/market dynamics business what are the strategic tactics to beat the competitor activity objectives of the firm? strategy competition how to compete? financial constraints Mitsubishi how to contribute to the skills of function’s staff operations strategic objectives? operation methods to functional strategies current technology strategy how to manage the implement the tactics function’s resources? recent performance [after 1] (AND) marketing, financial and technology strategies 14 (Slack & Lewis, 2017) 15  Operations management can be a source of competitive advantage (W. Skinner, 1996)  Companies to gain competitive advantage need to link corporate, business and operations strategies.  In the past operations were oriented only by costs and productivity 16 17  redefining STAGE 4 give an industry operational expectations advantage increasing strategic impact clearly the STAGE 3 driving best in the link strategy with strategy industry operations STAGE 2 as good as supporting competitors adopt best strategy practice holding the STAGE 1 implementing organization correct the worst strategy back problems internally externally internally externally neutral neutral supportive supportive After Hayes and Wheelwright increasing operations capabilities 18  como é que as empresas definem uma estratégia? top-down perspective A direção sénior é que define e.g. what the business wants corporate & business strategies operations to do market requirement Perspetiva de mercado, operations resources que engloba concorrentes (o que eles fazem) e perspective clientes (o que eles perspective querem) operations e.g. e.g. strategy customers and Technology what the market what operations competitors position requires resources can do what day-to-day experience operations to do dimensão de recursos - tenho de garantir que tenho recursos e tecnologia para implementar a estratégia suggests operations should do bottom-up perspective 19  specifies the means by which operations implement the strategy of the business unit (helping to build a customer- focused organization)  implies: as empresas têm de definir objetivos de desempenho como prioridades  define priorities for the performance objectives, ex. KPIs (for each set of products or services)  design and manage the processes and the supply chain in order to achieve the performance objectives (current and future) 20  consoante o negocio, as empresas podem ter diferentes objetivos estratégicos Mc Donalds - focam-se no custo e na velocidade de entrega; os principais investimentos que fazem são na velocidade e no custo e nao fazem investimentos noutros minimum price, highest value parametros que possam pôr em causa a (low price, high margin, or both) velocidade e o custo; nao tem flexibilidade a produzir e a entregar (embora tenha alguma flexibilidade no que toca à variedade de produtos) cost quick dependable delivery delivery minimum cost, (short delivery lead-time) speed maximum value dependability (reliable delivery) velocidade de entrega confiabilidade, fiabilidade fast reliable throughput operation (operação que não falha) Example for discussion? error-free ability to processes change quality flexibility error-free products frequent new and services products, maximum (on-specification products and services) choice (frequent new products or services, wide range, volume and delivery changes) [after 1] Restaurante Capa Negra - foca-se na qualidade, flexibilidade 21  Quality Being RIGHT Speed Being FAST Dependability Being ON TIME Flexibility Being ABLE TO CHANGE Cost Being PRODUCTIVE 22  (marketing perspective) sao caracteristicas do produto; se o produto nao tiver essas  ‘qualifiers’ (qualifying factors) caracteristicas o cliente nem pensa em comprar  features that customers perceive as minimum standards for acceptance (so he can consider purchasing a probable hypothesis)  ‘order-winners’ (winners factors) os order-winners sao fatores que levam o cliente a pagar mais  features that customers perceive as superior characteristics of the products or services of competitors  what influences the performance objectives?  clients, competitors, life cycle phase, etc. 23 ex. taxi service versus a bus service (polar diagram) Se o cliente é sensível ao preço, o custo é estratégico para a empresa O cliente do autocarro taxi é mais sensivel ao custo do que o cliente bus service do taxi service cost speed dependability quality flexibility 24  original strategy order-winners fast deliveries o order winner tem de estar sempre associado ao objetivo estratégico de desempenho qualifiers price performance objective speed competitor strategy order-winners fast deliveries qualifiers price performance objective speed & flexibility strategy 1 strategy 2 strategy 3 order-winners fast deliveries + fast deliveries price qualifiers price price fast deliveries performance objective speed & flexibility speed cost 25  Maturity volume Growth Sales Introduction Decline A fase em que se encontra tem influência nos objetivos estratégicos Time conceito de estratégia de inovação - as empresas sabem Customers Innovators Early adopters Bulk of market Laggards que eventualmente vai ocorrer uma quebra de vendas, então começam a desenvolver novos produtos/inovações para quando Competitors Few/none Increasing Stable Declining houver essa quebra Likely order Product/ service Availability Low price Low price winners characteristics Quality Dependable supply Likely Quality Price Quality Dependable qualifiers Range Range supply Range Dominant Flexibility Speed Cost Cost performance Quality Dependability Dependability objectives Quality para atrair clientes foco na eficiência garantir a entrega ao cliente; eficácia 26  “all performance objectives, to some highly focused operations can be especially extent, trade-off against each other” sensitive to any changes in requirements improvement through variety increasing ‘focus’ on variety P1 Variety o objetivo é estar neste ponto; a flexibilidade nao deve comprometer a eficiencia e vice-versa P improvement through overcoming the trade-off between variety and cost efficiency improvement through increasing ‘focus’ on cost Q efficiency Q1 cost efficiency Cost efficiency 27 29  Slack, N., Brandon-Jones, A. & Burgess, N. (2022), 10e, CH1, 2, 3.  web sites  www.poms.org  www.opsman.org  further reading:  Bourne, M., Kennerley, M. and Franco, M. (2005) Managing through measures: a study of the impact on performance, Journal of Manufacturing Technology Management, vol. 16, issue 4, 373–95.  Boyer, K.K., Swink, M. and Rosenzweig, E.D. (2006) Operations strategy research in the POMS Journal, Production and Operations Management, vol. 14, issue 4. 30 KNOW TO CONFIGURE YOUR BUSINESS And get the most of it 31