Introduction to Operations Management and Strategy PDF

Introduction to Operations Management and Strategy Dr Chris M. Smith Senior Lecturer AMBS Attendance Monitoring Learning outcomes Understand the structure of the course and expectation Understand assessment structure for course and expectations Understand 5 performance objectives for Ops...

Introduction to Operations Management and Strategy Dr Chris M. Smith Senior Lecturer AMBS Attendance Monitoring Learning outcomes Understand the structure of the course and expectation Understand assessment structure for course and expectations Understand 5 performance objectives for Ops and 4Vs as a way to categorise operations Consider what do we mean by Operations Strategy and how this is different to Strategy Understand the strategic importance of Operations and how this can be turned into a competitive advantage Understand the difference between order winners and order qualifiers Introduction Overview of course Contact details Expectations Feedback Learning Outcomes Assessment Outline of content Contact details Dr Chris Smith Office: 3.068 – AMBS Office hours – booked by appointment Email: [email protected] Course outline UG office Expectations Attendance is compulsory Be on time so we can all start promptly Participate in class and respect each others learning Course Outline Week Date Topic Taught by 1 25/09/2024 Introduction to Operations Management and Strategy Chris 2 02/10/2024 Layout and Flow of Operations Chris 3 09/10/2024 Lean Fahian 4 16/10/2024 Guest Lecture – Green Supply Chains Chris 5 23/10/2024 Supply Chain Management Chris 6 Reading week 7 06/11/2024 Matching Supply and Demand Chris 8 13/11/2024 Inventory Management tbc 9 20/11/2024 Quality Management tbc 10 27/11/2024 Revision Session Chris Feedback Feedback is very important to me and to the business school Office hours: By appointment – email to arrange Formative feedback on teaching cases Summative feedback on MCQs Course unit feedback for me please  Learning Outcomes Aims To give the students a general understanding of how a business operates, both in manufacturing and services. To develop a wider understanding of operations management regarding characteristics, performance and strategy. To develop knowledge and critical understanding of how the key operations management principles, theories and concepts may be used in the support of strategic decision making. To develop a capability to use and evaluate such principles, theories and concepts in a range of operations environments. Learning outcomes On completion of this course unit the student should be able to use the operations management frameworks and techniques presented to devise operations strategy and design, plan, control and improve operations. More specifically, after studying this module you should be able to: Show critical awareness of strategic and operational issues associated with different business environments. Identify (based on readings, case studies, or personal experiences) those practices that are most likely to distinguish effective, well-managed operations from ineffective ones. Critically evaluate the merits of different approaches to operations improvement. Demonstrate understanding and critical awareness of the impact of ethical and sustainable practices on operations.  Assessment Multiple Choice Questions Worth 20% - 4 MCQs, available for 1 week, MCQ live 8am on day of lecture Open Book Exam Worth 80% Will launch during January Exam Period Lecture Content Covered Date and Time Live Deadline to Complete Weeks 1&2 3pm 02/10/2024 3pm 08/10/2024 Weeks 3&4 3pm 16/10/2023 3pm 22/10/2024 Weeks 5&7 3pm 06/11/2023 3pm 12/11/2024 Weeks 8&9 3pm 20/11/2023 3pm 26/11/2024 Bonus Content – Not assessed Reflective teaching cases – During the Pandemic I recorded a set of reflective teaching cases with operations management and supply chain professionals to keep the students engaged with industry and modern practice – At the time these were an assessed component of the course – I will release them as they become relevant to the course content but just as bonus content  Resources Course Outline Mini teaching cases Course text Slack, Brandon-Jones and Johnston (2016), Operations Management, Seventh Edition Supplementary materials posted on BB Check Blackwell’s, Amazon.co.uk, University Library, etc. Undergraduate office What are Operations? Operations – Transformation process 1.4% 3.2% Classifying Operations The 4 Vs of operations Performance objectives The operations function, like any function, will be assessed using performance measures Generally, we look at five core performance objectives (usually in line with our business strategy) Quality → being right Speed → being fast Dependability → being on time Flexibility → being able to change Cost → being productive Quality The idea that the product/service is consistent with customers’ expectations Easy to ‘see and judge’ Reduces cost (getting things wrong can be expensive!) Plays an important part in a differentiation strategy Speed The idea that the operation produces the product/service in a quick way This might be a requirement for its business strategy Reduces inventories and therefore risk Dependability Whether the process operates on time (deliveries, process times, etc.) Saves time and money Related to quality (especially in services) Flexibility Ability to change the operation in some way Could be change in product/service, mix, volume or delivery Can be vital in satisfying customers when demand is unpredictable  Cost Universally attractive objective but imperative for cost strategies One of the on-going quests is how to lower costs whilst maintaining levels of quality, speed, dependability and flexibility → optimisation ‘Productivity’ is a proxy for this P = Operation Output Operation Input Relative performance objectives ( taxi service vs. bus service ) Cost (low) taxi service bus service speed dependability quality flexibility  Break out session Compare 4 Vs and Performance Objectives for: 4Vs Performance Objectives Cost Volume Speed Variety Dependability Variation (in demand) Flexibility Visibility Quality 5 minutes Operations Strategy What is a strategy Strategic implication of Operations Management The way the operations function is managed and its involvement in overall business strategy can have a direct effect on a firm’s competiveness There are different levels of strategic involvement of the operations function, depending on the organisation implement business strategy support business strategy drive business strategy  What is the role of the operations function? Operations as Operations as Operations as implementer supporter driver Strategy Strategy Ops Ops Ops Strategy Operations Operations supports Operations drives implements strategy strategy strategy Four Stages of Operations Strategy Hayes & Wheelwright (1988) model Give an Operations Redefine the industry’s Stage 4: Advantage expectations Externally supportive Link Strategy Be clearly the best in Stage3: With the Internally Operations industry supportive Be as good as Adopt best competitors Stage 2: Practice Externally neutral Stop holding the Correct the organisation Stage 1: Worst Problems back Internally neutral STAGE 1 STAGE 2 STAGE 3 STAGE 4 The The The ability ability ability to to to support drive Strategy Implement Strategy Original Thinking Applied 31  Four perspectives on Strategy Top-down perspective what the business wants operations to do Operations Market perspective perspective Operations what the market position requires operations to do what operations resources can do Strategy determine competitive factors, order qualifiers, order winners RBV → ‘competitive advantage comes from within’ what day-to-day experience suggests operations should do ‘principal of emergent strategies’ ‘continuous improvement’ Bottom-up perspective Original Thinking Applied Order winners and order qualifiers Original Thinking Applied  Qualifying factors +ve Competitive Neutral benefit -ve Performance  Order-winning factors +ve Competitive Neutral benefit -ve Performance  Less important factors +ve Competitive Neutral benefit -ve Performance  Qualifying factors Order-winning factors Less important factors +ve Competitive benefit Neutral -ve Performance Performance Performance Identify order-qualifiers Identify order-winners Identify less important factors Identify performance threshold Seek to improve factor beyond Reduce effort spent on Improve to required threshold the performance of competition improving these factors in place (if needed) of order winners.