Ops Management Midterm

Operations Management

the management of processes used
to design, supply, produce, and deliver goods and services

Supply Chain Management

is the integration of operations
management decisions across organizational boundaries

Value Proposition

the group value dimensions that matter to a customer, with some of those dimensions qualifying the product or service for consideration and one or more dimensions distinguishing it from the competition.

Strategy Map

1.        Create a comprehensive list of value dimensions customers in the firm’s market care about (not just the firm’s value prop.)

2.        Organize the list in a column ordered from most important to the firm’s value to last

3.        Create an x-axis

a.        Poor performance = left

b.        Great performance = right

4.        Score the firm’s offering on each dimension and connect with the line

5.        Score key competitors on each and connect with a line

Operational Capabilities

unique and superior abilities based upon the firm’s routines, skills, and processes that enable the firm to meet customer expectations and are difficult to imitate.

Operations Strategies Pillars

1.        Aligns with and delivers on the firm’s value proposition

a.        It is EXTERNALLY CONSISTENT

2.        Develops operational capabilities that align with and reinforce one another

a.        It is INTERNALLY CONSISTENT

3.        Evolves maintains or extend competitive advantage

a.        It is DYNAMIC

order qualifier

minimum level of value required from a set of criteria for a firm to do business

Order Winner

dimension(s) of value that differentiates one firm from another

What are the operational capabilities?

Manufacturing Environments

Consumer Contact Matrix

Components of visualizing a process:

1.        Inputs, outputs, and “flows” – what moves through the process

a.        The flow unit is the focal point of the process; the unit that the process is transforming

2.        Activities

a.        The task being performed

b.        Transformation, inspection, storage, etc.

3.        Process Structure

a.        How activities are linked from beginning to end

4.        Management Policies

a.        How does one evaluate a process

 

Cycle Time

average time for completion of a unit at a production/service stage

 

Capacity (Throughput Time)

average number of units processed over a given time interval

Process Capacity

minimum capacity across all stages OR capacity of the stage with the longest cycle time (when no parallel processes)