Operations

1. Operations Strategy Framework to improve Products, Services & Operations Processes Anand Subramaniam

4. Competing Priorities

8. Operations Strategy Framework

11. Operation Strategy - Elements Operations Mission & Strategy Product Design Procurement Quality Management Schedule Location Layout Process Design Reliability & Maintenance Inventory Human Resources & Job Design

12. Operations Strategy Linkage

14. Operations & Supply Chain Framework

15. Reconcile Operations & Marketing Operations Resources Understanding Resources and Processes Strategic Reconciliation Market Requirements Understanding Markets Capacity Supply networks Process technology Development and organisation Quality Speed Dependability Flexibility Cost Operations Processes Operations Resources Operations Competences Market Positioning Market Segmentation Competitor Activity Strategic Decisions Operations Strategy Decisions Required Performance Performance Objectives

16. Integration New Product / Services Process

19. Product / Process Matrix Process Characteristics Complex and highly customised process, unique sequence of tasks Jumbled flows, complex work with many exceptions Disconnected line flows, moderately complex work Connected line, routine work Continuous flows, highly repetitive work Less Complexity, Less Divergence, More Line Flows Less Customisation and Higher Volume Product Design Continuous process Project process Line process Batch process Job process One of a kind products, made to customer order Low volume, low standardi-sation Multiple products, moderate volume Few major products, higher volume High volume, high standardi-sation, commodity products

20. Operations Strategy & Performance Objectives

21. Operation Strategy & Performance Understanding m arkets Understanding resources and processes Performance Objectives Market Positioning Customer Needs Competitors’ Actions Required p erformance Operations Strategy Decision Areas Tangible and Intangible Resources Operations Capabilities Operations Processes Strategic decisions

24. Success Factors & Scorecard

25. Critical Success Factors Decisions Options Product Customised, or standardised Quality Define customer expectations and how to achieve them Process Facility size, technology, capacity Location Near supplier or near customer Layout Work cells or assembly line Human resource Specialised or enriched jobs Supply chain Single or multiple suppliers Inventory When to reorder, how much to keep on hand Schedule Stable or fluctuating production rate Maintenance Repair as required or preventive maintenance Marketing Service Distribution Promotion Channels of distribution Product positioning (image, functions) Finance/Accounting Leverage Cost of capital Working capital Receivables / Payables Financial control Lines of credit Production / Operations

26. Scorecard

27. Integrating Key Performance Indicators Customer Metrics Operational Metrics Financial Metrics Customer Service Safety Stock Holding Cost Supplier Reliability (Lead Time Variability) Forecast Error ROI Return On Investment ROCE – Return On Capital Employed Average Inventory Fill Rates On - time Delivery Price Quality Turns Total Assets Days Sales Outstanding Cash to Cash Cycle Asset Utilisation Back Orders / Expediting Growth Logistics costs Customer Metrics Operational Metrics Financial Metrics Customer Service Safety Stock Holding Cost Supplier Reliability (Lead Time Variability) Forecast Error ROI Return On Investment ROCE – Return On Capital Employed Average Inventory Fill Rates On - time Delivery Price Quality Turns Total Assets Days Sales Outstanding Cash to Cash Cycle Asset Utilisation Back Orders / Expediting Growth Logistics costs Directly Proportional Indirectly Proportional Directly Proportional Indirectly Proportional