- Present the Operations function as a generator of sustainable competitive advantages Describe its operating system and the generation of decisions that it requires Link the business functions with the Operations area
Operative administration
- Management and Control of the Processes through which the inputs are transformed into finished goods and services
External environment
Operations Management as a Function
management-and-administration-of-operationsTypes of Organization
Wholesale Manufacturing
Construction Retail
Banking Transportation
Government Health
Skill Areas
- Quantitative methods Organizational BehaviorInformation SystemsEconomyInternational BusinessEthics and Business LawAdministrationFinanceMarketingOperationsRRHHEngineering
Features
- Physical Product, Durable Production can be inventoried Little contact with the Customer Long response time Regional, national or international markets Large facilities Capital intensive Quality easy to measure Intangible, perishable product Production cannot be inventoried Short response times Local markets Small facilities Quality work is not easy
Manufactures and Services: similarities
- Both types of organizations provide a combination of goods and services • Stocks of supplies are maintained • All members of an organization have clients: internal or external • Their processes must be designed and managed effectively Organizations must continuously improve quality, productivity and The punctual answer is the value of the products (goods and services), divided by the value of the resources that have been used to obtain them
Productivity = Product / Input
- A broad concept of Productivity is one that considers the value of what is produced
Productivity V = Products that add value to the Client /
Inputs used to obtain it
- The different inputs (multi-factor productivity) are monetarily homogenized
"Operations play a key role in determining productivity"
- Developing strong cross-functional coordination
- Unified strategy
- Organizational design that promotes coordination
- Teamwork and reward systems accordingly
- Shared information
- Informal relationship systems
- Training and joint development
- Alignment of Operations to the Business Strategy Development of Differential Skills as a contribution to the strategy Decision system as a competitive weapon: enhancing skills and abilities
- Administration of
- Processes and their technology Resources Capacities and characteristics of work areas Stock levels throughout the supply chain Differentiation projects Quality / service response times Information and measurement system
- Mission statement
- What business are we in?
- Where should we be within… years?
- Who are our clients?
- What are our basic convictions?
- What are the key performance targets like
- profit growth market share by which we measure success?
- Core capabilities
- Work force
- well trained flexible
- Facilities
- well positioned flexible
- Financial and market knowledge
- capital attractiondifferentiation
- Systems and Technology
- International Market incursionjoint venture technology license
Segmentation: groups of clients with common features
- Demographic factors
- age
- entry
- education
- Psychological factors
- pleasure
- fear
- news
- Industry Factors
- technologies
- materials
Needs
- Regarding the product / serviceRegarding the Delivery System • VolumeOther:
- Image
- Technical support
- Systems
- Abilities
Cost 1.- Low cost operations
Quality 2.- High performance design
3.- Consistent quality
Time 4.- Fast delivery
5.- Delivery on time
6.- Development speed
Flexibility 7.- Personalization
8.- Volume flexibility
repeatable services
(See PDF)
Conclusions
- A customer-based operations strategy requires that market needs be translated into desirable capabilities for the operations function, known as competitive priorities.Management must decide in what dimensions the company's operations system should excel In time-based competition, managers try to save time on the various steps leading to product delivery
