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UCL ESPO/IAG/ POMS PROD 2800 PRODUCTION AND OPERATIONS MANAGEMENT Gestion de la production et des opérations Per AGRELL Lecture 1.

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Presentation on theme: "UCL ESPO/IAG/ POMS PROD 2800 PRODUCTION AND OPERATIONS MANAGEMENT Gestion de la production et des opérations Per AGRELL Lecture 1."— Presentation transcript:

1 UCL ESPO/IAG/ POMS PROD 2800 PRODUCTION AND OPERATIONS MANAGEMENT Gestion de la production et des opérations Per AGRELL agrell@poms.ucl.ac.be Lecture 1 UCL ESPO/IAG/ POMS

2 PROD 28002 Outline Presentation – Instructor – Course outline – Grouping What is OM? Processes and products Manufacturing Strategy

3 PROD 28003 Course outline Operations StrategyL 2E 2 – Competition, positioning, strategic trade-offs Product and Process DesignL 6E 2 – Process analysis, project design, quality Planning and Control MethodologyL 12 E 6 – Long-range, medium-range and short-range planning Supply Chain DesignL 6 E 4 – Inter-firm coordination, theory of constraints, chain design

4 PROD 28004 Learning methods Text book Lectures26 h – On-line material – Readings – Assignments Exercise sessions14 h – Cases Case Summary Case Presentation Case Report www.poms.ucl.ac.be

5 PROD 28005 What is operations management? Operations Management – Production (transformation) system Physical Locational Exchange Storage Physiological Informational – System design, operation, improvement – Systematic analysis of organizational processes Services and goods

6 PROD 28006 Core services Basic service dimensions operations management FLEXIBILITY COST DELIVERY QUALITY

7 PROD 28007 Value-added services operations management INFORMATION CONSULTANCY SALES SUPPORT FIELD SUPPORT Differentiating service dimensions

8 PROD 28008 Operations strategy 1. Business objectives 2. Market strategy 3. How are orders won on the market? 4. Choice of technology 5. Infrastructure

9 PROD 28009 Order qualifiers and order winners Order qualifiers – Qualifies the firm as a potential vendor Order winners – Successfully differentiates the firm for competitors

10 PROD 280010 Competitive dimensions Price Quality – Conformance Delivery – Speed – Reliability Flexibility – Volume flexibility – Product flexibility – Mix flexibility Design Value-added services

11 PROD 280011 Manufacturing strategy 1. Market segmentation in product groups 2. Market assessment per group 3. Find Qualifiers and Winners for each group. 4. Translate Winners into process requirements.

12 PROD 280012 Process dimensions Process Requirements – Process Type – Order Regime Core Capabilities

13 PROD 280013 Process flow classification Project Jobbing Batch Line Continuous processing

14 PROD 280014 Production order regimes Design to order (DTO) – Specific design and manufacture for all customers Engineer to order (ETO) – Changes to standard products are offered and produced Make to order (MTO) – Production of standard product on receipt of order/call-off Assemble to order (ATO) – Components MTS. Assembly made on receipt of order. Make to stock (MTS) – Production to forecast. Order met from inventory.

15 PROD 280015 Product-process matrix IV. Continuous Flow III. Assembly Line II. Batch I. Job Shop Low Volume, One of a Kind Multiple Products, Low Volume Few Major Products, Higher Volume High Volume, High Standard- ization Le Prof cafe Le Sablon Sugar Refinery Flexibility (High) Unit Cost (High) Flexibility (Low) Unit Cost (Low)

16 PROD 280016 Process positioning Horizontal Integration – Vendors – Joint ventures Vertical Integration The Virtual Enterprise?

17 PROD 280017 Implications of process choice Products and Markets – Type of product – Product range – Customer order size – Rate of product introductions – Order winners? – Order qualifiers? Manufacturing – Nature of process technology – Focus Investment and Cost – Level of capital investment – Level of inventory – Level of WIP – Cost drivers Infrastructure – Organizational control – Organizational style – Required support expertise

18 PROD 280018 Strategic fit Commitment Communication Credibility Coherence Focused manufacturing PWP

19 PROD 280019 Examples Sports car market – European, road-use, private Competition – Porsche – Ferrari – Jensen – Honda etc.

20 PROD 280020 OM challenges Bundling Value-added focus Ex: Automotive YesterdayTodayTomorrow CarCar + maint.Transport. Maintenance

21 PROD 280021 Recapitulation Definition of OM Manufacturing strategy (Hill) – OQ, OW, process choice, implications Product-Process Matrix (Hayes-Wheelwright) Strategic fit (Skinner) – Focus, PWP Service operations strategy – Bundling, integration, disintermediation


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