Presentation on theme: "Introduction & Strategy Module"— Presentation transcript:
1 Introduction & Strategy Module Introduction & AdministrativeWhat is operationsProcess view of OpsWhat is a good operation?A Strategic Framework for OpsAligning strategy and operations:FocusRelationship between process choice and strategyShouldice HospitalWriston ManufacturingJ.A. Van Mieghem/Operations/Strategy
3 “The planning and execution of work” (JVM 2008) What is Operations?“The planning and execution of work” (JVM 2008)“Creation and delivery of products and services to customers” (JVM 2008)J.A. Van Mieghem/Operations/Strategy
6 The three ‘colors’ of operational excellence “The formal structures, processes and systems through which resources are managed in support of the operating system”“The way assets and resources are configured and optimised to create value and minimise losses”Management InfrastructureOperating SystemMindsets, Capabilities & Behaviors“The way people think, feel and conduct themselves in the workplace, individually and collectively”Source: John DrewJ.A. Van Mieghem/Operations/Strategy
7 What defines a “good process”? Delivered value / Supply chain surplus Delivered value of process =benefit to process customers – total process costBenefit driven by customer valueVariety V(flexibility)Quality Q:of product or outcomeof serviceTime T:Rapid, reliable deliveryNew product developmentPrice p (Cost)J.A. Van Mieghem/Operations/Strategy
12 A Framework for designing an Operations Strategy and Structure What is our strategic position: how do we compete & provide value in the market?What is the value proposition to our customers?Rank (p, T, Q, V)Given our strategic position, what must operations do particularly well?Which competencies must ops develop?Rank (c, T, Q, Flex)Given needed competencies, how should operations processes be structured to develop competencies that support strategy?Process choice (structure) and managementcompetitivestrategyoperationalcompetenciesResources& ProcessesJ.A. Van Mieghem/Operations/Strategy
18 Summary: Introduction & Strategy Module Operations is the process of bringing goods and services to customersProcess view = viewing an organization as a transformation of inputs into outputs through a network of activities and buffers, utilizing resources, IT and mgtA good operation maximizes value or supply chain surplusA strategic framework for operations for increasing the value of operations by aligning the competencies of the operations structure (resources & processes) with corporate strategyAligning strategy and operations can be achieved through:FocusProcess choiceCases:Shouldice HospitalWriston ManufacturingJ.A. Van Mieghem/Operations/Strategy
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