History of Operations Management Industrial Revolution Scientific Management Human Relations Management Science Quality Revolution Information Age Globalization.

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Presentation transcript:

History of Operations Management Industrial Revolution Scientific Management Human Relations Management Science Quality Revolution Information Age Globalization

Operations Strategy

Strategic Importance of Operations Competing on Cost Competing on Quality Competing on Flexibility Competing on Speed

Competing on Cost Elimination of all waste Improve yield Tighten productivity standards Invest in automation Example: Southwest Airlines

Competing on Quality Quality in defense: Minimize defect rate Conform to design specifications Opportunity to please the customer Understand attitudes towards and expectations of quality Example: Ritz-Carlton Hotel

Competing on Flexibility Marketing wants variety for customers Manufacturing wants stability and efficiency of a production system Ability to produce variety of products Introduce new products Modify existing products Respond quickly to customer needs Example: Custom Foot

Products and Services Make-to-order Made to customer specs Wedding invitations Make-to-stock Made to “standard” customers Books, TVs, apparel Assemble-to-order Standard modules are added to customer spec Computer systems

Processes and Technology Project Aircraft carrier Batch production printers Mass production automobiles Continuous production gasoline

Other Areas of Interest Capacity and Facilities Human Resources Quality Sourcing Operating Systems

Competing on Speed Fast moves Fast adaptations Tight linkages with suppliers Change is embraced and risk-taking encouraged Examples: McDonalds, LensCrafters, FedEX, L.L. Bean shipping, Citicorp mortgages, HP testing equipment, Saks Fith Ave tailor-made suits

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