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Project Management 3e. - Gray and Larson

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Production Planning and Control STRATEGY and COMPETITION 1 BMFP 4513 Haeryip Sihombing Universiti Teknikal Malaysia Melaka (UTeM) Topic Areas of PPC Course Functional ... – PowerPoint PPT presentation

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Title: Project Management 3e. - Gray and Larson


1
(No Transcript)
2
Topic Areas of PPC Course
  • Aggregate Planning
  • Scheduling
  • Supply Chain
  • Simulation
  • Lean Six Sigma
  • Management of Information System
  • Prerequisite topics
  • Forecasting

3
Functional Areas of the Firm
4
What is Strategy ?
  • Strategy is a common vision that unites an
    organization, provides consistency in decisions,
    and keeps the organization moving in the right
    direction

5
Time Horizons for Strategic Decisions
  • 1. Long Term Decisions ( gt year) ? Strategic
    decision
  • Locating and Sizing New Facilities
  • Finding New Markets for Products
  • Mission Statement meeting quality objectives
  • 2. Intermediate Term Decisions (weeks or month)
  • Forecasting Product Demand
  • Determining Manpower Needs
  • Setting Channels of Distribution
  • Equipment Purchases and Maintenance
  • 3. Short Term Decisions (hours or days) ?
    Tactical decision
  • Purchasing
  • Shift Scheduling and Maintenance
  • Inventory Control

6
The Elements of Strategy
7
Decision Horizons of Manufacturing Strategy
8
History of Production and OM
  • Major Thrust of the Industrial Revolution
    1850-1890
  • Factories tended to be small. Boss had total
    control. Little regard for workers safety or
    workers rights.
  • Production Manager Position. 1890-1920.
  • Frederick Taylor champions the idea of
    scientific management.
  • As complexity grows specializations take hold.
  • Inventory Control Manager
  • Purchasing Manager
  • Scheduling Supervisor
  • Quality Control Manager etc.

9
GLOBALIZATION COMPETITION
  • Global competition is heating up to an
    unprecedented degree. It appears that several
    factors favor the success of some industries in
    some countries
  • For example
  • Germany printing presses, luxury cars, chemicals
  • Switzerland pharmaceuticals, chocolate
  • Sweden heavy trucks, mining equipment
  • United States personal computers, software,
    entertainment
  • Japan automobiles, consumer electronics

10
Porters Thesis
  • Famed management guru, Michael Porter, has
    developed a theory to explain the determinants of
    national competitive advantage. These include
  • Factor Conditions
  • (Land, Labor,Capital, etc.)
  • Demand Conditions
  • (local marketplace may be more
    sophisticated/demanding than world marketplace)
  • Related and Supporting Industries
  • Firm Strategy, structure, rivalry
  • (e.g. Germans are strong technically, Italian
    family structure, Japanese management methods)

11
Time-Based Competition
Time-based competitors focus on the bigger
picture, on the entire value-delivery system.
They attempt to transform an entire organization
into one focused on the total time required to
deliver a product or service. Their goal is not
to devise the best way to perform a task, but to
either eliminate the task altogether or perform
it in parallel with other talks so that over-all
system response time is reduced. Becoming a
time-based competitor requires making
revolutionary changes in the ways that processes
are organized (Blackburn(1991). Being not
only the first to market but the first to volume
production as well gives a firm a decided
advantage.
12
How Do Firms Differentiate Themselves from
Competitors?
  • Low Cost Leaders Some examples include
  • WalMart and Costco in Retailing
  • Korean automakers (Hyundai, Kia, etc.)
  • e machines personal computers
  • High Quality (and price) Leaders. Ex
  • Mercedes Benz automobiles
  • Rolex Watches
  • (some firms do both Chevrolet and Cadillac)

13
Understand TradeoffsExample Made-to-Order Pizza
14
Some Dimensions of Competition
  • Re-engineering of the Business Process
  • Streamlining process
  • JIT Deliveries
  • Cutting waste
  • Time-based competition
  • Shortening time to delivery
  • Competing on Quality

15
Business Process Re-engineering
  • The process of taking a cold hard look at the way
    that things are done. Term coined by Hammer and
    Champy in their 1993 book.
  • Classic Example IBM Credit Corporation. The
    process had been broken down to a series of
    multiple steps, each having substantial delays.
    Approval required from 6 days to 2 weeks. The
    process was re-engineered so that a single
    specialist would handle a request from beginning
    to end. The result was that turnaround time was
    slashed to an average of 4 hours!

16
Just-In-Time
JIT is a production control system that grew
out of Toyotas kanban system. It is a philosophy
of production control (also know as lean
production) that attempts to reduce inventories
to an absolute minimum. It has become pretty much
a standard way of thinking in many industries
(especially the automobile.) We will discuss
JIT and its relationship to MRP in next session
course.
17
The Product Life-Cycle Curve
18
The Product/Process Matrix
19
So you have an idea what others do and you have
a business idea
20
OPERATION AS A SYSTEM
21
DECISION MAKING
22
A Framework for Manufacturing Strategy
23
PRODUCTION SYSTEM
24
CAPACITY
  • Level of capacity
  • Size of capacity changes
  • Handling excess demand
  • Hiring/firing workers
  • Need for new facilities

25
FACILITIES
  • Best size for facility
  • Large or small facilities
  • Facility focus
  • Facility location

26
HUMAN RESOURCES
  • Skill levels required
  • Degree of autonomy
  • Policies
  • Profit sharing
  • Individual or team work
  • Type of supervision
  • Levels of management
  • Training

27
QUALITY
  • Target level
  • Measurement
  • Employee involvement
  • Training
  • Systems needed to ensure quality
  • Maintaining quality awareness
  • Evaluating quality efforts
  • Determining customer perceptions

28
SOURCING
  • Degree of vertical integration
  • Supplier selection
  • Supplier relationship
  • Supplier quality
  • Supplier cooperation

29
OPERATIONS PRIORITIES
  • Cost
  • Quality
  • Delivery Flexibility
  • Delivery Speed
  • Delivery Reliability
  • Coping with Changes in Demand
  • Flexibility and New Product Introduction Speed

30
The TRANSFORMATION PROCESS
31
MANAGEMENT IN e-BUSINESS
32
TYPES OF B2B TRANSACTIONS
33
GLOBALIZED THE BUSINESS
34
COMPETITION
35
STRATEGIC DECISIONS IN OPERATIONS
36
Example WAL-MART
37
Product Vs. Process Vs. Technology
38
Matrix
39
ISSUES and TRENDS
40
The END
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