DECISION MAKING IN OM Chapter 2. 47-

1
DECISION MAKING IN OMChapter 2. 47-

• CORPORATE STRATEGY
• BUSINESS STRATEGY
• COMPETITIVE PRIOROTIES
• OPERATIONS STRATEGY
• OPERATING DECISIONS

2
COMPETITIVE STRAGTEGIES AND OPERATIONS
STRATEGYChapter 2

• Competitive priorities P, Q, A, F 50-
• Planning areas in operations Operations
  Strategy. These were listed in a previous slide.
• Process selection/ Vertical Integration decisions
  
• Technology selection
• Quality planning
• Work force/Human resources planning
• Capacity planning
• Location of facilities
• Layout of facilities
• Supplier Selection

3
PLANNING AREA 1 PRODUCT/SERVICE DESIGNChapter 2
56-

• Information for design QFD 58
• Product developing process 59
• Technical-legal-environmental-ethical review
• Market feasibility
• Financial feasibility
• Manufacturabilty
• Service design
• Service package 58

4
Planning Area 2 Process Selection -Chapter 4

• Process Types/Choice 129-
• Job, batch, line and continuous
• Job/batch process v. Line process
• Volume and variety
• Product-Process matrix 129

5
PROCESS SELECTION

• Process determines other dimensions
• Line flow
  Flexible flow
• Volume High Low
• Variation
• Resource flexibility 134
• Cap.intensity/Automation
• 136
• Vertical Integration
• Customer Involvement 133

6
PROCESS SELECTION

• Additional Concepts
• Fixed v. Flexible automation
• Modern technologies CAD, CAM, Robotics, FMS
• Economies of scope 138
• Process re-engineering 141
• Process analysis and improvement 142 and chapter
  5
• Systematic approach 153 Six sigma approach 233
• Documenting the process 155

7
PROCESS SELECTION

• Measurement and analysis tools 161-
• Benchmarking 171
• Simulation 168
• Process choice in services 122
• Customer contact 122
• Process complexity 125
• Degree of customization (divergence) 125
• Emphasis on front office/back office
• Customer contact matrix for service processes 125

8
Planning Area 3 Quality Planning Chapter 6

• Evolution of Quality Management
• Inspection based quality control (QC)
• Statistical Quality Control (SQC)
• Inspection alone does not improve quality
• Quality must be managed P, O, D/L, C
• Quality improvement is a long term strategy
• QI is a company-wide effort
• Customer focus and supplier involvement
• TQM continuous improvement 209
• Deming and Juran
• Malcolm Baldrige Award 236
• ISO 9000 certification 234

9
USING QUALITY AS A COMPETITIVE WEAPON

• Improved quality could increases market share
• .. and fetch higher prices
• .and reduce costs
• The result is higher profits.

10
WHY WOULD COSTS DECREASE WHEN QUALITY IS IMPROVED
?

• Costs of poor quality 207
• Prevention costs 207
• Appraisal costs 207
• Internal failure costs 207
• External failure costs 207
• Short term effects
• Long term effects

11
QUALITY PLANNING

• Customer perception of quality 209
• Conformance to specifications
• Value
• Fitness for use
• Aesthetics
• Durability
• Reliability

12
QUALITY PLANNING

• Definition of Value meeting or exceeding
  customer expectations
• customer expectations
• management understanding
• design of products/services, processes
• delivery to customer
• customer perception
• Customer satisfaction

13
QUALITY PLANNING

• Elements of TQM
• Leadership (B1)
• Vision, cultural change
• Commitment, Involvement
• Strategic planning (B2)
• Employee Involvement (B3) 210
• Participation
• Teams and teamwork 210 Types of teams
• Job design enlargement, enrichment, rotation
• Empowerment

14
QUALITY PLANNING

• Elements of TQM
• Customer Focus (B4)
• Activities in customer focus
• Process management (B5)
• Measurement and Reporting (B6 and 7)
• Statistical Quality Control 213
• Variation in output 213
• Control charts attributes 224 variables
  220
• Acceptance sampling. Sampling plan and size 215
• Process capability 227