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5.2 - Coggle Diagram
5.2
Managing Finite Resources
How will resources be utilised to meet the needs of the customer?
Whether it is a transformed or transforming resource, the job of the operation manager is to ensure the resources are used effectively.
Strategic, tactical and operational decisions are about how these resources will be deployed
Strategic decisions
are related to the long-term deployment of transforming resources
Tactical decisions
are related to how to bring the resources together and when (expected future demands)
Operational decisions
are concerned with (current demands)
The
Triage System
(Decision Aid)
Facilitates decision-making for operations amangers
A system to prioritise the finite resources based on the category (and classification) according to business priorities
Yellow
Delayed Priority
Green
Minor Priority
Red
Immediate Priority
White
Non-Priority
Black
Expectant (unlikely to survive)
Triage has been applied to:
Increasing profitability (Docters, 1996)
Business restructure and redesign (Mansar & Reijers, 2005)
Product Design (Davis, 2003)
Software Engineering (Dune et al., 2009)
Ensure that available resources are allocated effectively
How Triage works:
Evaluate resources required to deliver each option
Select the most appropriate option based on priority and resources required
Establish relative priorities to different options
Organisational Trade-offs
Senior leaders are unaware of operational processes and the trade-offs that these create
(Skinner, 1969)
If operational processes are not understood and reflected in strategy, operational performance is reduced.
(Skinner, 1969)
Manufacturing and thus operations is the source of Competitive advantage
Quality of Decision making
Competitive advantage comes from better strategic decision making
(Blenko et al., 2010)
Unintended Consequences of Decision making
(Conflicting Priorities)