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Operations and process innovation, Inputs: Materials Information -…
Operations and process innovation
Innovation in the management of the operations process
Triggers for innovation
2.
Quality circles and process improvement teams
a small group, meet regularly to discuss, share idea, solutions
training in quality control, evaluation techniques
Reflect, exploit
Employees are worth listening
3.
Total quality management (TQM)
Development, maintenance, improvement
Meeting the needs and expectations
covering all the parts
Everyone included
costs related to quality
designing in quality
developing systems and procedures
continuous improvement
All staff to be involved, a continuous cycle
"Knowledge" increase
not a substitute, a passing fad
not support major inno
EX:
4.
Quality function deployment (QFD)
voice of the customer
customer demands
design interactions
Early operations involvement
Remove departmental barriers
Focus on design effort
5.
The ISO
External examiner checks compliance
Customer-focused quality
Measure quality performance
Improvement-driven management
Top management commitment
6.
The EFQM excellence model
Focus on customer, market
results of people, customer, society
and key performance
self-assessment on regular
1.
Gap analysis
understanding between customer, producer/ product,service
difficult, different from each other, change the time
understand, expectations
Supply Chain Management
Ex: Supply chain in oil industry
Supply chain, interdependence, coordination.
Lead time, raw materials, significant.
Points of supplies, points of demand, miles apart
Matching supplies, demand, challenging.
Definition
Supply chain management integrates suppliers, manufacturers, and retailers to ensure efficient product delivery, minimizing costs while meeting service levels.
Traditional Versus Contemporary View
Traditional View
Match supply with demand
Flow of materials and finances
Focus: local, few entities (supplier, manufacturer)
Network: connected entities, managing flow
Contemporary View
Collaboration: partners, create value
Holistic focus: large number of entities
Competitive advantage: entire supply chain
Sharing of competencies and knowledge
Supply Chain and Product Development Chain
Operations Management
is about the control of a conversion process from an
INPUT
to an
OUTPUT
The Input - Process - Output model
Transformation
Process
Outputs:
Goods
Services
Packaged chocolate
ice cream
Mixing,
Freezing, Packaging
Resources
for Processing Input to Output
Resources:
Equipment
Human Expertise
Packaging machines
Information Flows
in Multiple Directions
Customers
Suggestions about
the ice cream’s taste
Suppliers
Environment
Factors
Technology
Regulations
Competitors
Labeling Requirements such as nutritional information, allergen warnings, and ingredient lists.
Task/ Sub - Processes
Transformation Process:
Prepare Ingredients -> Mix ->
Freeze -> Package
Process design and innovation
Product Innovation
Improved products
Product line extensions
New to the world products
New-to-the-firm products
Process innnovation
Degree
Locus
Level
Degree of interdependence
Unilateral
Ameensalism
Product Sequential
Process Sequential
Pooled
Reciprocal
Business Process Re-engineering (BPR)
Definition
Fundamental rethinking and radical redesign of business processes
Aim
Aims for dramatic improvements in cost, quality, service, and speed
Origin
First attributed to Hammer (1990)
Combines
Process flow-charting
Network management
Customer focus
Criticism
Used as a downsizing tool in the 1980s and 1990s
Risk of losing core experience and becoming ‘hollow’
Comparison with Other Approaches:
Tom Peters (1997)
Advocates for total system destruction
Views incrementalism as an enemy of innovation
Current challenges
Difficult, complex task: continuously innovate and improve service
Need to understand and be close to customers
For ex
Christensen (2003): disruptive innovations ignored can lead to failure.
Inputs:
Materials
Information
Milk, cream, sugar, chocolate