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1. Operations Management Session 2

2. Exploring Operations Management Functions and Decisions: The Faltering Factory Case

3. Call Order (Randomized Serial No.)

4. Operations Management: Introductory Concepts contd. Text Chapter 1 & 2

5. Why Understand (Operations)? Making functional (Operations) decisions with management/ business point of view Incorporating functional (Operations) perspectives in management thinking Appreciating complexities and intra- & cross-functional linkages Almost every organisation has Operations, whether formally called that or not.

6. Which profile type?

7. Consulting Services Profile % of world revenues of 40 largest firms Marketing/sales 2 Operations and process management 31 Corporate strategy 17 IT strategy 17 Benefits 16 Organizational design 11 Financial 6 Source: Slack & Lewis, authors of Operations Strategy textbook

8. Operations Strategy Basics “The creation , and effective use, of Operations capabilities for achieving organizational goals.”

9. Operations’ Strategic Role in the Organization Output Cost Quality Delivery Flexibility Sustainability } } Competitive } Priorities: } Qualifying vs. } Order Winning }

10. Strategic Trade-Offs in Operations Cutting costs by picking cheapest vendor may affect quality Offering greater variety and customization may increase response time Cost Quality Delivery Flexibility

11. An Operations “Trilemma”

12. Competing Through Operations: Attacking Some examples: Apple, Wal-mart , Southwest Airlines (!), Hitachi-Seiki (Mechatronics), Amazon, Reliance Capabilities: be(com) ing better at the game Developing integrated systems of technologies & skills Positioning: appealing to a different need or priority Seek advantage along dimensions under-emphasized by competitors

13. Competing Through Operations: Defending and/or Counter-Attacking Some examples: HUL vs. Nirma , American Connector vs. DJC (Japanese) entry into US market Recognize attack quickly and emulate strategy, before attacker gets too far ahead, or develops unique capabilities Identify and attack weaknesses in attacker’s systems Exploit internal Operations strengths to (re)group and react

14. Operations Evolution Societal evolution: Pre-Industrial – Industrial – Post-Industrial Epochs in Operations Management: Industrial Revolution Taylor System Ford System Toyota System TQM/ BPR/ SCM etc. etc. Computers & OR Craft System Also refer Text Table 1.5

15. Operations Interfaces Public Relations Accounting Industrial Engineering Operations Maintenance Personnel/ HR Purchasing Distribution MIS Legal Modified from Text Figure 1.7