Per AGRELL agrell@poms.ucl.ac.be Lecture 1 ESPO/IAG/POMS PROD 2800 PRODUCTION AND OPERATIONS MANAGEMENT Gestion de la production et des opérations Per.

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Presentation transcript:

Per AGRELL agrell@poms.ucl.ac.be Lecture 1 ESPO/IAG/POMS PROD 2800 PRODUCTION AND OPERATIONS MANAGEMENT Gestion de la production et des opérations Per AGRELL agrell@poms.ucl.ac.be Lecture 1

Outline Presentation What is OM? Processes and products Instructor Course outline Grouping What is OM? Processes and products Manufacturing Strategy PROD 2800

Course outline Operations Strategy L 2 E 2 Competition, positioning, strategic trade-offs Product and Process Design L 6 E 2 Process analysis, project design, quality Planning and Control Methodology L 12 E 6 Long-range, medium-range and short-range planning Supply Chain Design L 6 E 4 Inter-firm coordination, theory of constraints, chain design PROD 2800

Learning methods Text book Lectures 26 h Exercise sessions 14 h On-line material Readings Assignments Exercise sessions 14 h Cases Case Summary Case Presentation Case Report www.poms.ucl.ac.be PROD 2800

What is operations management? Production (transformation) system Physical Locational Exchange Storage Physiological Informational System design, operation, improvement Systematic analysis of organizational processes Services and goods PROD 2800

Core services Basic service dimensions operations management COST FLEXIBILITY DELIVERY QUALITY Basic service dimensions PROD 2800

Value-added services Differentiating service dimensions operations CONSULTANCY operations management INFORMATION SALES SUPPORT FIELD SUPPORT Differentiating service dimensions PROD 2800

Operations strategy 1. Business objectives 2. Market strategy 3. How are orders won on the market? 4. Choice of technology 5. Infrastructure PROD 2800

Order qualifiers and order winners Qualifies the firm as a potential vendor Order winners Successfully differentiates the firm for competitors PROD 2800

Competitive dimensions Price Quality Conformance Delivery Speed Reliability Flexibility Volume flexibility Product flexibility Mix flexibility Design Value-added services PROD 2800

Manufacturing strategy 1. Market segmentation in product groups 2. Market assessment per group 3. Find Qualifiers and Winners for each group. 4. Translate Winners into process requirements. PROD 2800

Process dimensions Process Requirements Core Capabilities Process Type Order Regime Core Capabilities PROD 2800

Process flow classification Project Jobbing Batch Line Continuous processing PROD 2800

Production order regimes Design to order (DTO) Specific design and manufacture for all customers Engineer to order (ETO) Changes to standard products are offered and produced Make to order (MTO) Production of standard product on receipt of order/call-off Assemble to order (ATO) Components MTS. Assembly made on receipt of order. Make to stock (MTS) Production to forecast. Order met from inventory. PROD 2800

Product-process matrix Few Major Products, Higher Volume High Volume, Standard- ization Low Volume, One of a Kind Multiple Products, Low Volume I. Job Shop Flexibility (High) Unit Cost (High) Le Prof II. Batch cafe III. Assembly Line Le Sablon IV. Continuous Flow Sugar Refinery Flexibility (Low) Unit Cost (Low) PROD 2800

Process positioning Horizontal Integration Vertical Integration Vendors Joint ventures Vertical Integration The Virtual Enterprise? PROD 2800

Implications of process choice Products and Markets Type of product Product range Customer order size Rate of product introductions Order winners? Order qualifiers? Manufacturing Nature of process technology Focus Investment and Cost Level of capital investment Level of inventory Level of WIP Cost drivers Infrastructure Organizational control Organizational style Required support expertise PROD 2800

Strategic fit Commitment Communication Credibility Coherence Focused manufacturing PWP PROD 2800

Examples Sports car market Competition European, road-use, private Porsche Ferrari Jensen Honda etc. PROD 2800

OM challenges Bundling Value-added focus Ex: Automotive Yesterday Today Tomorrow Car Car + maint. Transport. Maintenance PROD 2800

Recapitulation Definition of OM Manufacturing strategy (Hill) OQ, OW, process choice, implications Product-Process Matrix (Hayes-Wheelwright) Strategic fit (Skinner) Focus, PWP Service operations strategy Bundling, integration, disintermediation PROD 2800