Produktion som kärnkompetens Johann Packendorff, INDEK

Innehåll 1.Produktionssystemet som källa till konkurrensfördelar för ett företag 2.En närmare titt på de fem grundtyperna av konkurrensfördelar 3.Produktionsstrategi

1. Produktionen är – rätt organiserad – en källa till konkurrenskraft och överlevnad för företaget!

The strategic role of operations can be defined by its aspirations (Hayes and Wheelwright) Give an Operations Advantage Externally supportive Internally supportive Externally neutral Internally neutral The ability to Implement Link Strategy With Operations Adopt best Practice Correct the Worst Problems Increasing contribution of operations STAGE 1STAGE 2STAGE 3STAGE 4 The ability to Drive strategy Stop holding the organization back Be as good as competitors Be clearly the best in the industry Redefine the industry’s expectations The ability to support Strategy

How can the contributionof the operations function be assessed? Externally Objective is to minimize the negative impact of ‘operations’. Internally Neutral Supportive Stage 1 Stage 2Stage 4 Stage 3 Objective is for ‘operations’ to help the business maintain parity with its competitors. Objective is for ‘operations’ to provide credible support for the business strategy. Objective is for ‘operations’ to provide a source of competitive advantage.

Broad strategic objectives for an operation applied to stakeholder groups Society l Increase employment l Enhance community well-being l Produce sustainable products l Ensure clean environment Suppliers l Continue business l Develop supplier capability l Provide transparent information Shareholders l Economic value from investment l Ethical value from investment Employees l Continues employment l Fair pay l Good working conditions l Personal development Customers l Appropriate product or service specification l Consistent quality l Fast delivery l Dependable delivery l Acceptable price

An operation contributes to business strategy by achieving five "Performance Objectives" CHANGING what you do a FLEXIBILITY advantage Gives Doing things CHEAPLY a COST advantage Gives Doing things ON TIME a DEPENDABILITY advantage Gives Doing things FAST a SPEED advantage Gives Doing things RIGHT a QUALITY advantage Gives

The benefits of excelling Minimum cost, maximum value Reliable operation Ability to change Error-free processes Fast throughput Cost Speed Quality Flexibility Depend- ability Minimum price, highest value Quick delivery Dependable delivery Error-free products and services Frequent new products, maximum choice

2. De strategiska konkurrensfördelarna Kvalitet Hastighet Tillförlitlighet Flexibilitet Kostnadseffektivitet

Kvalitet

Quality means different things in different operations Hospital Patients receive the most appropriate treatment Treatment is carried out in the correct manner Patients are consulted and kept informed Staff are courteous, friendly and helpful Bus company The buses are clean and tidy The buses are quiet and fume-free The timetable is accurate and user-friendly Staff are courteous, friendly and helpful Automobile plant All assembly is to specification The product is reliable All parts are made to specification The product is attractive and blemish-free Supermarket The store is clean and tidy Décor is appropriate and attractive Goods are in good condition Staff are courteous, friendly and helpful

Quality “Quality” has several meanings, the two most common are…… Quality as the specification of a product or service Eg. Lower Hurst Farm produces organic meat raised exclusively on its own farm Quality as the conformance with which the product or service is produced Eg. Quick service restaurants like McDonald’s buy less expensive meat

Quality Irrespective of a product or service’s specification quality, producing it so it conforms to its specification consistently brings benefits to any operation Externally -- it enhances the product or service in the market, or at least avoids customer complaints Internally -- it brings other benefits to the operation It prevents errors slowing down throughput speed It prevents errors causing internal unreliability and low dependability It prevents errors causing wasted time and effort, therefore saving cost

QualityFlexibility Depend- ability Speed Cost On-specification products and services Quality External and internal benefits

Hastighet

Speed means different things in different operations Hospital The time between requiring treatment and receiving treatment kept to a minimum The time for test results, X-rays, etc. to be returned kept to a minimum Bus company The time between customer setting out on the journey and reaching his or her destination kept to a minimum Automobile plant Minimizing the time between dealers requesting a vehicle of a particular specification and receiving it Minimizing the time to deliver spares to service centres Supermarket Minimizing the time for the total transaction of going to the supermarket, making the purchases and returning The immediate availability of goods

Speed again has different interpretations externally and internally Externally – it means the elapsed time between a customer asking for a product or service and getting it (in a satisfactory condition) It often enhances the value of the product or service to customers Internally -- it brings other benefits to the operation It helps to overcome internal problems by maintaining dependability It reduces the need to manage transformed resources as they pass through the operation, therefore saving cost

QualityFlexibility Depend- ability Speed Cost On-specification products and services Short delivery lead-time Speed External and internal benefits

Tillförlitlighet

Dependability means different things in different operations Hospital Proportion of appointments which are cancelled kept to a minimum Keeping appointment times Test results, X-rays, etc. returned as promised Bus company Keeping to the published timetable at all points on the route Constant availability of seats for passenger s Automobile plant On-time delivery of vehicles to dealers On-time delivery of spares to service centres Supermarket Predictability of opening hours Proportion of goods out of stock kept to a minimum Keeping to reasonable queuing times Constant availability of parking

Externally -- it enhances the product or service in the market, or at least avoids customer complaints Internally -- it brings other benefits to the operation It prevents late delivery slowing down throughput speed It prevents lateness causing disruption and wasted time and effort, therefore saving cost Dependability

QualityFlexibility Depend- ability Speed Cost On-specification products and services Short delivery lead-time Reliable delivery Dependability External and internal benefits

Flexibilitet

Flexibility has several distinct meanings but is always associated with an operation’s ability to change Change what ? The products and services it brings to the market – Product/service flexibility The mix of products and services it produces at any one time – Mix flexibility The volume of products and services it produces – Volume flexibility The delivery time of its products and services – Delivery flexibility

Flexibility means different things in different operations Hospital Introducing new treatments A wide range of treatments The ability to adjust the number of patients treated The ability to reschedule appointments Bus company The introduction of new routes and excursions A large number of locations served The ability to adjust the frequency of services The ability to reschedule trips Automobile plant The introduction of new models A wide range of options The ability to adjust the number of vehicles manufactured The ability to reschedule manufacturing priorities Supermarket The introduction of new goods A wide range of goods stocked The ability to adjust the number of customers served The ability to get out-of-stock items

QualityFlexibility Depend- ability Speed Cost Frequent new products/services Wide range Volume and delivery changes On-specification products and services Short delivery lead-time Reliable delivery Flexibility External and internal benefits

Kostnadseffektivitet

Cost means different things in different operations Hospital Bus company Automobile plant Supermarket Staff costs Technology and facilities costs Bought-in materials and services Technology and facilities costs Staff costs Technology and facilities costs Bought-in materials and services

Cost The cost of producing products and services is obviously influenced by many factors such as input costs, but two important sets are….. The 4 V’s volume variety variation visibility The internal performance of the operation at quality speed dependability flexibility

QualityFlexibility Depend- ability Speed Cost Frequent new products/services Wide range Volume and delivery changes On-specification products and services Short delivery lead-time Reliable delivery Cost External and internal benefits

Vilken/vilka parametrar är viktigast?

Polar diagrams for a taxi service versus a bus service Cost Quality Flexibility DependabilitySpeed Taxi service Bus service

Reassurance Crime reduction Crime detection Working with criminal justice agencies Efficiency Actual performance Required performance Polar diagrams on actual and required performance for a proposed police work method

3. Produktionsstrategi

Operations strategy is ….. “… the decisions which shape the long- term capabilities of the company’s operations and their contribution to overall strategy through the on-going reconciliation of market requirements and operations resources …”

What you HAVE in terms of operations capabilities What you NEED to “compete” in the market Market Requirements Operations Resources What you WANT from your operations to help you “compete” What you DO to maintain your capabilities and satisfy markets Strategic Reconciliation

Operations strategy is different from operations management Micro level of the process Macro level of the total operation Level of analysis Time scale Short-term for example, capacity decisions 1-12 months Demand 1-10 years Demand Long-term for example, capacity decisions Level of aggregation Detailed For example “Can we give tax services to the small business market in Antwerp?” Aggregated For example “What is our overall business advice capability compared with other capabilities?” Level of abstraction Concrete For example “How do we improve our purchasing procedures?” Philosophical For example “Should we develop strategic alliances with suppliers?” Operations managementOperations strategy

How is operations strategy different from operations management Operations ManagementOperations Strategy Job design Capacity management Planning & Control Inventory control Quality control Process technology strategy Human resource strategy Capacity location, planning and dynamics Organization and systems development Supply network strategy Performance and improvement strategy Process design Layout Technology JIT MRP Product/service design Product/service innovation

Operations strategy Top - down Perspective What the business wants operations to do Market requirement Perspective What the market position requires operations to do Operations resources Perspective What operations resources can do What day-to-day experience suggests operations should do Bottom - up Perspective The four perspectives on operations strategy

Top-down and bottom-up perspectives of strategy Emergent sense of what the strategy should be Operational experience Corporate strategy Business strategy Operations strategy

The challenge of operations strategy formulation An operations strategy should be: Appropriate... Comprehensive... Coherent... Consistent over time...