Fashion Operations Management Introduction Neil Towers

Aspects of product and service design Interpretation of Expectations expectations Marketing Product or service Operations Customer design Product Product or service or service specification

A Typology of Operations EXAMPLES EXAMPLES Electricity generator factory Gourmet restaurant Pioneering surgery Taxi service Television plant Fast food restaurant Routine surgery Mass rapid transport VOLUME High Low Bespoke tailor University tutorials Corporate tax advice Department store Off-the-peg suit plant University lectures Financial audits Jeans shop VARIETY High Low Electricity utility Financial audits Emergency service London underground Bread bakery Consultancy advice Shopping mall security Trucking operation VARIATION IN DEMAND High Low Health care "Cook at your table" restaurant Dentist Music teacher Most manufacturing Prepackaged sandwich maker Dental technicians Distance learning High VISIBILITY Low

Operations both Operations Contributes directly to competitiveness Gives the potential for other areas to contribute Technology Marketing Operations

Speed Cost Depend-ability Flexibility Quality Lower prices (or higher profits) Faster customer response Error-free products and services Wider variety More customisation More innovation Cope with volume fluctuations On-time deliveries

Direction, extent and balance of vertical integration Should excess capacity be used to supply other companies? Raw Component Assembly material Wholesaler Retai ler maker operation suppliers Narrow process span Wide process span Up stream Downstream v ertical v ertical integration integration

Total and Immediate Supply Networks “Second tier” Suppliers “First tier” Suppliers “First tier” Customers “Second tier” Customers The Operation Supply side of the network Demand side of the network The Total Supply Network The Immediate Supply Network Internal Supply Networks

The operations function can provide a competitive advantage through its performance at the five competitive objectives Quality Being RIGHT Speed Being FAST Dependability Being ON TIME Competitiveness Flexibility Being ABLE TO CHANGE Cost Being PRODUCTIVE

Volume-variety characteristics Low VOLUME High Low Fixed position layout Process layout Cell layout Product layout VARIETY Low

The location of operations Supply-side Demand-side Operation factors factors Labour costs Labour skills Land costs Suitability of site Energy costs Image Transportation costs Convenience for customers Community factors

Operations strategies have an ethical dimension Product/service design - customer safety, recyclability of materials, energy consumption. Network design - employment implications and environmental impact of location. Layout of facilities - staff safety, disabled customer access. Process technology - staff safety, waste and product disposal, noise pollution, fumes and emissions. Job design - workplace stress, unsocial working hours. Capacity planning and control - employment policies. Inventory planning and control - price manipulation.

Five challenges for operations managers Social responsibility Globalization Social responsibility Environmental responsibility Operations Managers Knowledge management Technology