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IENG 451 Planning Functions. Responsiveness Customer Satisfaction Cost + Quality +Dependability + Flexibility + Time + Service 6 Dimensions of Competition.

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Presentation on theme: "IENG 451 Planning Functions. Responsiveness Customer Satisfaction Cost + Quality +Dependability + Flexibility + Time + Service 6 Dimensions of Competition."— Presentation transcript:

1 IENG 451 Planning Functions

2 Responsiveness Customer Satisfaction Cost + Quality +Dependability + Flexibility + Time + Service 6 Dimensions of Competition Structural Prerequisites Continuous + R&D + Advanced Tech. + Integration Improvements People & Systems Customer Driven Strategy

3 Planning Functions Operational – How do we manage day to day Financial – How do we allocate resources Project – How do we achieve a specific goal Strategic – What do we want to be when we grow up

4 Problems Unrealistic goals Goals are arbitrary Inadequate focus Planned activities are not regularly reviewed Data is over analyzed Lack of communication; vertical and/or horizontal

5 Mission & Strategy Def: The corporate mission outlines a firm’s values, intended markets and product, broad goals and objectives, core competencies, and strategic capabilities. Def: The corporate strategy states how a firm will achieve its goals and objectives

6 What is Strategy? Distinguishing strategy from tactics: – Strategy is the overall plan for deploying resources to establish a favorable position. – Tactic is a scheme for a specific maneuver. Characteristics of strategic decisions: – Important. – Involve a significant commitment of resources. – Not easily reversible.

7 Effectiveness and Efficiency Leaders Doing Right Things IneffectiveEffective Inefficient Efficient Managers Doing Things Right Death (fast) Success Death (slow) Survival

8 Managing Complex Change ConfusionSkillsIncentivesResourcesAction Plan Change VisionIncentivesResourcesAction Plan VisionSkillsIncentivesResourcesAction Plan VisionSkillsResourcesAction Plan VisionSkillsIncentivesAction Plan VisionSkillsIncentives Resources Anxiety Gradual Change Frustration False Starts

9 Strategic Process Mission & Strategic Goals Competitive Analysis * Strengths * Weakness * Opportun * Threats Specific Strategies * Corporate * Business * Functional Carry Out Strategic Plans Maintain Strategic Control Assess Environmental Factors Assess Organizational Factors Strategy FormulationStrategy Implementation

10 One of the Tools Competitive Analysis SWOT – Strengths – Weaknesses – Opportunities – Threats

11 Macroprocesses Juran – anatomy of macroprocess does not match that of the functional organization – Functional goals often at a heavy price of macroprocess – There should be a clear responsibility for macroprocess Inspect Customer

12 Forced Choice Model Organization Position Mission Objectives Strengths, Weaknesses Forecast Operational needs Major Future Programs Environmental Assessment Economic Environment Key regulatory issues Major technology forces Opportunities, threats Competitor strategies Strategic Options Action Plans Contingency Plans

13 Hoshin Kanri or Policy Deployment The Company develops a 3 - 5 year plan The Senior Executives develop the current years objectives. Catchball occurs – The process is interactive – Teams report up – Management delivers feedback

14 Hoshin Planning

15 Elements of Hoshin Planning Plan-do-check-act Nemawashi Catchball Control department A3 thinking

16 Elements of Hoshin Planning Plan-do-check-act – Macro, 3-5 yrs, senior management – Annual, operating managers Nemawashi Catchball Control department A3 thinking

17 Elements of Hoshin Planning Plan-do-check-act Nemawashi – Process of consensus building that creates alignment – Stakeholders; management, workers, customers Catchball Control department A3 thinking

18 Elements of Hoshin Planning Plan-do-check-act Nemawashi Catchball – Company develop a vision and toss to senior mgmt – Sr. mgmt translate vision to hoshins and toss back – Give and take until consensus is reached Control department A3 thinking

19 Elements of Hoshin Planning Plan-do-check-act Nemawashi Catchball Control department – Breakdown functional silos – Control dept., quality, would coordinate cross- functional activities A3 thinking

20 Elements of Hoshin Planning Plan-do-check-act Nemawashi Catchball Control department A3 thinking – One page story communication tool – Hoshin planning A3 – Problem Solving A3 – Proposal A3 – Current Status A3

21 4 phases of Hoshin Planning Hoshin generation Hoshin deployment Hoshin implementation Final evaluation

22 4 phases of Hoshin Planning Hoshin generation – Eg; we will reduce defect rates by 20% Hoshin deployment Hoshin implementation Final evaluation

23 4 phases of Hoshin Planning Hoshin generation – Eg; we will reduce defect rates by 20% Hoshin deployment – Here’s how we can achieve this goal Hoshin implementation Final evaluation

24 4 phases of Hoshin Planning Hoshin generation – Eg; we will reduce defect rates by 20% Hoshin deployment – Here’s how we can achieve this goal Hoshin implementation – Activities required to implement hoshin; e.g.; defect data collection, analysis Final evaluation

25 4 phases of Hoshin Planning Hoshin generation – Eg; we will reduce defect rates by 20% Hoshin deployment – Here’s how we can achieve this goal Hoshin implementation – Activities required to implement hoshin; e.g.; defect data collection, analysis Final evaluation – Year end assessment of each hoshin

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