SCM blok 2.2
Hoofdstuk 1
Operations principle:
- all organisations have ‘operations’ that produce some mix of
products and services
- The economic sector of an operation is less important in
determining how it should be managed than its intrinsic
characteristics
Processes are the smaller version of operations. They are the
component parts of operations, so the total operations function is
made up of individual processes
Every manager in all parts of an organisation is, to some extent, an
operations manager, they all should want to give good service to
their customers, and they all will want to do this efficiently
Transformation process model (figure 1.4)
Process inputs
Transformed resource inputs are the resources that are changed in
some way within a process. They are usually materials, information
or customers.
There are two types of transforming resource that form the ‘building
blocks’ of all processes. They are facilities – the buildings,
equipment, plant and process technology of the operation, and
people – who operate, maintain, plan and manage the operation
Process outputs
All processes produce products and services, and although products
and services are different, the distinction can be subtle. Perhaps the
most obvious difference is in their respective tangibility
A process perspective can be used at three levels: the level of the
operation itself, the level of the supply network and the level of
individual processes
Most operations produce a mixture of tangible products and
intangible services
Three important issues to understand about any operation’s supply
network:
- it can be complex. Operations may have a large number of
customers and suppliers who themselves have large numbers
of customers and suppliers
, - Theoretically the boundaries of any operation’s supply chain
can be very wide
- Supply networks are always changing. Not only do operations
sometimes lose customers and win others, or change their
suppliers, they also may acquire operations that once were
their customers or suppliers, or sell parts of their business, so
converting them into customers or suppliers
Because processes are smaller versions of operations, they have
customers and suppliers in the same way as whole operations. Each
process interacts with each other and they function as an internal
customer for other processes.
Whole businesses, and even whole supply networks, can be viewed
as networks of processes.
One way of redefining the boundaries and responsibilities of
processes is to consider the ‘end-to-end’ set of activities that satisfy
defined customer needs.
The strategic importance of operations and process management is
being increasingly recognised. This may be partly because the area
has been neglected in the past, but it also denotes an acceptance
that it can have both short-term and long-term impact.
Impacts that operations and process management can have on the
businesses:
- costs
- revenue
- risks
- effective investment
- build capabilities
All operations should be expected to contribute to their business by
controlling costs, increasing revenue, reducing risks, making
investment more effective and growing long-term capabilities
The way in which processes need to be managed is influenced by:
- Volume
- Variety
- Variation
- Visibility
Operations and processes can reduce their costs by increasing
volume, reducing variety, reducing variation and reducing visibility.
Operations management activities can be grouped into four broad
categories(figure 1.11):
- directing the overall strategy of the operation
, - designing the operation’s products, services and processes
- planning and controlling delivery
- Developing process performance
Hoofdstuk 2
Operations are the resources that create products and services.
Operational is the opposite of strategic, meaning day-to-day and
detailed.
What should an operations strategy do? First, it should articulate a
vision of how the businesses operations and processes can
contribute to its overall strategy. Second, it should translate market
requirements into message that will have some meaning within its
operations. Third, it should identify the broad decisions that will
shape the operation’s capabilities. Finally, it should explain how its
intended market requirements and its strategic operations decisions
are to be reconciled.
All operations have stakeholders. They are the people and groups
who have a legitimate interest in the operation’s strategy.
Operations strategy should articulate a vision for the operations
function contribution to overall strategy.
Vision clear statement of how the operations intend to contribute
value for the business.
A common approach to summarising operations contribution is the
Hayes and Wheelwright Four-stage Model:
1 – Internal neutrality This is the very poorest level of contribution
by the operations function. This function is inward looking and at
best reactive with very little positive to contribute towards
competitive success.
2 – External neutrality The first step of breaking out of stage 1 is
for the operations function to begin comparing itself with similar
companies or organisations in the outside market
3 – Internally supportive The operations may not be better than
their competitors on every aspect of operations performance but
they are broadly up with the best
4 – Externally supportive A stage 4 company is one where the
vision for the operations function is to provide the foundation for
competitive success.
There are five aspects of operations performance, all of which to a
greater or lesser extent will affect customer satisfaction and
business competitiveness:
Hoofdstuk 1
Operations principle:
- all organisations have ‘operations’ that produce some mix of
products and services
- The economic sector of an operation is less important in
determining how it should be managed than its intrinsic
characteristics
Processes are the smaller version of operations. They are the
component parts of operations, so the total operations function is
made up of individual processes
Every manager in all parts of an organisation is, to some extent, an
operations manager, they all should want to give good service to
their customers, and they all will want to do this efficiently
Transformation process model (figure 1.4)
Process inputs
Transformed resource inputs are the resources that are changed in
some way within a process. They are usually materials, information
or customers.
There are two types of transforming resource that form the ‘building
blocks’ of all processes. They are facilities – the buildings,
equipment, plant and process technology of the operation, and
people – who operate, maintain, plan and manage the operation
Process outputs
All processes produce products and services, and although products
and services are different, the distinction can be subtle. Perhaps the
most obvious difference is in their respective tangibility
A process perspective can be used at three levels: the level of the
operation itself, the level of the supply network and the level of
individual processes
Most operations produce a mixture of tangible products and
intangible services
Three important issues to understand about any operation’s supply
network:
- it can be complex. Operations may have a large number of
customers and suppliers who themselves have large numbers
of customers and suppliers
, - Theoretically the boundaries of any operation’s supply chain
can be very wide
- Supply networks are always changing. Not only do operations
sometimes lose customers and win others, or change their
suppliers, they also may acquire operations that once were
their customers or suppliers, or sell parts of their business, so
converting them into customers or suppliers
Because processes are smaller versions of operations, they have
customers and suppliers in the same way as whole operations. Each
process interacts with each other and they function as an internal
customer for other processes.
Whole businesses, and even whole supply networks, can be viewed
as networks of processes.
One way of redefining the boundaries and responsibilities of
processes is to consider the ‘end-to-end’ set of activities that satisfy
defined customer needs.
The strategic importance of operations and process management is
being increasingly recognised. This may be partly because the area
has been neglected in the past, but it also denotes an acceptance
that it can have both short-term and long-term impact.
Impacts that operations and process management can have on the
businesses:
- costs
- revenue
- risks
- effective investment
- build capabilities
All operations should be expected to contribute to their business by
controlling costs, increasing revenue, reducing risks, making
investment more effective and growing long-term capabilities
The way in which processes need to be managed is influenced by:
- Volume
- Variety
- Variation
- Visibility
Operations and processes can reduce their costs by increasing
volume, reducing variety, reducing variation and reducing visibility.
Operations management activities can be grouped into four broad
categories(figure 1.11):
- directing the overall strategy of the operation
, - designing the operation’s products, services and processes
- planning and controlling delivery
- Developing process performance
Hoofdstuk 2
Operations are the resources that create products and services.
Operational is the opposite of strategic, meaning day-to-day and
detailed.
What should an operations strategy do? First, it should articulate a
vision of how the businesses operations and processes can
contribute to its overall strategy. Second, it should translate market
requirements into message that will have some meaning within its
operations. Third, it should identify the broad decisions that will
shape the operation’s capabilities. Finally, it should explain how its
intended market requirements and its strategic operations decisions
are to be reconciled.
All operations have stakeholders. They are the people and groups
who have a legitimate interest in the operation’s strategy.
Operations strategy should articulate a vision for the operations
function contribution to overall strategy.
Vision clear statement of how the operations intend to contribute
value for the business.
A common approach to summarising operations contribution is the
Hayes and Wheelwright Four-stage Model:
1 – Internal neutrality This is the very poorest level of contribution
by the operations function. This function is inward looking and at
best reactive with very little positive to contribute towards
competitive success.
2 – External neutrality The first step of breaking out of stage 1 is
for the operations function to begin comparing itself with similar
companies or organisations in the outside market
3 – Internally supportive The operations may not be better than
their competitors on every aspect of operations performance but
they are broadly up with the best
4 – Externally supportive A stage 4 company is one where the
vision for the operations function is to provide the foundation for
competitive success.
There are five aspects of operations performance, all of which to a
greater or lesser extent will affect customer satisfaction and
business competitiveness:
