Summary Operations Management chapter 1-18

Chapter 1
Pure products  output tangible
Mixture product/service  tangible/intangible
Pure services  output intangible

Relationships
Operations  understanding of capabilities  development  new product ideas 
operations.
Operations  understanding of capabilities  marketing  market requirements 
operations.

Model applied to Pret a manger:
Input resources  …  served/ satisfied customers
Transformed resources
 Ingredients
 Packaging
 Customers
Transforming resources
 Equipment
 Fittings
 Staff
 outputs are products/services that add value for the customer

Operations management = activity of managing the resources which are devoted to the
production and delivery of products and services.

Analysis on 3 levels:
 Level of supply network  between operations
 Level of operation  between processes
 Level of process  between resources

4V-model
Low  Volume  high
High  Variety  low
High  Variation demand  low
High  Visibility  low

Volume
Low High
 Less systemization Specialization
 High unit costs capital intensive

Variety
High Low
 Flexible well defined
 Complex routine/ standardized

,Variation in demand
High Low
 Anticipation stable
 Changing capacity predictable

Visibility
High Low
 Customer contact high staff utilization
 Short waiting tolerance time between production and consumption


Chapter 2
Operations performance  QSFDC
 Quality
 Speed
 Flexibility
 Dependability
 Cost

Triple Bottom line  People planet profit

Quality = conformance with which the product or service is produced
External benefit  avoids customer complaints
Internal benefit  prevents errors, saving costs

Speed
External = time between customer asking and getting a product
Internal = reduces need to manage transformed resources as they pass through the
operation

Dependability
External = enhances product/service in the market
Internal = prevents late delivery, prevents disruption

Flexibility = ability to change
 Product/service flexibility
 Mix flexibility
 Volume flexibility
 Delivery flexibility

Costs = staff, materials and technology
Polar diagrams  shows the importance
of each performance.

, Chapter 3
Strategy
 Broad objectives towards overall goal
 Planning the path
 Long-term objectives
 Total picture (not individual)

Operations
 Processes in relation to delivery
 Operationeel vs strategisch (dag-tot-dag)
 Beide horen tot operations

Operations strategy = long-term broad objectives of operations and planning a path to
achieve goals

Rollen van operations in een strategie
 Implementing strategy
 Supporting strategy
 Driving strategy

4 stage model
Correct worst problems  implementing strategy 
adopt best practice  supporting strategy  link
strategy operations  driving strategy  operations
advantage.

4 perspectives on operations strategy
 Corporate (top down)
 Business (top down)
 Operational experience (bottom up)
 Market requirements


Order qualifier = klant kiest jou op je kwaliteiten
Order winner = waarom de klant jou uiteindelijk kiest boven andere producten/services




Operations resources are a sustainable competitive advantage when:
 Valuable
 Rare
 Difficult to imitate
 Difficult to substitute