Unit 4 IP 2 OS
MGMT647
Welcome
Operations Strategies Chat Overview
- Building Manufacturing Efficiency and Responsiveness
- Building Service Efficiency and Responsiveness
- Knowing your customer
- Meeting customer needs
- Competitive Analysis
- Phase 3 review
Manufacturing Efficiency
Areas of inefficiency
- Inventory
- Wait or Delay
- Scrap, defects or quality issues
- Transportation
- Extra processing
- Overproduction
- Motion
- Under-trained personnel
Manufacturing Efficiency
Corrections for efficiency
- Inventory – _______________________________________________
- Wait or Delay – __________________________________________
- Scrap, defects or quality issues – ______________________
_____________________________________________________________
- Transportation – _________________________________________
- Extra processing – _______________________________________
- Overproduction – _________________________________________
- Motion – __________________________________________________
- Under-trained personnel – _______________________________
Service Efficiency
Areas of inefficiency
- Homegrown procedures
- Inconsistent Communications
- Silos
- Unclear Expectations or Results
- Lack of Capacity
- Shortage of Materials/Supplies
- Rapid Industry Changes
- Unrealized Opportunity
Service Efficiency
Corrections for efficiency
- Homegrown procedures - _________________________________
- Inconsistent Communications - ___________________________
- Silos - _______________________________________________________
- Unclear Expectations or Results - ________________________
- Lack of Capacity - __________________________________________
- Shortage of Materials/Supplies - ___________________
- Rapid Industry Changes - ___________________________________
- Unrealized Opportunity - ____________________________________
Customer Needs
Apple
- Lisa – GUI based system, sold for $10,000, cost over $20,000 to produce, sold around 10,000
Honda
- Insight – 2003, first hybrid to market, to date has only sold 67,128, two-seater design is impractical and unwanted
FedEx
- Aug, 2013. employee sentenced for stealing, company settles overcharge lawsuit for $21.5M
My Own
Understanding Customer Needs
Method
- face-to-face, surveys, polls, questionnaires, and focus groups
Service Level Agreements (SLA)
- expectations: quality, price, delivery, durability, options, service/warranty and others.
Price
- is a factor, must be competitive, not only reason for doing business, not always lowest, must be perceived as sum total of value received
Reputation
is as important a factor in on-going business as any part of SLA
Competitive Analysis
- Competitive Analysis is based on knowing what is RIGHT for your company…
- RIGHT _________
- RIGHT _________
- RIGHT _________
- RIGHT _________
- RIGHT _________
LOW HIGH
CUSTOMER
CAPABILITY