Competing with operations

Competing with operations

1. Operation management is the design of processes that transform intputs into services and productis for iternal and external customers

   • Process: the activity that transform inputs and provides outputs for the customers
     • Supply Chain: interrelated series of processes that produce a service or a product to satisfy customer
       • Supply chain management: syncronize processes with suppliers and customers to match the flow
       • Core processes: set of activities that deliver value to external consumers
         • Supplier relationship process: process that select the suplier of service, material or info
         • New service product/ product development process: process that design new services or products from inputs from external customers
         • Order fulfillment process: process that includes the activities to produce and deliver a service to external customer
         • Customer relationship process: identifies and built relationships with external customers
       • Support processes: provides resources and inputs to the core processes
       • Operations strategy: operation implements corporate strategy and help to built a customer
       • Corporate strategy
         • Environmental strategy: the business environment in which an organization change and adapt
         • develop core process:
         • core competencies: unique resources and strenghts that an firm manage with a formulate strategy
           • lead time: elapse time between the receipt of a customer order and filling it
         • Global strategies: identify opportunities in market
     • How it work
       • Internal consumer: employees or processes
       • External suppliers: the one who provides the resources
       • External consumer: an intermediary
       • Internal suppliers: employees that supply info or materials
     • Nested process: a process within a process
   • Operation: the resources that perform all or part of a process

2. Key functional areas in a organization

   • operations: translates materials and services into outputs
   • Marketing: generates sales of outputs
     • Market analysis
       • Market segmentation: process to identify groups of customers
       • Needs assesment: identifies the needs of each segent
         • service or product needs
         • Delivery system needs
         • Volume needs
         • Other needs
   • Finance: acquires financial resources and capital for inputs

3. Service and manufacturing processes

   • Service process: produce intangible outputs
   • Manufacturing process: convert materials into goods

4. competitive priorities and capabilities

   • Competitive priorities: critical dimension that a process or supply chain must process to satisfy internal and external customers
     • Time-Based competition: strategy that focuses on the competitive priorities of delivery speed and development speed
     • Cost
       • Low-cost operations: delivering a service or product at the lowest cost possible
     • Quality
       • Top Quailty: delivering and outstanding service or product
       • Consistent Quality: produce services or products that meet design specifications
     • Time
       • Delivery speed: Quickly filling customer order
       • Development speed: Quickly introducing a new service or product
       • On-time delivery: meeting delivery time promises
     • Flexibility
       • Customization: Satisfy the unique needs of a consumer by changing a service or product design
       • Variety: Handling a wide assorment of services or products efficiently
       • Volume flexibility: Accelerating or decelerating the rate of production of services or products
   • Competitive capabilities: cost, time, quality and flexibility dimensions that a process or supply chain possesses
   • Order winers and Qualifiers
     • Order winner: criterion customer use to defference the services or products of one firm from those of another
     • Order qualifier: minimal level required from a set of criteria for an organization to do business in a particular market