Produktion som kärnkompetens

1. Produktion som kärnkompetens Johann Packendorff, INDEK

2. Innehåll • Produktionssystemet som källa till konkurrensfördelar för ett företag • En närmare titt på de fem grundtyperna av konkurrensfördelar • Produktionsstrategi

3. 1. Produktionen är – rätt organiserad – en källa till konkurrenskraft och överlevnad för företaget!

4. Redefine the industry’s expectations Give an Operations Advantage Externally supportive Be clearly the best in the industry Link Strategy With Operations Increasing contribution of operations Internally supportive Be as good as competitors Adopt best Practice Externally neutral Stop holding the organization back Correct the Worst Problems Internally neutral STAGE 1 STAGE 2 STAGE 3 STAGE 4 The ability to Drive strategy The ability to Implement The ability to support Strategy The strategic role of operations can be defined by its aspirations (Hayes and Wheelwright)

5. How can the contribution of the operations function be assessed? Supportive Neutral Stage 1 Stage 3 Objective is to minimize the Objective is for ‘operations’ In ternally negative impact of to provide credible support ‘operations’. for the business strategy. Stage 2 Stage 4 Objective is for ‘operations’ Objective is for ‘operations’ Externally to help the business to provide a source of maintain parity with its competitive advantage. competitors.

6. Broad strategic objectives for an operation applied to stakeholder groups • Society • Increase employment • Enhance community well-being • Produce sustainable products • Ensure clean environment • Suppliers • Continue business • Develop supplier • capability • Provide transparent • information • Customers • Appropriate product or • service specification • Consistent quality • Fast delivery • Dependable delivery • Acceptable price • Shareholders • Economic value from • investment • Ethical value from investment • Employees • Continues employment • Fair pay • Good working conditions • Personal development

7. Doing things RIGHT a QUALITY advantage Gives Doing things FAST a SPEED advantage Gives Doing things ONTIME a DEPENDABILITY advantage Gives CHANGING what you do a FLEXIBILITY advantage Gives Doing things CHEAPLY a COST advantage Gives An operation contributes to business strategy by achieving five "Performance Objectives"

8. The benefits of excelling Minimum price, highest value Cost Quick Dependable delivery delivery Depend- Minimum cost, Speed ability maximum value Fast Reliable throughput operation Error-free Ability to processes change Quality Flexibility Error-free Frequent new products and products, services maximum choice

9. 2. De strategiska konkurrensfördelarna • Kvalitet • Hastighet • Tillförlitlighet • Flexibilitet • Kostnadseffektivitet

10. Kvalitet

11. Quality means different things in different operations Automobile plant All assembly is to specification The product is reliable All parts are made to specification The product is attractive and blemish-free Hospital Patients receive the most appropriate treatment Treatment is carried out in the correct manner Patients are consulted and kept informed Staff are courteous, friendly and helpful Bus company The buses are clean and tidy The buses are quiet and fume-free The timetable is accurate and user-friendly Staff are courteous, friendly and helpful Supermarket The store is clean and tidy Décor is appropriate and attractive Goods are in good condition Staff are courteous, friendly and helpful

12. Quality “Quality” has several meanings, the two most common are…… Quality as the specification of a product or service Eg. Lower Hurst Farm produces organic meat raised exclusively on its own farm Quality as the conformance with which the product or service is produced Eg. Quick service restaurants like McDonald’s buy less expensive meat

13. Quality Irrespective of a product or service’s specification quality, producing it so it conforms to its specification consistently brings benefits to any operation Externally -- it enhances the product or service in the market, or at least avoids customer complaints Internally -- it brings other benefits to the operation It prevents errors slowing down throughput speed It prevents errors causing internal unreliability and low dependability It prevents errors causing wasted time and effort, therefore saving cost

14. On-specification products and services Quality External and internal benefits Cost Speed Depend- ability Quality Flexibility

15. Hastighet

16. Speed means different things in different operations Hospital The time between requiring treatment and receiving treatment kept to a minimum The time for test results, X-rays, etc. to be returned kept to a minimum Automobile plant Minimizing the time between dealers requesting a vehicle of a particular specification and receiving it Minimizing the time to deliver spares to service centres Supermarket Minimizing the time for the total transaction of going to the supermarket, making the purchases and returning The immediate availability of goods Bus company The time between customer setting out on the journey and reaching his or her destination kept to a minimum

17. Speed again has different interpretations externally and internally Externally – it means the elapsed time between a customer asking for a product or service and getting it (in a satisfactory condition) It often enhances the value of the product or service to customers Internally -- it brings other benefits to the operation It helps to overcome internal problems by maintaining dependability It reduces the need to manage transformed resources as they pass through the operation, therefore saving cost

18. Short delivery lead-time Speed External and internal benefits Cost Speed Depend- ability Quality Flexibility On-specification products and services

19. Tillförlitlighet

20. Dependability means different things in different operations Hospital Proportion of appointments which are cancelled kept to a minimum Keeping appointment times Test results, X-rays, etc. returned as promised Automobile plant On-time delivery of vehicles to dealers On-time delivery of spares to service centres Supermarket Predictability of opening hours Proportion of goods out of stock kept to a minimum Keeping to reasonable queuing times Constant availability of parking Bus company Keeping to the published timetable at all points on the route Constant availability of seats for passengers

21. Dependability Externally -- it enhances the product or service in the market, or at least avoids customer complaints Internally -- it brings other benefits to the operation It prevents late delivery slowing down throughput speed It prevents lateness causing disruption and wasted time and effort, therefore saving cost

22. Reliable delivery Dependability External and internal benefits Cost Short delivery lead-time Speed Depend- ability Quality Flexibility On-specification products and services

23. Flexibilitet

24. Flexibility has several distinct meanings but is always associated with an operation’s ability to change Change what ? The products and services it brings to the market – Product/service flexibility The mix of products and services it produces at any one time – Mix flexibility The volume of products and services it produces –Volume flexibility The delivery time of its products and services –Delivery flexibility

25. Flexibility means different things in different operations Hospital Introducing new treatments A wide range of treatments The ability to adjust the number of patients treated The ability to reschedule appointments Automobile plant The introduction of new models A wide range of options The ability to adjust the number of vehicles manufactured The ability to reschedule manufacturing priorities Bus company The introduction of new routes and excursions A large number of locations served The ability to adjust the frequency of services The ability to reschedule trips Supermarket The introduction of new goods A wide range of goods stocked The ability to adjust the number of customers served The ability to get out-of-stock items

26. Frequent new products/services Wide range Volume and delivery changes Flexibility External and internal benefits Cost Short delivery lead-time Reliable delivery Speed Depend- ability Quality Flexibility On-specification products and services

27. Kostnadseffektivitet

28. Hospital Automobile plant Technology and facilities costs Technology and facilities costs Bought-in materials and services Bought-in materials and services Staff costs Staff costs Bus company Supermarket Technology and facilities costs Bought-in materials and services Technology and facilities costs Bought-in materials and services Staff costs Staff costs Cost means different things in different operations

29. Cost The cost of producing products and services is obviously influenced by many factors such as input costs, but two important sets are….. The 4 V’s volume variety variation visibility The internal performance of the operation at quality speed dependability flexibility

30. Cost External and internal benefits Cost Short delivery lead-time Reliable delivery Speed Depend- ability Quality Flexibility Frequent new products/services Wide range Volume and delivery changes On-specification products and services

31. Vilken/vilka parametrar är viktigast?

32. Taxi service Bus service Polar diagrams for a taxi service versus a bus service Cost Speed Dependability Quality Flexibility

33. Required performance Actual performance Polar diagrams on actual and required performance for a proposed police work method Reassurance Crime reduction Efficiency Crime detection Working with criminal justice agencies

34. 3. Produktionsstrategi

35. Operations strategy is ….. “… the decisions which shape the long-term capabilities of the company’s operations and their contribution to overall strategy through the on-going reconciliation of market requirements and operations resources …”

36. Market Requirements Operations Resources What you HAVE What you DO What you WANT What you NEED to maintain your capabilities and satisfy markets from your operations to help you “compete” in terms of operations capabilities to “compete” in the market Strategic Reconciliation

37. Operations management Operations strategy Short-term Long-term for example, capacity decisions for example, capacity decisions Time scale Demand Demand Micro 1-12 months 1-10 years level of the process Macro level of the total operation Level of analysis Detailed Aggregated For example Level of aggregation For example “Can we give tax services to the small business market in Antwerp?” “What is our overall business advice capability compared with other capabilities?” Philosophical Concrete Level of abstraction For example For example “How do we improve our purchasing procedures?” “Should we develop strategic alliances with suppliers?” Operations strategy is different fromoperations management

38. Product/service innovation Product/service design How is operations strategy different fromoperations management Operations Management Operations Strategy Process design Process technology strategy Layout Technology Job design Human resource strategy Capacity management Capacity location, planning and dynamics Planning & Control Organization and systems development JIT MRP Inventory control Supply network strategy Quality control Performance and improvement strategy

39. The four perspectives on operations strategy Top - down Perspective What the business wants operations to do Market requirement Perspective What the market position requires operations to do Operations resources Perspective What operations resources can do Operations strategy What day-to-day experience suggests operations should do Bottom - up Perspective

40. Corporate strategy Business strategy Operations strategy Emergent sense of what the strategy should be Operational experience Top-down and bottom-up perspectives of strategy

41. An operations strategy should be: Appropriate... Comprehensive... Coherent... Consistent over time... The challenge of operations strategy formulation