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PROD 2800 PRODUCTION AND OPERATIONS MANAGEMENT Gestion de la production et des opérations

UCL. ESPO/IAG/ POMS. PROD 2800 PRODUCTION AND OPERATIONS MANAGEMENT Gestion de la production et des opérations. Per AGRELL agrell@poms.ucl.ac.be Lecture 1. Outline. Presentation Instructor Course outline Grouping What is OM? Processes and products Manufacturing Strategy.

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PROD 2800 PRODUCTION AND OPERATIONS MANAGEMENT Gestion de la production et des opérations

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  1. UCL ESPO/IAG/POMS PROD 2800PRODUCTION AND OPERATIONS MANAGEMENTGestion de la production et des opérations Per AGRELL agrell@poms.ucl.ac.be Lecture 1

  2. Outline • Presentation • Instructor • Course outline • Grouping • What is OM? • Processes and products • Manufacturing Strategy PROD 2800

  3. Course outline • Operations Strategy L 2 E 2 • Competition, positioning, strategic trade-offs • Product and Process Design L 6 E 2 • Process analysis, project design, quality • Planning and Control Methodology L 12 E 6 • Long-range, medium-range and short-range planning • Supply Chain Design L 6 E 4 • Inter-firm coordination, theory of constraints, chain design PROD 2800

  4. Learning methods • Text book • Lectures 26 h • On-line material • Readings • Assignments • Exercise sessions 14 h • Cases • Case Summary • Case Presentation • Case Report • www.poms.ucl.ac.be PROD 2800

  5. What is operations management? • Operations Management • Production (transformation) system • Physical • Locational • Exchange • Storage • Physiological • Informational • System design, operation, improvement • Systematic analysis of organizational processes • Services and goods PROD 2800

  6. Core services COST operations management FLEXIBILITY DELIVERY QUALITY Basic service dimensions PROD 2800

  7. Value-added services CONSULTANCY operations management INFORMATION SALES SUPPORT FIELD SUPPORT Differentiating service dimensions PROD 2800

  8. Operations strategy • 1. Business objectives • 2. Market strategy • 3. How are orders won on the market? • 4. Choice of technology • 5. Infrastructure PROD 2800

  9. Order qualifiers and order winners • Order qualifiers • Qualifies the firm as a potential vendor • Order winners • Successfully differentiates the firm for competitors PROD 2800

  10. Competitive dimensions • Price • Quality • Conformance • Delivery • Speed • Reliability • Flexibility • Volume flexibility • Product flexibility • Mix flexibility • Design • Value-added services PROD 2800

  11. Manufacturing strategy • 1. Market segmentation in product groups • 2. Market assessment per group • 3. Find Qualifiers and Winners for each group. • 4. Translate Winners into process requirements. PROD 2800

  12. Process dimensions • Process Requirements • Process Type • Order Regime • Core Capabilities PROD 2800

  13. Process flow classification • Project • Jobbing • Batch • Line • Continuous processing PROD 2800

  14. Production order regimes • Design to order (DTO) • Specific design and manufacture for all customers • Engineer to order (ETO) • Changes to standard products are offered and produced • Make to order (MTO) • Production of standard product on receipt of order/call-off • Assemble to order (ATO) • Components MTS. Assembly made on receipt of order. • Make to stock (MTS) • Production to forecast. Order met from inventory. PROD 2800

  15. Product-process matrix Few Major Products, Higher Volume High Volume, High Standard- ization Low Volume, One of a Kind Multiple Products, Low Volume Flexibility (High) Unit Cost (High) I. Job Shop Le Prof II. Batch cafe III. Assembly Line Le Sablon IV. Continuous Flow Sugar Refinery Flexibility (Low) Unit Cost (Low) PROD 2800

  16. Process positioning • Horizontal Integration • Vendors • Joint ventures • Vertical Integration • The Virtual Enterprise? PROD 2800

  17. Products and Markets Type of product Product range Customer order size Rate of product introductions Order winners? Order qualifiers? Manufacturing Nature of process technology Focus Investment and Cost Level of capital investment Level of inventory Level of WIP Cost drivers Infrastructure Organizational control Organizational style Required support expertise Implications of process choice PROD 2800

  18. Strategic fit • Commitment • Communication • Credibility • Coherence • Focused manufacturing • PWP PROD 2800

  19. Examples • Sports car market • European, road-use, private • Competition • Porsche • Ferrari • Jensen • Honda etc. PROD 2800

  20. OM challenges • Bundling • Value-added focus • Ex: Automotive • Yesterday Today Tomorrow • Car Car + maint. Transport. • Maintenance PROD 2800

  21. Recapitulation • Definition of OM • Manufacturing strategy (Hill) • OQ, OW, process choice, implications • Product-Process Matrix (Hayes-Wheelwright) • Strategic fit (Skinner) • Focus, PWP • Service operations strategy • Bundling, integration, disintermediation PROD 2800

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