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Quality

Resource Usage. Issues include:. Organizational structure and operations effectiveness The role and contribution of the operations function Connecting operations with the external environment The role of central operations. Quality. Speed. Performance objectives. Dependability.

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Quality

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  1. Resource Usage Issues include: • Organizational structure and operations effectiveness • The role and contribution of the operations function • Connecting operations with the external environment • The role of central operations Quality Speed Performance objectives Dependability Market Competitiveness Flexibility Cost Development and Organization (organisation and role) Supply Network Process Technology Capacity Decision areas Issues covered in this chapter Slide 10.1

  2. Development and deployment of tangible resources Efficient operation Development and deployment of intangible resources Flexible response Organisational structure OPERATIONS RESOURCES MARKET REQUIREMENTS Servicing a range of market positions Development and deployment of boundary resources The objectives of organisational design Slide 10.2

  3. Group Headquarters Marketing Operations Finance Dept.A Dept.C Dept.B Dept.A Dept.A Dept.C Dept.C Dept.B Dept.B U-form organizations give prominence to functional groupings of resources Slide 10.3

  4. Division A Division B Division C Group Headquarters Marketing etc. Operations Marketing Marketing etc. etc. Operations Operations The M form separates the organization’s resources into separate divisions Slide 10.4

  5. Group Headquarters Division A Division B Division C Marketing Operations Human resources Finance Matrix form structures the organization's resources so that they have two (or more) levels of responsibility Slide 10.5

  6. Organisation A Headquarters Org D Org B Group A Group F Org E Org C Group E Group B Group D Group C N form organizations form loose networks internally between groups of resources and externally with other organizations Slide 10.6

  7. Staff Funds Accounting and finance Personnel Bought-in products and services from suppliers Products and services to customers THE OPERATIONS FUNCTION Purchasing Marketing Technical/ engineering Product/service development Process technology Product/service ideas Traditionally other ‘boundary’ functions protected the ‘core’ operations function from environmental uncertainty Slide 10.7

  8. PRODUCT/ SERVICE DEVELOPMENT PRODUCT/ SERVICE DEVELOPMENT MARKETING OPERATIONS MARKETING OPERATIONS Example - Retail bank Example - Defense electronics manufacturer The degree of overlap between functional strategies will depend on the nature of the business Slide 10.8

  9. The Strategic Role of the Operations Functions The 3 key attributes of operations Operations Contribution Implementing be Reliable Operationalise strategy explain Practicalities Supporting be Appropriate Understand strategy Contribute to decisions Driving be Innovative provide Foundation of strategy Develop long-term Capabilities

  10. Head office Head office Operation A Operation A Operation A Operation A Operation A Operation A ‘Stand-alone’ influence ‘Linkage’ influence Head office Specialist function A Specialist function B Head office Operation A Operation A Operation A Operation A Operation A Operation A Corporate development Central functions and services influence Four ways in which corporate head office can add value Source: Adapted from Goold, M., Campbell, A. and Alexander, M. (1994) Corporate Level Strategy, Wiley, N.Y. Slide 10.9

  11. Programmatic Top down Trainer Instructing operations in the development and deployment of their capabilities through standardised improvement methods Roles: Central operations -Teacher/consultant Business operations-Pupil/Client Governor Controlling the performance of the operations by setting clear priorities and measuring performance against targets Roles: Central operations -Messenger/Judge Business operations- Recipient/Defendant Performance Market requirements Operations resources Capabilities Curator Nurturing the performance of the operations by collecting performance data and distributing comparative performance information Roles: Central operations - Recorder/Analyst Business operations-Source of information Facilitator Enabling operations in the development and deployment of their capabilities through shared advice, support and learning. Roles: Central operations- Mentor Business operations - Member of a community Bottom up Emergent A typology of the ‘CentralOperations’ function Slide 10.10

  12. Programmatic Top down TRAINER GOVERNOR Market requirements Operations resources Performance Focus Capabilities Focus FACILIATOR CURATOR Bottom up Emergent Power Communication Relationship Strong Predominantly one-way Dominant Predominantly two-way Weak Subservient Information relationships for the four types of central operations functions Slide 10.11

  13. Top management Events Graphics ..Etc. Project A Project B Project C The Thought Space Partnership Organizational Structure Slide 10.12

  14. (CREATIVITY) Product/service Product/service Product/service Product/service Product/service Product/service development development development development development development Marketing Marketing Operations Operations (COMMERCIALISM) (COMPETENCE) Marketing Operations Marketing Marketing Operations Operations Some Some Mass Mass Professional Professional manufacturing manufacturing services services services services Thought Space - Increasing overlap between operations and the other core functions Slide 10.13

  15. Top Management Client D Client B Graphics Events Client E Client C 3D Design Technical Solutions Marketing Accounts Thought Space - N form organisations form loose networks internally between groups of resources and externally with other organizations Slide 10.14

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