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The ARENA Genome: Harmonic Strategic Planning

The ARENA Genome: Harmonic Strategic Planning. Refinement Stages: Arena, Focus , Action Create Strategy. Arena Layers: Corporate, Business Function- Define Hierarchy. Corporate Layer: Portfolio Businesses Maximize Value. Business Layer: Positioning Products by

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The ARENA Genome: Harmonic Strategic Planning

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  1. The ARENA Genome: Harmonic Strategic Planning Refinement Stages: Arena, Focus, Action Create Strategy Arena Layers: Corporate, Business Function- Define Hierarchy • Corporate Layer: Portfolio Businesses Maximize Value • Business Layer: Positioning Products by Market Strategy • Function Layer: Process, Project and Product Agile value drive Functional Arena • Arena actors: Partners, Threats; Current, Future Tailored Patterns.

  2. Multiple Suppliers: SCM (Eur:800-2,000 Ford: 1,600) Process Definition & Improvement Demand Forecast Master Schedule Quality Control Resource B Resource A Resource C LTPD β Customers CRM Classical Operations Paradigm: Machine Metaphor • Functional Arena: • Assembly Line: Navy • Multiple suppliers • Push methodology Scientific Management: Unfreeze, change, freeze Operations Managers Quality Controllers C3I, MRP, MRPII, ERP, ERM Buffer AOQLα Arena Pattern: Push. Division: Management vs. Operation Focus: Efficiency, AOQL Action: Scientific Management, Capacity Balancing

  3. Supplier (160-300) Buffer Kareitsu Finished Goods Buffer Resource B Resource C Kanban Kanban Kanban Keizen WIP Buffer WIP Buffer Keizen JIT, JIP Poka Yoke Pull: Local Control QFD Customers Total Quality Paradigm: Organic Metaphor • Functional Arena: • Group Technology • Lean, Balanced Process • Production: Pull/Kanban methodology, Focus on Setup Reduction • Quality: Kaizen, Taguchi, Group technology, Circles, QFD, Ringii, Robust Design • Strategy: Promotion, expansion, Zeibatsu, Hoshin Kanri Resource A Arena Pattern: Pull. Group technology. Focus: Process, perfection Action: Continuous improvement.

  4. A Components: 2-3 Suppliers C Components: Auction Constraint Definition Gating: Kit,WIP Control Cycle Control Cycle Rope: Pull Constraint B: Drum Resource C Resource A WIP Buffer JIT, JIP Customers QFD Management-By-Constraints Paradigm: Mixed Strategy • Functional Arena: • Lean Process • Drum-Buffer-Rope • Complete Kit • Constraint Management Cycle • Define the Goal • Identify proper Measures: 6 • Identify the system’s constraint Push QA Drum-Buffer-Rope: Pull & Push Arena Pattern: DBR = Push + Pull Focus: Throughput/Constraint Unit. Action: Managed constraint, Distributed quality.

  5. Kit Preparation Kit Preparation Kit Preparation Lacquering Supervisor Processing Processing Processing Electronic Testing Lab Customer Quality Inspection Processing Processing Quality Assurance Electronic Testing Lab Shipping Customer Quality Inspection Shipping Management-By-Constraints: Elta Warehouse Warehouse

  6. Supply-Chain Management - SCM • Manual transactions: Rail company settlements • Electronic-Data-Interconnect • Micro payments • B2B: Web SCM • Agility: Value Net • Li&Fung: 3,600 employees in 37 countries: Logistics South Korea: Spinning Japanese plant in Guangdong China: zippers Five Tai sewing workshops Li&Fung Requirements: (Transaction Cost) • Structure: encapsulation • Information: Infomediaries, Baldrige/ISO/GMP • Authentification • Legal: taxation, enforcement European fashion designer Orders thousands of Garments (Virtual Firm) Shipper Distributor Customer

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