1 / 22

Chapter 13A

Chapter 13A. Operations Consulting and Reengineering. Learning Objectives. Know the scope of operations consulting. Understand how consulting firms make money. Have a framework for the operations consulting process. Describe the basic tools that operations consultants use.

wbrantley
Download Presentation

Chapter 13A

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 13A Operations Consulting and Reengineering

  2. Learning Objectives • Know the scope of operations consulting. • Understand how consulting firms make money. • Have a framework for the operations consulting process. • Describe the basic tools that operations consultants use. • Be introduced to business process reengineering and the principles of reengineering.

  3. What is Operations Consulting? • Operations consulting: assisting clients in developing operations strategies and in improving production • An effective job of operations consulting results in an alignment between strategy and process dimensions that enhances the business performance of the client LO 1

  4. The Management Consulting Industry • Can be categorized in three ways: • By size • Most consulting firms are small • By specialization • Frequently characterized as either in strategic planning or tactical analysis and implementation • In-house or external LO 1

  5. Hierarchy • Finders: members who find new business • Minders: managers of project teams • Grinders: the consultants who do the work • Typically work in project teams • Selected according to client needs LO 1

  6. Economics of Consulting Firms • David H. Maister’s article on consulting draws an analogy between the consulting firm and a job shop operation • Three types of jobs: • Brain surgery: requiring innovation and creativity • Gray hair: requiring a great deal of experience • Procedures: requiring activities similar to other existing projects LO 2

  7. Where Operations Consulting is Needed • Plants • Adding and locating new plants • Expanding, contracting, or refocusing facilities • Parts • Make or buy decisions • Vendor selection decisions • Processes • Technology evaluation • Process improvement and reengineering LO 3

  8. Where Operations Consulting is Needed Continued • People • Quality improvement • Setting/revising work standards • Learning curve analysis • Planning and Control Systems • Supply chain management • MRP • Shop floor control • Warehousing and distribution LO 3

  9. When are Operations Consultants Needed • When faced with a major investment decision • When management believes it is not getting the maximum effectiveness from the organization’s productive capability LO 3

  10. Stages in Operations Consulting Process • Sales and proposal development • Analyze problem • Design, develop and test alternative solutions • Develop systematic performance measures • Present final report • Implement changes • Assure client satisfaction • Assemble learnings from the study LO 3

  11. Practical Guidelines for Conducting Consulting Projects • Under promise and over deliver • Get the team mix right • This 80-20 rule is true • Do not analyze everything • Use the elevator test • Pluck the low-hanging fruit • Make a chart every day • Hit singles LO 3

  12. Practical Guidelines for Conducting Consulting Projects Continued • Do not accept “I have no idea” • Engage the client in the process • Get buy-in throughout the organization • Be rigorous about implementation LO 3

  13. Operations Consulting Tool Kit • Problem definition • Data gathering • Data analysis and solution development • Cost impact and payoff analysis • Implementation LO 4

  14. Problem Definition Tools • Issue trees • Customer surveys • Gap analysis • Employee surveys • Five forces mode LO 4

  15. Data Gathering Tools • Plant tours/audits • Work sampling • Flowcharts • Organizational charts LO 4

  16. Data Analysis and Solution Development Tools • Problem analysis • SPC tools • Bottleneck analysis • Computer simulation • Statistical tools LO 4

  17. Cost Impact and Payoff Analysis Tools • Decision trees • Balanced scorecard • Stakeholder analysis LO 4

  18. Implementation Tools • Responsibility charts • Project management techniques LO 4

  19. Business Process Reengineering (BPR) • Reengineering: the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality, service, and speed • As a engineering discipline, reengineering can be applied to any process in manufacturing and service businesses, education, and the government • Business process reengineering (BPR) is focused on reengineering business processes LO 5

  20. Principles of Reengineering • Rule 1: Organize around outcomes, not tasks • Rule 2: Have those who use the output of the process perform the process • Rule 3: Merge information-processing work into the real work that produces the information LO 5

  21. Principles of Reengineering Continued • Rule 4: Treat geographically dispersed resources as though they were centralized • Rule 5: Link parallel activities instead of integrating their results • Rule 6: Put the decision point where the work is performed, and build control into the process • Rule 7: Capture information once and at the source LO 5

  22. Guidelines for Implementation • Codification of reengineering • Clear goals and consistent feedback • High executive involvement in clinical changes LO 5

More Related