Operations Strategy 9 - Formulation Strategy - Revision history

Paulreed at 01:14, 25 September 2012

2012-09-25T01:14:15Z

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	It was trying to fit with its environment		It was trying to fit with its environment
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Paulreed at 01:13, 25 September 2012

2012-09-25T01:13:36Z

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Paulreed: /* Platts Gregory Framework - Fit Framework */

2012-09-25T01:12:16Z

Platts Gregory Framework - Fit Framework

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	Relaibility - varaible.............................................................critical		Relaibility - varaible.............................................................critical

	on each compare market requirements v achieved ~~perforamcne~~		on each compare market requirements v achieved performance

	Again you can use the Performance Importance matrix		Again you can use the Performance Importance matrix


	==~~Diifuclties~~ in formulating operating strategy		==Difficulties in formulating operating strategy==
	*~~Operatoons~~ managers focussed on delivery		*Operations managers focussed on delivery
	*Operations managers are dispersed		*Operations managers are dispersed
	*Culture of organizational bias against operations managers and strategy		*Culture of organizational bias against operations managers and strategy

	Should they be		Should they be
	*Implementors		*Implementors?
	*Drivers		*Drivers ?
	*Supporters of strategy?		*Supporters of strategy?

Paulreed at 01:08, 25 September 2012

2012-09-25T01:08:29Z

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	*RISK - COPING WITH UNCERTAINTY		*RISK - COPING WITH UNCERTAINTY

	Of the three levels of analysis in operations strategy formulation, ~~this~~ is by far the most frequently discussed. In fact to many authorities operations strategy process is all about fit. It is a simple but fundamental concept, namely that the market position of a company must be aligned with its operations capabilities. In a practical sense, this could mean one of two approaches. First, that we should understand what the market wants and then develop operations resources to supply this. Second, that we must understand what operations resources and processes are particularly good at (their capabilities) and find a market that values this.		Of the three levels of analysis in operations strategy formulation, '''Fit''' is by far the most frequently discussed. In fact to many authorities operations strategy process is all about fit. It is a simple but fundamental concept, namely that the market position of a company must be aligned with its operations capabilities. In a practical sense, this could mean one of two approaches. First, that we should understand what the market wants and then develop operations resources to supply this. Second, that we must understand what operations resources and processes are particularly good at (their capabilities) and find a market that values this.

			[[File:lineoffit.jpg\|Line of Fit]]

	~~nb moving~~ up the line of fit is the improvement path		''Note''. Moving up the line of fit is the improvement path

	==Sustainability is "achieving fit over time".==		==Sustainability is "achieving fit over time".==
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	*Infrastructure		*Infrastructure

			[[File:hill.jpg\|Strategy Framework]]

	*Not supposed to be necessarily sequential		*Not supposed to be necessarily sequential
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	*Out-ise in view		*Out-ise in view
	*The what happens next is a weak part of the analysis		*The what happens next is a weak part of the analysis

			[[File:platts_gregory.jpg\|Platts Gregory Precedure]]

	e.g. Delivery lead time - short..............................................not significant		e.g. Delivery lead time - short..............................................not significant

Paulreed at 00:46, 25 September 2012

2012-09-25T00:46:39Z

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Paulreed at 00:28, 25 September 2012

2012-09-25T00:28:38Z

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Paulreed at 00:20, 25 September 2012

2012-09-25T00:20:35Z

← Older revision		Revision as of 19:20, 24 September 2012
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	''A reminder - There is a difference between the design of the products and the design of the processs that create them but especially in services there is a large degree of overlap betwen them''		''A reminder - There is a difference between the design of the products and the design of the processs that create them but especially in services there is a large degree of overlap betwen them''

	The design activity can be judged on QFDCS and time-~~tomkt~~ that can be affected by		The design activity can be judged on QFDCS and time-to-market that can be affected by
	*overlapping development phases		*overlapping development phases
	*catching problems early		*catching problems early
	*project based structures		*project based structures
	*and can extend outside the organizations boundaries		*and can extend outside the organizations boundaries
			*the design process involves progressively filtering out potential designs, reducing uncertainty until the final design is reached.

Paulreed at 15:08, 24 September 2012

2012-09-24T15:08:50Z

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Paulreed: Created page with "!!A reminder There is a difference between the design of the products and the design of the processs that create them but especially in services there is a large degree of overl..."

2010-12-27T22:34:18Z

Created page with "!!A reminder There is a difference between the design of the products and the design of the processs that create them but especially in services there is a large degree of overl..."

New page

!!A reminder
There is a difference between the design of the products and the design of the processs that create them but especially in services there is a large degree of overlap betwen thjem

The desogn activity can be judged on QFDCS and time-tomkt that can be affected by
*overlapping development phases
* catching problesm early
*project based structures
* an can extend outside the orgs boundaries

The development of new and innovative products and services is clearly of tremendous importance to most organizations. Without a stream of appropriate innovation a company leaves itself vulnerable to having to react to however its competitors decide to innovate. In fact many authorities would disagree with our decision to cover the topic in just one chapter and as part of operations strategy at all. They would say that new product and service development is one of the three major processes that any organization must master in order to succeed (the other two of course being operations and marketing). We would agree with this. In fact, it is because the topic is so important that we include it within our broad treatment of operations strategy; it is not that new product and service development is a subset of operations strategy, rather it is that no operations strategy could regard itself as complete without an understanding of how it interrelates with new product and service development strategy. The way have decided to treat the subject is to look at it through an operations strategy "lens" and explain it in terms of one of the models we introduced earlier - the operations strategy matrix. Most of chapter 12 is devoted to developing that particular perspective. However, prior to that it discusses the relationship between new product and service development and process development.

[img[.|http://www.warwick.ac.uk/~bsscr/images/mod9_slide1.gif]]
Key points

While the development of new product and service ideas has always been a significant activity in most companies, it is getting more important. The chapter opens by looking at some of the reasons for this, and more importantly, dividing them into those which are based on an operations resource perspective and those which are based on a market requirements perspective. It makes a compelling case. But consider that the case is made particularly compelling by describing it in operations strategy terms. In other words, because product and service development is itself a process, it can be analyzed using operations strategy models.

Following on from the point above, the chapter uses a similar calibration of the degree of product or service change to that which was used when describing process change. Although this calibrated scale, which again moves from "modification, through extension and development to pioneer" is described as a four-stage process; it is, of course, a continuum.

Product and service development and process development should be considered together. The box that describes the development of the ballpoint pen illustrates the obvious but important point that attempting extensive product or service change at the same time as extensive process change increases the degree of difficulty.

!!Wgat degree of product service design is required?
Modification -
Extension
Development
Pioneer - Disruptive ie Dyson

What degree of process design is required to complemnt product service design

This can be a one of one on a straight line but also think of Volvo or Mini

Degree of product design was small but process design was pioneer
Degree of product design change was pioneer but process change was minot

Modular design and mass customization

Don't ignore the theory box on ''modular design and mass customization''. Both are significant developments, both are interrelated, and both have done much to overcome the trade-off between cost and variety in new product and service design. For example, think of the way ordinary domestic paint is now sold. Whereas some years ago a paint company would develop a range of colors, manufacture those in its factory and distribute them as separate products to the retail stores, much paint is now sold "made to order" in the store itself. The customer simply chooses a color from an incredibly wide range of alternatives and the paint is mixed there and then. This is only possible because each color is comprised of a defined set of "modules" of component colors. This "recipe-based" approach allows a degree of mass customization because a relatively small number of "modules" or colors can be mixed together in a far wider variety of way

!!Theory box
The ''Quality function deployment matrix
The ''what'' v the ''hows'' customer requirements v design characteristics
The ''hows'' v the ''hows'' (the triangle hat on top of the box) The trade off between the various design characteristics

A series of QFD matrices can be created next one coild design characteristics v component charactersistis then process characteristics then Individual activities

You can alos use the ''Operation Strategy matrix'' to shjpw the trase off between QSFCD and the deciosn araes supply, development, capacity and PT

New Product and Service Development

Its important to know what the capabiltities and constraints are before starting design process.
It should go the follwoing steps:

*''concept genration
*concept screening
*preliminary design
* design eval and improvement
* Prototyping and final design
* Development of the operations processes

[img[.|http://www.warwick.ac.uk/~bsscr/images/mod9_slide2.gif]]
The chapter devotes some space to explaining the various stages of new product and service development. Here it is important to remember the warning given in the text that, although many organizations have a model that looks like the stages described in the chapter, it is really a huge simplification of reality. Stages will merge with each other and the process will often cycle backwards and forwards. So, don't think of this as a prescriptive set of steps but rather a description of the activities that, in some order, generally take place during the new product and service development process.

''Remember the funnel concept is subject to high degree of chaos and may ahve //bulges// whwere things are replanned and new options are considered late in the devpt process

Hayes and Wheelwrigh show in their digram on p 5 lesson 8 that the ability to influence outcome is greater during the knowledge acqusituion and basic design but mgt activity increases during mfg and product launch

Think about the overall design process as progressively filtering out potential designs and thus reducing uncertainty, until the final design is reached.
[img[.|http://www.warwick.ac.uk/~bsscr/images/mod9_slide4.gif]]
A market perspective
[img[.|http://www.warwick.ac.uk/~bsscr/images/mod9_slide3.gif]]
The design activity is itself a process that can be judged in the same way as any other operations process, that is in terms of quality, speed, dependability, flexibility and cost of the designs or development ideas that are produced.

All the five generic performance objectives are important, but in recent years there has been an increased emphasis on the speed of new product and service development.

This speed issue is often referred to "time-to-market". That is, the time between the original concept and the product or service starting to earn revenue in the marketplace. It is an important performance measure and in most industries is getting shorter.

Later in the chapter several determinants of fast time-to-market performance are identified. But the main ones are generally held to be;

simultaneous overlapping of development phases (sometimes called simultaneous or concurrent engineering);
the early resolution of design conflict;
project-based organization structures.

The financial consequences of fast time-to-market are best illustrated by the figure shows that a delay in launching a product or service usually means a far longer delay in the financial payback from that product or service.

An operations resource perspective

The four general categories of operations strategy decisions (capacity, supply networks, process technology and development and organization) are all relevant (and indeed important) in managing the new product and service development process at a strategic level.

Capacity is particularly interesting. The issue here being that, unlike the day-to-day production of products and services, demand for new designs is not always smooth. This "lumpiness" in demand can lead some companies to be reluctant to invest in development capacity - often a mistake.

The idea of a product and service development network (a similar idea to a supply network) is a useful way of thinking about whether any organization should develop products and services themselves or subcontract the activity. Occasionally organizations do subcontract all their new products and service development activity (book publishers an obvious example!) but generally it is a question of how much development activity to subcontract, if any at all

[[Category:Operations]]