DECISION MAKING IN OM Chapter 1. 10-

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DECISION MAKING IN OMChapter 1. 10-

• CORPORATE STRATEGY
• BUSINESS STRATEGY
• COMPETITIVE PRIORITIES
• OPERATIONS STRATEGY
• OPERATING DECISIONS

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COMPETITIVE STRAGTEGIES AND OPERATIONS
STRATEGYChapter 1

• Competitive priorities P, Q, A, F 14-
• Planning areas in operations Operations
  Strategy. These were listed in a previous slide.
• Product/Service Design
• Process selection/ Vertical Integration decisions
  
• Technology selection
• Quality planning
• Work force/Human resources planning
• Capacity planning
• Location of facilities
• Layout of facilities
• Supplier Selection

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PLANNING AREA 1 PRODUCT/SERVICE DESIGNNotes

• Information for design QFD
• Product developing process
• Technical-legal-environmental-ethical review
• Market feasibility
• Financial feasibility
• Manufacturabilty
• Service design
• Service package

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Planning Area 2 Process Selection -Chapter 3

• Process Types/Choice 98-
• Job, batch, line and continuous
• Job/batch process v. Line process
• Volume and variety
• Product-Process matrix 98

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PROCESS SELECTION

• Process determines other dimensions
• Line flow
  Flexible flow
• Volume High Low
• Variation
• Resource flexibility 106
• Cap.intensity/Automation
• 107
• Vertical Integration
• Customer Involvement 105

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PROCESS SELECTION

• Additional Concepts
• Fixed v. Flexible automation
• Modern technologies CAD, CAM, Robotics, FMS
• Economies of scope 109
• Process re-engineering 113
• Process analysis and improvement 112 and chapter
  6
• Systematic approach 124 Six sigma approach 182-
• Documenting the process 126-

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PROCESS SELECTION

• Measurement and analysis tools 133-
• Benchmarking 139
• Simulation 137
• Process choice in services 95 chapter 3
• Customer contact 95
• Degree of customization (divergence) 96
• Emphasis on front office/back office
• Customer contact matrix for service processes 97

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Planning Area 3 Quality Planning Chapter 5

• Evolution of Quality Management
• Inspection based quality control (QC)
• Statistical Quality Control (SQC)
• Inspection alone does not improve quality
• Quality must be managed P, O, D/L, C
• Quality improvement is a long term strategy
• QI is a company-wide effort
• Customer focus and supplier involvement
• TQM continuous improvement 180
• Deming, Juran and Crosby
• Malcolm Baldrige Award 201-
• ISO 9000 certification 200

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USING QUALITY AS A COMPETITIVE WEAPON

• Improved quality could increases market share
• .. and fetch higher prices
• .and reduce costs
• The result is higher profits.

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WHY WOULD COSTS DECREASE WHEN QUALITY IS IMPROVED
?

• Costs of quality 176
• Prevention costs 176
• Appraisal costs 177
• Internal failure costs 177
• External failure costs 177
• Short term effects
• Long term effects

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QUALITY PLANNING

• Customer perception of quality 178
• Conformance to specifications
• Value
• Fitness for use
• Aesthetics
• Durability
• Reliability

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QUALITY PLANNING

• Definition of Value meeting or exceeding
  customer expectations
• customer expectations
• management understanding
• design of products/services, processes
• delivery to customer
• customer perception
• Customer satisfaction

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QUALITY PLANNING

• Elements of TQM
• Leadership (B1)
• Vision, cultural change
• Commitment, Involvement
• Strategic planning (B2)
• Employee Involvement (B3) 180
• Participation
• Teams and teamwork 180 Types of teams
• Job design enlargement, enrichment, rotation
• Empowerment

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QUALITY PLANNING

• Elements of TQM
• Customer Focus (B4)
• Activities in customer focus
• Process management (B5)
• Measurement and Reporting (B6 and 7)
• Statistical Quality Control 183-
• Variation in output 184
• Control charts attributes 193 variables
  188
• Acceptance sampling. Sampling plan and size 183
• Process capability 195- PC Ratio 197