Innovation and operations management

1
Chapter 4 Innovation and operations management
2
Learning objectives

• At the end of this session you should be able to
  understand
• innovation in the context of operations
• the difference between product and process
  innovation and design.

3
The functional links
Operations
Marketing
Research and development
4
Ideas generation
Internal sources
External sources
Marketing
Customer needs analysis
Surveys
Research departments
Customer suggestions
Suggestions from staff
Competitors
Concept generation
5
A good innovative design

• Meets customer requirements
• Is simple to make
• Can be rapidly developed into production
• Few modifications are required during the
  development phase

6
Design for manufacturing

• If a product is easy to make, it will be
  economicalto produce
• It is important to consider the manufacturability
  early in the design phase
• Integrate product design with process
  planningand design

7
Design simplification
PRODUCTS
DESIGN
Push and snap in assembly
Assembly using common fasteners
One-piece base and elimination of fasteners
8
Product process types
PROCESSES
High
Project
Jobbing
Batch
Variety
Mass
Continuous
Low
Volume
Low
High
THE MOST APPROPRIATE METHOD (PARTICULARLY IN COST
TERMS) CHANGES WITH TIME
9
Awards

• Malcolm Baldridge
• Demming
• ISO 9000
• EFQM

10
Excellence model
11
What is self assessment?

• Self-assessment is a comprehensive, systematic
  and regular review of an organisations
  activities and results against a continuous
  improvement model.Source EFQM (2003) EFQM
  Excellence Model
• The process allows the organisation to discern
  clearly its strengths and areas for
  improvementand culminates in planned improvement
  action plans which are then monitored for
  progress.

12
NHS1 Innovation

• Introducing into practice new ideas (or ideas new
  to you) which lead to improvements in efficiency,
  effectivenessor better value for money
• Intellectual property (IP) includes services,
  systems devices, diagnostics, consumables and
  therapeutics
• Innovative staff let down by
• Not capturing their ideas
• Wasting assets by not implementing them
• Resistance to innovative ideas for service
  development, drugs and products from other health
  care systems and health care industries in the UK
  and internationally

13
NHS2 Why innovate?
This Government formally committed the NHS to
becoming an innovative organisation when it
published the NHS plan back in 2000. Lord
Warner, Parliamentary Under-Secretary of State in
the Lords, April 2004
As the NHS is a service, driven first and
foremost by science and scientific advances,
innovation should be a natural part of our
business. Rt Hon John Hutton MP, Minister of
State (Health), June 2004
14
NHS3 General

• NHS Direct
• Telephone
• Online
• Sky TV
• Care in the community
• NHS Plus
• Workplace health care (self-funding)
• Patient choice
• Choose and book
• Walk-in centres and treatment centres
• Run by commercial companies on behalf of NHS

15
LA1 Making improvements
Customer feedback
New ideas and innovation
Staff feedback
Full senior management support
16
LA2 Actions already undertaken

• Innovation outputs (Resulting from staff
  suggestions)
• Installed timers on the water coolers, vending
  machines to reduce energy use out of working
  hours
• Fitted new Building management system that allows
  for automatic switching on and off, dependant
  upon weather and time of day.
• Now replacing all new plant with versions that
  can be operated with our new building management
  system.
• New lighting using triphosphorus. These last
  longer and use less electricity.
• Newsletters with helpful hints.

17
Illustration DELL

• Mass customisation
• SCM good links with flexible vendors
• Background in telemarketing
• Customer knowledge leading to premier pages
  that have saved Ford 2m
• High reliability Dell has received awards for
  performance
• Delivery support 24/7
• Adaptive business strategy by moving up the value
  chain
• Concentrating on what customers wanted

18
Conclusions

• Whilst you might not be directly involved in RD
  you will be involved in innovation.