Resource Usage
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Resource Usage. Issues include:. Organizational structure and operations effectiveness The role and contribution of the operations function Connecting operations with the external environment The role of central operations. Quality. Speed. Performance objectives. Dependability.

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Quality

Resource Usage

Issues include:

  • Organizational structure and operations effectiveness

  • The role and contribution of the operations function

  • Connecting operations with the external environment

  • The role of central operations

Quality

Speed

Performance objectives

Dependability

Market Competitiveness

Flexibility

Cost

Development

and Organization

(organisation and role)

Supply Network

Process Technology

Capacity

Decision areas

Issues covered in this chapter

Slide 10.1


Quality

Development and deployment of tangible resources

Efficient operation

Development and deployment of intangible resources

Flexible response

Organisational structure

OPERATIONS RESOURCES

MARKET REQUIREMENTS

Servicing a range of market positions

Development and deployment of boundary resources

The objectives of organisational design

Slide 10.2


Quality

Group Headquarters

Marketing

Operations

Finance

Dept.A

Dept.C

Dept.B

Dept.A

Dept.A

Dept.C

Dept.C

Dept.B

Dept.B

U-form organizations give prominence to functional groupings of resources

Slide 10.3


Quality

Division A

Division B

Division C

Group Headquarters

Marketing

etc.

Operations

Marketing

Marketing

etc.

etc.

Operations

Operations

The M form separates the organization’s resources into separate divisions

Slide 10.4


Quality

Group Headquarters

Division A

Division B

Division C

Marketing

Operations

Human resources

Finance

Matrix form structures the organization's resources so that they have two (or more) levels of responsibility

Slide 10.5


Quality

Organisation A Headquarters

Org D

Org B

Group A

Group F

Org E

Org C

Group E

Group B

Group D

Group C

N form organizations form loose networks internally between groups of resources and externally with other organizations

Slide 10.6


Quality

Staff

Funds

Accounting and finance

Personnel

Bought-in products and services from suppliers

Products and services to customers

THE OPERATIONS FUNCTION

Purchasing

Marketing

Technical/

engineering

Product/service

development

Process technology

Product/service ideas

Traditionally other ‘boundary’ functions protected the ‘core’ operations function from environmental uncertainty

Slide 10.7


Quality

PRODUCT/

SERVICE DEVELOPMENT

PRODUCT/

SERVICE DEVELOPMENT

MARKETING

OPERATIONS

MARKETING

OPERATIONS

Example - Retail bank

Example - Defense electronics manufacturer

The degree of overlap between functional strategies will depend on the nature of the business

Slide 10.8


Quality

The Strategic Role of the Operations Functions

The 3 key attributes

of operations

Operations Contribution

Implementing

be Reliable

Operationalise strategy

explain Practicalities

Supporting

be Appropriate

Understand strategy

Contribute to decisions

Driving

be Innovative

provide Foundation of strategy

Develop long-term Capabilities


Quality

Head

office

Head

office

Operation A

Operation A

Operation A

Operation A

Operation A

Operation A

‘Stand-alone’ influence

‘Linkage’ influence

Head

office

Specialist function A

Specialist function B

Head

office

Operation A

Operation A

Operation A

Operation A

Operation A

Operation A

Corporate development

Central functions and services influence

Four ways in which corporate head office can add value

Source: Adapted from Goold, M., Campbell, A. and Alexander, M. (1994) Corporate Level Strategy, Wiley, N.Y.

Slide 10.9


Quality

Programmatic

Top down

Trainer

Instructing operations in the development and deployment of their capabilities through standardised improvement methods

Roles:

Central operations -Teacher/consultant

Business operations-Pupil/Client

Governor

Controlling the performance of the operations by setting clear priorities and measuring performance against targets

Roles:

Central operations -Messenger/Judge

Business operations- Recipient/Defendant

Performance

Market requirements

Operations resources

Capabilities

Curator

Nurturing the performance of the operations by collecting performance data and distributing comparative performance information

Roles:

Central operations -Recorder/Analyst

Business operations-Source of information

Facilitator

Enabling operations in the development and deployment of their capabilities through shared advice, support and learning.

Roles:

Central operations-Mentor

Business operations - Member of a community

Bottom up

Emergent

A typology of the ‘CentralOperations’ function

Slide 10.10


Quality

Programmatic

Top down

TRAINER

GOVERNOR

Market requirements

Operations resources

Performance Focus

Capabilities Focus

FACILIATOR

CURATOR

Bottom up

Emergent

Power

Communication

Relationship

Strong

Predominantly one-way

Dominant

Predominantly two-way

Weak

Subservient

Information relationships for the four types of central operations functions

Slide 10.11


Quality

Top management

Events

Graphics

..Etc.

Project A

Project B

Project C

The Thought Space Partnership Organizational Structure

Slide 10.12


Quality

(CREATIVITY)

Product/service

Product/service

Product/service

Product/service

Product/service

Product/service

development

development

development

development

development

development

Marketing

Marketing

Operations

Operations

(COMMERCIALISM)

(COMPETENCE)

Marketing

Operations

Marketing

Marketing

Operations

Operations

Some

Some

Mass

Mass

Professional

Professional

manufacturing

manufacturing

services

services

services

services

Thought Space - Increasing overlap between operations and the other core functions

Slide 10.13


Quality

Top Management

Client D

Client B

Graphics

Events

Client E

Client C

3D Design

Technical Solutions

Marketing

Accounts

Thought Space - N form organisations form loose networks internally between groups of resources and externally with other organizations

Slide 10.14


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