operations management operations strategy in a global environment 全球環境下的作業策略...
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Operations Operations ManagementManagement
Operations Strategy in a Global Operations Strategy in a Global EnvironmentEnvironment
全球全球環境下的環境下的作業作業策略策略 Chapter 2Chapter 2
OutlineOutline(( 大綱大綱 )) GLOBAL COMPANY PROFILE( 全球性公社槪述 ):
BOEING DEVELOPING MISSIONS AND STRATEGIES
Mission( 使命 ) Strategy( 策略 )
ACHIEVING COMPETITIVE ADVANTAGE THROUGH OPERATIONS( 透過作業建構競爭優勢 ) Competing on Differentiation Competing on Cost Competing on Response
TEN STRATEGIC OM DECISIONS( 策略性作業管理的決策 )
Outline - ContinuedOutline - Continued ISSUES IN OPERATIONSSTRATEGY ( 作業策略的
決策 ) Research Preconditions Dynamics
STRATEGY DEVELOPMENT AND IMPLEMENTATION( 策略發展與執行 ) Identify Critical Success Factors A Global view of Operations Cultural and Ethical Issues Build and Staff the Organization Integrate OM with Other Activities
Outline - ContinuedOutline - Continued GLOBAL OPERATIONS STRATEGY OPTIONS (
作業策略的全球佈局 ) International Strategy Multi-domestic Strategy Global Strategy Transnational Strategy
Management Issues inManagement Issues in Global Operations Global Operations(( 作業的全球觀作業的全球觀
點點 ))
Global Strategic Context Differentiation Cost leadership Response
Logistics Management
Location DecisionsSupply Chain Management
Supply-Chain ManagementSupply-Chain Management(( 供應鏈子管理供應鏈子管理 ))
Sourcing Vertical integration Make-or-buy decisions Partnering
Location DecisionsLocation Decisions(( 地點地點 ,, 位置位置 .. 決定 決定 ))
Country-related issues Product-related issues Government policy/political risk Organizational issues
Materials ManagementMaterials Management(( 材料管理 材料管理 ))
Flow of materials Transportation options and speed Inventory levels Packaging Storage
Defining Global OperationsDefining Global Operations(( 定義全球性操作 定義全球性操作 ))
International business ( 國際化企業 )- engages in cross-border transactions
Multinational Corporation( 多國籍企業 ) - has extensive involvement in international business, owning or controlling facilities in more than one country
Global company( 全球化企業 ) - integrates operations from different countries, and views world as a single marketplace
Transnational company( 超越國際企業 )- seeks to combine the benefits of global-scale efficiencies with the benefits of local responsiveness
Reasons to Globalize OperationsReasons to Globalize Operations((全球化操作的理由全球化操作的理由 ))
Reduce costs (labor, taxes, tariffs, etc.) Improve the supply chain Provide better goods and services Attract new markets Learn to improve operations Attract and retain global talent
Tangible
Intangible
Achieving Global OperationsAchieving Global Operations- Four Considerations –- Four Considerations –獲得全球化操作獲得全球化操作
--要考慮的四個因素要考慮的四個因素 -- Global product design Global process design and technology Global factory location analysis Impact of Culture and Ethics
GlobalGlobalPProduct Designroduct Design全球產品設計全球產品設計
Remember social and cultural differences packaging and marketing can help make product seem
“domestic” but - “liter” versus “quart” “sweetness” and “taste”
GlobalGlobal Process Design and Technology Process Design and Technology全球產品設計及技術全球產品設計及技術
Information technology enables management of integrated, globally dispersed operation
Texas Instruments: 50 plants in 19 countries Hewlett-Packard - product development teams in
U.S., Japan, Great Britain, and Germany Reduces time-to-market
GlobalGlobal全球全球 Facility Location AnalysisFacility Location Analysis
便利位置分析便利位置分析
Select CSFs based on parent organization;’s strategic or operations objectives
Obtain country-specific information on the CSFs Evaluate each country’s CSFs using a 1 (bad) to
5 (good) rating scale Sum the ratings * CSF: Critical Success Factors
Using CSFs for Country Selection
You May Wish To ConsiderYou May Wish To Consider你可以想作是你可以想作是
national literacy rate rate of innovation rate of technology change number of skilled workers stability of government product liability laws export restrictions similarity in language
work ethic tax rates inflation availability of raw materials interest rates population number of miles of highway
GlobalGlobal全球全球Impact of Culture and EthicsImpact of Culture and Ethics文化與道德的衝突文化與道德的衝突
Cultures differ! Some accept/expect: variations in punctuality long lunch hours expectation of thievery bribery little protection of intellectual property
To Establish Global ServicesTo Establish Global Services建立全球的服務建立全球的服務
Determine if sufficient people or facilities exist to support the service
Identify foreign markets that are open - not controlled by governments
Determine what services are of most interest to foreign customers
Determine how to reach global customers
Managing Global Service Managing Global Service OperationsOperations
管理全球服務操作管理全球服務操作Must take a different perspective on Capacity planning Location Planning Facilities design and layout Scheduling
Some DefinitionsSome Definitions
International business( 國際企業 ) A firm that engages in cross-border transactions.
Multinational Corporation (MNC)( 多國籍企業 ) A firm that has extensive involvement in international
business, owning or controlling facilities in more than one country
Some Global StrategiesSome Global Strategies(( 全球策略全球策略 ))
International Strategy( 國際化策略 ): uses exports and licenses to penetrate the global area
Multidomestic Strategy( 在地化策略 ): uses decentralized authority with substantial autonomy at each business
Global Strategy( 全球策略 ): Uses a high degree of centralization, with headquarters coordinating to seek standardization and learning between plants
Transnational Strategy( 超越國界的策略 ): Exploits economies of scale and learning, as well as pressure for responsiveness, by recognizing that core competencies reside everywhere in the organization
Developing Missions and Developing Missions and StrategiesStrategies
任務和決策的發展任務和決策的發展
MissionMission(( 使命、任務使命、任務 ))
Mission - where are you going? Organization’s purpose for being Provides boundaries & focus Answers ‘What do we provide
society?’
© 1995 Corel Corp.
Mission of FedExMission of FedExFedEx is committed to our People-Service-Profit philosophy.
We will produce outstanding financial returns by providing total reliable, competitively superior, global air-ground
transportation of high priority goods and documents that require rapid, time-certain delivery. Equally important,
positive control of each package will be maintained using real time electronic tracking and tracing systems. A
complete record of each shipment and delivery will be presented with our request for payment. We will be helpful, courteous, and professional to each other and the public.
We will strive to have a completely satisfied customer at the end of each transaction.
Sample Mission - MerckSample Mission - Merck
The mission of Merck is to provide society with superior products and services - innovations and solutions that
improve the quality of life and satisfy customer needs - to provide employees with meaningful work and
advancement opportunities and investors with a superior rate of return
Mission of the Hard Rock CaféMission of the Hard Rock Café
To spread the spirit of Rock ‘n’ Roll by delivering an exceptional entertainment and dining experience. We are committed to being an important, contributing member of our community and offering the Hard Rock family a fun, healthy, and nurturing work environment while ensuring
our long-term success.
Factors Affecting MissionFactors Affecting Mission使命的影響因素使命的影響因素
Mission 使命
Philosophy 哲學 &Values 價值
Profitability 利益& Growth 成長Environment 環境
Customers 顧客Public Image大眾的想法
Benefit toSociety
Mission/StrategyMission/Strategy 使命使命 //決策決策
Mission - where you are going 哪裡你要去
Strategy - how you are going to get there; an action plan 如何到那裡,ㄧ個行動的計畫
StrategyStrategy 決策決策
Action plan to achieve mission
Shows how mission will be achieved
Company has a business strategy
Functional areas have strategies © 1995 Corel Corp.
Strategy ProcessStrategy Process 決策過程決策過程
MarketingDecisions市場決定
OperationsDecisions操作者決定
Fin./Acct.Decisions財會決定
CompanyMission 公司使命
BusinessStrategy 企業決策
Functional AreaFunctional AreaStrategies 決策發展的區域
Strategies for Competitive Strategies for Competitive AdvantageAdvantage
決策對競爭的好處決策對競爭的好處 Differentiation 差異化
Cost leadership 價格領導
Quick response 反應快
Competing on DifferentiationCompeting on Differentiation差異化的競爭差異化的競爭
Uniqueness can go beyond both the physical characteristics and service attributes to
encompass everything that impacts customer’s perception of value
Competing on CostCompeting on Cost價格的競爭價格的競爭
Provide the maximum value as perceived by customer
Does not imply low value or low quality
Competing on ResponseCompeting on Response反應者的競爭反應者的競爭
Flexibility Reliability Timeliness
Requires institutionalization within the firm of the ability to respond
Competing, Regardless of the Basis,Competing, Regardless of the Basis,競爭,不顧基礎競爭,不顧基礎
Requires the institutionalization within the firm of the ability to change, and to adapt
OM’s Contribution to StrategyOM’s Contribution to Strategy操作管理對決策的貢獻操作管理對決策的貢獻
Response(Faster)
Quality
Product
Process
Location
Layout
Human Resource
Supply Chain
Inventory
Scheduling
Maintenance
HP’s ability to follow the printer market
Differentiation(Better)
Cost leadership(Cheaper)
Southwest Airlines No-frills service
Sony’s constant innovation of new products
Pizza Hut’s five-minute guarantee at lunchtimeFederal Express’s “absolutely, positively on time”
Motorola’s automotive products ignition systemsMotorola’s pagers
IBM’s after-sale service on mainframe computers
Fidelity Security’s broad line of mutual funds
FLEXIBILITY
DesignVolume
LOW COST
DELIVERY
SpeedDependability
QUALITY
ConformancePerformance
AFTER-SALE SERVICE
BROAD PRODUCT LINE
Operations Decisions Examples Specific
Strategy UsedCompetitive Advantage
10 Strategic OM Decisions10 Strategic OM Decisions(( 策略性作業管理的決策策略性作業管理的決策 ))
Goods & service design ( 商品與服務設計 ) Quality ( 品質 ) Process & capacity design( 製程與産能設計 ) Location selection( 廠 / 店址選擇 ) Layout design( 佈置設計 ) Human resource and job design ( 人力資源與工作設計 ) Supply-chain management ( 供應鏈 管理 ) Inventory ( 存貨 ) Scheduling ( 批程 ) Maintenance ( 保養維護 )
Operations Decisions
(作業決策)
Goods(商品) Services(복務)
Goods & services decisions
Product is usually tangible
Product is usually intangible
Quality Objective quality standards
Subjective quality standards
Process and capacity design
Customer not involved in most of process
Customer may be directly involved in process. Capacity must match demand to avoid lost sales
Goods & Services and the 10 OM Goods & Services and the 10 OM Decisions(Decisions( 商品與服務間的差商品與服務間的差 ))
Operations Decisions
Goods Services
Location Selection
May need to be near raw materials or labor force
Product is usually intangible
Layout Design
Layout can enhance production efficiency
Subjective quality standards
Human Resources and Job Design
Workforce focused on technical skills. Labor standards consistent. Output-based wage system.
Customer may be directly involved in process. Capacity matches demand to avoid lost sales
Goods & Services and the 10 OM Goods & Services and the 10 OM Decisions – ContinuedDecisions – Continued
Operations Decisions
Goods Services
Supply chain management
Supply-chain relationships critical to final product
Supply-chain relationships important, not necessarily critical
Inventory Raw materials, work-in-process, and finished goods
Most services cannot be stored
Scheduling Ability to convert inventory may allow leveling of production rates
Primarily concerned with meeting the customer's immediate schedule
Goods & Services and the 10 OM Goods & Services and the 10 OM Decisions – ContinuedDecisions – Continued
Goods & Services and the 10 OM Goods & Services and the 10 OM Decisions – ContinuedDecisions – Continued
Operations Decisions
Goods Services
Maintenance Maintenance is often preventive and takes place at the production site
Maintenance is often "repair" and takes place at the customer's site
Process Design(Process Design( 製程設計製程設計 ))
Low Moderate HighVolume( 産量 )
High
Moderate
Low
Varie
ty o
f Pro
duct
s
Process-focusedJob Shops
(Print shop, emergencyroom , machine shop,
fine diningRepetitive (modular)
focusAssembly line
(Cars, appliances, TVs, fast-food restaurants) Product-focused
Continuous(steel, beer, paper, bread, institutional
kitchen)
Mass Customization
Customization at high Volume
(Dell Computer’s PC)
Operations Strategies for Two Operations Strategies for Two Drug CompaniesDrug Companies
((作業決策對二藥品公司的影響作業決策對二藥品公司的影響 ))
Brand Name Drugs, Inc.
Generic Drug Corp.
Product Selection and Design
Heavy R & D; Extensive labs; focus on development in broad range of \drug categories
Low R & D investment; focus on development of generic drugs
Quality Quality is a major priority; Standards exceed regulatory requirements
Meets regulatory requirements on a country-by-country basis as necessary
Operations Strategies for Two Operations Strategies for Two Drug Companies - ContinuedDrug Companies - Continued
Brand Name Drugs, Inc.
Generic Drug Corp.
Process Product & modular production processes Long product runs in specialized facilities Build capacity ahead of demand
Process focused General production processes; “Job Shop” approach, short run; Focus on high utilization
Location Still located in city in which it was founded
Recently moved to low tax, low labor cost environment
Scheduling Central production planning
Many short run products complicate scheduling
Operations Strategies for Two Operations Strategies for Two Drug Companies - ContinuedDrug Companies - Continued
Brand Name Drugs, Inc.
Generic Drug Corp.
Human Resources
Hires the best; nation-wide searches
Very experienced top executives provide direction; other personnel paid below average
Supply Chain
Long term supplier relationship
Tends to purchase competitively to find bargains
Inventory Maintains high finished goods inventory, primarily to ensure all demands are met
Process focus drives up WIP inventory. Finished goods inventory tends to be low
Operations Strategies for Two Operations Strategies for Two Drug Companies - ContinuedDrug Companies - Continued
Brand Name Drugs, Inc.
Generic Drug Corp.
Maintenance Highly trained staff; Extensive parts inventory
Highly trained staff to meet challenging demands
Characteristics of High ROI FirmsCharacteristics of High ROI Firms高高 ROIROI堅硬結構的特色堅硬結構的特色
High quality product High capacity utilization High operating effectiveness Low investment intensity Low direct cost per unit
From the PIMS study of the Strategic Planning Institute
Strategic Options Managers Use to Strategic Options Managers Use to Gain Competitive AdvantageGain Competitive Advantage
決策操作管理者的使用決策操作管理者的使用以增加競爭力以增加競爭力
28% - Operations Management 18% - Marketing/distribution 17% - Momentum/name recognition 16% - Quality/service 14% - Good management 4% - Financial resources 3% - Other
Strategic Options Managers Use Strategic Options Managers Use to Gain Competitive Advantageto Gain Competitive Advantage
28% Operations Management 操作管理 Low- cost product Product-line breadth Technical superiority Product characteristics/differentiation Continuing product innovation Low-price/high-value offerings Efficient, flexible operations adaptable to consumers Engineering research development Location Scheduling
Preconditions Preconditions 之前狀況之前狀況 --
To Implement a StrategyTo Implement a Strategy 決策工具決策工具One must understand:
Strengths & weaknesses of competitors and new entrants into the market
Current and prospective environmental, legal, and economic issues
The notion of product life cycle Resources available with the firm and within the OM
function Integration of OM strategy with company strategy and
with other functions.
Impetus for Strategy ChangeImpetus for Strategy Change決策改變的原動力決策改變的原動力
Changes in the organization 組織改變 Stages in the product life cycle 產品生命週期改變 Changes in the environment 環境改變
Stages in the Product Life CycleStages in the Product Life Cycle
Introduction 引導期
Growth 成長期
Maturity 成熟期 Decline
死亡期
Gro
wth
rate
Best period to increase market shareR&D engineering are critical
Product design and development are criticalFrequent product and process design changesOver-capacityShort production runsHigh skilled-labor contentHigh production costsLimited number of modelsUtmost attentions to qualityQuick elimination of market-revealed design defects
Introduction
Strategy & Issues During Product LifeStrategy & Issues During Product Life
Company Strategy & Issues
OM Strategy & Issues
Strategy & Issues During Product LifeStrategy & Issues During Product Life
Practical to change prices or quality imageMarketing is criticalStrengthen niche
Forecasting is criticalProduct and process reliabilityCompetitive product improvements and optionsShift toward product orientedEnhance distribution
Company Strategy
& Issues
OM Strategy & Issues
Growth
Strategy & Issues During Product LifeStrategy & Issues During Product Life
Poor time to increase market shareCompetitive costs become criticalPoor time to change price, image, or qualityDefend position via fresh promotional and distribution
approaches
StandardizationLess rapid product changes and more minor annual model
changesOptimum capacityIncreasing stability of manufacturing processLower labor skillsLong production runsAttention to product improvement and cost cuttingRe-examination of necessity of design compromises
Company Strategy
& Issues
OM Strategy & Issues
Maturity
Strategy & Issues During Product LifeStrategy & Issues During Product Life
Cost control critical to market share
Little product differentiationCost minimizationOvercapacity in the industryPrune line to eliminate items not returningGood marginReduce capacity
Company Strategy & Issues
OM Strategy & Issues
Decline
Strategy and Issues During a Strategy and Issues During a Product’s LifeProduct’s Life
在產品生命期間產生的策略與問題在產品生命期間產生的策略與問題
Strategy Development and Strategy Development and ImplementationImplementation策略的發展與執行策略的發展與執行
Identify critical success factors Build and staff the organization
SWOT Analysis ProcessSWOT Analysis Process(( 策略發展的過程策略發展的過程 ))
Environmental Analysis( 環境分析 )
Determine Corporate Mission( 決定公司使命 )
Form a Strategy( 決策的架構 )
SWOT Analysis to Strategy SWOT Analysis to Strategy FormulationFormulation
Strategy 策略
Mission 使命
ExternalOPportunities 機會
InternalSTrengths 強勢
InternalWEaknesses 弱勢
ExternalTHreats 威脅
CompetitiveAdvantage
Identifying Identifying CrCritical Success Factorsitical Success Factors定義關鍵的成功因子定義關鍵的成功因子
Decisions Sample Option ChapterProduct Customized, or standardized 5Quality Define customer expectations and how to achieve them 6, S6Process Facility size, technology, capacity 7, S7Location Near supplier or customer 8Layout Work cells or assembly line 9Human resource Specialized or enriched jobs 10, S10Supply chain Single or multiple source suppliers 11, S11Inventory When to reorder, how much to keep on hand 12, 14,16Schedule Stable or fluctuating productions rate 13, 15Maintenance Repair as required or preventive maintenance 17
MarketingServiceDistributionPromotionChannels of distributionProduct positioning (image, functions)
Finance/AccountingLeverageCost of capitalWorking capitalReceivablesPayablesFinancial controlLines of credit
Production/Operations
Activity Mapping: Southwest Airline’s Activity Mapping: Southwest Airline’s Low Cost Competitive AdvantageLow Cost Competitive Advantage
Courteous, but limited passenger service
Lean, productive employees
Short haul, point-to-point routes, often to secondary
airports
High aircraft utilization
Standardized fleet of Boeing 737 aircraft
Frequent, reliable schedules
Competitive Advantage:Low Cost
Activity Mapping: Southwest Airline’s Activity Mapping: Southwest Airline’s Low Cost Competitive AdvantageLow Cost Competitive Advantage
Courteous, but limited passenger service
No seat assignmentsNo baggage transfersAutomated ticketing machinesNo meals
Activity Mapping: Southwest Airline’s Activity Mapping: Southwest Airline’s Low Cost Competitive AdvantageLow Cost Competitive Advantage
Short haul, point-to-point routes, often to secondary
airports
Lower gate costs at secondary airports
High number of flights, reduces employee idle time between flights
Activity Mapping: Southwest Airline’s Activity Mapping: Southwest Airline’s Low Cost Competitive AdvantageLow Cost Competitive Advantage
Frequent, reliable schedules
High number of flights reduces employee idle time between flightsSaturate a city with flights lowering administrative costs per passenger for that city
Activity Mapping: Southwest Airline’s Activity Mapping: Southwest Airline’s Low Cost Competitive AdvantageLow Cost Competitive Advantage
Standardized fleet of Boeing 737 aircraft
Pilot training on only one type of aircraftReduced maintenance inventory required because of only one type of aircraftExcellent supplier relations with Boeing has aided financing
Activity Mapping: Southwest Airline’s Activity Mapping: Southwest Airline’s Low Cost Competitive AdvantageLow Cost Competitive Advantage
High aircraft utilization
Flexible employees and standard planes aids schedulingFlexible union contractsMaintenance personnel trained on only one type of aircraft20 minute gate turnarounds
Activity Mapping: Southwest Airline’s Activity Mapping: Southwest Airline’s Low Cost Competitive AdvantageLow Cost Competitive Advantage
Lean, productive employees
High level of stock ownershipHire for attitude, then trainHigh employee compensationEmpowered employeesAutomated ticket machines
Activity Mapping: Southwest Airline’s Activity Mapping: Southwest Airline’s Low Cost Competitive AdvantageLow Cost Competitive Advantage
Courteous, but limited passenger service
Lean, productive employees
Short haul, point-to-point routes, often to secondary
airports
High aircraft utilization
Standardized fleet of Boeing 737 aircraft
Frequent, reliable schedules
Competitive Advantage:Low Cost
Southwest Airline’s Low Cost Southwest Airline’s Low Cost Competitive AdvantageCompetitive Advantage
Vanguard’s Activity SystemVanguard’s Activity System
A broad array of mutual funds excluding some fund
categories
Efficient investment management approach offering good consistent
performance
Straightforward client communication and
education
Strict cost control
Direct distributions
Very low expenses
passed on to client
How It WorksHow It Works
CompanyMission
BusinessStrategy
Functional AreaStrategies
MarketingDecisions
OperationsDecisions
Fin./Acct.Decisions
If competitive advantage, leads to achieving
Distinctive competencies affect
Four International Operations Four International Operations Strategies(Strategies( 四種國際化作業策四種國際化作業策
略略 ))
Multidomestic StrategyMultidomestic Strategy(( 在地化策略在地化策略 ))
Operating decisions are decentralized to each country to enhance local responsiveness
Global StrategyGlobal Strategy(( 全球化策略全球化策略 ))
Operating decisions are centralized and headquarters coordinates the standardization
and learning between facilities
Transnational StrategiesTransnational Strategies((超越國際的策略超越國際的策略 ))
Combines the benefits of global-scale efficiencies with the benefits of local responsiveness
International StrategyInternational Strategy((國際化的策略國際化的策略 ))
Global markets are penetrated using exports and licenses