Orlando A. Moreno
Operations management may be defined as the
operation, and improvement of the production
system that creates the firm’s primary products and
services for its customers....
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Operations Strategy and
A Framework for Operations Strategy in
Operations Strategy for Integration
Meeting the Competitive Challenge
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Coping with Changes in Demand
Flexibility and New Product Introduction
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Operations Decision Making
Finance Strategy Operations Strategy Marketing Strategy
Services & People Partners VARs Processes Products &
Planning and Control
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A Framework for Operations Strategy
Strategic Vision New and Current
Speed, Flexibility, and Price
Operations & Supplier Capabilities
Technology Systems People R&D IT TQM Distribution
Financial Management Human Resource Management Information Management
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Operation’s Role in Corporate
Stage I--Internally Neutral
Minimize negative potential
Management control systems
Stage II--Externally Neutral
Achieve parity with Integration Partners
Follow industry practice
Stage III--Internally Supportive
Support the business strategy
Stage IV-- Externally Supportive
Manufacturing-based competitive advantage
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Total Quality Management (TQM)
Management consists of:
ORGANIZATION • directing,
• control, and
"TQM is a management approach for an organization, centered on
quality, based on the participation of all its members and aiming at
long-term success through customer satisfaction, and benefits to
all members of the organization and to society." ISO 8402:1994
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THE FIVE PILLARS OF TQM
Product is the focal point for organization purpose and achievement.
Quality in the product is impossible without quality in the process.
Quality in the process is impossible without the right organization.
The right organization is meaningless without the proper leadership.
Strong, bottom-up commitment is the support pillar for all the rest.
Each pillar depends upon the other four, and if one is weak all are.
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The structure is based on TEAMS not FUNCTIONS.
CENTRALIZED APPROACH DECENTRALIZED APPROACH
FUNCTIONS INPUTS TEAMS OUTPUTS
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•The supervisory focus is centered on OUTPUTS not INPUTS.
•The work accomplishment mindset is on the team PRODUCT , not on each
•This decentralized orientation affects every aspect of the management system
operation and interaction, not only the structure, but the human spirit and the
human system aspects into full account. In fact it is based on them.
•Its great and proven strength lies in the creation of new motivation and
commitment among all employees and of proactive leadership from the bottom up
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