2. Subject time line
2
• Saturday- 11.30 to 2.30
• Lecture type- online
• Total Duration – 40 hrs
• Attendance / class participation, Case study and presentation
– 40 marks
• Final examination- 60 marks
4. Introduction
• Strategies and values, Competing through operations
• Strategic alliances and production sharing,
• Changing nature of world business
• Current perspective- Strategic fit.
• Strategic Competitive priorities- Cost, Quality,Time, Flexibility
4
5. Introduction
• Strategic management is the management of an organization’s
resources to achieve its goals and objectives.
• Strategic management involves setting objectives, analyzing
the competitive environment, analyzing the internal
organization, evaluating strategies, and ensuring that
management rolls out the strategies across the organization.
5
7. Introduction to Value chain
Supply chains and value chains
• The value chain is a process in which a company adds value to
its raw materials to produce products eventually sold to
consumers.
• The supply chain represents all the steps required to get the
product to the customer.
• The value chain gives companies a competitive advantage in
the industry, while the supply chain leads to overall customer
satisfaction.
7
9. Chapter 2- A framework for
Operations Strategy in
Manufacturing
9
10. framework
• Purpose
• role of manufacturing /operations in business strategy:
• Value Chain concept Focus, core competence and distinctive
capabilities – stake holders & strategy
• Methodology for developing operations strategy :Checking
markets, Outcome of market debate- Linking manufacturing
markets
10
11. purpose
• The ultimate purpose of strategic operation management is
improve
• efficiency
• Flexibility
• Productivity
• A strategy is way of doing something, it usually includes ,
formulation,& setting up of the goals and set action plans for
accomplishing the goal
11
12. 5 task of strategic management
1. Defining business- mission vision
2. Defining measurable objectives
3. Making strategies to achieve the objectives
4. Implementing strategies
5. Evaluating performance, reviewing
12
13. strategic management process
1. Environmental scanning
2. Strategy formulation-
• corporate level
• Business unit level
• Functional level- department
3. strategic implementation
4. evaluation and control
• Corporate level-
Growth strategies
Stability strategies
Retrenchment strategies 13
15. strategies
• Technology strategy issues in new product development –
• Time to market- strategic nature of process
• Business implication of process choice
• Change management and sustainability.
Strategic
Sourcing
in
Supply
Management
15
16. strategies
• Porter's generic strategies
• describe how a company pursues competitive
advantage across its chosen market scope.
• . strategy targets either cost leadership, differentiation, or
focus. These are known as Porter's three generic strategies
and can be applied to any size or form of business.
Strategic
Sourcing
in
Supply
Management
16
17. strategies
• Porter's generic strategies
• If a firm is targeting customers in most or all segments of an
industry based on offering the lowest price, it is following a
cost leadership strategy;
• If it targets customers in most or all segments based on
attributes other than price (e.g., via higher product quality or
service) to command a higher price, it is pursuing a
differentiation strategy. It is attempting to differentiate itself
along these dimensions favorably relative to its competition. It
seeks to minimize costs in areas that do not differentiate it, to
remain cost competitive; or
• If it is focusing on one or a few segments, it is following a
focus strategy. A firm may be attempting to offer a lower cost
in that scope (cost focus) or differentiate itself in that scope
(differentiation focus).
Strategic
Sourcing
in
Supply
Management
17
20. strategies
• Evaluating various tradeoffs alternatives
• Focused manufacturing – Product or process focus
• Make or Buy – merits /demerits – value
• chain approach – just in time – lean manufacturing –
• Quality as strategic factor
Strategic
Sourcing
in
Supply
Management
20
22. Export market entry Strategies
Indirect
exporting
Direct
exporting
Direct foreign
investment
Strategic
alliance
Joint venture
Global
Market
entry
strategies
Franchising &
licencing
Turnkey
projects
International
Logistics
22
23. strategies
• Direct Exports
• Direct exports represent the most basic mode of
exporting made by a (holding) company, capitalizing on
economies of scale in production concentrated in the
home country and affording better control over
distribution. Direct export works the best if the volumes
are small. Large volumes of export may trigger
protectionism. The main characteristic of direct exports
entry model is that there are no intermediaries.
23
24. strategies
• Indirect Exports
• Indirect export is the process of exporting through
domestically based export intermediaries. The exporter
has no control over its products in the foreign
• Joint venture
• here are five common objectives in a joint venture:
market entry, risk/reward sharing, technology sharing
and joint product development, and conforming to the
government regulations. Other benefits include political
connections and distribution channel access that may
depend on relationships. 24
25. strategies
• Franchising
• The franchising system can be defined as: "A system in which semi-
independent business owners (franchisees) pay fees and royalties to
a parent company (franchiser) in return for the right to become
identified with its trademark, to sell its products or services, and
often to use its business format and system
• Strategic alliance
• Strategic alliance/ this is a type of cooperative agreements between
different firms, such as shared research, formal joint ventures, or
minority equity participation. The modern form of strategic alliances
is becoming increasingly popular and has three distinguishing
characteristics
25
27. Strategies-JIT
27
• What Is Just-in-Time (JIT)?
• The just-in-time (JIT) inventory system is a management
strategy that aligns raw-material orders from suppliers directly
with production schedules. Companies employ this inventory
strategy to increase efficiency and decrease waste by receiving
goods only as they need them for the production process,
which reduces inventory costs. This method requires
producers to forecast demand accurately.
• Just-in-time manufacturing is also known as the Toyota
Production System (TPS) because the car manufacturer Toyota
adopted the system in the 1970s.
• The success of the JIT production process relies on steady
production, high-quality workmanship, no machine
breakdowns, and reliable suppliers.
29. Strategies-JIT
29
• the following methods are included in a true JIT system:
• Housekeeping – physical organization and discipline
• Elimination of defects
• Setup reduction and flexible changeover approaches
• Small lot sizes
• Uniform plant load – leveling as a control mechanism
• Balanced flow – actively managing flow by limiting batch sizes
• Skill diversification – multi-functional workers
• Control by visibility – using visual tools to improve communication
• Designing for process
• Streamlining the movement of materials
• Cellular manufacturing
• Pull system
• Kanban
30. Strategies-JIT
30
• a Japanese manufacturing system in which the supply of
components is regulated through the use of an instruction card sent
along the production line
32. Benefits of Just-in-Time
Manufacturing
32
• Reduction in inventory
• Reduction in labor costs
• Reduction in space needed to operate
• Reduction in WIP (work in process)
• Increase in production
• Improvements in product quality (lower rates of defects)
• Reduction of throughput time
• Reduction of standard hours
• Increase in number of shipments
33. Potential Risks- JIT
Advantages
• Lower stock holding means a
reduction in storage space
which saves rent and
insurance
• As stock is only obtained
when it is needed, less
working capital is tied up in
stock
• There is less likelihood of
stock perishing, becoming
obsolete or out of date
• Avoids the build-up of unsold
finished product
Disadvantages
• There is little room for
mistakes as minimal stock is
kept for re-working faulty
product
• Production is Dependent on
suppliers and if stock is not
delivered on time, the whole
production schedule can be
delayed
• There is no spare finished
product available to meet
unexpected orders, because
all product is made to meet
actual orders – however, JIT is
a very responsive method of
production
33
34. Potential Risks- JIT
• Famous for its JIT inventory system, Toyota Motor Corporation
orders parts only when it receives new car orders. Although the
company installed this method in the 1970s,2 it took 20 years to
perfect it.
• Sadly, Toyota's JIT inventory system nearly caused the company to
come to a screeching halt in February 1997, after a fire at Japanese-
owned automotive parts supplier Aisin decimated its capacity to
produce P-valves for Toyota's vehicles. Because Aisin is the sole
supplier of this part, its weeks-long shutdown caused Toyota to halt
production for several days. This caused a ripple effect, where other
Toyota parts suppliers likewise had to temporarily shut down
because the automaker had no need for their parts during that time
period. Consequently, this fire cost Toyota 160 billion yen in revenue.
34
35. What Types of Companies Use
JIT?
• The JIT inventory system is popular with small businesses and major
corporations; because it enhances cash flow and reduces the capital
needed to run the business. Retailers, restaurants, on-demand
publishing, tech manufacturing, and automobile manufacturing are
examples of industries that have benefited from just-in-time
inventory..
35
37. Strategies-Lean manufacturing
37
• Lean manufacturing is a production process based on an
ideology of maximising productivity while simultaneously
minimising waste within a manufacturing operation. The
lean principle sees waste is anything that doesn’t add value
that the customers are willing to pay for.
• The types of waste include processes, activities, products or
services that require time, money or skills but do not create
value for the customer. These can cover underused talent,
excess inventories or ineffective or wasteful processes and
procedures.
38. key benefits to lean
manufacture:
38
• Eliminate Waste: Waste is a negative factor for cost, deadlines
and resources. It provides no value to products or services
• Improve Quality: Improved quality allows companies to stay
competitive and meet the changing needs and wants of
customers. Designing processes to meet these expectations
and desires keep you ahead of the competition, keeping
quality improvement at the forefront
• Reducing Costs: Overproduction or having more materials
than is required creates storage costs, which can be reduced
through better processes and materials management
• Reducing Time: Wasting time with inefficient working
practices is a waste of money too, while more efficient
practices create shorter lead times and allow for goods and
services to be delivered faster
39. The five core principles of lean
manufacturing
39
• Value: Value is determined from the perspective of the
customer and relates to how much they are willing to pay for
products or services. This value is then created by the
manufacturer or service provider who should seek to
eliminate waste and costs to meet the optimal price for the
customer while also maximizing profits.
• Map the Value Stream: This principle involves analysing the
materials and other resources required to produce a product
or service with the aim of identifying waste and
improvements. The value stream covers the entire lifecycle of
a product, from raw materials to disposal.
40. The five core principles of lean
manufacturing
40
• Create Flow: Creating flow is about removing functional
barriers to improve lead times. This ensures that processes
flow smoothly and can be undertaken with minimal delay or
other waste. Interrupted and disharmonious production
processes incur costs and creating flow means ensuring a
constant stream for the production or service delivery.
• Establish a Pull System: A pull system works by only
commencing work when there is demand. This is the opposite
of push systems, which are used in manufacturing resource
planning (MRP) systems. Push systems determine inventories
in advance with production set to meet these sales or
production forecasts.
41. The five core principles of lean
manufacturing
41
• Perfection: The pursuit of perfection via continued process
improvements is also known as ‘Kaizen’ as created by Toyota
Motor Corporation founder Kiichiro Toyoda (see ‘When and
Who Invented Lean Manufacturing?’ above). Lean
manufacturing requires ongoing assessment and improvement
of processes and procedures to continually eliminate waste in
an effort to find the perfect system for the value stream.
42. The 8 Wastes of Lean
Manufacturing
42
• Unnecessary transportation
• Excess inventory
• Unnecessary movement of people, equipment or machinery
• Waiting – either people or idle equipment
• Over-production of a product
• Over processing or adding unnecessary features to a product
• Defects that require costly correction
• Unused talent
.
43. waste can be broadly split into
three specific types:
43
• Mura: Unevenness or waste as a result of fluctuating
demand, whether from customer requests or new services
(and thereby additional work) being added by an organisation.
• Muri: Overburden or waste due to trying to do too much. This
relates to resource allocation and involves people being asked
to do too much. Time can be wasted as people switch tasks or
even lose motivation due to being overburdened.
• Muda: This is process-related waste and work that adds no
value. If an activity doesn’t add value, or directly support one
that adds value, then it is unnecessary and should be
eliminated.
44. Advantages and
Disadvantages
:
44
Advantages:
• Saves Time and Money-Cost-saving is the most obvious
advantage of lean manufacture. More efficient workflows,
resource allocation, production and storage can benefit
businesses regardless of size or output. Time saving allows for
reduced lead times and better service in providing products
quickly to customers, but can also help save money through
allowing for a more streamlined workforce.
• Environmentally Friendly-Reducing waste in time and
resources and removing unnecessary processes can save the
costs in energy and fuel use. This has an obvious
environmental benefit, as does the use of more energy
efficient equipment, which can also offer cost savings.
45. Advantages and
Disadvantages
:
45
Advantages:
• improved Customer Satisfaction
• Improving the delivery of a product or service, at the right
cost, to a customer improves customer satisfaction. This is
essential to business success as happy customers are more
likely to return or recommend your product or service to
others.
46. Advantages and
Disadvantages
:
46
• Disadvantages:
• Employee Safety and Wellbeing-Critics of lean argue that it
can ignore employee safety and wellbeing. By focusing on
removing waste and streamlining procedures it is possible to
overlook the stresses placed on employees who are given little
margin for error in the workplace
• Hinders Future Development-Lean manufacturing’s inherent
focus on cutting waste can lead management to cut areas of a
company that are not deemed essential to current strategy.
However, these may be important to a company’s legacy and
future development. Lean can create an over-focus on the
present and disregard the future.
47. Advantages and
Disadvantages
:
47
• Disadvantages:
• Difficult to Standardize-Some critics point out that lean
manufacturing is a culture rather than a set method, meaning
that it is impossible to create a standard lean production
model. This can create a perception that lean is a loose and
vague technique rather than a robust one.
48. How Can LeanManufacturingbe
Implemented
:
48
• The general meaning of lean is to identify and eliminate
waste, from which quality and production times can be
improved and costs reduced. This is one method of
approaching lean manufacturing, but it can also be
approached using the ‘Toyota Way,’ which is to focus on
improving workflows rather than waste.
• However, despite the different approaches both methods
share a number of principles, including:
Automation
Continuous Improvement
Flexibility
Load Leveling
Pull Processing
Supplier Relationships
Waste Removal
51. Strategic resource management:
Importance
• What are Resources
• Resources can be anything from people to machinery to facilities.
They are whatever you need to complete your project or task.
• For a construction company, a resource can include a special piece
of equipment or tools. A software company would need computers
and developers. And an event manager might need caterers and a
venue. For a lab, you have rooms for experiments, specialized tools,
materials. Because resources exist in every field, so does the need
for resource management.
51
52. Strategic resource management:
Importance
• Strategic human resource management is the foundation of a strong
business because, when properly applied, it ensures that the
company as a whole is working together to reach its goals. This gives
the business a greater chance to succeed
• Resource management is the process of planning, scheduling, and
allocating organizational and project resources in the best possible
way. Its ultimate aim is to maximize your resources’ efficiency.
Which in turn will help fulfil project, task, or organizational goals
52
54. Strategic resource management:
Importance
• Different Types of Resource Management
• Scheduling – Ensures that you have the right capacity for
projects and that no one is double booked in the process
• Planning – This looks not only at current projects, but future
projects, with more emphasis on getting the right resource for the
right job.
• Management – Allocating resources and monitoring utilization,
engaging in resource leveling and smoothing, long-term planning,
and strategic management of your entire project portfolio.
54
55. Strategic resource management:
Importance
• Why is resource management important?
• Provides you with an overview of everyone and everything involved
in your project;
• Enables utilization planning;
• Makes the planning and management process more transparent;
• Helps you see problems before they start;
• Gives you control over your project.
.
55
56. Strategic resource management:
Importance
• How Can You Benefit From Managing Your Resources?
• Maximizing resource efficiency: Resource Utilization
• Getting a bird’s eye view of your project: An overview
• Preventing miscommunication mishaps: Transparency
• Predicting the future: Foreseeing and avoiding problems
• Taking Control
.
56
57. Strategic resource management:
Importance
• How Can You Benefit From Managing Your Resources?
• Maximizing resource efficiency: Resource Utilization
Prevents boredom and burnout
Better forecasting
• Better utilization means a happier and healthier team, helping to
reduce burnout and stress.
• Resources are used to their maximum potential, keeping projects on
time and on budget.
• It helps project managers keep an eye on the project, reducing
oversights and double-bookings.
• Changes and hiccups can be caught more quickly, preventing
problems from getting worse.
.
57
58. Strategic resource management:
Importance
• How Can You Benefit From Managing Your Resources?
• Getting a Bird’s-Eye View of Your Project: An Overview
In project management, you should aim to have a better overview of
everything. This will help you see exactly where your project’s at,
what still needs to be done, and by when. It turns out, an overview
will help you manage your team better and give you more efficiency
• An overview allows you to track team and project progress, giving
everyone better visibility and keeping you all up-to-date.
• You can see how efficient your team and resources are, allowing you
to make better predictions for future projects.
• Overviews give you more control. Which helps you to conquer all
required tasks.
• Looking at your resources from a different angle can increase your
efficiency, especially when dealing with dozens of resources spread-
out across the country or world.
58
59. Strategic resource management:
Importance
• How Can You Benefit From Managing Your Resources?
• Preventing Miscommunication Mishaps: Transparency
• Better communication
• Misunderstandings are often unavoidable. Especially if you are
working in an organization with simultaneous projects and
managers. And while workarounds for this are abundant, they don’t
always get the job done
• Happier team
• The other reason why you should aim for transparency is the
engaged workforce that comes with it. With links between
organizational transparency, credibility, and organizational
accountability. There’s plenty of proof transparent communication
drives employee engagement.
59
60. Strategic resource management:
Importance
• How Can You Benefit From Managing Your Resources?
• Preventing Miscommunication Mishaps: Transparency
• More transparency helps prevent avoidable miscommunication
mishaps between team members, managers, and clients, keeping
everyone up-to-date and on the same page.
• Project transparency is beneficial to everyone involved. It increases
employee engagement and stakeholder trust.
• Transparency can reduce email noise, eliminating confusion and
freeing up your inbox’s storage.
• A central resource management tool can give an entire organization
transparency, allowing controlled access to every team member.
60
61. Strategic resource management:
Importance
• How Can You Benefit From Managing Your Resources?
• Predicting the Future: Foreseeing and Avoiding Problems
• Track your team and tools
• Booked machines, client meetings, incoming shipments. Equipment
scheduling means everything is planned and accounted for. Allowing
project managers to quickly and easily check the availability and
utilization of a resource. This is helpful if a plan changes quickly and
alternative arrangements need to be made. And trust us, this will
happen!
• . Fix problems ahead of time
• Plans can also show the bottlenecks of the projects:
upcoming holidays, overlapping vacation days, scheduled repairs,
mandatory safety trainings. Long-term planning can help you
prepare for the future and make adjustments in advance. By fixing
the problems when they are still “invisible,” you can prevent them
from getting worse.
61
62. Strategic resource management:
Importance
• How Can You Benefit From Managing Your Resources?
• Predicting the Future: Foreseeing and Avoiding Problems
• Resource planning lets you understand the actual project timeline,
helping with long-term planning and making more accurate
forecasts.
• Planning gives you a better idea of what your resources are doing
and where they are located. Making it easier to sort out unexpected
problems.
• Bottlenecks can be ironed-out before they occur. And when changes
are made in advance, you can focus on the current tasks on hand.
This means a more efficient use of your time and less stress.
62
63. Strategic resource management:
Importance
• How Can You Benefit From Managing Your Resources?
• Taking Control: Right Decisions
• Ensure project capacity
• You can see who has more downtime and who can be reallocated to
help out on other tasks. Are there enough people, machinery, and
other resources to finish a task? Or do you need to hire someone
else? Having all this info gives you a feeling that you have a control
over a project.
• See the “big picture”
• Resource management is a continuous activity. But when you plan it
out, you are better able to have a bigger picture of the entire
process. As well as the long term.
• You can measure the performance of your resources, which makes
for more accurate forecasting. This can help you choose the best
direction for your company. So instead of running into problems, you
can see what lucrative opportunities lay beyond the horizon.
63
64. Strategic resource management:
Importance
• How Can You Benefit From Managing Your Resources?
• Taking Control: Right Decisions
• Resource planning tells you where your resources are and what they
are doing. Giving you not only an overview, but control of the whole
process. This ensures that nothing is forgotten and issues can be
solved ahead of time.
• Control allows you to measure resource helps you make the best
choices for your company. In turn, this can help grow and expand
your business.
• Being in control lets you stay calm in times of emergencies and times
of uncertainty.
• There are resource planning tools made specifically for this purpose.
Which can take the pressure off of the project manager and help you
succeed. Find the best one for your needs! 64
65. Total Productive Maintenance (TPM)
• Total Productive Maintenance (TPM) is a culture that focuses on
improving the effectiveness of the plant, equipment and processes
through the empowerment of people to achieve Zero BAD
(Breakdown, Accident, Defect).
• TPM is the foundation for JIT (Just in Time), Poke Yoke, Lean
Manufacturing & Zero Defects. TPM comes from the best of
Japanese Industrial Excellence and evolved from the heat of the
continuing Energy Crisis and Globalization Challenges to achieve
more with less. Machines in any organization are so important
because any product has to pass through machine at any stage
during its manufacturing cycle.
65
66. Total Productive Maintenance (TPM)
• Getting operators involved in maintaining their own equipment, and
emphasizing proactive and preventive maintenance will lay a
foundation for improved production (fewer breakdowns, stops, and
defects).
66
67. Total Productive Maintenance (TPM)
• TPM (Total Productive Maintenance) is a holistic approach to
equipment maintenance that strives to achieve perfect production:
• No Breakdowns
• No Small Stops or Slow Running
• No Defects
• In addition it values a safe working environment:
• No Accidents
67
69. Total Productive Maintenance (TPM)
69
Focused Improvement
Have small groups of
employees work
together proactively to
achieve regular,
incremental
improvements in
equipment operation.
•Recurring problems
are identified and
resolved by cross-
functional teams.
•Combines the
collective talents of a
company to create an
engine for continuous
improvement.
70. Total Productive Maintenance (TPM)
70
PILLAR WHAT IS IT? HOW DOES IT HELP?
Autonomous Maintenance
Places responsibility for
routine maintenance, such
as cleaning, lubricating,
and inspection, in the
hands of operators.
•Gives operators greater
“ownership” of their
equipment.
•Increases operators’
knowledge of their
equipment.
•Ensures equipment is well-
cleaned and lubricated.
•Identifies emergent issues
before they become
failures.
•Frees maintenance
personnel for higher-level
tasks.
71. Total Productive Maintenance (TPM)
71
Planned Maintenance
Schedules maintenance
tasks based on
predicted and/or
measured failure rates.
•Significantly reduces
instances of unplanned
stop time.
•Enables most
maintenance to be
planned for times when
equipment is not
scheduled for
production.
•Reduces inventory
through better control
of wear-prone and
failure-prone parts.
72. Total Productive Maintenance (TPM)
72
Quality Maintenance
Design error detection
and prevention into
production processes.
Apply Root Cause
Analysis to eliminate
recurring sources of
quality defects.
•Specifically targets
quality issues with
improvement projects
focused on removing
root sources of defects.
•Reduces number of
defects.
•Reduces cost by
catching defects early
(it is expensive and
unreliable to find
defects through
inspection).
73. Total Productive Maintenance (TPM)
73
Safety, Health,
Environment
Maintain a safe and
healthy working
environment.
•Eliminates potential
health and safety risks,
resulting in a safer
workplace.
•Specifically targets the
goal of an accident-
free workplace.
74. Total Productive Maintenance (TPM)
74
Early Equipment
Management
Directs practical
knowledge and
understanding of
manufacturing
equipment gained
through TPM towards
improving the design of
new equipment.
•New equipment
reaches planned
performance levels
much faster due to
fewer startup issues.
•Maintenance is
simpler and more
robust due to practical
review and employee
involvement prior to
installation.
75. Total Productive Maintenance (TPM)
75
Training and Education
Fill in knowledge gaps
necessary to achieve
TPM goals. Applies to
operators, maintenance
personnel and
managers.
•Operators develop
skills to routinely
maintain equipment
and identify emerging
problems.
•Maintenance
personnel learn
techniques for
proactive and
preventative
maintenance.
•Managers are trained
on TPM principles as
well as on employee
coaching and
development.
76. Total Productive Maintenance (TPM)
76
TPM in Administration
Apply TPM techniques
to administrative
functions.
•Extends TPM benefits
beyond the plant floor
by addressing waste in
administrative
functions.
•Supports production
through improved
administrative
operations (e.g., order
processing,
procurement, and
scheduling).
77. Total Productive Maintenance (TPM)
• Through the implementation of TPM, improvement in PQCDSM
(Productivity, Quality, Cost, Delivery, Safety, Morale) can be
achieved.
• We at our clients' place consider various PQCDSM parameters like
plant's productivity, machines' productivity, employees' productivity,
rejection, rework, customer complaints, cost of power consumption,
cost of maintenance, inventory turnover ratio, on time delivery, no.
of accidents, kaizen given per person, etc. We drive TPM in such a
way to achieve all these throughout the organization- TOYOTA TEAM
77
78. Total Productive Maintenance (TPM)
Benefits of TPM Implementation
• The literature documents dramatic tangible operational
improvements resulting from successful TPM implementation.
“Companies practicing TPM invariably achieve startling results,
particularly in reducing equipment breakdowns, minimizing idling
and minor stops , lessening quality defects and claims, boosting
productivity, trimming labor and costs, shrinking inventory, cutting
accidents, and promoting employee involvement (as shown by
submission of improvement suggestions).” (Suzuki 1994 ) for
example, (Productivity, Quality, Cost, Delivery, Safety, Morale)
improvements BY TPM implementers in Japan.
78
79. Total Productive Maintenance (TPM)
Benefits of TPM Implementation
• P – Productivity.
Net productivity up by 1.5 to 2.0 times.
Number of equipment breakdowns reduced by 1/10 to 1/250 of
baseline.
Overall plant effectiveness 1.5 to 2.0 times greater.
• Q – Quality.
Process defect rate reduced by 90%.
Customer returns/claims reduced by 75%.
• C – Cost: Production costs reduced by 30%.
• D – Delivery: Finished goods and Work in Progress (WIP) reduced by
half.
• S – Safety.
Elimination of shutdown accidents.
Elimination of pollution incidents.
• M – Morale: Employee improvement suggestions up by 5 to 10
times
79
82. Total Productive Maintenance (TPM)
82
• The 5S Foundation
• The goal of 5S is to create a work environment that is clean
and well-organized. It consists of five elements:
• Sort: eliminate anything that is not truly needed in the work
area
• Straighten/Set in order: organize the remaining items
• Shine: clean and inspect the work area
• Standardize: create standards for performing the above three
activities
• Sustain: ensure the standards are regularly applied
84. technology in operations strategy:
84
• Usage of technology in operation management has ensured
that organizations are able to reduce the cost, improve the
delivery process, standardize and improve quality and focus
on customization, thereby creating value for customers.
• The meaning and Role of Technology
• Technology is defined to be the know-how, physical things,
and procedures used to produce products and services. Know-
how is the knowledge and judgment of how, when and why to
employ equipment and procedures. Physical things are the
equipment and tools. Procedures are the rules and techniques
for operating the equipment and performing the work.
• .
85. technology in operations strategy:
85
• Primary Areas of Technology
• Product technology
• Developed within the organization, product technology
translates ideas into new products and services for the firm’s
customers. Primarily engineers and researchers develop
product technology. Developing new product technologies
requires close co-operation with marketing, to find out what
customers really want, and with operations to determine how
the goods or services can be produced effectively.
86. technology in operations strategy:
86
• Primary Areas of Technology
• Process Technology
• The methods by which an organization does the things rely on
the application of process technology. Some of the large
number of process technologies used by an organization is
unique to a functional area; others are used more universally.
87. technology in operations strategy:
87
• Primary Areas of Technology
• Information Technology
• Managers use information technology to acquire, process,
and transmit information so that they can make more
effective decisions. Information technology pervades every
functional area in the workplace. Nowhere is it more
revolutionary than in offices, be they main offices, branch
offices, back offices, front offices, sales offices, or functional
area offices.
88. technology in operations strategy:
88
• Primary Areas of Technology
• Information Technology
• Information technology is crucial to operations everywhere
along the supply chain and to every functional area.
Computer-based information technology, in particular, has
greatly influenced how operations are managed and how
offices work.
• Components of Information Technology
• Information technology is made up of four sub-technologies:
• Hardware
• Software
• Database, and
• Telecommunications
•
89. technology in operations strategy:
89
• Ten Benefits Of Using Technology in Strategy Management
1. Release Control/Configuration Management – One Version
of the “Truth”, particularly critical if incentives and rewards
are planned to be tied to the data.
2. Scalability Across the Organization, Including Remote Sites –
From collecting data, to interpreting and analyzing
performance, remote locations will be easier to engage
through a shared interface, rather than chasing email
exchanges.
3. Repeatability – Each time your monthly or quarterly meeting
comes around, a system will ensure the preparation, meeting,
and follow-through are consistent, no matter how foggy the
memories of the practitioners! Of course, report generation
will be snap once the reports are configured for your needs.
90. technology in operations strategy:
90
• Ten Benefits Of Using Technology in Strategy Management
4. Resilience to Staff Changes – This goes for Leadership as well
as change agents – When new leaders arrive, you expect they
will want to make some changes in direction, but building the
process into a system ensures they won’t have to change the
way it’s managed. When change agents leave, a piece of the
process will leave with them if their know-how isn’t built into
the business rules of the system.
5. Standardization – The look, feel, and interface of the process
will be identical throughout the organization, facilitating
speedier learning, retention, and mobility of the practitioners.
91. technology in operations strategy:
91
• Ten Benefits Of Using Technology in Strategy Management
• 6. Organizational Learning – A system will allow newcomers
and seasoned staff alike to learn the process consistently from
one place, at their own pace and convenience. This will save
on chasing the few experts around for their ‘tribal knowledge’
on how things work.
7. Real-Time Availability – Enables Execs and Senior Managers
the ability to tap into organizational performance as it suits
them, rather than waiting for the monthly meeting, or
tracking down performance data manually on-demand
.
92. technology in operations strategy:
92
• Ten Benefits Of Using Technology in Strategy Management
8. Integration – Often the data is in functional silos, while the
insights, decisions, and actions need to be cross-
functional. Consolidating your performance
management information into a tool brings integration
benefits and opportunities for cross-functional insights that
may not otherwise be possible.
9. Trending/History – Similar to the benefits of integrating your
performance information across your lines of business, the
ability to view performance easily over time, and to go back to
previous meetings and analysis to recall the rationale for past
decisions, is valuable.
.
93. technology in operations strategy:
93
• Ten Benefits Of Using Technology in Strategy Management
10. Security/Backups – Like any IT system, once the information
is consolidated in one place, it’s much easier to protect the
content from intruders, as well as ensure recovery when
disasters strike.
94. technology in operations strategy:
94
• Automated production system with robotic systems.
• Falling robot prices
• As robot production has increased, costs have gone down.
Over the past 30 years, the average robot price has fallen by
half in real terms, and even further relative to labor costs
(Exhibit 1). As demand from emerging economies encourages
the production of robots to shift to lower-cost regions, they
are likely to become cheaper still.
96. technology in operations strategy:
96
• Advantages of industrial robots
1. Better quality and consistency- Along with other tech —
such as the industrial internet of things (IIoT) or 3D printing
robots — industrial robots are able to provide better
production quality and more precise and reliable processes.
Added benefits also include reduced cycle times and real-
time monitoring to improve preventive maintenance
practices.
2. Maximum productivity and throughput- An industrial
robot increases speed for manufacturing processes, in part
by operating 24/7. Robots don’t need breaks or shift
changes. The speed and dependability of robots ultimately
reduces cycle time and maximizes throughput.
97. technology in operations strategy:
97
• Advantages of industrial robots
• 3. Greater safety-Using robots for repetitive tasks means
fewer risks of injury for workers, especially when
manufacturing has to take place under hostile conditions. In
addition, supervisors can oversee the process online or from a
remote location.
• 4. Reduced direct labor costs- The cost of having a person
handle many manufacturing operations is often more
expensive than robot. This can also free up workers so their
skills and expertise can be used in other business areas, such
as engineering, programming and maintenance.
98. technology in operations strategy:
98
• Disadvantages of industrial robots
1. High initial investment- Robots typically require a large
upfront investment. As you research your business case for
purchasing, consider all the costs of industrial robots,
including installation and configuration. You should also
evaluate whether your robot can be easily modified if you
need to alter operation in the future.
2. Expertise can be scarce- Industrial robots need sophisticated
operation, maintenance and programming. While the number
of people with these skills are growing, it's currently limited.
As a result, it's important to consider the personnel
investment you'll need to make to bring in that expertise or
“retool” your existing staff to take on the task.
99. technology in operations strategy:
99
• Disadvantages of industrial robots
3. Ongoing costs -While industrial robots may reduce some
manufacturing labor costs, they do come with their own
ongoing expenses, such as maintenance. In addition, you’ll
want to consider the costs to keep your robot and any related
IIoT connected devices protected from cyber threats.
100. technology in operations strategy:
100
• erp system decision making
• Why use an ERP for making decisions?
• Integrating an ERP serves the purpose of automating all the
processes related with the management of your
business. This automation of tasks not only saves you
resources that you can dedicate to strategic planning. It also
gives you a constant flow of data in the shape of performance
indicators (KPIs), giving you a better insight of the business
101. technology in operations strategy:
101
• erp system decision making
• 7 REASONS WHY MODERN ERP CAN HELP YOU MAKE
BETTER, FASTER DECISIONS
1. Single source of the truth: Decisions made from a clear
common perception of how the business is performing gives
any company a competitive advantage. When all data is
consistently stored in one place and accessed independently,
regardless of if it’s used for financial reporting, operational
control or budgeting/planning, the business can provide a
superior customer experience. This is a serious advantage in
crowded, complex or fast-moving markets.
102. technology in operations strategy:
102
• erp system decision making
• 7 REASONS WHY MODERN ERP CAN HELP YOU MAKE
BETTER, FASTER DECISIONS
2. Accurate and timely insight: The need for information to be
delivered to the wider enterprise in order to aid decision
making has never been greater. You should be able to run
reports at any time and on any device so that decision-makers
can gain insight into the current state of the overall business
as well as specific areas for concern. Accurate and timely
insights can help managers proactively make adjustments at
any time. Coupled with the ability to drill into the details
behind the information, this gives managers the empirical
data they need in order to make the best decisions, rather
than perhaps having to rely on their gut-feel.
103. technology in operations strategy:
103
• erp system decision making
• 7 REASONS WHY MODERN ERP CAN HELP YOU MAKE
BETTER, FASTER DECISIONS
3 . Real-time data: Decisions should be based on the most up
to date real-time information, not traditional reports which
are out of date as soon as they are created. Businesses that
rely on real-time data can make immediate decisions about
how to change what they’re doing leading to greater customer
satisfaction, operational efficiency, and business performance.
104. technology in operations strategy:
104
• erp system decision making
• 7 REASONS WHY MODERN ERP CAN HELP YOU MAKE
BETTER, FASTER DECISIONS
4. In context analytics: Getting the right information to the
right person at the right time, at the pace your business
demands can make a difference between closing or losing a
deal. Accessing in-context information by choosing to follow
an entity or object within the ERP system or by subscribing to
notification streams will enable decision-makers to not only
view the data they need but also place it within the right
context so that the right decision can be made. A modern ERP
platform enables the flow of information and processes—to
support the highest visibility and efficiency across the value
chain—and put those into the right context so that the insight
is transparent to users.
105. technology in operations strategy:
105
• erp system decision making
• 7 REASONS WHY MODERN ERP CAN HELP YOU MAKE
BETTER, FASTER DECISIONS
5. Automating decisions: Smart businesses know that by
automating the right decisions, staff can be freed up to use
their initiative, experience and instinct to innovate and drive
the business forwards. It makes little sense to have senior
people making decisions that could easily be made within
business systems. Setting up the right processes for
automating decisions should be an easy process and with a
flexible platform these processes can be adjusted and fine-
tuned as the business changes and grows.
106. technology in operations strategy:
106
• erp system decision making
• 7 REASONS WHY MODERN ERP CAN HELP YOU MAKE
BETTER, FASTER DECISIONS
6.Workflows and alerts: Creating and enforcing unique business
processes through workflows and alerts supports continuous
improvement and increased productivity. Waste can be
eliminated without major customizations and decision makers
can focus on accessing the right data. Make sure your ERP
platform can deliver a blend of centrally managed data and
workflow automation to support decision-making throughout
the organization.
107. technology in operations strategy:
107
• erp system decision making
• 7 REASONS WHY MODERN ERP CAN HELP YOU MAKE
BETTER, FASTER DECISIONS
7. Knowledge base of resources: The principles of ERP are
founded on the benefits of working together. Embedded
within today’s ERP systems, social functionality supports the
fundamental shift in the way organizations collaborate, both
internally and externally. Examples might include collaborating
around a project, a customer incident, a procurement
challenge, or the budgeting process. Accessing such an
extended knowledge base of resources will change your
relationship with ERP forever, enabling everyone to securely
engage within your businesses and leverage ERP to make
more informed decisions and foster innovative ideas.
