This document outlines the key topics to be covered in a production and operations management course, including: operations strategy and how it relates to competition, positioning, and tradeoffs; product and process design; planning and control methodology; supply chain design; and manufacturing strategy and how it translates competitive priorities into process requirements. Learning methods will include lectures, exercise sessions, case studies, and assignments. The core topics of operations management, process classifications, production order regimes, and their strategic implications are also introduced.

1. UCL ESPO/IAG/POMS
PROD 2800
PRODUCTION AND OPERATIONS MANAGEMENT
Gestion de la production et des opérations
Per AGRELL
agrell@poms.ucl.ac.be
Lecture 1
UCL ESPO/IAG/POMS

2. PROD 28002
Outline
Presentation
– Instructor
– Course outline
– Grouping
What is OM?
Processes and products
Manufacturing Strategy

3. PROD 28003
Course outline
Operations Strategy L 2 E 2
– Competition, positioning, strategic trade-offs
Product and Process Design L 6 E 2
– Process analysis, project design, quality
Planning and Control Methodology L 12 E 6
– Long-range, medium-range and short-range planning
Supply Chain Design L 6 E 4
– Inter-firm coordination, theory of constraints, chain design

4. PROD 28004
Learning methods
Text book
Lectures 26 h
– On-line material
– Readings
– Assignments
Exercise sessions 14 h
– Cases
Case Summary
Case Presentation
Case Report
www.poms.ucl.ac.be

5. PROD 28005
What is operations management?
Operations Management
– Production (transformation) system
Physical
Locational
Exchange
Storage
Physiological
Informational
– System design, operation, improvement
– Systematic analysis of organizational processes
Services and goods

6. PROD 28006
Core services
Basic
service dimensions
operations
management
FLEXIBILITY
COST
DELIVERY
QUALITY

7. PROD 28007
Value-added services
operations
management
INFORMATION
CONSULTANCY
SALES
SUPPORT
FIELD
SUPPORTDifferentiating
service dimensions

8. PROD 28008
Operations strategy
1. Business objectives
2. Market strategy
3. How are orders won on the market?
4. Choice of technology
5. Infrastructure

9. PROD 28009
Order qualifiers and order winners
Order qualifiers
– Qualifies the firm as a potential vendor
Order winners
– Successfully differentiates the firm for competitors

10. PROD 280010
Competitive dimensions
Price
Quality
– Conformance
Delivery
– Speed
– Reliability
Flexibility
– Volume flexibility
– Product flexibility
– Mix flexibility
Design
Value-added services

11. PROD 280011
Manufacturing strategy
1. Market segmentation in product groups
2. Market assessment per group
3. Find Qualifiers and Winners for each group.
4. Translate Winners into process requirements.

12. PROD 280012
Process dimensions
Process Requirements
– Process Type
– Order Regime
Core Capabilities

13. PROD 280013
Process flow classification
Project
Jobbing
Batch
Line
Continuous processing

14. PROD 280014
Production order regimes
Design to order (DTO)
– Specific design and manufacture for all customers
Engineer to order (ETO)
– Changes to standard products are offered and produced
Make to order (MTO)
– Production of standard product on receipt of order/call-off
Assemble to order (ATO)
– Components MTS. Assembly made on receipt of order.
Make to stock (MTS)
– Production to forecast. Order met from inventory.

15. PROD 280015
Product-process matrix
IV.
Continuous
Flow
III.
Assembly
Line
II.
Batch
I.
Job
Shop
Low
Volume,
One of a
Kind
Multiple
Products,
Low
Volume
Few
Major
Products,
Higher
Volume
High
Volume,
High
Standard-
ization
Le Prof
cafe
Le Sablon
Sugar
Refinery
Flexibility (High)
Unit Cost (High)
Flexibility (Low)
Unit Cost (Low)

16. PROD 280016
Process positioning
Horizontal Integration
– Vendors
– Joint ventures
Vertical Integration
The Virtual Enterprise?

17. PROD 280017
Implications of process choice
Products and Markets
– Type of product
– Product range
– Customer order size
– Rate of product
introductions
– Order winners?
– Order qualifiers?
Manufacturing
– Nature of process
technology
– Focus
Investment and Cost
– Level of capital investment
– Level of inventory
– Level of WIP
– Cost drivers
Infrastructure
– Organizational control
– Organizational style
– Required support expertise

18. PROD 280018
Strategic fit
Commitment
Communication
Credibility
Coherence
Focused manufacturing
PWP

19. PROD 280019
Examples
Sports car market
– European, road-use, private
Competition
– Porsche
– Ferrari
– Jensen
– Honda etc.

20. PROD 280020
OM challenges
Bundling
Value-added focus
Ex: Automotive
Yesterday Today Tomorrow
Car Car + maint. Transport.
Maintenance

21. PROD 280021
Recapitulation
Definition of OM
Manufacturing strategy (Hill)
– OQ, OW, process choice, implications
Product-Process Matrix (Hayes-Wheelwright)
Strategic fit (Skinner)
– Focus, PWP
Service operations strategy
– Bundling, integration, disintermediation