creating value through operations - Framework
Managing Service Operations: Benihana Simulation ... experience managing the operations at Benihana during one day usin...
CREATING VALUE THROUGH OPERATIONS FABRIZIO SALVADOR COURSE OBJECTIVES To understand the role played by operations strategy in corporate objectives: financial and nonmarket To anayze the role top management plays in delivering operation´s competitive capabilities To learn how to design, assess and align marketing and operations strategy To review the most used methodologies to improve operations strategy performance: competitive capabilities
PROGRAM SESSION 1 Our journey and Introduction to operations management strategy Content and topics, cases, reports, evaluation, final group project The role and importance of of operations strategy in business strategy and corporate objectives Objectives: To review the content and topics and the expected deliverables and evaluation criteria To discuss the role and importance of operations management in business performance and success To introduce the Terry Hill´s operations strategy framework SESSION 2 The Terry Hill´s Operations Strategy Framework 1. 2. 3. 4. 5. 6. 7. 8.
The content of operations strategy Corporate objectives Marketing Strategy Order winner and order qualifiers Competitive capabilities Process design/selection Infrastructute support Culture and values
Aligment and Business Performance Cases for analysis in different industries 1
Objectives: To identify the different components of operations strategy in Terry Hill´s model To anallyze the relationship between corporate objectives and operations strategy To discuss how marketing and operations stratgy alignment influence financial and non markete objectives To define and apply the concepts of order winners, order qualifiersand order losers To know how to develop and implement an operations strategy To know how to assess the level of alignment between marketing and operations strategy SESSION 3 Operations Strategy: The Case of Shimizu a Brasilian Furniture Co. During this session we will discuss a case of a successful company that is facing several problems after its expansion to a new market segment. The case will provide us the basis to introduce how to use Terry Hill´s framework in designing and assessing operations and marketing strategy alingment. The model is also shown as a powerful tool to diagnose capabilities problems and to suggest actions to address these problems. Objectives: To apply the Terry Hill´s framework concepts and constructs to a manufacturing case To use the Terry Hill´s framework to diagnose the nature of the problems faced at Shimizu To use the Terry Hill´s framework to identify solutions to Shimizu´s problems SESSION 4 Operations Strategy and Marketing Strategy/Business Objectives Alignment: A Service Case Shouldice is also a classical case studied in the marketing and human resource fields but also it is a great case to study from the operations strategy perpsective. Shouldice is a health service organization that has implemented many of the industrial manufacturing principles to build and sustain a source of competitive advantage that has allowed the company to be the leader in its market niche for more than 65 years. Objectives: To apply the operations strategy framework (concepts and constructs) to the analysis of a service case To analyze what are the key capabilities at Shouldice and how these capabilities are created To analyze how Shouldice has used its operations strategy to keep its market leadership for more than 65 years To derive lessons and practices that can be used in other industries How Shoudice achieve its high quality, high efficiency and high customer satisfaction? How do you explain that after 65 years Shouldice continues to be the market leader in hernia operations? SESSION 5 Process Analysis The challenge of competition and the continuing demand for better customer satisfaction requires management to keep a close look at the performance of the key business procecess. In this session we will review some of the basic performance indicators in operations. There are two questions that need to be continuouislly addressed: How this process is doing? and How this process can be improved 2
We will review and discuss the concepts of bottleneck, capacity, capacity utilization, cycle time, throughput, throughput time, lead time, etc. Objectives: To understand the importance and principles of process analysis To discuss the concepts of cycle time, bottleneck, capacity, and its use in process evaluation and improvement SESSION 6 Processes Taxonomy In this session we will review the processes taxonomy and its different characteristics in order to understand its impact on the company´s competitive capabilities. We also will analyze the process design at one of the classical cases in operations: Benihana of Tokio (See more detailes below) Transformation processes in services The principles of operations had been mostly developed in the manufacturing sector and with the growth of the service sector in the economy the need for improving services competitiveness has also increaded in importance. The adoption and adaption of manufacturing principles and model in services has proved to be effective. The Benihana case which is another classic in operations management, brings a case where industrial principles had been used to design its operations in a unique way in the restaurant sector. Managing Service Operations: Benihana Simulation We will expand our analysis of the case of Benihana and in this session we will discuss your experience managing the operations at Benihana during one day using a simulation. Your goal is to maximize profits.You will be faced with some of the key issues in restaurant operations regarding the managment of demand and supply uncertainty and its implications for your capacity. Objectives: To understand the different processes types in both manufacturing and services, its characteristics and selection criteria To assess the level of marketing and operations strategy alignment at Benihana To analye the design, planning, quality and control systems at Benihana To manage the Benihana operations for one day and maximize profits To identify the limitations of Benihana´s operations strategy for its growth in the future Simulation Objectives To understand the impact of supply and demand urcertainty in managing capacity in service operations To identiry the factors affecting capacity management Simulation Assignment Each of you will need to register for the simulation. You will get from me an emai with the instructions to do it at least two weeks before session 7. You have to create a username and a password Once you are registered, you will have access to a video where you can see all the details about how to play the simulation A week before this session I will open the simulation for you to play the six different challenges. The simulation is individual not a group work. You can repeat the different challenges as many times as you want before to move to the next one. Please make sure you use the animation in the simulation where you can see the impact of your decisions while customer go through the dining process. 3
You do not need to sumbit any report. I will have access to your decisions and performance. You must have to finish the simulation the day before the thread for the simulation discussion begins.
SESSION 7 Quality, Internal Performance and Competitive Capabilities The competition intensity increased by globalization puts pressure the continuous improvement of internal operational performance and key market competitive capabilities. One of the two most important and used methodologies for improvement is total quality management. We will review and discuss the state of the art in quality and its different models. The center of our discussion will be based on the following taxonomy: Management Based Quality Practices Employee Based Quality Practices Customer Based Quality Practices Product/Process Based Quality Practices Information Based Quality Practices Supplier Based Quality Priactices Community/Social Based Quality Practices Objectives To review and discuss the relationship between quality and alignment To review the state of the art in terms of quality practices To discuss if quality explain competitive advantage To design and implementation strategy for quality and competitiveness SESSION 8 Linking Service quality, Customer Satisfaction and Operations Strategy In this session we will analyze what makes a company world class in service quality and we will link the service lessons with the quality model discussed in session 9. We will link operations strategy with world class service practices by analyzing how Zappos one of the top service quality companies implemenent successfuly one of the three key components of its operations strategy. Objectives: To analyze what world class service companies do and how that relates with quality practices To identify the major barriers for superior customer quality service To analyze the customer service operations strategy for Zappos To discuss what is beyond customer satisfaction: is there a better paradigm for competitiveness? SESSION 9 Lean Systems and Thinking Lean is one of the most widely used methodologies both at individual companies as well as in supply chaiins in order to improve internal operational performance and competitive capabilities. In managing company´s operations strategy it plays an important role in upgrading and developing capabilities that align with market needs and expectations. In this session we will review and discuss the foundations and components of this methodology. What is lean? What is the TPS model ? How lean relates with six sigma? 4
Objectives: To review and discuss the lean model and its principles To review the six-sigma methodology and its relationship with lean To discuss its implementation process in both service and manufacturing companies
SESSION 10 TPS Implementation TPS born in the automotive industry and it is widelly used in manufacturing operatons, During the last decade we have observed a increasing adoption in the service sector. Health care organizatons are in the service sector one of the most complex to introduce and adopt practices coming from the manufacturing world. In this session we well analyze and discuss the case of Virginia Mason Medican Center and how they decided to adopt TPS and the challenges faced. Specially attention will be put in the role of Dr. Kaplan the CEO for VMMC. Finally we will discuss to which extent VMMC lessons can be extended to other service companies.
Objectives To discuss how the TPS/Lean methodology is applied in the service sector To understand the role of top management in TPS/Lean implementation To identify the lean implementation strategy used by Kaplan at VMMC To discuss to which extent the VMMC can be used in other service companies
SESSION 11 Global Operations and Supply Chain Management: The Internetwork competition paradigm Supply chain management is a model and a concept that has being adopted not only in different manfuacturing fields but also in services. Companies around the world are implementing supply chain in order to improve its internal capabilities and enhance its competitive advantage. In this session we will explore the different models and concepts about supply chain and will analyze its impact and relationship with our operations strategy model. Objectives: To analyze the conceptual foundations of competitiveness and supply chain management: The internetwork competition paradigm To discuss the practical implications for managers of the internework competition paradigm To analyze the different supply chain concepts and its models To identify the different approaches to suppy chain and its relationship to operations strategy SESSION 12 Global Supply Chain Management Managing a global supply chain is complex and very challenging. One of the best managed global supply chains is Li & Fung. Known as the smokeless factory. It was here where the term "network orchestrator was coined." This case will provide us with the reference to analyzing from the top management perspective how a global supply chain is designed and managed while applying our operations and supply chain models. Objectives: 5
To analyze the Li & Fung supply chain design To analyze how well L&F supply chain capabilities align with its market order winners and qualifiers To identify management lessons for top managers from the Victor and William Fung experience SESSION 13 Review of Key Challenges and Trends in the Context of Operations Strategy and SCM In this session we well review different issues and trends in operations strategy and supply chain management: Supply chain sustainability Supply chain riks and resilience Strategic and tactical supply chains and its implications for management approaches Scarce management skills in operations and global supply chains The 4 H model: Trends Trends in SCM Objectives: To review the impact of operations and SCM in non-market objectives To anayze trends, challenges and implicatons for managing operations and SCM SESSION 14 FINAL GROUP PROJECT PRESENTATIONS We will have your final group project presentations during this week´s forum. Mechanics for the presentation of your final group projects: We will discuss in the forum one project per day except Tuesday. Each group will post its work in the corresponding thread The rest of the members will listen to the presentation and could make questions. These questions are part of your participation evaluation The group presenting the project will answer to the questions from the class and the professor
EVALUATION CRITERIA The evaluation criteria is described below.
Criteria Participation Case Group Reports Group Project Individual Exam
Score % 30% 20% 30% 20%
Participation I assign 0,1,2,or 3 participation points to your contributions. Zero points are assigned when the comment is not adding something new and basically confirms a preview comment or comments. One point when you contribute with information from the case or the readings from your 6
materials or a minor adding to a previous comment. Two points when you bring new solutions, answers, explanations to the key issues in the case based on your readings and personal experience. Also in this category are included relevant questions to your classmates´ comments or reports that address additional important insights in our topic and case. Also when you share any material with experiences or cases that relate to our topic and case. Three points when you raised questions that add a new and relevant angel to our case and discussion. Here we have questions that trigger expressions like "did not think about that...". In our forums, I assign one or more threads per day. Each thread will only be open for discussion for two consecutive days. For the forums the number of post is 5 and the length of the post not more than 7 lines. I will have some flexibility for this rule in special circumstances. I will provide you with feedback at half of the course regarding your participation, but if you want to have early feedback please contact me.
Case Group Reports For your reports and presentations use power point. For the ppt. presentation no more than 14 pages. Please submit your report to the digital dropbox as well as to my email address. Please submit your report not later than 9 am the day the forum starts. Final group project Submit the video of your final group project the day before your presentation. Since the size of the file could make it difficult to send by email, you can use dropbox or any other software.
Individual Final Exam A take home exam based on a case will be given to you. You will have two weeks to analyze the case and answer the assigned questions.