Operations Strategy 6 - Organization

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Structural decisions - the physical arrangement and configuration of resources ie hardware Infrastructural decisions - activities that take place in the operation ie software

Key Infrastructural decision - functional support, controls and procedures, tech systems etc.eg push v pull systems

Contents

Improvement and systems

Alder and Winograd - basic improvement strategy

  • Modularity
  • Accessibility
  • Inclusiveness

Path based model for development

(as opposed to intallation based) Mcafee

  • IT is integral
  • Projects are many
  • Prototype and evlove
  • Ongoing delivery
  • common standards
  • Technical contl in internal not vendor
  • experimentation
  • concerns are about integration and flecxibility and progressive delivery - not control, all requirements at once

HR issues and change

  • coomoditization coming with focus
  • segmentation
  • lower skills? / pay?

but also

  • X selling
  • solving customers probelms not transactions
  • buffering front office from back office
  • adding value

Organizational design

[img[.|http://www.warwick.ac.uk/~bsscr/images/mod7_slide1.gif]]

Flexible rsponse is efficiency / cost . Resopns to mkt changes. ability to serve range of mkt req's

[img[.|http://www.warwick.ac.uk/~bsscr/images/mod7_slide2.gif]]

[img[.|http://www.warwick.ac.uk/~bsscr/images/mod7_slide3.gif]]

[img[.|http://www.warwick.ac.uk/~bsscr/images/mod7_slide4.gif]]

[img[.|http://www.warwick.ac.uk/~bsscr/images/mod7_slide5.gif]]

It is a mistake to think of these organizational structures as distinct types. Rather, they represent four influences on organizational design. These influences are:

the extent of functional influence (the U-form organization);

the extent of market, regional or operational unit influence (the M-form organization);

the extent to which resources have multiple reporting relationships (matrix-form organizations);

the extent to which organizational groupings form their own reporting relationship alliances (the N-form organization).

==Comparing Forms .......................Ability to meet.Market....................................................Abilty to deploy Resources .......................Service..............flexibility...........Efficiency......Capacity/PT,,,,Devpt/Org......Supply

U-form...........low....................low....................med...............med ...............high.............low M- form...........high..................med..................med...............med.................med............med Matrix............high..................med....................med..............med ................med.............med N-form...........high..................high...................high...............high...................high............high

The role of operations in each form

......deg of.. tech specialisation.....centralization........delegated authority.....realtionship....ext relation U..........................H.......................L.............................L.........................Formal............ltd M.........................M......................M............................M........................f/I....................F/Ltd Matrix...................ML....................ML.........................MH.......................F/I..................F/ltd N.........................L........................L.............................H.........................I....................I/many

Interface with external environment

Increasing buffering operation from external environment is seen as having drawbacks and is now more visible

  • hotels
  • clothes retailing

This implies faster response/ different skills

It is becoming a deliberate pary or organizational design and is a question of what degree of exposure

Service factories - Showroom, dispatcher, consultant, lab

The role of operations

  • to implement, drive and support strategy

The role of central operations - Macgee and Merali [img['|http://www.warwick.ac.uk/~bsscr/images/mod7_slide7.gif]]


Focus and targeted operations

Wickham Skinner Attention to 5 features

  • Age and variety of tech
  • Type and range placed in marketplace
  • Volumes handled
  • Key tasks
  • Quality Standards

There are barriers and pressures towards and away from focus

Improving operations effectiveness by using and overcoming Trade offs

  • Achieving focus
    • Corporate objectives
    • Where are we good at matching marketers requirements
    • Examine each element of operation
    • Reorganize elements so they are congruent

Strategy and Practice 5 - Innovation-Based Strategy

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