Bài giảng Operations Management for Competitive Advantage - Chapter 9 Operations Consulting and Reengineering

Chapter 9Operations Consulting and ReengineeringOperations Consulting DefinedOperations Consulting and the 5 P’sHierarchy Within a Consulting OrganizationStages of Operations ConsultingOperations Consulting Tool KitReengineeringOBJECTIVES Operations ConsultingOperations consulting involves assisting clients in developing operations strategies (i.e., product leadership, operational excellence, customer intimacy, etc.) and in improving production (and service delivery) processes.Operations Consulting & the 5 PsPlantsAdding and locating new plantsExpanding, contracting, or refocusing facilitiesPartsMake or buy decisionsVendor selection decisionsProcessesTechnology evaluationProcess improvement and reengineeringOperations Consulting & the 5 Ps (Continued)PeopleQuality improvementSetting/revising work standardsLearning curve analysisPlanning and Control SystemsSupply chain managementMRPShop floor controlWarehousing and distributionHierarchy within Consulting FirmsPartnersFindersWho find new businessManagersMindersWho manage the businessConsultantsGrindersWho actually do the workA way of looking at the typical consulting firm’s organizationEconomics of Consulting FirmsDavid H. Maister’s article on consulting draws an analogy between the consulting firm and a job shop operation. Three types of jobs:1. Brain Surgery: Requiring innovation and creativity2. Gray Hair: Requiring a great deal of experience (little innovation)3. Procedures: Requiring activities similar to other existing projects (little innovation or experience)When are Operations Consultants NeededWhen faced with major investment decision(s)When management believes it is not getting the maximum effectiveness from the organization’s productive capabilityStages in Operations Consulting Process1. Sales and proposal development2. Analyze problem 3. Design, develop and test alternative solutions4. Develop systematic performance measures5. Present final report6. Implement changes7. Assure client satisfaction8. Assemble learnings from the studyOperations Consulting Tool Kit: Category 1Problem DefinitionIssue treesCustomer surveysGap analysisEmployee surveysFive forces modelIn this scheme we have five categories of activities, starting with Problem Definition, that consultants perform and the supporting tools used to aid the consultant in performing that categoryOperations Consulting Tool Kit: Category 2Data GatheringPlant tours/auditsWork sampling Flow chartsOrganizational chartsOperations Consulting Tool Kit: Category 3Data Analysis and Solution DevelopmentProblem analysis (SPC tools)Bottleneck analysis Computer simulationStatistical toolsOperations Consulting Tool Kit: Category 4Cost Impact and Payoff AnalysisDecision treesBalanced scorecard Stakeholder analysisOperations Consulting Tool Kit: Category 5ImplementationResponsibility chartsProject management techniques ReengineeringReengineering is defined as the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality, service, and speed. As a engineering discipline, reengineering can be applied to any process in manufacturing and service businesses, education, and the government.Business process reengineering (BPR) is focused on reengineering business processes. Key Words in the Reengineering DefinitionFundamentalWhy do we do what we doIgnore what is and concentrate on what should beRadicalBusiness reinvention vs. business improvement Key Words in the Reengineering Definition (Continued)DramaticReengineering should be brought in “when a need exits for heavy blasting”Companies in deep troubleCompanies that see trouble comingCompanies that are in peak conditionBusiness Process a collection of activities that takes one or more kinds of inputs and creates an output that is of value to a customerPrinciples of ReengineeringOrganize around outcomes, not tasksHave those who use the output of the process perform the processMerge information-processing work into the real work that produces the informationTreat geographically dispersed resources as though they were centralizedPrinciples of Reengineering (Continued)Link parallel activities instead of integrating their results Put the decision point where the work is performed, and build control into the process Capture information once and at the source End of Chapter 9