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Lecture Operations management for competitive advantage (11/e) - Chapter 9: Operations consulting and reengineering

The learning objectives for Chapter 9 include: Operations consulting defined, operations consulting and the 5 P’s, hierarchy within a consulting organization, stages of operations consulting, operations consulting tool kit, reengineering. | Chapter 9 Operations Consulting and Reengineering Operations Consulting Defined Operations Consulting and the 5 P’s Hierarchy Within a Consulting Organization Stages of Operations Consulting Operations Consulting Tool Kit Reengineering OBJECTIVES 2 Operations Consulting Operations 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. 3 Operations Consulting & the 5 Ps Plants Adding and locating new plants Expanding, contracting, or refocusing facilities Parts Make or buy decisions Vendor selection decisions Processes Technology evaluation Process improvement and reengineering 8 Operations Consulting & the 5 Ps (Continued) People Quality improvement Setting/revising work standards Learning curve analysis Planning and Control Systems Supply chain management MRP Shop floor control Warehousing and distribution 9 Hierarchy within . | Chapter 9 Operations Consulting and Reengineering Operations Consulting Defined Operations Consulting and the 5 P’s Hierarchy Within a Consulting Organization Stages of Operations Consulting Operations Consulting Tool Kit Reengineering OBJECTIVES 2 Operations Consulting Operations 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. 3 Operations Consulting & the 5 Ps Plants Adding and locating new plants Expanding, contracting, or refocusing facilities Parts Make or buy decisions Vendor selection decisions Processes Technology evaluation Process improvement and reengineering 8 Operations Consulting & the 5 Ps (Continued) People Quality improvement Setting/revising work standards Learning curve analysis Planning and Control Systems Supply chain management MRP Shop floor control Warehousing and distribution 9 Hierarchy within Consulting Firms Partners Finders Who find new business Managers Minders Who manage the business Consultants Grinders Who actually do the work A way of looking at the typical consulting firm’s organization 6 Economics of Consulting Firms David 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 creativity 2. Gray Hair: Requiring a great deal of experience (little innovation) 3. Procedures: Requiring activities similar to other existing projects (little innovation or experience) 7 When are Operations Consultants Needed When faced with major investment decision(s) When management believes it is not getting the maximum effectiveness from the organization’s productive capability 10 Stages in Operations Consulting Process 1. Sales and proposal development 2. Analyze problem 3. Design, develop and test alternative solutions 4. Develop systematic performance measures 5. .