OPERATIONS

STRATEGIC AND
PROCESS
MANAGEMENT
PERT # 1 : BUILDING
STRATEGY OPERATION
INNOVATIONS AND
CREATIVITY

Dr. Ahmad H Sutawijaya.,SE.,M.Com.,M.Phil.,ASCA, CIMP, CS

Widyatama University, Bandung, Indon
Wollongong University, Aust
Charles Stuart University, Aust
Maastricht University, Netherla
Did you know?
Consider some of today’s most successful companies,
such as Wal-Mart, Southwest Airlines, General Electric,
Starbucks, Apple Computer, FedEx, and Procter &
Gamble.
These companies have achieved world-class status in
large part due to a strong focus on operations
management.
perations management has strategic impact
perations management has an environmental impact
perations management can be applied to the resources an
rocesses in any function
perations management applies to the whole supply
etwork such as ZARA and NIKE
perations management is the driver of improvement
perations management has to exploit new technologies
 derstanding Operations Strategic and
ocess Management
perations Managers create everything you buy, sit on, wear,
t, and throw away

very service you consumed today (radio station, bus service, lecture,
c.) has also been produced by an operation
 rations Strategic & Process Management is th
ction that manages the conversion/
sformation of inputs into outputs (services/
ds) that are of value to customers.

Operations Strategy & Process Management


The transformation process involves many
mponents that must be managed. A compone
ay be a machine, person, tool, or managemen
system.

rations Strategic & Process Management is

cerned with the design, control, improvement
redesign of conversion/transformation
 ctivity Operations as a Transformation Process

(Business Process)

INPUT
•Material
•Machines OUTPUT
TRANSFORMATION
•Labor/staff •Goods
PROCESS
•Management •Services
•Capital
Transformation?
hange, transform, novelty (new),
nnovation, simpler, cheaper, agile,
exible, faster, responsive…
Transformating

Transformating….check in
The Process of Transformation

• Nike can process

–Inputs and outputs?

• Hospital process
–Inputs and outputs?

• Student can process

–Inputs and outputs?
The Process of Transformation

Input Process Output

Materials Manufacturing Automobiles

Machines Assembling Televisions
Man/workers Transporting Services
Money/capital Storing
Information Consulting
Contoh proses bisnis fungsional

abrikasi & Memasang produk

roduksi Memeriksa kualitas
Membuat tagihan material
enjualan & Mengidentifikasi pelanggan
emasaran Membuat pelanggan memperhatikan
produk
Menjual produk
Contoh proses bisnis fungsional

euangan & Menerima piutang

kuntansi Membuat perkiraan keuangan
Mengelola buku kas
umber Mengontrak karyawan
aya Mengevaluasi kerja karyawan
anusia
Menyusun rancangan-rancangan
untuk memberdayakan karyawan
Incubation Lab in manufacture
er core and support functions

Engineering/ Understanding of the Product/service

technical capabilities and development
constraints of the
function operations process function
Analysis of new Understanding of
technology options process technology New product and
Provision of needs service ideas
relevant Understanding of the
Accounting data capabilities and
and finance constraints of the
function operations process
Operations
Financial analysis function Market
for performance requirements
and decisions Marketing
Understanding of function
human resource needs Understanding Provision of systems for
of design, planning and
Recruitment infrastructural control, and
development and system
and training improvement
needs

Human Information
Resources Technology (IT)
 erations as the Technical Co
Finance/Accounting
Production and Budgets
Inventory data Cost analysis
Capital budgeting requests Capital investments
Capacity expansion and Stockholder
Technology plans requirements
Orders for materials Product/Service
Production and delivery Availability
Schedules Quality Lead-time estimates
Requirements Design/ Status of order
Performance specs Delivery schedules

Material availability
Operations Sales forecasts
Quality data Customer orders
Marketing

Suppliers
Delivery schedules Customer feedback
Designs Promotions
Personnel needs
Hiring/firing
Skill sets
Training
Performance evaluations
Legal requirements
Job design/work
Union contract negotiations
measurement

Human Resources
Information Flows
 Business
management The business
model

Functional strategies ….sets the …which

overall defines ho
purpose and the busine
eting Operations Finance Technology objectives model will
egy strategy strategy strategy for…… achieved

ational Operational Operational Operational The operating

eting Operations Finance Technology model
OSPM is everywhere

Construction
chools Restaurants
Banks
Hospitality

Militar

iculture Transportation
Sport Teams
Health Municipalities
Care

Gov’t
nufacturers Services Entertainm
Manufacturers vs Service Organizations

Services:
Intangible product
Product cannot be inventoried
High customer contact
Short response time
Labor intensive
■ Manufacturers:
■ Tangible product
■ Product is inventoried
■ Low customer contact
■ Longer response time
■ Capital intensive
 Strategic
Reconciliation

Operations OPERATIONS Market

STRATEGY Requirements
Resources

Operations strategy reconciles the requirements of the market with the capabilities of operations resources
 Operations Market Requiremen
Resources

hat you What you What you What y

AVE DO WANT NEED
to maintain
your from your
rms of operations to to “compet
rations capabilities
and satisfy help you
abilities “compete” In the mark
markets

Strategic
Reconciliation
 Top - down
Operations
management
should interpret
higher level
management
esources Customer requireme
perations Operations Operations
anagement should strategy management should
anage resources satisfy its internal an
propriately external customers

Operations
management
should learn from
day-to-day
experiences
Bottom - up
perations management activities at IKEA
he Five Competitive
bjectives

Quality Being RIGHT

Responsiveness / Being FAST

Speed

Dependability Being ON TIME

Flexibility Being ABLE TO CHANGE

Cost Being PRODUCTIVE

 OSPM Contributions to Society

1. Higher Standard of Living: higher productivity =

lower price goods = more discretionary income
available

2. Better Quality Goods and Services: e.g. Six Sigma

3. Sustainable Growth: environmentally-friendly

products and processes

4. Improved Working Conditions: worker intregration

intro decisions, leading to improved workplace
environment and more satisfying jobs
 Composed by :
Achmad H
Sutawidjaya

Do Not Copy for any

Thank
reason without
permission from
you Achmad H Sutawidjaya