Slide 4.

Chapter 4

Innovation and operations

management

Paul Trott, Innovation Management and New Product Development, 4th Edition, © Pearson Education Limited 2008
Slide 4.2

Learning objectives

At the end of this session you should be able to

understand:
•  innovation in the context of operations

•  the difference between ‘product’ and ‘process’

innovation and design.

Paul Trott, Innovation Management and New Product Development, 4th Edition, © Pearson Education Limited 2008
Slide 4.3

The functional links

Operations Marketing

Research and development

Paul Trott, Innovation Management and New Product Development, 4th Edition, © Pearson Education Limited 2008
Slide 4.4

Ideas generation

Internal sources External sources

Customer needs Marketing Surveys

analysis

Research departments Customer suggestions

Suggestions from staff Competitors

Concept generation

Paul Trott, Innovation Management and New Product Development, 4th Edition, © Pearson Education Limited 2008
Slide 4.5

A good innovative design

•  Meets customer requirements

•  Is simple to make
•  Can be rapidly developed into production
•  Few modifications are required during the
development phase

Paul Trott, Innovation Management and New Product Development, 4th Edition, © Pearson Education Limited 2008
Slide 4.6

Design for manufacturing

•  If a product is easy to make, it will be economical

to produce
•  It is important to consider the manufacturability
early in the design phase
•  Integrate product design with process planning
and design

Paul Trott, Innovation Management and New Product Development, 4th Edition, © Pearson Education Limited 2008
Slide 4.7

Design simplification
PRODUCTS DESIGN

Assembly using One-piece base and Push and snap in

common fasteners elimination of fasteners assembly

Paul Trott, Innovation Management and New Product Development, 4th Edition, © Pearson Education Limited 2008
Slide 4.8

Product process types

PROCESSES

High Project

Jobbing
Batch
Variety

Mass

Continuous

Low
Low Volume High

THE MOST APPROPRIATE METHOD (PARTICULARLY IN

COST TERMS) CHANGES WITH TIME

Paul Trott, Innovation Management and New Product Development, 4th Edition, © Pearson Education Limited 2008
Slide 4.9

Awards

•  Malcolm Baldridge
•  Demming
•  ISO 9000
•  EFQM

Paul Trott, Innovation Management and New Product Development, 4th Edition, © Pearson Education Limited 2008
Slide 4.10

Excellence model

ENABLERS RESULTS

People
People
Results

Key
Leadership Policy & Processes Customer Performance
Strategy Results Results

Partnerships Society
& Resources Results

INNOVATION AND LEARNING

EFQM, 1999. The Model is a registered trademark of the EFQM

Paul Trott, Innovation Management and New Product Development, 4th Edition, © Pearson Education Limited 2008
Slide 4.11

What is self assessment?

•  Self-assessment is a comprehensive, systematic

and regular review of an organisation’s activities
and results against a ‘continuous improvement
model’.
Source: EFQM (2003) EFQM Excellence Model

•  The process allows the organisation to discern

clearly its strengths and areas for improvement
and culminates in planned improvement action
plans which are then monitored for progress.

Paul Trott, Innovation Management and New Product Development, 4th Edition, © Pearson Education Limited 2008
Slide 4.12

NHS1 Innovation

•  Introducing into practice new ideas (or ideas new to you)

which lead to improvements in efficiency, effectiveness
or better value for money
•  Intellectual property (IP) includes services, systems
devices, diagnostics, consumables and therapeutics
•  Innovative staff let down by:
–  Not capturing their ideas
–  Wasting assets by not implementing them
–  Resistance to innovative ideas for service development, drugs
and products from other health care systems and health care
industries in the UK and internationally

Paul Trott, Innovation Management and New Product Development, 4th Edition, © Pearson Education Limited 2008
Slide 4.13

NHS2 Why innovate?

“This Government formally committed the NHS to

becoming an innovative organisation when it
published the NHS plan back in 2000.”
Lord Warner, Parliamentary Under-Secretary of State in the Lords, April 2004

“As the NHS is a service, driven first and foremost

by science and scientific advances, innovation
should be a natural part of our business.”
Rt Hon John Hutton MP, Minister of State (Health), June 2004

Paul Trott, Innovation Management and New Product Development, 4th Edition, © Pearson Education Limited 2008
Slide 4.14

NHS3 General

•  NHS Direct
–  Telephone
–  Online
–  Sky TV
•  Care in the community
•  NHS Plus
–  Workplace health care (self-funding)
•  Patient choice
–  Choose and book
•  Walk-in centres and treatment centres
–  Run by commercial companies on behalf of NHS

Paul Trott, Innovation Management and New Product Development, 4th Edition, © Pearson Education Limited 2008
Slide 4.15

LA1 Making improvements

Customer feedback
Survey results
Website

New ideas and

innovation

Staff feedback

Workshops Influence of other Councils/best Practice

Competitions Legislation, Government Requirements
Newsletters Need to lead by example
Management support for ideas

Full senior management

support
Paul Trott, Innovation Management and New Product Development, 4th Edition, © Pearson Education Limited 2008
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LA2 Actions already undertaken

Innovation outputs : (Resulting from staff suggestions)

•  Installed timers on the water coolers, vending machines to reduce

energy use out of working hours
•  Fitted new Building management system that allows for automatic
switching on and off, dependant upon weather and time of day.
•  Now replacing all new plant with versions that can be operated with
our new building management system.
•  New lighting using triphosphorus. These last longer and use less
electricity.
•  Newsletters with helpful hints.

Paul Trott, Innovation Management and New Product Development, 4th Edition, © Pearson Education Limited 2008
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Illustration DELL

•  Mass customisation
•  SCM good links with flexible vendors
•  Background in telemarketing
•  Customer knowledge leading to ‘premier pages’
that have saved Ford $2m
•  High reliability: Dell has received awards for
performance
•  Delivery support 24/7
•  Adaptive business strategy by moving up the value
chain
•  Concentrating on what customers wanted
Paul Trott, Innovation Management and New Product Development, 4th Edition, © Pearson Education Limited 2008
Slide 4.18

Conclusions

•  Whilst you might not be directly involved in R&D

you will be involved in innovation.

Paul Trott, Innovation Management and New Product Development, 4th Edition, © Pearson Education Limited 2008