Operations

Strategy

Strategic operations
management decision areas

DECISION AREA
1. Product and service
design
2. Capacity
3. Process selection and
layout
4. Work design
5. Location
6. Quality
7. Inventory
8. Maintenance
9. Scheduling
10. Supply chain

WHAT THE DECISION AFFECT

Costs, quality, liability and environmental
issues
Cost structure flexibility
Costs, flexibility, skill level needed,
capacity
Quality of work, employee safety,
productivity
Costs, visibility
Ability to meet or exceed customer
expectations
Costs, shortage
Costs, equipment reliability, productivity
Flexibility, efficiency
Costs, quality, agility, shortages, vendor

Quality and time

strategies

Quality- Based Strategies

- focuses on quality in all phases
of an organization

Time Base Strategies

- focuses on reduction of time needed to
accomplish tasks

Organization have achieved Time Reduction in

some of the following:
Planning

Time
Products/ Service Design Time
Processing Time
Changeover Time
Delivery Time
Response Time for Complaints

IMPLICATIONS OF ORGANIZATION
STRATEGY FOR OPERATIONS
MANAGEMENT

TRANSFORMING STRATEGY INTO

ACTIONS: THE BALANCED
SCORECARD

Balanced Scorecard (BSC)

A top- down management system that organization
can use to clarify their version and strategy and
transform them into action

What does product and

service design do?

Translate customer wants and needs into

product and service requirements
2. Refine existing products and services
3. Develop new product and services
4. Formulate quality goals
1.

5.
6.
7.
8.

Formulate cost target

Construct and test prototype
Document specifications
Translate product and service
specifications into process
specifications

Dutch Boy paint containers

Objectives of product and service

design
- Main focus of product and service design is
customer satisfaction.

Other considerations in
product and service design

Product

or Service Life Stages

- is the stages through which a product or its category by

pass

Robust

Design

- design that results in products or services that

can function over a broad range of condition

Degree

of Newness

1. Modification of an existing product or service

2. Expansion of an existing product line or service
offering
3. Clone of a competitors product or service
4. New product or service

Human
Global

Factors

Product Design

Phases in production
design and development

*
*
*
*

Idea Generation
Feasibility Analysis
Product Specification
Process Specification

*
*
*
*
*

Prototype Development
Design Review
Market Test
Product Introduction
Follow- up Evaluation

Designing for production

Concurrent Engineering
- bringing engineering design and manufacturing
personnel together early in the design phase to
simultaneously develop the product and the process for
creating the product

Computer Aided Design (CAD)

- uses computer
graphics for product design

Production Requirements
* Design For Manufacturing (DMF)
* Design For Assembly (DFA)
* Manufacturability

Quality Function Deployment

- an approach that integrates
the voice of the customers into
both product and service development

The Kano model

A theory of product and service
design developed by Dr. Noriaki
Kano

DIFFERENCE BETWEEN SERVICE

DESIGN AND PRODUCT DESIGN
1.
2.
3.
4.
5.

Products are tangible; services are intangible

Services are created and delivered at the same
time
Services cannot be inventoried
Services are highly visible to customers
Some services have low batteries to entry and exit

6. Location is important
7. Service system range
8. Demand variability alternately creates
waiting lines or idle service resources

PHASES IN THE SERVICE

DESIGN PROCESS

Conceptualize
Idea Generation
Assessment of customer wants/ needs
Assessment of demand potential
2. Identify service package components needed
3. Determine performance specification
4. Translate performance specification into design
specification
5. Translate design specification into delivery
specification
1.

SERVICE BLUEPRINTING
- A method used in design to describe and analyse
a proposed service.

Characteristics
of well- designed service
system

Challenges
of service design

Guidelines for successful

service design

THANK YOU
Reporters:
Mary Beth R. Lopena
Adam Brylle C. Sta.Ana
Marie Mar R. Villafae