Vous êtes sur la page 1sur 36

MC-091-5:2013

INDUSTRIAL AUTOMATION
ENGINEERING
MODUL11 INDUSTRIAL PLANT
MANAGEMENT
Business Plan Part Three
Mission/Strategy/Tactics
Mission Strategy Tactics

How does mission, strategies and tactics relate to


decision making and distinctive competencies?
Strategy
Mission
The reason for existence for an organization
Mission Statement
Answers the question What business are we in?
Goals
Provide detail and scope of mission
Strategies
Plans for achieving organizational goals
Tactics
The methods and actions taken to accomplish
strategies
Operations Strategy
Decision Making Levels
Strategic
Long-term
Broad in scope; lowest level of detail
Traditionally -- top management
Tactical
Intermediate term
Resource acquisition (suppliers, employees, ...)
Middle management
Operational
Day-to-day
Scheduling (shifts, purchases, customers, ...)
First-line supervisors (team leaders)
Planning
Figure 2.1 and Decision Making
Mission

Goals

Organizational
Strategies
Functional Goals

Finance Marketing Operations


Strategies Strategies Strategies

Tactics Tactics Tactics

Operating Operating Operating


procedures procedures procedures
Strategy Example

Example 1 Rita is a high school student. She would like to


have a career in business, have a good job, and
earn enough income to live comfortably
Mission: Live a good life
Goal: Successful career, good income
Strategy: Obtain a college education
Tactics: Select a college and a major
Operations: Register, buy books, take
courses, study, graduate, get
job
Examples of Strategies

Low cost
Scale-based strategies
Specialization
Flexible operations
High quality
Service
Strategy and Tactics
Distinctive Competencies
The special attributes or abilities that give an
organization a competitive edge.
Price
Quality
Time
Flexibility
Service
Location
Examples of Distinctive Competencies
Table 2.2 Price Low Cost U.S. first-class postage
Motel-6, Red Roof Inns

Quality High-performance design Sony TV


or high quality Consistent Lexus, Cadillac
quality Pepsi, Kodak, Motorola

Time Rapid delivery Express Mail, Fedex,


On-time delivery One-hour photo, UPS

Flexibility Variety Burger King


Volume Supermarkets

Service Superior customer Disneyland


service Citibank

Location Convenience Banks, ATMs


Strategy and the
Internet
Internet can be used to create a distinctive
business strategy
eBay, Lelong, Mudah
unlimited capacity and a huge
market
all work is done by buyers and
sellers and there is no marginal
cost
Strategy and the Internet
(cont.)
Internet can be used to strengthen
existing competitive advantages by
integrating new and traditional
activities
Online Banking
Intel
sells $2 billion a month over the Internet
purchases 80% of its direct materials online
replaced 19,000 sales-order faxes received daily
Operations Strategy:
Products and Services
Make-to-Order
products and services are made to customer
specifications after an order has been received
Make-to-Stock
products and services are made in anticipation
of demand
Assemble-to-Order
products and services add options according to
customer specifications
Product Strategy

Brand portfolio?
Production Strategy: Processes and technology

Project
one-at-a-time production of a product to customer order
Batch Production
systems process many different jobs at the same time in
groups (or batches)
Mass Production
large volumes of a standard product for a mass market
Continuous Production
used for very high volume commodity products
Continuous Production
A paper manufacturer produces a

e
continuous sheet paper from wood

lu m
pulp slurry, which is mixed, pressed,

Vo
er
dried, and wound onto reels.
gh
Hi
d

Mass Production
iz e

Here in a clean room a worker performs


rd
da

quality checks on a computer assembly line.


an
St
e

Batch Production
or
M

At Martin Guitars bindings on the guitar frame are


installed by hand and are wrapped with a cloth
webbing until glue is dried.

Project
Construction of the aircraft carrier USS Nimitz was a huge
project that took almost 10 years to complete.
Underlying Process Relationship Between
Volume and Standardization Continuum

2010 Wiley 16
Flowchart for Different Product Strategies at Dominos Pizza

2010 Wiley 17
Strategy Formulation

Distinctive competencies
Environmental scanning
SWOT
Order qualifiers
Order winners
Strategy Formulation
Order qualifiers
Characteristics that customers perceive as
minimum standards of acceptability to be
considered as a potential purchase
Order winners
Characteristics of an organizations goods or
services that cause it to be perceived as better
than the competition
Key External Factors

Economic conditions
Political conditions
Legal environment
Technology
Competition
Markets
Key Internal Factors

Human Resources
Facilities and equipment
Financial resources
Customers
Products and services
Technology
Suppliers
Operations Strategy:
Capacity and Facility
Capacity strategic decisions include:
When, how much, and in what form to alter
capacity
Facility strategic decisions include:
Whether demand should be met with a few large
facilities or with several smaller ones
Whether facilities should focus on serving certain
geographic regions, product lines, or customers
Facility location can also be a strategic decision
Operations Strategy: Human
Resources
What are the skill levels and degree of autonomy
required to operate production system?
What are the training requirements and selection
criteria?
What are the policies on performance evaluations,
compensation, and incentives?
Will workers be salaried, paid an hourly rate, or
paid a piece rate?
Will profit sharing be allowed, and if so, on what
criteria?
Operations Strategy: Human
Resources (cont.)
Will workers perform individual tasks or work in
teams?
Will they have supervisors or work in self-
managed work groups?
How many levels of management will be required?
Will extensive worker training be necessary?
Should workforce be cross-trained?
What efforts will be made in terms of retention?
Operations Strategy:
Quality
What is the target level of quality for our
products and services?
How will it be measured?
How will employees be involved with quality?
What will the responsibilities of the quality
department be?
Operations Strategy: Quality
(cont.)
What types of systems will be set up to
ensure quality?
How will quality awareness be maintained?
How will quality efforts be evaluated?
How will customer perceptions of quality be
determined?
How will decisions in other functional areas
affect quality?
Operations Strategy:
Sourcing
Vertical Integration
degree to which a firm produces parts that go into its
products
Strategic Decisions
How much work should be done outside the firm?
On what basis should particular items be made in-
house?
When should items be outsourced?
How should suppliers be selected?
Operations Strategy: Sourcing
(cont.)
What type of relationship should be maintained
with suppliers?
What is expected from suppliers?
How many suppliers should be used?
How can quality and dependability of suppliers be
ensured?
How can suppliers be encouraged to collaborate?
Operations Strategy: Operating Systems

How will operating systems execute strategic


decisions?
How does one align information technology and
operations strategic goals?
How does information technology support both
customer and worker demands for rapid access,
storage, and retrieval of information?
How does information technology support decisions
making process related to inventory levels, scheduling
priorities, and reward systems?
Operations Strategy
Elements of OM Strategy
Inputs
Add/remove capacity; outsourcing issues
Skills/flexibility of workforce
Safety/environmental commitment
Transformation process
Product/process development investment
Commitment to standardization
Control systems and automation
Outputs
Line of goods/services
Focus on customer
Strategic Planning

Mission
Mission
and
and Vision
Vision

V
Vooiiccee oof ooff tthhee
f tthhee V
Vooiic
c e
e
B
Buussiinneess merr
ss Corporate
Corporate CCuussttoome
Strategy
Strategy

Marketing
Marketing Operations
Operations Financial
Financial
Strategy
Strategy Strategy
Strategy Strategy
Strategy
Break-Even Analysis: Graphical Approach

Compute quantity of goods that must be sold


to break-even
Compute total revenue at an assumed selling
price
Compute fixed cost and variable cost for
several quantities
Plot the total revenue line and the total cost
line
Intersection is break-even
Sensitivity analysis can be done to examine
changes in all of the assumptions made

2010 Wiley 32
Product Screening Tool Break-
Even Analysis
Computes the quantity of goods company needs to sell to
cover its costs
QBE = F/ (SP - VC)
QBE Break even quantity
F Fixed costs
SP selling price/unit
VC Variable cost

2010 Wiley 33
Product Screening Tool Break-
Even Analysis (cont)
Break-even analysis also includes calculating
Total cost sum of fixed and variable cost
Total cost = F + (VC)*Q

Revenue amount of money brought in from sales


Revenue = (SP) * Q

Q = number of units sold


2010 Wiley 34
Break-Even Example:

A company is planning to establish a chain of movie


theaters. It estimates that each new theater will cost
approximately $1 Million. The theaters will hold 500
people and will have 4 showings each day with average
ticket prices at $8. They estimate that concession sales
will average $2 per patron. The variable costs in labor and
material are estimated to be $6 per patron. They will be
open 300 days each year. What must average occupancy
be to break-even?
2010 Wiley 35
Break-Even Example
Calculations
Break-Even Point
Total revenues = Total costs @ break-even point Q
Selling price*Q = Fixed cost + variable cost*Q
($8+$2)Q= $1,000,000 + $6*Q
Q = 250,000 patrons (42% occupancy)
What is the gross profit if they sell 300,000 tickets
Profit = Total Revenue Total Costs
P = $10*300,000 (1,000,000 + $6*300,000)
P = $200,000
If concessions only average $.50/patron, what is
break-even Q now? (sensitivity analysis)
($8.50)Q = 1,000,000 - $6*Q
2010 Wiley Q = 400,000 patrons (67% occupancy) 36