Académique Documents
Professionnel Documents
Culture Documents
Chapter 2
Operations performance
Operation’s
performance
Operations Operations
strategy strategy
Operations
management
Design Improvement
Planning and
control
Directors / top
management
Staff representative
bodies
Regulatory
Government
bodies
Opportunities for
process learning
Lower Secure
costs Process Enhanced revenue
efficiency Operations and service
processes
excellence
Lower capital
Lower ‘operational’ risk requirements
Slack, Chambers and Johnston, Operations Management, 6th Edition,
2.6
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
2.7
The five competitive objectives
Cost
Quick Dependable
delivery delivery
Minimum cost,
Speed maximum value Dependability
Fast Reliable
Internal
throughput operation
benefits
Error-free Ability to
processes change
Quality Flexibility
Error-free Frequent new
products and products, maximum
services choice
External
benefits
… a hospital ?
… an automobile plant?
Product is reliable.
All parts are made to specification.
… a bus company?
… a supermarket?
Cost
Speed Dependability
Internal
benefits
Quality Flexibility
On-specification
products and External
services benefits
… a hospital ?
… an automobile plant?
… a bus company?
… a supermarket?
Cost
Quick
delivery
Speed Dependability
Internal
benefits
Quality Flexibility
External
benefits
… a hospital ?
… an automobile plant?
… a bus company?
… a supermarket?
Cost
Dependable
delivery
Speed Dependability
Internal
benefits
Quality Flexibility
External
benefits
…. a hospital ?
… an automobile plant?
… a bus company?
… a supermarket?
Cost
Short delivery
Reliable
lead-time
delivery
Speed Depend-
ability
Quality Flexibility
Frequent new
products/services
On-specification Wide range
products and Volume and delivery
services changes
Cost
Speed Dependability
Internal
benefits
Quality Flexibility
Frequent new
products/services
Wide range
External Volume and delivery
benefits changes
Slack, Chambers and Johnston, Operations Management, 6th Edition,
2.34
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
2.35
… a hospital ?
Technology
Bought-in and facilities
materials costs
and
services
Staff
costs
… an automobile plant?
Bought-in Technology
materials and facilities
and costs
services
Staff
costs
… a bus company?
Bought-in Technology
materials and facilities
and costs
services
Staff
costs
… a supermarket?
Technology
Bought-in and facilities
materials costs
and
services
Staff
costs
Cost
The cost of producing products and services is obviously
influenced by many factors such as input costs, but two
important sets are
The 4 V’s–volume
– variety
– variation
– visibility
The internal performance of the operation at
– quality
– speed
– dependability
– flexibility
Speed Dependability
External
Internal benefits
Quality benefits
Flexibility
Frequent new
products/services
On-specification
Wide range
products and
services Volume and delivery
changes
Slack, Chambers and Johnston, Operations Management, 6th Edition,
2.40
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
2.41
Polar diagrams
Speed Dependa-
bility
Quality Flexibility
Taxi Bus
service service
Cost
Speed Dependability
Quality Flexibility
Required performance
Actual
performance
Reassurance
Efficiency Crime
reduction
Crime
Working with detection
Criminal justice
agencies
General recycling
Newspaper collection service
service Cost
Speed Dependability
Quality Flexibility
Variety
The new ‘efficient
The ‘efficient
Variety
frontier’
A frontier’ B1
B A
B
X C X C
D D
Improvement
through increasing
‘focus’ on variety
Variety
P1 Improvement through
overcoming the trade-
P off between variety
and cost efficiency
Improvement through
Q increasing ‘focus’ on
Q1 cost efficiency
Cost efficiency
Slack, Chambers and Johnston, Operations Management, 6th Edition,
2.47
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
The ‘efficient frontier’ view of trade-offs (Continued)
2.48
Cost efficiency