12 -improving_operations
-
Upload
kamelliachaichi -
Category
Business
-
view
71 -
download
0
description
Transcript of 12 -improving_operations
![Page 1: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/1.jpg)
![Page 2: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/2.jpg)
Improving operationsAlex Hill and Terry Hill
![Page 3: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/3.jpg)
Learning objectives
• Explain WHY companies need to improve operations
• Understand HOW operations can be improved to:
- Release CASH- Improve MARKET SUPPORT- Reduce COSTS
• Identify improvement OPPORTUNITIES
• Understand the alternative APPROACHES to making improvements
• Propose and substantiate IMPROVEMENTS within a given operational context
![Page 4: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/4.jpg)
Lecture outline
• INTRODUCTION
• WHY improve operations?
• The PROCESS of improving operations:
- APPROACHES
- TOOLS and TECHNIQUES
- MAKING improvements• Critical REFLECTIONS• SUMMARY
![Page 5: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/5.jpg)
![Page 6: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/6.jpg)
Why improve operations?
•Release CASH•Improve MARKET
SUPPORT•Reduce COSTS
![Page 7: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/7.jpg)
> KEY IDEA
Operations can be IMPROVED to:• Release CASH• Improve MARKET SUPPORT (and, with it, SALES revenue)• Reduce COSTS
![Page 8: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/8.jpg)
Why improve operations?
•Reduce INVENTORY•Change supplier PAYMENT
terms•Sell or leases EQUIPMENT•OUTSOURCE
Releasing cash
![Page 9: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/9.jpg)
Why improve operations?
1.Identify the key ORDER-WINNERS and QUALIFIERS to be supported
2.Translate these into STRATEGIC TASKS
•Review current PERFORMANCE•Identify and implement CHANGES
Improving market support
![Page 10: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/10.jpg)
> KEY IDEA
Improving market support leads to greater SALES REVENUE by:• Increasing market SHARE• Establishing NEW markets• Enabling PRICES to be raised
![Page 11: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/11.jpg)
Why improve operations?Improving market support
![Page 12: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/12.jpg)
Why improve operations?Improving market support
![Page 13: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/13.jpg)
Why improve operations?Improving market support
![Page 14: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/14.jpg)
Why improve operations?Improving market support
![Page 15: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/15.jpg)
CASE 12.1 IMPROVING PROCESSES
![Page 16: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/16.jpg)
Question Answer
Standardised
Flexible
IMPROVING PROCESSES
• Develop service or product DESIGN
- DESIGN is a key order-winner- FRONT office processes- CORE processes
• Reduce COSTS- PRICE is a key order-winner- BACK office processes- NON-CORE processes
CASE 12.1
![Page 17: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/17.jpg)
Why improve operations?
1.Review where COSTS can be reduced:- Material, direct and overhead2.Map activities to identify and eliminate areas
of WASTE•Review and reduce mix of VOLUMES•Review and increase PRICE of services or
products- Where appropriate•Review and STOP selling services or products- Where appropriate
Reducing costs
![Page 18: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/18.jpg)
> KEY IDEA
Reducing COSTS leads to increased PROFITS
![Page 19: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/19.jpg)
The process of improving operations
![Page 20: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/20.jpg)
> KEY IDEA
IMPROVING operations should be a increased CONTINUOUS, ON-GOING process
![Page 21: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/21.jpg)
![Page 22: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/22.jpg)
The process of improving operations
•INCREMENTAL- Passive or
proactive•BREAKTHROUGH- Passive or
proactive
Approaches to improving operations
![Page 23: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/23.jpg)
The process of improving operationsApproaches to improving operations
![Page 24: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/24.jpg)
The process of improving operationsApproaches to improving operations
![Page 25: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/25.jpg)
> KEY IDEA
A PROACTIVE approach is better than a passive approach forDRIVING improvement
![Page 26: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/26.jpg)
The process of improving operationsApproaches to improving operations
![Page 27: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/27.jpg)
The process of improving operationsApproaches to improving operations
![Page 28: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/28.jpg)
![Page 29: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/29.jpg)
![Page 30: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/30.jpg)
![Page 31: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/31.jpg)
![Page 32: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/32.jpg)
> KEY IDEA
Organisations should improve their operations through a COMBINATION of:•INCREMENTAL and•BREAKTHROUGH changes
![Page 33: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/33.jpg)
CASE 12.2 BREAKTHROUGH VS INCREMENTAL
![Page 34: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/34.jpg)
Question Gold mining Metro
Breakthrough or incremental
• BREAKTHROUGH- RADICALLY different
mining approach- Much HIGHER
equipment cost dramatically reduces direct labour costs
• INCREMENTAL- PROCESS of buying and
paying for food hasn’t dramatically changed
CASE 12.2 BREAKTHROUGH VS INCREMENTAL
![Page 35: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/35.jpg)
> KEY IDEA
Establishing an improvement CULTURE helps:• DRIVE and• MAINTAIN improvement
![Page 36: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/36.jpg)
> KEY IDEAProactive improvement requires EMPLOYEE:•PARTICIPATION and•INVOLVEMENT throughout the busienss
![Page 37: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/37.jpg)
> KEY IDEAKaizen blitz events are completed in COMPRESSED timescales by:•Taking employees OUT of their day jobs; and•DEDICATING them to improvement activities for between 2 and 5 days
![Page 38: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/38.jpg)
CASE 12.3
PORSCHE: CONTINUOUSLY IMPROVING OPERATIONS
1.How does Porsche CONTINUOUSLY drive change?
2.What RECENT improvements has it made?
![Page 39: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/39.jpg)
CASE 12.3
Question Answer
Continuously drives change
Recent improvement
• CHECK www.porsche.com
• Mix of BREAKTHROUGH and INCREMENTAL
• EXAMPLES include:- New methods reduced LABOUR costs- Less SUPPLIERS- MODULAR design
PORSCHE: CONTINUOUSLY IMPROVING OPERATIONS
![Page 40: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/40.jpg)
CASE 12.4 CONTINUOUSLY DRIVING IMPROVEMENT
![Page 41: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/41.jpg)
Question
Volvo Group Ricoh
Process reviews
Success comes from people
Constant need for change
• Review of the DRYING process
CASE 12.4 CONTINUOUSLY DRIVING IMPROVEMENT
• Employees REWARDED for making improvements
-
• Review of COPIER PLANT process
• SUGGESTION scheme- 3,500 staff- 4,500 suggestions per
year
• CONSTANT improvement- Implementation of ideas- Increased motivation- Showed importance of
contribution
![Page 42: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/42.jpg)
The process of improving operations
•BENCHMARKING•Mapping the CUSTOMER JOURNEY•Mapping PROCESSES•Identifying CAUSES of problems•Generating improvement IDEAS•RE-ENGINEERING business
processes
Improvement tools and techniques
![Page 43: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/43.jpg)
> KEY IDEA
BENCHMARKING helps:• START and• MAINTAIN improvements
![Page 44: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/44.jpg)
The process of improving operationsMapping the customer journey
![Page 45: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/45.jpg)
The process of improving operationsMapping the customer journey
![Page 46: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/46.jpg)
The process of improving operationsMapping the customer journey
![Page 47: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/47.jpg)
The process of improving operationsMapping the customer journey
![Page 48: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/48.jpg)
> KEY IDEAMapping the CUSTOMER JOURNEY helps:• Identify WHICH services and products to deliver; and• HOW best to deliver them
![Page 49: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/49.jpg)
The process of improving operationsMapping the process
![Page 50: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/50.jpg)
The process of improving operationsMapping the process
![Page 51: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/51.jpg)
> KEY IDEA
Mapping PROCESSES helps understand how a business currently OPERATES
![Page 52: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/52.jpg)
The process of improving operationsIdentifying causes of problems
![Page 53: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/53.jpg)
The process of improving operationsIdentifying causes of problems
![Page 54: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/54.jpg)
The process of improving operationsIdentifying causes of problems
![Page 55: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/55.jpg)
> KEY IDEACAUSE and EFFECT diagrams andWHY-WHY reviews help understandwhat has CAUSED the problems identified
![Page 56: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/56.jpg)
> KEY IDEAImprovement IDEAS can be generated by:• BRAINSTORMING• REVERSE brainstorming• Listing ATTRIBUTES and/or• Forging RELATIONSHIPS
![Page 57: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/57.jpg)
The process of improving operationsRe-engineering business processes
![Page 58: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/58.jpg)
> KEY IDEA
Business processes can be RE-ENGINEERED by:• MAP the process• Identify VALUE-ADDING activities• Eliminate WASTE• Make the value-adding steps FLOW• REPEAT the cycle
![Page 59: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/59.jpg)
CASE 12.5FORD:
BENCHMARKING AGAINST MAZDA
1.How does Porsche CONTINUOUSLY drive change?
2.What RECENT improvements has it made?
![Page 60: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/60.jpg)
Question Answer
Help improve business
• Realised it was only making an INCREMENTAL improvement
• Led to a BREAKTHROUGH improvement:
- Reduced STAFF from 500 to 5- Rather than from 500 to 400
CASE 12.5
FORD: BENCHMARKING AGAINST MAZDA
![Page 61: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/61.jpg)
CASE 12.6
IDEO: RULES FOR BRAINSTORMING IMPROVEMENT IDEAS
1.Why is IDEO’s APPROACH different to other design consultancies?
2.Why are the brainstorming RULES important?
![Page 62: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/62.jpg)
CASE 11.2
Question
Answer
Different approach
Rules important
• Increases NUMBER of ideas- DEFER judgment- ENCOURAGE old ideas- BUILD on the idea of others- Go for QUANTITY
• OPEN source innovation• DISCLOSES secrets to all clients• Gives client RESPONSIBILITY for
creativity• EDUCATE clients to innovate themselves
CREATING A POSITIVE RETAIL EXPERIENCE
![Page 63: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/63.jpg)
CASE 12.7 RE-ENGINEERING BUSINESS PROCESSES
![Page 64: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/64.jpg)
Question
Mutual benefits Jet Blue
Changes
Benefits
• BREAKTHROUGH approach
• Changed management RESPONSIBILITY
- Case managers responsible for whole process
- Previously functional silos
• Reduced LEAD-TIME- From 5-25 days to 2-5
days• Reduced labour COSTS- Less staff
CASE 12.7 RE-ENGINEERING BUSINESS PROCESSES
• INCREMENTAL approach• Introduced new
TECHNOLOGY- Laptops now calculate
thrust to apply on take-off
• Reduced COSTS- Less wear and tear- Less maintenance- Overall 5% saving
during life of aircraft
![Page 65: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/65.jpg)
The process of improving operations
•Identifying STAKEHOLDERS
•Involving EMPLOYEES•Involving SUPPLIERS•Involving CUSTOMERS
Making improvements
![Page 66: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/66.jpg)
The process of improving operationsIdentifying stakeholders
![Page 67: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/67.jpg)
> KEY IDEA
Improvements can be made by anyone INTERESTED in the business, as long as they are given the POWER to do this
![Page 68: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/68.jpg)
CASE 12.8 CLOSED VS OPEN INNOVATION
![Page 69: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/69.jpg)
Question
Apple Google
Approach
Advantages
Dis-advantages
• CLOSED- Small INTERNAL group- Responsibility of
ENGINEERS and DESIGNERS
• FOCUSED on narrow range of services and products
• Grow IN-HOUSE capability
• BREAKTHROUGH changes
• Wider SOURCE of ideas• No BOUNDARIES• INCREMENTAL changes
CASE 12.8 CLOSED VS OPEN INNOVATION
• OPEN- Involve EMPLOYEES,
CUSTOMERS and SUPPLIERS
- Responsibility of EVERYONE
• MISS OUT on other sources of ideas
- Employees, customers and suppliers
• Less FOCUSED• Difficult to MEASURE
results against resource allocated
![Page 70: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/70.jpg)
The process of improving operationsInvolving employees
•Creating SELF-MANAGED teams
•Sharing INFORMATION•Creating TIME for
improvement
![Page 71: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/71.jpg)
The process of improving operationsInvolving employees
![Page 72: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/72.jpg)
CASE 12.9
UNIPART GROUP
1.How does its APPROACH illustrate continuous improvement
2.How is EMPLOYEE involvement central to this initiative?
![Page 73: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/73.jpg)
Question
Answer
Approach
Role of employee
• Improvement TEAMS- IDENTIFY improvements- IMPLEMENT improvements- Involves EVERYONE in the company
• TRAIN employees- CENTRE within each site• SHARE knowledge and experiences- WITHIN each site- BETWEEN sites• Use improvement FACILITATORS- To TRAIN and COACH staff- Share IDEAS between improvement groups
UNIPART GROUPCASE 12.9
![Page 74: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/74.jpg)
> KEY IDEA
Using EMPLOYEES to make improvements requires giving themmore POWER than they usually have
![Page 75: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/75.jpg)
CASE 12.10
APPLE’S iPOD:USING SUPPLIERS TO REDUCE LEAD-TIMES
1.How did Apple REDUCE the lead-time for supplying a tailor-made iPod?
2.What can others LEARN from this?
![Page 76: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/76.jpg)
Question
Answer
Reduce lead-time
Learning
• Identify main LEAD-TIME components- Material, process and distribution• Reduce LONG lead-time activities- E.g. inventory holding, JIT agreements,
process improvements
• SUPPLIER agreement- JIT manufacturing• DISTRIBUTER agreement- Deliver DIRECTLY to customer from
supplier
CASE 12.10
APPLE’S iPOD: USING SUPPLIERS TO REDUCE LEAD-TIMES
![Page 77: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/77.jpg)
CASE 12.11 DEVELOPING NEW SERVICES/PRODUCTS
![Page 78: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/78.jpg)
Question
TED Apple’s App Store
Approach
Advantages
• MARKET PLACE for supplier ideas
- LINK suppliers with customers
- FILTER out poor products- PROMOTE to wide
market• High number of VIEWS- 300M by 2010- SPREAD ideas- PROMOTE suppliers• World-wide MARKET- TRANSLATED into 77
languages
CASE 12.11 USING SUPPLIERS TO DEVELOP NEW
SERVICES AND PRODUCTS
• MARKET PLACE for supplier ideas
- LINK suppliers with customers
- FILTER out poor products- PROMOTE to wide
market
• High SALES- 58M downloads Jul 08
to Apr 10- SPREAD ideas- PROMOTE suppliers• World-wide MARKET
![Page 79: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/79.jpg)
> KEY IDEA
Using SUPPLIERS to make improvements requires giving themmore POWER than they usually have
![Page 80: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/80.jpg)
CASE 12.12 IMPROVING OPERATIONS
![Page 81: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/81.jpg)
Question
WIKI Threadless
Develop services and products
Advantages
•CUSTOMERS design products
- ANYONE can develop- ANYONE can edit- ANYONE can access- IN-HOUSE staff just manage
website•ACCESS to ideas- Not LIMITED to in-house- 15M articles in 2010• UP-TO-DATE ideas- Large RESOURCE to keep
up-to-date- Not tied to publishing
cycles
CASE 12.11 USING CUSTOMERS TO
IMPROVE OPERATIONS
•CUSTOMERS- DESIGN products- Decide which are
PRODUCED- Get royalties from SALES
•ACCESS to ideas- Not LIMITED to in-house- 500,000 people
![Page 82: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/82.jpg)
> KEY IDEA
Using CUSTOMERS to make improvements requires giving themmore POWER than they usually have
![Page 83: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/83.jpg)
Involving employees
Improving operations
Hoosiers(1986)
Basketball team
![Page 84: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/84.jpg)
•Team CHARACTERISTICS?•Required MANAGEMENT
STYLE?
AfterBefore Vs
Involving employees
Improving operations
![Page 85: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/85.jpg)
Film clip Before changes
FilmTitleDirector (year)
HoosiersAnspaugh (1986)
ClipStartFinish
00:11:5000:19:00
What clip showsA new basketball coach arriving at a school and meeting the team that he has to manage
Key learning objective
How you start an improvement process The issues associated with a dysfunctional team
Involving employees
Improving operations
![Page 86: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/86.jpg)
Film clip After changes
FilmTitleDirector (year)
HoosiersAnspaugh (1986)
ClipStartFinish
01:44:2801:48:20
What clip shows The basketball team winning the state final
Key learning objective
How a manage has to become more supportive and less directive as his team starts to develop and begins to manage itself
Involving employees
Improving operations
![Page 87: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/87.jpg)
Aspect Before After
Team
Management style
• Unmanaged• Unorganised• Unclear
objectives• Unclear roles• Hierarchy• Not a team• Lack of skill
• Directive- Organise people- Set objectives- Allocate roles- Set and enforce
rules
Involving employees
Improving operations
• Self managing• Self organising• Self directing• Clear roles• No hierarchy• Work as team• Highly skilled
• Supportive- Empower people- Develop management
skills
![Page 88: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/88.jpg)
Critical reflections• A company is actually MOVING BACKWARDS- If it is NOT moving forwards
• Businesses IMPROVE operations to- Release CASH- Improve MARKET SUPPORT- Reduce COSTS
• Need to take a PROACTIVE improvement approach
- NOT a passive one
• Businesses need to rethink their BOUNDARIES
- Give more POWER to interested stakeholders to help them improve their business
- This requires a radically DIFFERENT approach
![Page 89: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/89.jpg)
Summary
• STEPS for improving operations- Plan, do, check, review- Then REPEAT
• Improvement APPROACH- PROACTIVE or PASSIVE- BREAKTHROUGH or INCREMENTAL
• Improvement TOOLS- E.g. benchmarking, mapping, causal
analysis, ideas generation, re-engineering
• MAKING improvements- Use HIGH INTEREST stakeholders- E.g. employees, suppliers, customers
![Page 90: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/90.jpg)
![Page 91: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/91.jpg)
Revision questions
1 Companies improve their operations to
a) Improve market support
b) Release cash and reduce costs
c) Both a) and b)
![Page 92: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/92.jpg)
Revision questions
1 Companies improve their operations to
a) Improve market support
b) Release cash and reduce costs
c) Both a) and b)
![Page 93: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/93.jpg)
Revision questions
2 To reduce costs, you would
a) Map activities and identify areas of waste
b) Review the mix of volumes
c) Both a) and b)
![Page 94: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/94.jpg)
Revision questions
2 To reduce costs, you would
a) Map activities and identify areas of waste
b) Review the mix of volumes
c) Both a) and b)
![Page 95: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/95.jpg)
Revision questions
3 Improving operations should be:
a) A one-off activity
b) In response to increased market competition
c) A continuous, on-going process
![Page 96: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/96.jpg)
Revision questions
3 Improving operations should be:
a) A one-off activity
b) In response to increased market competition
c) A continuous, on-going process
![Page 97: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/97.jpg)
Revision questions
4 Which of the following is NOT a characteristic of an incremental improvement approach:a) Low level of employee time investment
b) High level of asset investment
c) Ongoing activity
![Page 98: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/98.jpg)
Revision questions
4 Which of the following is NOT a characteristic of an incremental improvement approach:a) Low level of employee time investment
b) High level of asset investment
c) Ongoing activity
![Page 99: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/99.jpg)
Revision questions
5 Kaizen blitz events are an example:
a) Breakthrough proactive approach
b) Incremental proactive approach
c) Breakthrough passive approach
![Page 100: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/100.jpg)
Revision questions
5 Kaizen blitz events are an example:
a) Breakthrough proactive approach
b) Incremental proactive approach
c) Breakthrough passive approach
![Page 101: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/101.jpg)
Revision questions
6 Which of the following is NOT an example of an improvement tool or technique:
a) Benchmarking
b) Network analysis
c) Mapping the customer journey
![Page 102: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/102.jpg)
Revision questions
6 Which of the following is NOT an example of an improvement tool or technique:
a) Benchmarking
b) Network analysis
c) Mapping the customer journey
![Page 103: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/103.jpg)
Revision questions
7 When generating improvement ideas, it is important to:
a) Dismiss ideas that are not very good
b) Generate as many ideas as possible
c) Both a) and b)
![Page 104: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/104.jpg)
Revision questions
7 When generating improvement ideas, it is important to:
a) Dismiss ideas that are not very good
b) Generate as many ideas as possible
c) Both a) and b)
![Page 105: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/105.jpg)
Revision questions
8 Making improvements requires giving power to:a) Stakeholders who are interested in the
businessb) Stakeholders who are not interested in
the businessc) Both a) and b)
![Page 106: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/106.jpg)
Revision questions
8 Making improvements requires giving power to:a) Stakeholders who are interested in the
businessb) Stakeholders who are not interested in
the businessc) Both a) and b)
![Page 107: 12 -improving_operations](https://reader035.fdocuments.us/reader035/viewer/2022070301/5456ca44af79592b438b78f9/html5/thumbnails/107.jpg)
CASE FOR TUTORIAL
HARLEY-DAVIDSON