Chap10

© Nigel Slack and Michael Lewis 2003

Quality

Per

form

ance

o

bje

ctiv

es

Dependability

Developmentand Organization

(organisation and role)

Speed

Flexibility

Cost

Resource Usage

Mar

ket

Co

mp

etit

iven

ess

Decision areas

Issues covered in this chapter

Capacity Supply Network

Process Technology

Issues include:

•Organizational structure and operations

effectiveness• The role and contribution of the operations function• Connecting operations with the external environment•The role of central operations

Slide 10.1


Efficient operation

Flexible response

Servicing a range of market

positions

Development and deployment

of tangible resources

The objectives of organisational design

OPERATIONS RESOURCES

MARKET REQUIREMENTS

Organisational structure

Development and deployment of

intangible resources

Development and deployment of

boundary resources

Slide 10.2


Group Headquarters

Marketing Operations Finance

U-form organizations give prominence to functional groupings of resources

Dept.A Dept.CDept.B

Dept.A Dept.CDept.B

Dept.A Dept.CDept.B

Slide 10.3


Division A Division B Division C

Group Headquarters

The M form separates the organization’s resources into separate divisions

Marketing etc.Operations



Slide 10.4


Group Headquarters

Matrix form structures the organization's resources so that they have two (or more) levels of responsibility

Division A

Division B

Division C

Marketing

Operations

Human resources

Finance

Slide 10.5


Organisation A

Headquarters

N form organizations form loose networks internally between groups of resources and externally with other organizations

Group A Group F

Group D

Group E

Group C

Group B

Org D

Org E

Org B

Org C

Slide 10.6


PersonnelAccounting and finance

Purchasing Marketing

Technical/engineering

Product/servicedevelopment

THE OPERATIONS

FUNCTION

Products and services to customers

Bought-in products and services from suppliers

Staff Funds

Process technology

Product/service ideas

Traditionally other ‘boundary’ functions protected the ‘core’ operations function from

environmental uncertaintySlide 10.7


PRODUCT/SERVICE

DEVELOPMENT

MARKETING OPERATIONS

PRODUCT/SERVICE

DEVELOPMENT

MARKETING OPERATIONS

Example - Defense electronics manufacturer Example - Retail bank

The degree of overlap between functional strategies will depend on the nature of the business

Slide 10.8


The 3 key attributes of operations

Operations Contribution

Implementing

Supporting

Driving

be Reliable

Operationalise strategy

explain Practicalities

be Appropriate

Understand strategy

Contribute to decisions

be Innovative

provide Foundation of strategy

Develop long-term Capabilities

The Strategic Role of the Operations Functions


Head office

‘Stand-alone’ influence

Head office

‘Linkage’ influence

Head office

Operation A

Operation A

Operation A

Central functions and services influence

Headoffice

Corporate development

Specialist function B

Specialist function A

Four ways in which corporate head office can add valueSource: Adapted from Goold, M., Campbell, A. and Alexander, M. (1994) Corporate Level

Strategy, Wiley, N.Y.

Operation A

Operation A

Operation A

Operation A

Operation A

Operation A

Operation A

Operation A

Operation A

Slide 10.9


Market requirements

Operations resources

Bottom up

Trainer

Instructing operations in the development and deployment of their capabilities through standardised improvement methods

Roles: Central operations - Teacher/consultantBusiness operations - Pupil/Client

Governor

Controlling the performance of the operations by setting clear priorities and measuring performance against targets

Roles: Central operations - Messenger/JudgeBusiness operations - Recipient/Defendant

Facilitator

Enabling operations in the development and deployment of their capabilities through shared advice, support and learning.

Roles: Central operations - MentorBusiness operations - Member of a

community

Curator

Nurturing the performance of the operations by collecting performance data and distributing comparative performance information

Roles: Central operations - Recorder/AnalystBusiness operations -Source of information

Top down

Programmatic

Emergent

Cap

abili

ties

Per

form

ance

A typology of the ‘Central Operations’ functionSlide 10.10


Market requirements

Operations resources

Bottom up

Top downTRAINER GOVERNOR

FACILIATOR CURATOR

ProgrammaticC

apab

iliti

es F

ocu

s

Per

form

ance

Fo

cus

Information relationships for the four types of central operations functions

Emergent

Dominant

Subservient

Predominantly one-wayPredominantly two-way

StrongWeak

Power Communication Relationship

Slide 10.11


Top management

Events Graphics ..Etc.

Project A

Project B

Project C

Slide 10.12

The Thought Space Partnership Organizational Structure


Product/service development


(CREATIVITY)Product/service development

Marketing OperationsMarketing Operations

Marketing Operations

Some manufacturing

Mass services

Professional services






Some manufacturing

Mass services

Professional services

Thought Space - Increasing overlap between operations and the other core functions

(COMMERCIALISM) (COMPETENCE)

Slide 10.13


Top Management

Thought Space - N form organisations form loose networks internally between groups of resources and externally with

other organizations

Graphics Events

Marketing

3D Design

Accounts

Technical Solutions

Client D

Client E

Client B

Client C

Slide 10.14