Summary
Summary Business Optimization (BO)
- Course
- Institution
Detailed summary of Business Optimization.
[Show more]
2 reviews
By: Snor • 2 year ago
By: CocodB • 2 year ago
Could you perhaps explain what's wrong with it and how it could be improved in your eyes?
By: oliviermeijer76 • 3 year ago
Seller
Follow
CocodB
Reviews received
Content preview
Business OptimizationBlock 8
BOOM – Business Optimization
Week Subjects
Week 1 – In Control o Business Planning
o Logistics in Aviation
o 3-Flow-Model
o System Diagram
o Lean; Intro and VOC-VOB
o Lean; SIPOC
o In Control
o Balanced Score Card (BSC)
Week 2 – Strategy - Lean and DMAIC
and Lean Define - Thinking Lean 5-steps
Phase - Lean Wastes
- Lean tools introduction
- Strategy
- Critical Success Factors
Week 3 – KPI and o Measure Phase
Measuring o Measure Phase – Measuring
Performance o Lean and Six Sigma
Week 4 – Valuation - Analysis Phase
and Analysis Phase - Valuation
Week 5 – Cashflow o Cash Flow Statement
statement and o Improve Phase
improve phase o Shareholder Value
Week 6 – Control - Agile and Scrum
Phase / Agile and - Control Phase
Scrum - OCAP
Week 7 – Change o Resistance to change
Management o How to deal with resistance.
Week 8 – - No new content
1
, Business Optimization
Block 8
Week 1 – In Control
Business Planning
Six questions businesses need to ask themselves:
1. Where do we want to be?
2. Where are we now?
3. How do we get there? (Formulation and evaluation of
options).
4. Strategic choice.
5. Set out on the chosen route (implementation).
6. What progress are we making?
And overall: How will the competitors react?
Questions 2 and 6 are connected by using KPIs to measure the performance.
How to make profits:
Avoid Competitors, how to do that:
o Enter attractive industry, then build entry barriers. For example, making the
initial investment really high.
o Find attractive niche, develop isolating mechanisms. For example, create
something that is dependent on you as a business and cannot be copied.
o Join attractive strategic group, and build barriers against similar new entrants
to avoid internal competition. For example, make alliances.
Be better than competitors, examples:
o Cost advantage, this is what LCC do.
o Differentiation advantage. For example, providing a better service on specific
products.
Your business planning will always be a balance between the costs and profits (supply and
demand) of your assets (outputs).
However, starting a business, there are multiple risks present. For example:
Input Risk Financial Risk Product Market Risk
Input prices increase, Capital costs change, Customer loss,
Labor strikes, Exchange rate Product obsolescence,
Key employees changes, Competition
leave, Inflation, increases,
Supplier fails. Covenant violation, Product demand
Default on debt. decreases.
2
, Business Optimization
Block 8
Tax Risk Regulatory Risk Operational Risk
Income tax Environmental laws Machinery breaks
increases, change, down,
Industrial revenue Stricter antitrust Product defects
bonds end, enforcement, increase,
Sales tax increases. Price supports end, Weather destroys
Import protection plant,
ceases. Inventory obsolesces.
Legal Risk
Product liability,
Restraint of trade
charges,
Shareholders
lawsuits, Employee
discrimination
lawsuits.
When the risks are made, there will be multiple plans to choose from. These plans will be
compared in a ‘Risk/Reward Plans and Scenarios’ table.
This is used to compare different plans, and seeing the risks and rewards of each plan. It is
scored with the following: H = High, M = Medium, L = Low. The overall scores may be
based on sum of a weighted individual score for a number of rational criteria.
Example.
Risk Reward
Scenario 1 Scenario 2 Scenario 3 Scenario 1 Scenario 2 Scenario 3
Plan 1
Plan 2
Plan 3
Plan 4
Etc.
When a plan is chosen, KPIs need to be set up. This is done to support the business and
measuring if you are going in the right direction.
- Consider a wider perspective than just financial performance, the ‘balanced scorecard’
approach:
- Financial,
- External customer,
- Internal processes,
- Innovation and learning.
- Balancing
- The financial and the non-financial,
- The internal and the external,
- Current performances and future performances.
Logistics in Aviation
Logistics in aviation involves passengers or cargo. Their ability to quickly and reliably move
valuable resources over great distances improves the quality of life and standard of living of
people across the globe. It is continuously balancing between demand and supply.
3
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller CocodB. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.06. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67232 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now