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DMO SummaryManaging Operations
Summary of the book Operation Management 7th Edition
by N. Slack, A. Brandon-Jones, R. Johnston
P. Kressler © 1
, DMO Introduction
1. Operational: Daily decisions to run the business
2. Understand customers: most important value
1. Strategic decisions (how to gain competitiveness advantage
1. Operation management (Daily decisions to run the business)
The activity of managing resources and the productions of manufactured goods or the
creation and delivery of service. to appropriately create outputs that fulfil defined market
requirements
Models: Operation black box/ service delivery system/ 4 D’s
A.Operations management decisions
How to outperform competition and win business
• Service process design, quality design, supply network design
• Capacity management & managing disruptions
• Planning & controlling (systems)
• Improvement
B. Operations Core Functions Responsibilities
Core competences to win business
1. Marketing and sales function
for communicating the organization’s services/products to its markets to generate customers
2.Product/service development
for coming up with new and modified services to generate future customer requests
3.Operations function
for the creation and delivery of services and products based on customer requests
if you wanne outperform your competitions, you need USP
• Ryanair: efficient ‘lean’ operation
• Starbucks: excellent customer experience
• Apple store: superior customer service
P. Kressler © 2
, Competitive Advantage
if you wanne outperform your competitions, you need USP
• Ryanair: efficient ‘lean’ operation
• Starbucks: excellent customer experience
• Apple store: superior customer service
Ex.: Raynair based inexpensively/ dependability
Ryanair’s lean operations strategy:
• high volume/ low variety product
• efficient use of aircrafts (high capacity utilization)
• standardized, fast turn around process on the ground
• one type of aircraft • ‘cheaper’ airports • no thrills services
Operations: a system as a black box
Input (=customer); adding value & experience; Output (=happy guest)
Efficient = low cost, short processes, removing items that does not make sense
Ex: self-scan cashiers, ford assembly line, inventory cloths = seasonal pants, overbook
to generate as much money as possible (capacity management)
Exam questions: If you take the Disneyland customers as input describe the
transformation model.
DMO Causes of dissatisfaction
not enough handling capacity
bottlenecks in the system
badly designed service process or layout
all kinds of disruptions (e.g. check in terminals broken)
being ‘stuck in the system’ (waiting lines)
lack of quality standards
P. Kressler © 3
, managers are “firefighting” daily problems; not thinking how the process can be
improved
DMO
Transformation Model Foundation 4 D’s (each D has several theories)
P. Kressler © 4
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