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Operations Management ***Use the following format*** Name: Business Name: Value How

Operations Management

***Use the following format***

Name:

Business Name:

Value

How does your company create value?

•Action (one or more)

•Examples

Build

Design

Manufacture

Deliver/Transport

Consult

Sell

Develop

Consult

Wholesale

•Product

Examples

IT

Software

Retail

Cosmetics

Accessories

Real Estate

Household Goods

Accessories

Agriculture

•For (Customers)

Examples

Homeowners

Parents

Farmers

Small Business Owners

Corporations

Example:
Design, build, and maintain IT servers for business that expect 2x or better growth in the next year.

•Beating the competition

How will you beat your competition? Examples

Product Leadership

Product lines

Newest features

Unique features

Operations Excellence

Suppliers
Transportation
Manufacturing
IT
Customer Relationships
Examples
Service
Anticipating customer needs
Culture & Events
Quality

Define specifically what quality is for your company and how you will measure it.

Supply Chain

Specifically list the suppliers, manufacturers, transporters, wholesalers, retailers, or other factors that drive your business.
Examples
Organic farmers
Long-haul truckers
Overseas assemblers
Parts makers
Whole Foods

Statistical Process Control (SPC)

Measurements
Write down specific attributes that you will measure when running and monitoring your most critical process.
Examples
Weight of ?
Temperature of ?
Number of defects of ?
Failure Mode and Effects Analysis (FMEA)
List specific failures that could occur in your product or service
Examples
Lateness
Salty
Frozen
Loose
Too large
Too small
Uncomfortable
List the Cause of each particular failure
Examples
Packaging
Transportation breakdown
Power outage
Inventory control
Employee scheduling
Effect of each failure
Examples
Order cancellations
Customer delay
Unrecoverable cost of materials
Corrective action for each failure
Examples
Backup generator
Test at supplier facility
Upgrade packaging
New Training
Add more employees
Services

Service concept
The experience that you wil deliver from the customer point of view
Target Customer
Performance Specifications
Elements that the customer will measure
Examples
Time of delivery
Number of pairs of shoes that the shelf will hold
What experience the customer expects
Examples
Online order and delivery
Sales staff to answer questions in store
Design specifications
Activities that the employee will do
Examples
Measure
Design
Explain
Cook
Activities that vendors or contractors must do
Examples
Write code
Assemble components
Ship parts
Find leases
Facilities that are needed
Examples
Kitchen
Showroom
Warehouse
Machine shop
Delivery Specifications
Intermediate of finished products
Examples
Tables
Frozen meals
Plastic sheets
Location where provided
Examples
At factory
At storefront
At assemblers
Costs

Fixed Cost
List one or more fixed cost for your business
Variable Costs
List one or more variable costs for your business
Revenue
List the different revenue streams for your company
Examples
Product sales
Consulting
Shipping
Lease payments from tenants
Motivation

Write down what you will use to motivate employees for specific outcomes
Outcome
Examples
Increase sales
Increase production volume
Retain employees
Have more employees accept hiring offers
Method
Use one or more methods from Theory X, Theory Y, or Drive that would achieve those outcomes

Project Management

Project Name:
Create a project for your company
Project Outcome
Example
Double table space for restaurant
Set up marketing process
Build and test new production line
Establish new office
Project Metrics
Write down what measurable outcome you will agree on with your vendors before you will pay them
Examples
Length
Width
Weight Capacity
Customer Measured Outcome
Examples
survey based user friendliness
Brand recognition percentage of target market
Customer capacity
Assembly line capacity per hour

Return of Investment (ROI)

Return:
Examples
Growth in customers
Reduction in cost
Increase in sales
Investment
Examples
Time
Money
Materials
Lost income due to temporary shutdown

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