Plant Management

The plant
The factory
The place where products are made

The business strategy
The location
Dedication: The focused factory
Operations
Products
Processes
Communication

The Focused Factory

Product focused: production is organized around the type of product/service being produced, i.e. assembly line.
Process focused: production is grouped according to type of processes, i.e. batch production.

Alignment with Business strategy

Focus:
Low manufacturing cost through automation and technological superiority
High flexibility through lean operations
High volume through mass manufacturing

Alignment with Location
Location, Location, Location.
Location is strategic important to ensure low cost in shipping and transportation and logistics

Alignment with Strategic Partners
Proximity and communication with suppliers and strategic partners

Operations Management

The business activity that transforms inputs into outputs of greater value.
(Russell, 2002)
The business activity that involves the design, development, and maintenance of systems and processes that transform resources, such as raw materials, technology, and labor into goods and services that meet customers’ needs.
(Raturi, 2005)

Operations Management

The product
Tangible goods
It defines strategic objectives and decisions, customers, market and, of course, profit to an organization.
An effective product development approach offers 3 key benefits:
Market position
Resource utilization
Organization renewal and enhancement

The process
A set of activities that is arranged in sequence and taken together to produce a result of value to the customer.
It constitutes what can an organization do better than the rest of other players in the industry.
It defines the organization’s capability and the way it chooses to be in the marketplace.

Current Issues
Effectively consolidating the operations resulting from mergers
Developing flexible supply chains to enable mass customization of products and services
Managing global supplier, production and distribution networks
Increased “commoditization” of suppliers
Achieving the “Service Factory”
Enhancing value added services
Making efficient use of Internet technology
Achieving good service from service firms

Expectation
Excellent performance in:
Personnel safety
Process safety
Environmental
Product Quality
Reliability
Energy and other variable cost efficiency
Fixed cost
Staffing levels