Operations Consulting and Reengineering

8/11/2019 Operations Consulting and Reengineering

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Tata McGraw

C H A P T E R

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O p e r a

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Chapter 13

Operations Consulting and

Reengineering


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Operations Consulting Defined

Operations Consulting and the 5Ps

Hierarchy Within a ConsultingOrganization

Stages of Operations Consulting Operations Consulting Tool Kit

Reengineering

OBJECTIVES

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Operations Consulting

Operations consulting involvesassisting clients in developing

operations strategies (i.e.,product leadership, operationalexcellence, customer intimacy,etc.) and in improvingproduction (and service delivery)processes.

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Operations Consulting & the 5 Ps

Plants Adding and locating new plants Expanding, contracting, or

refocusing facilities Parts

Make or buy decisions Vendor selection decisions

Processes Technology evaluation Process improvement and

reengineering

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Operations Consulting & the 5 Ps (Continued)

People Quality improvement Setting/revising work

standards Learning curve analysis

Planning and Control

Systems Supply chain management MRP Shop floor control Warehousing and distribution

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Hierarchy within Consulting Firms

Partners Finders Who find new business

ManagersMinders Who manage the

business

ConsultantsGrindersWho actually

do the work

A way of looking at the typicalconsulting firms organization

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Economics of Consulting Firms

David H. Maisters article onconsulting draws an analogybetween the consulting firm anda job shop operation. Three

types of jobs: 1. Brain Surgery: Requiringinnovation and creativity

2. Gray Hair: Requiring a great

deal of experience (littleinnovation) 3. Procedures: Requiring

activities similar to otherexisting projects (littleinnovation or experience)

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When are Operations Consultants Needed

When faced with majorinvestment decision(s)

When management believes it isnot getting the maximum

effectiveness from theorganizations productivecapability

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Operations Consulting Tool Kit: Category 1

Problem Definition

Issue trees

Customer surveys

Gap analysis

Employee surveys

Five forces model

In this scheme we have

five categories ofactivities, starting withProblem Definition, thatconsultants perform andthe supporting toolsused to aid theconsultant inperforming thatcategory

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Data Gathering

Plant tours/audits

Work sampling

Flow charts

Organizational charts

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Data Analysis andSolution Development

Problem analysis (SPC tools)

Bottleneck analysis Computer simulation

Statistical tools

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Cost Impact andPayoff Analysis

Decision trees

Balanced scorecard

Stakeholder analysis

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Implementation

Responsibility charts

Project management techniques

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Reengineering

Reengineering is defined as thefundamental rethinking and radicalredesign of business processes toachieve dramatic improvements in

critical, contemporary measures ofperformance such as cost, quality,service, and speed. As a engineeringdiscipline, reengineering can beapplied to any process in

manufacturing and servicebusinesses, education, and thegovernment.

Business process reengineering (BPR) is focused on reengineeringbusiness processes.

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Key Words in theReengineering Definition

Fundamental Wh y do we do what we do

Ignore w hat is and concentrate onw hat shou ld be

Radical

Business re invent ion vs. businessimprovement

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Key Words in the Reengineering Definition (Continued)

Dramatic Reengineering should be brought in

when a need exits for heavyblasting

Companies in deep trouble Companies that see trouble coming Companies that are in peak condition

Business Process a collection of activities that takes

one or more kinds of inputs andcreates an output that is of value toa customer

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Principles of Reengineering

Organize around outcomes, nottasks

Have those who use the output of

the process perform the process Merge information-processing

work into the real work that

produces the information Treat geographically dispersed

resources as though they were

centralized

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Principles of Reengineering (Continued)

Link parallel activities instead ofintegrating their results

Put the decision point where thework is performed, and buildcontrol into the process

Capture information once and atthe source

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Question Bowl

Reasons for the boom inconsulting include which ofthe following?

a. Globalizationb. Very inexpensivec. Existing managers dont

know what they are doingd. All of the abovee. None of the above

Answer: a. Globalization

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Question Bowl

In the hierarchy of a typicalconsulting firm who are at thetop of the organizationalpyramid?

a. Mindersb. Findersc. Grindersd. Binders

e. None of the above

Answer: b. Finders

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Question Bowl

Which of the following are some ofthe major strategic and tacticalareas where companiestypically seek operations

consulting?a. Plantb. Partsc. Processesd. Peoplee. All of the above

Answer: e. All of the above (The five Ps alsoinclude Planning and control systems.)

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Question Bowl

Using the Stages in theOperations ConsultingProcess, what stage followsthe Implement Changesstage?

a. Sales and proposaldevelopment

b. Analyze problemc. Assure client satisfaction

d. Present final reporte. Develop systematicperformance measures

Answer: c. Assure client satisfaction

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Question Bowl

Which of the following are a partof the Operations ConsultingTool Kit that apply to thecategory of Problem

Definition? a. Bottleneck scorecardb. Employee surveysc. Flowcharts

d. Statistical toolse. None of the above

Answer: b. Employee surveys

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Question Bowl

Which of the following are a part ofthe Operations ConsultingTool Kit that apply to thecategory of Data Gathering?

a. Decision treesb. Employee surveysc. Flowchartsd. Statistical tools

e. None of the above

Answer: c. Flowcharts

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Question Bowl

Which of the following are a part ofthe Operations ConsultingTool Kit that apply to thecategory of Implementation?

a. Organization chartsb. Gap analysisc. Five forces modeld. Computer simulatione. None of the above

Answer: e. None of theabove (These toolsactually should includeResponsibility Chartsand ProjectManagement

Techniques.)

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End of Chapter 13

Operations Consulting and Reengineering

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