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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
t i o n s
C o n s u
l t i n g a n
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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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Operations Consulting Tool Kit: Category 2
Data Gathering
Plant tours/audits
Work sampling
Flow charts
Organizational charts
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Operations Consulting Tool Kit: Category 3
Data Analysis andSolution Development
Problem analysis (SPC tools)
Bottleneck analysis Computer simulation
Statistical tools
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Operations Consulting Tool Kit: Category 4
Cost Impact andPayoff Analysis
Decision trees
Balanced scorecard
Stakeholder analysis
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Operations Consulting Tool Kit: Category 5
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
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