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<title>Formulation of Operations Strategy</title></titleStmt>

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(Department of Applied Linguistics, Reading), with funding from BALEAP,

EURALEX, the British Academy and the Arts and Humanities Research Board. The

original recordings are held at the Universities of Warwick and Reading, and

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<p>3. The recordings and transcriptions should not be reproduced in full for

a wider audience/readership, although researchers are free to quote short

passages of text (up to 200 running words from any given speech event)</p>

<p>4. The corpus developers should be informed of all presentations or

publications arising from analysis of the corpus</p><p>

Researchers should acknowledge their use of the corpus using the following

form of words:

The recordings and transcriptions used in this study come from the British

Academic Spoken English (BASE) corpus, which was developed at the

Universities of Warwick and Reading under the directorship of Hilary Nesi

(Warwick) and Paul Thompson (Reading). Corpus development was assisted by

funding from the Universities of Warwick and Reading, BALEAP, EURALEX, the

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<item n="speechevent">Lecture</item>

<item n="acaddept">Manufacturing</item>

<item n="acaddiv">ss</item>

<item n="partlevel">PG</item>

<item n="module">Operations Strategy</item>




<u who="nm1220"><kinesic desc="projector is on showing slide" iterated="n"/> this morning <pause dur="1.7"/> <gap reason="name" extent="1 word"/> and i will give a sort of joint session <pause dur="0.6"/> looking at how you formulate a manufacturing strategy <pause dur="0.5"/> we talked a lot yesterday <trunc>but</trunc> <pause dur="0.5"/> about how you need to integrate <pause dur="0.6"/> your operations strategy with all your other strategies we looked at <trunc>s</trunc> <pause dur="0.5"/> some tools and <pause dur="0.5"/> for doing that with <gap reason="name" extent="1 word"/> <pause dur="0.4"/> we had a look at the effect of that on a small real company H-G Plastics <pause dur="0.7"/> last night <pause dur="0.7"/> now we're actually going forward to look at <pause dur="0.4"/> what goes into an operations strategy <pause dur="0.7"/> and <pause dur="1.2"/> how you then go through a process of putting it together we'll look <trunc>a</trunc> be looking at some academic models <pause dur="0.8"/> as i say that sounds very boring but they are ones <pause dur="0.2"/> we'll see later <pause dur="0.2"/> that real companies use in real life <pause dur="1.4"/> and <pause dur="0.4"/> basically <pause dur="0.4"/> do something different can we ask you all <pause dur="0.6"/> to shut your manuals please <pause dur="0.6"/> just manage without the slides for a while <pause dur="0.3"/> you'll see why in a minute <pause dur="0.3"/> 'cause we're going to

ask you to do an exercise and the answer's on the slides <pause dur="1.0"/> so <pause dur="0.6"/> just to make it slightly more difficult for you if you could close your manuals <pause dur="0.8"/> # just for the first few minutes of the session <pause dur="0.8"/> and i'll now pass over to <gap reason="name" extent="1 word"/> who's going to start this morning off </u><pause dur="1.0"/> <u who="nf1221" trans="pause"> okay good morning </u><pause dur="0.4"/> <u who="ss" trans="pause"> good morning </u><u who="nf1221" trans="latching"> oh hurray <vocal desc="laugh" iterated="n"/><pause dur="1.1"/> right <pause dur="0.5"/><kinesic desc="changes slide" iterated="n"/> we're looking at the development of manufacturing strategy then <pause dur="0.3"/> and we're taking it from the work that we did yesterday on strategy integration so you'll need to remember some of the things we did yesterday <pause dur="0.4"/> can you remember that far back <pause dur="0.7"/> <kinesic desc="nod heads" iterated="n" n="ss"/> yes just about good <pause dur="0.7"/><kinesic desc="changes slide" iterated="n"/> the objectives then of the session for this morning are <pause dur="0.4"/> to be able to understand what manufacturing strategy is and be able to define it so you should <pause dur="0.2"/> have a much better understanding of what it actually is today <pause dur="0.6"/> #

operation strategy too <pause dur="0.4"/> and you should be able to discuss and give examples of how it can be formulated <pause dur="0.5"/> so we're looking at the actual process <pause dur="0.5"/> and the content of of <pause dur="0.2"/> making <trunc>man</trunc> of developing manufacturing strategy <pause dur="3.7"/> <kinesic desc="changes slide" iterated="n"/> we're going to look at how you'd formulate manufacturing strategy and we're going to ask you the questions for that <pause dur="0.7"/> # <pause dur="1.4"/> hence why we don't want you to look in your manuals yet <pause dur="1.0"/> and then we're going to introduce three <pause dur="0.2"/> different frameworks for developing manufacturing strategy <pause dur="0.3"/> there are more than three <pause dur="0.3"/> we have preselected these three <pause dur="0.3"/> because we believe it gives you a variety of different frameworks <pause dur="0.3"/> to consider <pause dur="0.4"/> # there are many more for which at your leisure you're welcome to go to the library <pause dur="0.3"/> we've referenced more in our notes which are very comprehensive <pause dur="0.4"/> but we're only covering three today <pause dur="0.5"/> Terry Hill <pause dur="0.4"/> Platts and Gregory and John Miltenburg so they're the three that you'll be using <pause dur="0.4"/> and

you may wish to use some of the material as well <pause dur="0.3"/> when you do your S-C-L case study which i believe you start this afternoon <pause dur="0.5"/> okay so <pause dur="0.6"/> do take some note of this <pause dur="2.1"/> we will remind you of some of the key strategic tools for formulating strategy we will link back to what we did yesterday <pause dur="0.5"/> # you will also cover more analytical tools <pause dur="0.5"/> in your S-C-L case study which you will do for the remainder of the week okay so we'll be bringing some of them in today <pause dur="0.4"/> because they do come <trunc>i</trunc> <pause dur="0.2"/> under the frameworks <pause dur="0.7"/> and at the end we'll be just reviewing summarizing if you like <pause dur="0.2"/> the key characteristics of the different frameworks <pause dur="0.3"/> obviously as i was saying to you yesterday about Master's level <pause dur="0.3"/> about understanding and application <pause dur="0.4"/> one of the key things that we'll be measuring is your ability <pause dur="0.4"/> for critical analysis <pause dur="0.7"/> okay <pause dur="0.4"/> and critical analysis is looking at things like <pause dur="0.4"/> what are the characteristics of all these frameworks what are the strengths what are the weaknesses <pause dur="0.3"/> what are

<trunc>m</trunc> what is my view how can i compare the two <pause dur="0.3"/> so we'll be sharing that <pause dur="0.2"/> with you at the end <pause dur="1.2"/> okay <pause dur="0.8"/> as a general <pause dur="0.3"/> set of guidelines i've got some slides on the principles of strategy <pause dur="0.5"/> # <pause dur="0.3"/> and then i'll ask you to do an exercise # without hopefully the use of your manuals <pause dur="0.4"/> so <pause dur="0.3"/> again for the purposes of this lecture <pause dur="0.5"/> you are all directors of <pause dur="0.6"/> hypothetical companies <pause dur="0.4"/> okay <pause dur="0.4"/> and you're thinking about how you're going to develop a manufacturing strategy <pause dur="0.6"/> so what i'm putting up next is some information on just general principles <pause dur="0.4"/> for strategy formulation <pause dur="0.3"/> and this is applicable to any type of strategy formulation <pause dur="0.4"/> okay <pause dur="0.3"/> so it's not just true for manufacturing <pause dur="0.4"/> and i have to say that if i asked you to brainstorm <pause dur="0.2"/> these you'd probably come out with them all yourself so i'm not going to go through them in <pause dur="0.4"/> laborious detail <pause dur="0.4"/> okay <pause dur="0.3"/> just some prompts for common sense <pause dur="0.6"/> <kinesic desc="changes slide" iterated="n"/> so strategy is long term <pause dur="0.2"/> okay <pause dur="0.3"/> we're looking at five ten fifteen years <pause dur="0.3"/> most companies that i work with

in the food industry consider five years to be a long time <pause dur="0.4"/> we were talking the aeronautical group yesterday <pause dur="0.4"/> twenty years is probably the <shift feature="voice" new="laugh"/>same<shift feature="voice" new="normal"/> <pause dur="0.4"/> vision for them <pause dur="0.2"/> so it depends on the company and the industry <pause dur="0.3"/> but <trunc>y</trunc> it's a long term view that you're taking <pause dur="1.4"/> you're dealing only with the major issues you're not dealing with tactical or operational <pause dur="0.5"/> issues you're dealing with the major long term issues <pause dur="0.9"/> you're looking at what differentiates the company from its competitors and we looked yesterday <pause dur="0.4"/> about that differentiation didn't we starting with the Porter <pause dur="0.4"/> grid <pause dur="0.4"/> about differentiation or cost focus et cetera <pause dur="0.4"/> # so <pause dur="0.2"/> you're actually stating there <pause dur="0.5"/> within the strategy the actual identity for the company what is it that's different about your company <pause dur="0.4"/> and you should see that throughout the strategy <pause dur="1.2"/> you're concentrating the effort then on those particular issues and we did look yesterday about

focus <pause dur="0.4"/> with the Puttick grid and other things <pause dur="0.3"/> so that's where that would come in <pause dur="0.2"/> in terms of the strategy <pause dur="0.4"/> we're looking at a pattern of decision making over time you don't make all the decisions in one go <pause dur="0.3"/> you set down some policies <pause dur="0.2"/> in which you can make decisions in the future <pause dur="1.5"/> pervasive means that it affects the whole organization so the argument is that everybody in the organization should know about the strategy <pause dur="0.6"/> # <pause dur="0.3"/> that is easier said than done in my experience <pause dur="0.4"/> # when we teach these programmes to <pause dur="0.3"/> # participants who already work <pause dur="0.3"/> a lot of them are <pause dur="0.2"/> unaware or a little bit unclear <pause dur="0.3"/> about the actual strategy of the company that they work for that is not unusual <pause dur="0.7"/> it sounds amazing but it isn't actually unusual <pause dur="0.4"/> so # <pause dur="0.6"/> i think this one is very important so strategy should affect everything <pause dur="3.4"/> and just to <trunc>ca</trunc> a point at the bottom there just for you to note that this is what we believe distinguishes strategy from tactics and operational plans <pause dur="0.7"/> okay <pause dur="3.9"/> <kinesic desc="changes slide" iterated="n"/>

so it's a formal procedure <pause dur="1.7"/> one involving a multidisciplinary team <pause dur="1.2"/> different strategies should be formally evaluated before making decisions because you obviously can predict a set of different futures can't you <pause dur="0.5"/> yeah <pause dur="0.4"/> will we have a war in Iraq will we have an oil crisis <pause dur="0.3"/> et cetera <pause dur="0.3"/> # and you can predict different futures and set your strategies to suit them <pause dur="1.6"/> should <pause dur="0.2"/> <trunc>strate</trunc> strategies should be communicated as i mentioned <pause dur="0.3"/> you should look at the risks <pause dur="0.5"/> associated with the external factors and we spent <pause dur="0.3"/> half an hour yesterday looking at external drivers didn't we in the in the companies <pause dur="0.3"/> so you need to look at the risks and be able to have some <pause dur="0.8"/> contingency plans <pause dur="0.2"/> to meet <pause dur="0.4"/> most of those potential <pause dur="0.7"/> external events <pause dur="0.4"/> and monitoring events <pause dur="0.6"/> should be carried out continuously <pause dur="0.3"/> okay but we'll perhaps come back to that <pause dur="0.4"/> a little bit later on <pause dur="0.4"/> and the strategy should be reviewed regularly <pause dur="0.2"/> okay so they are the general points for strategy <pause dur="0.3"/> which hopefully you'll all have in your

minds now <pause dur="0.4"/> when we ask you <pause dur="0.3"/> to do <pause dur="0.3"/> this task <pause dur="0.8"/> what we'd like you to do is to answer those four questions in the groups <pause dur="0.2"/> # are you going to <pause dur="0.5"/> organize it into S-C-L groups or just let them sit in their </u><u who="nm1220" trans="overlap"> # i think it'll probably <pause dur="0.8"/> be easier to do it geographically in the room rather than S-C-L groups </u><u who="nf1221" trans="overlap"> okay <pause dur="0.2"/> so the groups that we had yesterday when i did order winners and qualifiers and the external drivers okay <pause dur="0.6"/> and i'd like you on one sheet of flip chart paper <pause dur="0.4"/> one sheet per group <pause dur="0.2"/> okay so you have to fit the entire thing on one sheet of paper <pause dur="0.3"/> that we can read on the board <pause dur="0.3"/> so please <pause dur="0.3"/> no writing at ten <pause dur="0.2"/> points <pause dur="0.2"/> okay <pause dur="0.8"/> and <pause dur="0.4"/> we'd like you to answer these questions <pause dur="0.5"/> from your own <pause dur="0.5"/> general knowledge <pause dur="1.4"/> okay <pause dur="0.7"/> this is not a test <pause dur="0.3"/> this is for us to be able to pitch the lecture <pause dur="0.8"/> do you

understand <pause dur="0.4"/> if if i know what you understand then i know what to teach you <pause dur="0.8"/> okay <pause dur="0.3"/> so i'm trying to understand what you know <pause dur="0.3"/> and this is in all this is about i will do it in groups <pause dur="0.3"/> and we will understand <pause dur="0.4"/> from these <pause dur="0.5"/> questions <pause dur="0.3"/> what you know <pause dur="0.3"/> i would be grateful if you don't look at your books it's not a test <pause dur="0.3"/> but all the answers are in the manual so <pause dur="0.8"/> you're likely to be bored if you just read it all out of there put it on there <pause dur="0.3"/> i think you know everything <pause dur="0.3"/> and leap off <pause dur="0.5"/> into a higher level <pause dur="0.4"/> of manufacturing strategy <pause dur="0.3"/> nobody's going to win there <pause dur="0.3"/> okay <pause dur="0.4"/> so please try not to use your manuals if you're stuck then look <pause dur="0.4"/> all right i don't want you to <pause dur="0.2"/> to have not do anything <pause dur="0.3"/> but in your groups you should be able to answer these questions <pause dur="0.4"/> pretend that you own a company or that you run a company <pause dur="0.3"/> even the <pause dur="0.2"/> in the sectors that you were doing yesterday <pause dur="0.7"/> the other example you could use is <pause dur="0.2"/> the business that you designed for your context of <pause dur="0.5"/> business module <pause dur="0.7"/> did you all

develop your own company </u><pause dur="0.2"/> <u who="sf1222" trans="pause"> mm </u><u who="nf1221" trans="overlap"> yeah <pause dur="0.2"/> well use that one then <pause dur="0.4"/> okay use that product <pause dur="0.5"/> okay <pause dur="0.3"/> so think of a product <pause dur="0.5"/> think <pause dur="0.3"/> how you would develop a manufacturing strategy <pause dur="0.7"/> okay that's that's that's what we'd like you to do <pause dur="0.7"/> so we want you to define it <pause dur="0.4"/> as if you were writing it for a dictionary <pause dur="0.6"/> we'd like you to just <pause dur="0.2"/> indicate who should be responsible <pause dur="0.6"/> # don't just say everybody <pause dur="0.3"/> i would like a little bit more detail than that <pause dur="0.5"/> how often should it be reviewed <pause dur="0.7"/> and then the major <pause dur="0.3"/> question is the last one <pause dur="0.3"/> which is what should be in it <pause dur="0.5"/> what decision areas do you need to make what goes into a manufacturing strategy <pause dur="0.3"/> what kind of decisions will you have to make <pause dur="0.4"/> when you're deciding <pause dur="0.4"/> what to make <pause dur="0.3"/> and what not to make <pause dur="0.3"/> okay <pause dur="0.4"/> does that make sense does everybody understand the questions <pause dur="0.4"/><kinesic desc="nod heads" iterated="n" n="ss"/> yeah <pause dur="0.3"/>

obviously <gap reason="name" extent="1 word"/> and i will come round as often as you wish <pause dur="0.5"/> # <pause dur="0.3"/> we'll give you <pause dur="0.4"/> twenty minutes we'll give you till twenty to ten <pause dur="0.3"/> to do this <pause dur="0.3"/> please put your syndicate number on the <pause dur="0.7"/> top <pause dur="0.4"/> of the page it was <kinesic desc="indicates groups" iterated="y" dur="8"/> one two three wasn't it four and five <pause dur="0.4"/> syndicate groups yeah <pause dur="0.2"/> group one group two group three group four and group five <pause dur="0.6"/> okay <pause dur="0.4"/> # <pause dur="0.2"/> because we will be putting your answers on the board and using them <pause dur="0.4"/> for the rest of the lecture <pause dur="0.9"/> okay <pause dur="0.7"/> good any questions please <pause dur="2.3"/> no right just glazed looks sorry i'm making you work so early in the morning <vocal desc="laughter" iterated="y" dur="1"/> right </u><event desc="doing task set" iterated="y" n="ss" dur="unknown"/><gap reason="break in recording" extent="uncertain"/><u who="nf1221" trans="pause"> if you've finished if you'd like to come and put your # <pause dur="1.4"/> sheets <pause dur="0.5"/> on the

board <pause dur="0.8"/> don't worry if you <gap reason="inaudible" extent="1 sec"/> <pause dur="36.6"/><event desc="puts sheets on board" iterated="y" n="sl" dur="1:35"/> if you could stay sitting in your groups please <pause dur="3.3"/> so that i know who to talk to </u><pause dur="23.8"/> <u who="nm1220" trans="pause"> or we could <gap reason="inaudible" extent="2 secs"/> the second page </u><pause dur="0.7"/> <u who="nf1221" trans="pause"> okay </u><pause dur="35.6"/> <u who="nf1221" trans="pause"> oh <pause dur="8.4"/> hurray <vocal desc="laughter" iterated="y" n="ss" dur="1"/> the technology works <pause dur="0.9"/> <vocal desc="cough" iterated="n"/><pause dur="1.0"/> okay <pause dur="2.0"/> what we're going to do now is we're going to <trunc>ans</trunc> <pause dur="0.8"/> answer look <trunc>a</trunc> read out your <pause dur="0.2"/> read your answers for each question <pause dur="1.9"/> and then we will show you <pause dur="2.5"/> our answer that we prepared earlier <pause dur="0.7"/>

okay but we'll discuss what you've put first and see how <pause dur="0.4"/> similar it is to what we've <pause dur="0.2"/> already prepared <pause dur="0.3"/> please now open your manuals because we're we're following the notes <pause dur="2.4"/> so the first question <pause dur="1.3"/> is <pause dur="1.1"/> can you define manufacturing strategy or what is your definition <pause dur="0.5"/> for manufacturing strategy <pause dur="0.8"/> and i'm sure we have a variety there on the board <pause dur="0.5"/> because you're all obviously in different groups and had your own ideas <pause dur="0.5"/> so from group one we've got <reading>a long term guideline <pause dur="1.2"/> move towards where the company wants to be from where they are now</reading> so <pause dur="0.4"/> somebody was listening yesterday which is refreshing <pause dur="0.4"/> so it's about how <pause dur="0.4"/> companies move <pause dur="0.3"/> from where they currently are <pause dur="0.2"/> the current situation <pause dur="0.4"/> to where they want to be <pause dur="1.0"/> and it's long term and it's it's a set of guidelines which is one way of putting it so yes <pause dur="0.5"/> i agree <pause dur="0.4"/> with that definition <pause dur="0.3"/> we have <pause dur="0.6"/> group two <pause dur="0.9"/> said it's <reading>the utilization of manufacturing techniques tools and methods</reading> so <pause dur="0.4"/> good we've got <pause dur="0.2"/> the word manufacturing

in there which is # <pause dur="0.4"/> refreshing because we are trying to reflect manufacturing strategy <pause dur="0.5"/> and we're looking at the tools techniques and methods excellent <pause dur="0.6"/> <reading>used in an organization</reading> so i guess that's like the resources that we were talking about yesterday <pause dur="0.8"/> and we've got <reading>to gain competitive advantage</reading> so again very good because you're now <pause dur="0.7"/> thinking about how you <pause dur="0.3"/> get that distinctive <pause dur="1.0"/> # element to your business all right what distinguishes you from the competition <pause dur="0.4"/> okay so you need to <trunc>p</trunc> have that in place <pause dur="0.3"/> so very good to that one <pause dur="0.3"/> three </u><u who="nm1220" trans="overlap"> group three yes </u><pause dur="0.2"/> <u who="nf1221" trans="pause"> <reading>the long term guideline for a company to achieve its goals <pause dur="0.5"/> and objectives <pause dur="0.5"/> by considering the productivity and profitability</reading> so <pause dur="0.5"/> on the one hand we're looking at making lots of money <pause dur="0.9"/> and on the other hand we're <pause dur="0.2"/> looking at doing it very efficiently <pause dur="0.3"/> i assume that's where <pause dur="0.3"/> we're looking at here <pause dur="0.6"/> # <trunc>alo</trunc> achieving the goals and objectives which is

excellent because you're aligning that back to corporate strategy which is something else we talked about yesterday <pause dur="0.4"/> and again long term <pause dur="0.8"/> guidelines excellent <pause dur="0.6"/> group four then are saying <pause dur="0.2"/> <reading>choosing the right drivers to make the decision <pause dur="0.4"/> about what to produce how to produce and who to produce it for <pause dur="0.5"/> within the capacity constraints of the company considering the uncertainty of</reading> wow <pause dur="0.2"/> <vocal desc="laughter" iterated="y" n="sl" dur="1"/><pause dur="0.3"/> very <vocal desc="laughter" iterated="y" n="sl" dur="1"/><pause dur="0.4"/> # i've <trunc>d</trunc> <pause dur="0.3"/> thinking of a descriptor for that but i can't <vocal desc="laugh" iterated="n"/> <pause dur="0.5"/> # <pause dur="0.9"/> <trunc>ha</trunc> <pause dur="0.6"/> choosing the right drivers so i guess that's linking back to what we were talking about yesterday in terms of <pause dur="0.4"/> external drivers or <pause dur="0.2"/> perhaps other things within the business like <pause dur="0.4"/> what the <trunc>sis</trunc> <trunc>d</trunc> directors want </u><u who="sm1223" trans="latching"> strategic drivers </u><u who="nf1221" trans="pause"> yeah </u><u who="sm1223" trans="overlap"> depends on the business </u><u who="nf1221" trans="latching"> absolutely <pause dur="0.2"/> so it's not just what's happening outside it's what

the actual people within the organization want to do <pause dur="0.3"/> so those </u><u who="sf1224" trans="overlap"> another thing from question four as well that all the stuff that all the areas that <pause dur="0.2"/> the decision <unclear>kind of</unclear> all of that stuff <pause dur="0.2"/> <gap reason="inaudible" extent="1 sec"/></u><pause dur="0.6"/> <u who="nf1221" trans="pause"> yes <pause dur="0.6"/> yes good which is refreshing because normally they take no notice of that at all <pause dur="0.6"/> so looking about what to produce yes <pause dur="0.2"/> it's about what you produce but that's also the job of marketing too <pause dur="0.4"/> so there's there's two elements to that <pause dur="0.5"/> it's the manufacturing's definitely about how to produce it <pause dur="0.6"/> okay <pause dur="0.6"/> and who <pause dur="0.2"/> to produce it for again that's where the link with marketing would come in <pause dur="0.3"/> and sales i guess <pause dur="0.5"/> # looking at the constraints that you have <pause dur="0.4"/> but you may not let them be constraints any more but you you're looking at current situation <pause dur="0.7"/> and considering the uncertainty in the marketplace which is something we did look at yesterday </u><u who="sf1225" trans="overlap"> mm </u><u who="nf1221" trans="overlap"> with the Puttick grid didn't we </u><pause dur="0.2"/> <u who="sf1225" trans="pause"> yep </u><pause dur="0.2"/> <u who="nf1221" trans="pause"> okay <pause dur="0.3"/> so well done <pause dur="0.2"/> very good <pause dur="0.2"/> # <pause dur="1.4"/> group five <reading>a

long term planning and operation guideline to achieve the goals of the organization</reading> yes that's group five here isn't it well done so we're looking again at long term <pause dur="0.5"/> # specifically at planning an operation because you have to plan in order to have your operations <pause dur="0.8"/> and to achieve the goals <pause dur="0.4"/> of the organization so you've got that alignment there <pause dur="0.4"/> okay </u><pause dur="0.3"/> <u who="nm1220" trans="pause"> right let's have a look at who's responsible for it <pause dur="0.8"/> group one <pause dur="0.9"/> the boss <pause dur="0.4"/> yes <pause dur="1.4"/> along with # the manufacturing manager <reading>along with talks with sales and purchase manager <pause dur="0.5"/> involving representatives from separate units on the shop floor</reading> <pause dur="0.9"/> interesting <pause dur="0.3"/> so we've got <pause dur="0.7"/> someone responsible manufacturing manager responsible <pause dur="0.4"/> but talking to other people including the shop floor <pause dur="1.1"/> that may well happen <pause dur="0.4"/> but the involvement there most definitely has to come <pause dur="0.4"/> when you are implementing the strategy <pause dur="0.7"/> realistically you've got ten-thousand people in the company you

can't actually talk to every single one of them about your strategy <pause dur="0.6"/> but certainly once you get to implement it every single one of them's got to know and understand it <pause dur="1.3"/> group two <pause dur="1.8"/> manufacturing director R and D department yes <pause dur="0.2"/> new products coming through what's that going to do to us <pause dur="1.0"/> finance director chairman sales director <pause dur="0.5"/> so one group <pause dur="0.3"/> all very much at the top of the company there <pause dur="2.0"/> group three <pause dur="0.4"/> top manager production manager <pause dur="0.2"/> C-E-O finance manager et cetera <pause dur="0.4"/> again a grouping at the top of the company <pause dur="0.7"/> but a grouping taking in various views <pause dur="1.4"/> group four <pause dur="0.3"/> we've got a primary responsibility we've got it split down primary responsibility <pause dur="0.2"/> we've put on the production management <pause dur="0.6"/> yes in the end someone's got to be responsible someone's got to tie it together <pause dur="1.3"/> but yes we've got input drivers from just about everybody else <pause dur="0.3"/> so we've got <pause dur="0.7"/> primary responsibility there but again taking information and advice <pause dur="0.3"/> and comment from lots of other people <pause dur="1.3"/> group five <pause dur="0.6"/> simple

top management <pause dur="0.2"/> i think <pause dur="0.7"/> perhaps a little bit vague term <pause dur="0.5"/> # <pause dur="0.4"/> but yes <pause dur="0.3"/> seen generally its strategy is a senior responsibility <pause dur="0.2"/> that's what they're paid for that's what they get their large salaries for </u><pause dur="1.7"/> <u who="nf1221" trans="pause"> okay let's look what # we prepared # <pause dur="0.4"/> before our definition <pause dur="0.4"/> we put up was <pause dur="0.2"/><kinesic desc="changes slide" iterated="n"/> this that <reading>the primary function <pause dur="1.2"/> of a manufacturing strategy is to guide the business in putting together the set of capabilities <pause dur="0.5"/> that will help it to pursue its chosen strategy competitive strategy over the long term</reading> <pause dur="0.5"/> so lots of words there that have been <pause dur="0.5"/> reflected in what you've put <pause dur="0.2"/> in your definitions <pause dur="0.4"/> so it's really looking at how it can deliver <pause dur="0.3"/> the competitive strategy of the business <pause dur="0.4"/> so how <pause dur="0.3"/> manufacturing can harness its resources <pause dur="0.4"/> to deliver that <pause dur="0.2"/> competitive strategy over the long term <pause dur="0.6"/> to supplement that <pause dur="0.5"/> we have this at the bottom which says it's a framework for planning <pause dur="1.8"/> it should adapt successfully to environmental changes and some

of you put <trunc>i</trunc> uncertainty of the marketplace et cetera <pause dur="0.8"/> and it's a focus sometimes on what's needed for survival <pause dur="0.6"/> now that's not always true <pause dur="0.4"/> but in certain companies <pause dur="0.2"/> i'm sure you can think of examples at the moment United Airlines springs to mind which which <pause dur="0.6"/> from the news yesterday <pause dur="0.3"/> # <pause dur="0.3"/> they're very much into survival <pause dur="0.5"/> okay <pause dur="0.4"/> so it's about thinking about that when you're <trunc>t</trunc> <pause dur="0.2"/> you're looking at strategy <pause dur="0.3"/> and manufacturing can obviously support that or operations <pause dur="2.6"/> <kinesic desc="changes slide" iterated="n"/> and then who should be responsible we've we've <pause dur="0.2"/> <trunc>d</trunc> we've used a survey here done in America looking <pause dur="0.5"/> at just at six firms but they did some detailed interviews with them <pause dur="0.7"/> they asked them <pause dur="2.5"/> who's responsible for developing manufacturing strategy <pause dur="0.5"/> five of them use corporate level multifunction teams <pause dur="0.4"/> so <pause dur="0.3"/> that would be what some of you represented here so we're looking at directors <pause dur="0.4"/> and from all the different functions within the business <pause dur="0.4"/> okay that's what i would expect <pause dur="0.6"/>

one firm said the vice-president of production and engineering <pause dur="0.9"/> # <pause dur="0.2"/> our argument with that is generally you would only use one person to develop the strategy if <pause dur="0.5"/> you had a particularly <shift feature="voice" new="laugh"/>strong <shift feature="voice" new="normal"/><pause dur="0.4"/> leader <pause dur="0.4"/> or <pause dur="0.2"/> if you had a relatively small business <pause dur="0.4"/> because then you don't have the <shift feature="voice" new="laugh"/>spare people <shift feature="voice" new="normal"/>to sit around making strategy you have to kind of run it <pause dur="0.2"/> by yourself <pause dur="0.4"/> but generally i would expect to see <pause dur="0.3"/> corporate level multifunction teams there <pause dur="1.2"/> okay <pause dur="1.6"/> so the third question <pause dur="1.1"/> was how often should it be reviewed <pause dur="1.4"/> and we have <pause dur="2.7"/> a variety of # answers we've got yearly <pause dur="0.6"/> we've got <pause dur="0.5"/> every <shift feature="voice" new="laugh"/>season according to the football shirts <shift feature="voice" new="normal"/>good <pause dur="0.3"/> or or maybe three times a season given what Manchester United do <pause dur="0.9"/> no fixed time depends on the situation again i'd like <pause dur="0.6"/> probably a little bit more detail with that <pause dur="0.4"/> in terms of <pause dur="0.4"/> what you mean <pause dur="0.3"/> you are absolutely right but # examples would be <pause dur="0.3"/> more helpful with that <pause dur="0.4"/> so <pause dur="0.4"/> for

the mobile phone industry what what's the life cycle of a mobile phone <pause dur="1.3"/> product life cycle of a mobile phone do you think </u><pause dur="0.5"/> <u who="sf1226" trans="pause"> a few months </u><u who="sm1227" trans="overlap"> <gap reason="inaudible" extent="1 sec"/> <unclear>half a year</unclear></u><u who="sf1228" trans="latching"> mm </u><u who="nf1221" trans="overlap"> half a year </u><u who="sf1228" trans="overlap"> <gap reason="inaudible" extent="1 sec"/></u><u who="nf1221" trans="overlap"> yeah it's about <pause dur="0.3"/> three months <pause dur="0.8"/> yeah some people say it's even less than that <pause dur="0.7"/> okay <pause dur="0.3"/> so <pause dur="0.3"/> if you've got that life cycle then obviously you're going to do this <pause dur="0.5"/><kinesic desc="indicates point on board" iterated="n"/> much more frequently <pause dur="0.6"/> if you go back to our aero engine then we're looking maybe <pause dur="0.7"/> every year <pause dur="0.2"/> every two years <pause dur="0.7"/> every five years <pause dur="0.3"/> okay so it <pause dur="0.2"/> you're absolutely right but examples <pause dur="0.3"/> would have helped me understand what you meant <pause dur="0.6"/> # # # three oh wow <pause dur="0.4"/> review period is industry dependent so <pause dur="0.5"/><kinesic desc="indicates point on board" iterated="n"/> this is what i guess you've reflected in this graph yeah <pause dur="0.4"/> so <pause dur="0.4"/><kinesic desc="indicates point on board" iterated="n"/> rapidly changing trends here <pause dur="0.5"/> in terms of mobile phones <pause dur="0.4"/> you did the teenage market one yesterday didn't you </u><u who="sm1229" trans="overlap"> yeah </u><u who="sf1230" trans="overlap"> mm-hmm </u><u who="nf1221" trans="overlap"> so that would be more frequent <pause dur="0.5"/><kinesic desc="indicates point on board" iterated="n"/> here <pause dur="0.5"/> and slow changing trends here <pause dur="0.4"/><kinesic desc="indicates point on board" iterated="n"/> okay so that's a very useful diagram there well

done <pause dur="0.2"/> first time i've seen that <pause dur="0.6"/> and group one whenever the need arises <pause dur="1.9"/> yes although <pause dur="0.4"/> you have to be careful with strategy that <pause dur="0.4"/> you do set something in stone we would say <pause dur="0.4"/> and you don't just respond to every single change in the environment because the environment will change <pause dur="0.5"/> okay <pause dur="0.3"/> # <pause dur="0.2"/> the thing about strategy is that you have a set of policies that you can actually fix <pause dur="0.3"/> that you may <pause dur="0.7"/> flex a little bit but the general <trunc>f</trunc> <pause dur="0.4"/> # <pause dur="0.3"/> path of the company is fixed <pause dur="0.3"/> unless something major happens obviously like September <pause dur="0.3"/> the eleventh <pause dur="0.4"/> but other than that <pause dur="0.2"/> you you fix a direction <pause dur="0.4"/> because that's what will give you the focus <pause dur="0.3"/> and enable you <pause dur="0.2"/> to make a profit and take everybody with you in the company <pause dur="0.2"/> so there is that trade-off there with not not too responsive <pause dur="0.9"/> predicting the changes in the environment yes good luck <vocal desc="laughter" iterated="y" n="sl" dur="1"/> <pause dur="0.6"/> # keep on confirming alignment of manufacturing yes absolutely <pause dur="0.5"/> # i agree with that <pause dur="0.6"/> and i think <pause dur="0.2"/> i've covered <pause dur="0.2"/> yeah

i've covered them all there <pause dur="0.4"/> we've put <pause dur="0.7"/> # we we use this these conference again with these firms <pause dur="1.7"/><kinesic desc="changes slide" iterated="n"/> one firm said continuously <pause dur="0.5"/> and # <gap reason="name" extent="1 word"/> and i <pause dur="0.3"/> think if you're going to monitor strategy continuously <pause dur="0.4"/> then you unless you've got a fantastic real time data monitoring system <pause dur="0.3"/> then you're not actually <pause dur="0.3"/> going to do what you say <pause dur="0.4"/> okay so unless you've got the fancy electronic <pause dur="0.5"/> data systems equipment to help you <pause dur="0.4"/> # <pause dur="0.2"/> you're probably wasting your time <pause dur="0.3"/> all right i would say continuously monitoring strategy <pause dur="0.2"/> isn't that helpful <pause dur="0.2"/> four said quarterly combined with a major review so four are saying they review it every three months and then they'd have a major review <pause dur="0.5"/> and the recommends <pause dur="0.2"/> recommendations for that major review <pause dur="0.5"/> range from <pause dur="1.2"/> yearly <pause dur="0.4"/> to three to five years okay <pause dur="0.3"/> so generally <pause dur="0.2"/> it's it's rolling <pause dur="0.3"/> the the firms that i deal with my food companies <pause dur="0.5"/> they <pause dur="0.4"/> consider strategy five years out but they have like a <trunc>th</trunc> rolling three year strategy <pause dur="0.5"/> so even big multinational blue-chip

companies <pause dur="0.3"/> still only look <pause dur="0.2"/> just that far ahead <pause dur="0.3"/> to actually put things down <pause dur="0.2"/> set things in in stone <pause dur="0.9"/> okay <pause dur="0.2"/> well done <pause dur="0.7"/> and finally then <pause dur="0.3"/> we're looking at what goes into a manufacturing strategy so the elements of manufacturing strategy <pause dur="1.0"/> and we have <pause dur="0.8"/> things like capacity <pause dur="1.3"/> resources technology logistics demand <pause dur="1.9"/> yes demand in terms of what feeds into capacity <pause dur="0.7"/> # <pause dur="0.4"/> economy <pause dur="0.2"/> in terms </u><u who="sm1231" trans="overlap"> <gap reason="inaudible" extent="1 sec"/> the situation and </u><pause dur="0.5"/> <u who="nf1221" trans="pause"> okay </u><u who="sm1231" trans="overlap"> <gap reason="inaudible" extent="1 sec"/></u><u who="nf1221" trans="overlap"> okay so yes i'd i'd take that at a higher level but yes it will indirectly influence <pause dur="0.5"/> # bill of materials and procurement yes costs <pause dur="0.2"/> good <pause dur="0.5"/> competition and then your scheduling systems M-P-S and # <pause dur="0.4"/> M-R-P and E-R-P <pause dur="0.3"/> do we know what they are you've all done logistics haven't you good <pause dur="0.5"/> excellent <pause dur="1.4"/> capacity <trunc>perce</trunc> # human resources good supply chain excellent whoever group five are well done <pause dur="0.5"/> # <pause dur="0.5"/> quality marketing and finance yes all of those things

will <pause dur="0.2"/> you would <trunc>ma</trunc> need to make decisions about <pause dur="0.4"/> some of them <pause dur="0.5"/> would have <pause dur="0.6"/> more weight <pause dur="0.4"/> and have more detail in manufacturing strategy than others <pause dur="0.7"/> okay there will be a financial department <pause dur="0.3"/> obviously manufacturing have to think about costs and finance <pause dur="0.5"/> okay <pause dur="0.9"/> # <pause dur="1.2"/> capacity yes planning machines <pause dur="0.7"/> flexibility in production good logistics and inventory yes <pause dur="0.5"/> very important <pause dur="0.4"/> # and infrastructure in terms of organization and facility so that's nicely organized there by group two <pause dur="0.8"/> that's that group there isn't it <pause dur="0.4"/> and then group three <pause dur="0.2"/> looking at capacity <pause dur="0.3"/> customer relationships excellent somebody cares about the customer here <vocal desc="laughter" iterated="y" n="ss" dur="1"/> <pause dur="0.5"/> well done group <pause dur="0.2"/> three that's right at the back isn't it well done <pause dur="0.5"/> # <pause dur="0.2"/> finance suppliers R and D good <pause dur="0.4"/> because you need to link that into manufacturing <pause dur="0.3"/> although that wouldn't be <pause dur="0.4"/> <trunc>s</trunc> <pause dur="0.3"/> those decisions wouldn't only be made in manufacturing <pause dur="0.4"/> i

</u><u who="nm1220" trans="pause"> so think back to H-G Plastics yesterday evening <pause dur="0.4"/> all their major problems <pause dur="0.5"/> their inability to cope with <pause dur="0.5"/> their new products and change and then you were in the fashion business <pause dur="0.3"/> where it was their lifeblood <pause dur="1.1"/> so R and D yes <pause dur="0.3"/> dealing with new product introduction <pause dur="0.6"/> expecting that things will change very very important <pause dur="0.6"/> and something that not <unclear>all the</unclear> companies are terribly good at </u><pause dur="0.5"/> <u who="nf1221" trans="pause"> good <pause dur="0.7"/> and then <pause dur="2.2"/> group <pause dur="0.4"/> one we've got inventory <pause dur="0.3"/> machine efficiency yes because that <pause dur="0.3"/> will help you deliver i guess <pause dur="1.6"/> were you the ones that put oh no this is group one were you the ones that put profitability no that was here <pause dur="0.2"/> okay <pause dur="0.5"/> # packaging <pause dur="0.4"/> good packaging 'cause we talked about packaging yesterday didn't we <pause dur="0.3"/> capacity and production and H-R <pause dur="0.4"/> excellent <pause dur="0.3"/> so well done you you know <pause dur="0.5"/> # quite a lot about manufacturing strategy already don't you <pause dur="0.9"/> yes <pause dur="1.0"/> so you think great she can say we can all go home now this is wonderful <vocal desc="laughter" iterated="y" n="ss" dur="1"/>

but # <pause dur="0.3"/> unfortunately no that doesn't mean that <pause dur="0.3"/> it means i'm just going to talk <pause dur="0.4"/> # <pause dur="0.3"/> in more detail <pause dur="0.2"/> about the things that we think you already know <pause dur="0.9"/> okay <pause dur="0.4"/> so what we're going to look at now is <pause dur="0.4"/> our response to <pause dur="1.1"/> group <pause dur="0.3"/> the your your question four <pause dur="0.4"/> which is on the content of manufacturing strategy <pause dur="0.5"/> and of course i've given you all my pens haven't i let's take a pen <pause dur="0.5"/> so manufacturing strategy <kinesic desc="writes on flip chart" iterated="y" dur="8"/> can be divided into two things <pause dur="0.8"/> content <pause dur="3.7"/> and process <pause dur="0.3"/> so when you think about manufacturing strategy <pause dur="0.6"/> you can think about it in these two ways <pause dur="0.5"/> now the content <pause dur="0.2"/> of a manufacturing strategy is what's in it <pause dur="0.4"/> okay that's relatively obvious <pause dur="0.3"/> and that's what <pause dur="0.2"/> you've responded to <pause dur="0.3"/> for your question four <pause dur="0.4"/> okay what are the decision areas of manufacturing strategy <pause dur="0.3"/> what is in manufacturing strategy <pause dur="0.3"/> that's forms the content of it <pause dur="0.6"/> the process of manufacturing a strategy <pause dur="0.3"/> is <pause dur="0.2"/> how you make those decisions <pause dur="0.5"/> it's the procedure the method <pause dur="0.9"/>

the framework <pause dur="0.7"/> so the three frameworks that we'll be taking you through later <pause dur="0.4"/> will detail the process of making a manufacturing strategy <pause dur="0.3"/> so there are two elements to it <pause dur="0.4"/> we've asked you to brainstorm the content <pause dur="0.6"/> # we're going to now show you <pause dur="0.3"/> what the academics say should be in the content <pause dur="0.5"/> and then we'll take you after the break through <pause dur="0.4"/> three examples of how the process works <pause dur="0.5"/> and we'll have an <trunc>exe</trunc> exercise to do there too <pause dur="0.3"/> so that you can understand <pause dur="0.2"/> these particular frameworks <pause dur="0.7"/> do you understand that does that make sense yeah <kinesic desc="nod heads" iterated="n" n="ss"/> that's that's what we'll be doing <pause dur="2.6"/> okay <pause dur="0.6"/> so we're now looking at the content of manufacturing strategy and your response <pause dur="0.4"/> to <pause dur="0.2"/> question four <pause dur="1.2"/><kinesic desc="changes slide" iterated="n"/> we've taken these writers # Hayes and Wheelwright <pause dur="0.2"/> they work from America <pause dur="0.3"/> and they've been writing about manufacturing strategy from the nineteen-eighties <pause dur="0.4"/> so they've been around quite a long time <pause dur="0.6"/> the reason we go back that far <pause dur="0.4"/> is because this <pause dur="0.3"/> not only <pause dur="0.2"/>

being one of the first <pause dur="0.4"/> texts on the subject <pause dur="0.6"/> it's also been used a number of times subsequently <pause dur="0.3"/> in various other frameworks <pause dur="0.3"/> okay <pause dur="0.4"/> so <pause dur="0.7"/> other academics have used this work <pause dur="0.3"/> further down the line <pause dur="0.3"/> and hopefully you'll see that reflected in the frameworks that we take you through <pause dur="1.8"/> so we've got <pause dur="0.2"/> manufacturing strategy there <pause dur="0.2"/> and around the outside of this circle we've got the eight elements of manufacturing strategy <pause dur="0.3"/> as proposed by Hayes and Wheelwright <pause dur="0.9"/> and i'm going to talk about four of them to you <pause dur="0.5"/> and then i shall hand over to <gap reason="name" extent="1 word"/> who's going to talk about the other four <pause dur="0.9"/> going up to the break <pause dur="1.7"/> the four that i'm going to talk about are the major decision areas the ones that set the boundaries of your business <pause dur="0.4"/> the ones that define <pause dur="0.3"/> the bricks and mortar <pause dur="0.3"/> if you like <pause dur="0.7"/> and you'll see that in your texts <pause dur="0.4"/> that you've got in front of you <pause dur="0.5"/> we divide it like this <pause dur="0.6"/><kinesic desc="changes slide" iterated="n"/> so i'm going to be talking about <pause dur="0.4"/> capacity issues <pause dur="0.2"/> facilities technology <pause dur="0.5"/> and vertical integration and i will explain

what that is <pause dur="0.4"/> when we get there <pause dur="1.3"/> we call these the structural decisions okay so they define the boundaries of your business <pause dur="0.3"/> they are the big decisions the major capital investment that you will make as a company <pause dur="2.1"/> <gap reason="name" extent="1 word"/> will then talk about the infrastructural decisions <pause dur="0.3"/> which are about the supporting mechanisms <pause dur="2.7"/> in order to make the most effective use of the <pause dur="0.4"/> the structure that you've defined <pause dur="1.5"/> the analogy that we use for this <pause dur="0.3"/> # <pause dur="1.2"/> is one <pause dur="0.7"/> of computing <pause dur="1.3"/> i'm presuming you all have a computer <pause dur="0.4"/> given that you're on this course <pause dur="0.7"/> when you go out <pause dur="0.2"/> and buy a computer <pause dur="0.2"/> and you'll have to correct me if i'm wrong here having never gone out and bought one <shift feature="voice" new="laugh"/>myself <shift feature="voice" new="normal"/><pause dur="0.8"/> you go out and you decide <pause dur="0.6"/> what memory <pause dur="0.6"/> you can <shift feature="voice" new="laugh"/>afford <shift feature="voice" new="normal"/><pause dur="0.4"/> yeah and you buy a computer with <pause dur="0.4"/> the maximum memory you can afford <pause dur="0.3"/> because that <pause dur="0.3"/> sets doesn't it defines the boundary <pause dur="0.4"/> the limits <pause dur="0.3"/> of what your computer will do <pause dur="0.3"/> when you've got it <pause dur="0.4"/> okay so it's the memory <pause dur="0.4"/> that actually fixes <pause dur="0.3"/> the limits the boundary of your <pause dur="0.2"/> your

computer <pause dur="0.5"/> and it's like the the structural bit isn't it it actually defines <pause dur="0.6"/> outlines <pause dur="0.8"/> what you can do with it <pause dur="1.3"/> then i assume you'll choose your software your operating systems or whatever <pause dur="0.4"/> and you'll choose <pause dur="0.3"/> based on what you can afford <pause dur="0.4"/> the best software that will maximize the use <pause dur="0.4"/> of that memory space that you have <pause dur="0.5"/> yeah so what's the memory now <gap reason="name" extent="1 word"/> is it about <pause dur="1.6"/> every time i ask this it goes up thousands of bytes <vocal desc="laugh" iterated="n"/> <pause dur="0.6"/> gigabytes or <pause dur="0.6"/> what's what's the </u><pause dur="0.4"/> <u who="sm1232" trans="pause"> forty to eighty gigabytes </u><u who="nf1221" trans="latching"> forty </u><u who="sm1232" trans="latching"> to eighty </u><pause dur="0.4"/> <u who="nf1221" trans="pause"> forty to eighty gigabytes now is what you would generally have as your memory <pause dur="0.2"/> yeah <pause dur="0.3"/> okay <pause dur="0.3"/> every <trunc>th</trunc> yeah every year we do this it <pause dur="0.2"/> it it <pause dur="0.3"/> it jumps <vocal desc="laugh" iterated="n"/> <pause dur="0.3"/> quite a lot <pause dur="0.3"/> okay so that would set the boundaries of your computer <pause dur="0.3"/> and then you would choose software <pause dur="0.2"/> to give you the best <pause dur="0.8"/> and most effective operation of that computer <pause dur="0.3"/> okay so the the software

</u><u who="sm1232" trans="overlap"> <gap reason="inaudible" extent="1 sec"/> </u><pause dur="0.5"/> <u who="nf1221" trans="pause"> you choose the software first </u><u who="sm1233" trans="overlap"> yeah and if you </u><u who="sm1234" trans="overlap"> <gap reason="inaudible due to overlap" extent="1 sec"/> everyone wants to use Windows so you can choose the software and then <pause dur="0.5"/> go for the maximum </u><u who="sf1235" trans="overlap"> <gap reason="inaudible" extent="1 sec"/> </u><pause dur="0.6"/> <u who="nf1221" trans="pause"> okay but choosing software doesn't necessarily set the size of your computer does it <pause dur="0.4"/> the memory does that </u><u who="sm1234" trans="overlap"> # <pause dur="0.4"/> mm </u><u who="nf1221" trans="latching"> the memory fixes the boundary of your computer </u><u who="sm1234" trans="overlap"> yeah </u><u who="nf1221" trans="pause"> but i accept that you might do one before the other <pause dur="0.4"/> okay <pause dur="0.2"/> so the memory is like the structure here the hardware <pause dur="0.3"/> okay that sets the boundary of your computer <pause dur="0.4"/> and the software <pause dur="0.4"/> is the thing that makes it run as effectively as possible <pause dur="0.3"/> and as <gap reason="name" extent="1 word"/> says generally now <pause dur="0.3"/> we have to have Windows don't we <pause dur="0.6"/> # <pause dur="0.2"/> thanks to Bill Gates <pause dur="0.3"/><shift feature="voice" new="laugh"/> all right<shift feature="voice" new="normal"/><pause dur="1.5"/> okay <pause dur="0.4"/> so that's the analogy i'll be covering structural and <gap reason="name" extent="1 word"/> will be covering infrastructural <pause dur="1.4"/> so we're going to take each one in turn <pause dur="0.4"/> and we're going to think about <pause dur="0.5"/> what <pause dur="0.4"/> goes into <pause dur="2.1"/> manufacturing

decisions <pause dur="0.7"/> in these areas <pause dur="2.1"/><kinesic desc="changes slide" iterated="n"/> so the first one is capacity <pause dur="0.5"/> now can i have some examples of the businesses that you developed in the context <pause dur="0.6"/> what </u><u who="sf1236" trans="overlap"> rental business <pause dur="0.4"/> rental business </u><u who="nf1221" trans="overlap"> rental business renting what </u><pause dur="0.7"/> <u who="sf1236" trans="pause"> everything <vocal desc="laughter" iterated="y" n="ss" dur="1"/><pause dur="0.4"/> # we had this </u><u who="sf1237" trans="overlap"> electronic items </u><u who="sm1238" trans="latching"> electronic </u><u who="sf1236" trans="overlap"> electronic items and </u><u who="nf1221" trans="overlap"> electronic items okay what else have we got so we've got a rental business for electronic items <pause dur="0.7"/> what else </u><u who="sm1239" trans="latching"> transportation </u><u who="sm1240" trans="latching"> transportation </u><u who="nf1221" trans="latching"> transportation <pause dur="0.2"/> okay what kind of <trunc>transporta</trunc> </u><u who="sm1240" trans="overlap"> cars </u><u who="nf1221" trans="latching"> cars renting <pause dur="0.2"/> you did renting as well <pause dur="0.8"/> right anybody else do anything anybody make anything </u><pause dur="1.1"/> <u who="sf1241" trans="pause"> <gap reason="inaudible" extent="1 sec"/> </u><u who="sm1242" trans="overlap"> well we did a restaurant </u><pause dur="0.5"/> <u who="nf1221" trans="pause">

you did a restaurant <pause dur="0.3"/> okay what type of restaurant </u><pause dur="1.0"/> <u who="sm1242" trans="pause"> Chinese food </u><u who="nf1221" trans="pause"> Chinese food <vocal desc="laughter" iterated="y" n="ss" dur="1"/> good <shift feature="voice" new="laugh"/> # we could do with that in this country <vocal desc="laugh" iterated="n"/> <shift feature="voice" new="normal"/><pause dur="0.5"/> okay <pause dur="0.9"/> anything else </u><pause dur="0.6"/> <u who="sm1243" trans="pause"> cafe </u><pause dur="0.3"/> <u who="nf1221" trans="pause"> cafe </u><pause dur="1.3"/> <u who="sm1244" trans="pause"> restaurant </u><pause dur="0.2"/> <u who="nf1221" trans="pause"> restaurant <pause dur="0.6"/> wow at the back </u><pause dur="1.2"/> <u who="sm1245" trans="pause"> restaurant </u><pause dur="0.5"/> <u who="nf1221" trans="pause"> restaurant </u><u who="sm1246" trans="latching"> <gap reason="inaudible" extent="1 sec"/> </u><pause dur="0.4"/> <u who="sm1247" trans="pause"> <gap reason="inaudible" extent="1 sec"/></u><pause dur="0.7"/> <u who="sm1246" trans="pause"> <gap reason="inaudible" extent="2 secs"/></u><u who="nf1221" trans="pause"> you're all in the same group <pause dur="0.2"/> so how many <pause dur="0.6"/> how many groups <pause dur="0.4"/> are in this room then are you all in </u><u who="ss" trans="overlap"> <gap reason="inaudible" extent="1 sec"/><kinesic desc="indicates groups" iterated="n" n="ss"/> </u><pause dur="0.3"/> <u who="nf1221" trans="pause"> okay <pause dur="0.2"/> okay so different groups <pause dur="0.3"/> right so we've got a restaurant <pause dur="0.3"/> and we've got a rental business <pause dur="0.4"/> okay <pause dur="0.5"/> what <pause dur="1.4"/> did you decide how did you decide on the capacity <pause dur="0.9"/> how did you decide on how big your restaurant would be <pause dur="0.3"/> or how big your car rental business

would be </u><u who="sf1236" trans="overlap"> <gap reason="inaudible" extent="1 sec"/> <pause dur="0.5"/> we were looking at # the money that was given to us and like how much can we afford <pause dur="0.6"/> and also at the lifetime of the products </u><u who="sm1249" trans="overlap"> it was the lifetime of the goods and how productive are your goods <pause dur="1.0"/> # to <pause dur="0.2"/> you know to keep up to date with technology and stuff because it's electrical items <pause dur="0.4"/> T-Vs have only a shelf life of what three years or something you know so </u><u who="nf1221" trans="overlap"> yeah okay </u><pause dur="0.4"/> <u who="sm1249" trans="pause"> yeah we thought about that too </u><pause dur="0.3"/> <u who="nf1221" trans="pause"> okay so you looked at the market </u><u who="sm1249" trans="overlap"> mm-hmm </u><u who="nf1221" trans="latching"> and you looked at developments of technology <pause dur="0.3"/> how how in terms of the restaurant <gap reason="name" extent="1 word"/> sorry to put you in <trunc>s</trunc> </u><u who="sm1248" trans="overlap"> demand <pause dur="0.8"/> on the demand </u><pause dur="0.3"/> <u who="nf1221" trans="pause"> on the demand <pause dur="0.4"/> how did you decide what the demand's going to be </u><pause dur="0.7"/> <u who="sm1248" trans="pause">

<gap reason="inaudible" extent="1 sec"/> it's like <pause dur="0.7"/> research </u><pause dur="0.3"/> <u who="nf1221" trans="pause"> research through research </u><u who="sm1248" trans="overlap"> yeah </u><u who="nf1221" trans="overlap"> you know this is absolutely right because this is what companies do <pause dur="0.3"/> they do market research <pause dur="0.3"/> to try and work out what the demand is likely to be <pause dur="0.4"/> okay <pause dur="0.3"/> in order to set your capacity you've got to have some understanding <pause dur="0.3"/> of what the demand's going to be <pause dur="0.3"/> now you can do that through looking at technologies and how far <pause dur="0.4"/> you think that's going to develop <pause dur="0.3"/> you can also do it through surveys focus groups all kinds of market research <pause dur="0.3"/> but you need to understand what that <pause dur="0.4"/> demand is going to be <pause dur="0.3"/> in order to be able to set <pause dur="0.5"/> your capacity <pause dur="1.2"/> so <pause dur="0.2"/> how does the capacity compare with past present and future demand <pause dur="0.2"/> so that's what you'll be thinking about <pause dur="0.3"/> when you're <trunc>def</trunc> deciding <pause dur="0.2"/> what capacity you need <pause dur="0.4"/> okay <pause dur="0.4"/> capacity is how big <pause dur="0.8"/> how big a restaurant <pause dur="0.4"/> how big a rental business <pause dur="0.6"/> yeah how big a cafe <pause dur="0.2"/> how many chairs are going to go in it <pause dur="0.5"/> yeah how do i decide that <pause dur="0.9"/> okay it's all the same thing making these

decisions </u><pause dur="7.4"/> <u who="nm1220" trans="pause"> <unclear>extra facilities for free</unclear> </u><pause dur="0.2"/> <u who="nf1221" trans="pause"> <shift feature="voice" new="laugh"/>yes <vocal desc="laughter" iterated="y" n="ss" dur="1"/><shift feature="voice" new="normal"/> <pause dur="0.6"/> when you're going to invest okay <pause dur="0.3"/> if <pause dur="0.5"/> your restaurant really took off <gap reason="name" extent="1 word"/> <pause dur="0.3"/> and it was really popular <pause dur="0.7"/> # <pause dur="0.2"/> would you consider building another restaurant or would you consider extending the one you've already got <pause dur="0.3"/> or would you consider <pause dur="0.6"/> putting more tables in the same restaurant yeah <pause dur="0.5"/> okay all of these things you've got to think about <pause dur="0.3"/> and you would have to decide <pause dur="0.4"/> do i do that <pause dur="0.4"/> do i have a new restaurant <pause dur="0.2"/> ready <pause dur="1.1"/> do i build double the capacity i think i'm going to need and hope that i'm going to expand <pause dur="0.4"/> or do i wait until i've got <pause dur="0.3"/> my full restaurant and then decide to build <pause dur="0.7"/> or recruit more people and and this same is true for your businesses <pause dur="0.3"/> and your cafe at the back there <pause dur="0.3"/> so <pause dur="1.5"/> when are you going to invest the money that you need are you going to do it before <pause dur="0.2"/> the demand grows <pause dur="0.4"/> or when the competitors do <pause dur="0.7"/> 'cause if somebody

opened a <trunc>r</trunc> Chinese restaurant down the road <pause dur="0.6"/> you may # <pause dur="1.3"/> you may have a problem on your hands or your <pause dur="0.2"/> restaurant may be so good that it doesn't make any difference <pause dur="0.3"/> okay <pause dur="0.6"/> and when demand is assured are you going to wait till you've definitely got that demand <pause dur="0.4"/> before <pause dur="0.2"/> you take <pause dur="0.2"/> the plunge <pause dur="0.4"/> now there's always a risk involved in any business set-up which is why so many of them fail <pause dur="0.5"/> okay <pause dur="0.3"/> but <pause dur="0.2"/> there are also many that succeed <pause dur="0.6"/> okay but you have to make these risks here <pause dur="0.4"/> so you can see here it's the big decisions here you've got a set amount of money generally <pause dur="0.5"/> generally it's what you can borrow <pause dur="0.4"/> or what you already have <pause dur="0.4"/> and you have to decide <pause dur="0.2"/> how big an organization are you going to make <pause dur="0.3"/> and the same is true <pause dur="0.3"/> for manufacturing if you're actually going to make <pause dur="0.4"/> you're going to make a pen or a bottle of water <pause dur="0.4"/> or in my case a Mars bar <pause dur="0.4"/> or an ice cream <pause dur="0.2"/> yeah you have to decide <pause dur="0.2"/> how big <pause dur="0.6"/> that <pause dur="0.3"/> how much what the demand is likely to be <pause dur="2.1"/><kinesic desc="changes slide" iterated="n"/> okay looking now at <pause dur="0.4"/>

we call it facilities or process choice <pause dur="1.4"/> once you've decided what the demand's likely to be then you can decide <pause dur="0.2"/> how many plants or restaurants or rental premises <pause dur="0.5"/> or cafes you're going to need <pause dur="0.3"/> so how many of them <pause dur="0.9"/> the size of them <pause dur="1.5"/> and <pause dur="0.4"/> the location <pause dur="1.6"/> so are they going to be near the markets <pause dur="0.2"/> near the near the major markets near customers <pause dur="0.4"/> or near the natural resources <pause dur="0.4"/> in the industrial revolution the beginning of the industrial revolution in this country <pause dur="0.5"/> all of our plants were based near the natural resources <pause dur="0.6"/> the textile mills were based in the north everything was based near water <pause dur="0.3"/> because everything was steam powered <pause dur="0.3"/> okay <pause dur="0.5"/> # <pause dur="0.3"/> so <pause dur="0.8"/> nowadays that tends not to be true it's true in some places in the world still like the big steel firms in India <pause dur="0.3"/> Tartar Steel et cetera <pause dur="0.4"/> # <pause dur="0.3"/> they tend to have <pause dur="0.2"/> place <pause dur="0.7"/> their plants near the natural resources <pause dur="0.3"/> but generally <pause dur="0.2"/> companies go near the markets or their customers <pause dur="0.7"/> okay so you're <trunc>tend</trunc> if you've got an international company <pause dur="0.3"/> they'll

have a hub in Europe somewhere <pause dur="0.3"/> for their European operations <pause dur="0.3"/> they'll have somewhere in America <pause dur="0.3"/> somewhere in the Far East <pause dur="2.0"/> new and up and coming markets at the moment we discussed that yesterday some examples <pause dur="1.3"/> what are growing markets at the moment growing economies </u><u who="sm1250" trans="overlap"> China </u><pause dur="0.3"/> <u who="nf1221" trans="pause"> China is an enormous <pause dur="0.9"/> potential <pause dur="0.2"/> when # <pause dur="0.3"/> i went to China <pause dur="1.0"/> ten years ago <pause dur="0.6"/> everybody rode bicycles now everybody wants cars or has cars <pause dur="0.3"/> yeah it's an enormously developing <pause dur="0.2"/> successful nation <pause dur="0.4"/> and <pause dur="0.4"/> companies are falling over themselves <pause dur="0.4"/> to get into China <pause dur="0.3"/> and have a plant there because they'll be near the market <pause dur="0.3"/> and they can tailor their products to the specific Chinese <pause dur="0.3"/> requirements okay <pause dur="0.6"/> # and that same is true for any other <pause dur="0.4"/> # nation South America <pause dur="0.5"/> Africa i guess <pause dur="0.3"/> will be will be the next one <pause dur="0.4"/> okay </u><u who="sm1249" trans="overlap">

is that is that just to reduce the transportation costs in getting the goods to the <trunc>coun</trunc> to that country <pause dur="0.3"/> or is it so that there can actually be a physical presence of those people as well </u><pause dur="0.4"/> <u who="nf1221" trans="pause"> there's lots of issues and <gap reason="name" extent="1 word"/> covers a lecture on international <pause dur="0.3"/> # <pause dur="0.3"/> manufacturing in which you'll cover this in more detail <pause dur="0.4"/> but # <pause dur="0.2"/> a lot of the time it is down to the markets <pause dur="0.3"/> it's also down to <pause dur="0.2"/> the government in the country <pause dur="0.3"/> demanding that you can't just import </u><pause dur="0.2"/> <u who="sm1249" trans="pause"> mm </u><u who="nf1221" trans="latching"> you've got to set up a business there <pause dur="0.3"/> and employ local people <pause dur="0.3"/> so there's often <pause dur="0.2"/> a lot of other reasons <pause dur="0.4"/> but # <pause dur="0.3"/> generally <pause dur="0.3"/> people go out there because <trunc>i</trunc> <pause dur="0.6"/> in order to be able to tailor your product you've got to understand what the people want <pause dur="0.4"/> and the only way to do that is to try and employ some of them </u><pause dur="0.4"/> <u who="sm1249" trans="pause"> mm </u><u who="nf1221" trans="latching"> okay </u><u who="sm1249" trans="overlap"> right </u><u who="nf1221" trans="overlap"> so it you tend to <pause dur="0.2"/> see companies actually positioning out there <pause dur="0.4"/> # it's easier <pause dur="0.5"/> transporting most goods is difficult <pause dur="0.9"/> people will it's

easier to transport raw materials <pause dur="0.2"/> generally <pause dur="0.6"/> especially when everything's packaged so highly now it's so easy to damage <pause dur="0.3"/> the packaging and then </u><pause dur="0.3"/> <u who="sm1249" trans="pause"> yeah </u><pause dur="0.3"/> <u who="nf1221" trans="pause"> you've wrecked it <pause dur="3.3"/> organization of the plants not only have you got to decide <pause dur="0.2"/> how many and where they are you've got to decide how you're going to arrange them <pause dur="0.5"/> so <pause dur="0.3"/> are you going to arrange them in products <pause dur="0.2"/> process based are you going to have dedicated plant to making one or two particular products <pause dur="0.3"/> or are you going to have a plant that makes a variety of products <pause dur="0.4"/> you would have seen <pause dur="0.3"/> with the <pause dur="1.4"/> the example yesterday H-G Plastics they made <pause dur="0.3"/> was it <trunc>kit</trunc> old <trunc>kitchenwa</trunc> new kitchen range and </u><u who="sf1251" trans="latching"> homeware </u><u who="nf1221" trans="overlap"> old </u><pause dur="0.7"/> <u who="sf1251" trans="pause"> homeware </u><u who="nf1221" trans="latching"> office or whatever other plastic equipment it was </u><u who="sf1251" trans="overlap"> no it was homeware <gap reason="inaudible" extent="1 sec"/>

</u><u who="nf1221" trans="overlap"> homewares yeah <pause dur="0.4"/> so do you have one plant that does everything <pause dur="0.3"/> or do you split it <pause dur="0.4"/> and have <pause dur="0.3"/> the new ideas and the new designs in one area <pause dur="0.3"/> and the old designs in the other <pause dur="0.2"/> yeah these are the things that you need to think about at this level <pause dur="1.4"/> and process choice then which would be line batch or jobbing <pause dur="0.4"/> and we talked about what jobbing was yesterday what a job shop was <pause dur="0.4"/> if we look at <kinesic desc="changes slide" iterated="n"/> this diagram now <pause dur="1.0"/> we can see <pause dur="0.8"/> that <pause dur="3.2"/> we can select the process <pause dur="0.4"/> the manufacturing process <pause dur="0.5"/> for our strategy <pause dur="0.3"/> it tends to be dependent on the volumes that we <trunc>li</trunc> we think we're likely to make <pause dur="0.4"/> so if we're making a nuclear submarine which was one of my examples yesterday <pause dur="0.5"/> then we're really looking at a project aren't we because <pause dur="0.2"/> not many people <pause dur="0.3"/> make nuclear submarines <pause dur="0.8"/> if <pause dur="0.2"/> we're looking at <pause dur="0.3"/> glass <pause dur="0.5"/> # <pause dur="0.8"/> # <pause dur="0.3"/> steel whatever we're looking at continuous process <pause dur="0.4"/> okay very high volume <pause dur="0.6"/> # <pause dur="0.3"/> i guess <pause dur="0.3"/> my biro i haven't got one today but the biro <pause dur="0.4"/> anything card paper

industry <pause dur="0.3"/> anything that you'll make in very high volumes the commodity products that we talked about yesterday <pause dur="0.4"/> in the Puttick grid <pause dur="0.4"/> then you're looking really at continuous process <pause dur="0.3"/> or a line a production line <pause dur="0.8"/> most <pause dur="0.2"/> products because of the variety that we have <pause dur="0.4"/> tend to fall in the middle <pause dur="0.4"/> which is batch some form of batch production <pause dur="0.5"/> okay <pause dur="0.3"/> but you can combine them <pause dur="0.3"/> as hopefully you would have seen <pause dur="0.4"/> in your logistics module <pause dur="1.5"/> <kinesic desc="changes slide" iterated="n"/> okay technology then <pause dur="1.7"/> once we've decided <pause dur="0.4"/> where we're going to put our plants and how big they're going to be <pause dur="0.6"/> then we have to look at <pause dur="0.8"/> what we're going to put in them <pause dur="0.3"/> so what's the equipment going to be <pause dur="0.6"/> and this is where we pull in technology which Paresh talked about earlier <pause dur="0.5"/> is it going to be general purpose <pause dur="0.5"/> that means you have some flexibility with the equipment <pause dur="0.4"/> is it going to be dedicated <pause dur="0.5"/> is it going to be state of the art <pause dur="0.2"/> which means we'll need a very <pause dur="0.2"/> high level of skill <pause dur="0.6"/> labour but <pause dur="0.4"/> <trunc>f</trunc> less labour <pause dur="0.3"/> or is it

going to be general purpose where we'd need more labour <pause dur="0.4"/> # to do the operation generally <pause dur="0.4"/> okay so you need to think about these things here <pause dur="1.5"/> level and type of technology employed <pause dur="0.3"/> okay so is it as i said is it going to be state of the art <pause dur="0.3"/> or is it going to be <pause dur="0.6"/> cheaper much cheaper general more general purpose machines <pause dur="1.6"/> the degree of automation will affect <pause dur="0.5"/> what labour you choose <pause dur="0.4"/> in this country we tend to have highly automated processes <pause dur="0.4"/> in some of your countries you tend to have more labour intensive processes <pause dur="0.2"/> it's whatever suits <pause dur="0.2"/> your country and your economy <pause dur="0.3"/> you have to run with whatever's whatever you have <pause dur="0.4"/> okay <pause dur="0.3"/> # <pause dur="0.6"/> i think that we we overdo it here we <trunc>th</trunc> we spend too much on automation <pause dur="0.4"/> and we just get things going wrong much quicker <vocal desc="laugh" iterated="n"/> <pause dur="0.4"/> because the <shift feature="voice" new="laugh"/><trunc>proce</trunc> <shift feature="voice" new="normal"/><pause dur="0.2"/> automation speeds everything up <pause dur="0.5"/> okay <pause dur="0.2"/> so i don't think it's worth every time <pause dur="0.2"/> removing <pause dur="0.2"/> huge amounts of labour <pause dur="0.4"/> # unless you understand <pause dur="0.2"/> exactly what your process is doing <pause dur="0.6"/> okay <pause dur="5.0"/>

identifying key processes <pause dur="0.5"/> deciding what you're going to do about set-ups what you're <sic corr="going">doing</sic> to do about maintenance <pause dur="0.4"/> changeovers <pause dur="0.4"/> supervision <pause dur="0.7"/> flexibility <pause dur="0.5"/> and skill levels all will need to be considered <pause dur="0.5"/> in terms of your <pause dur="0.9"/> rentals business your restaurant your cafe <pause dur="0.4"/> you would have thought of all of these things yeah <pause dur="0.5"/> # how what people how many waiters you're going to need how many chefs you're going to <shift feature="voice" new="laugh"/>need <shift feature="voice" new="normal"/><pause dur="0.4"/> how many <pause dur="0.2"/> what equipment you'll need <pause dur="0.4"/> what equipment in terms of if you're renting electronic stuff you've got to buy it all to rent it <pause dur="0.5"/> what level you're going to use to buy that okay what level of equipment you're going to use <pause dur="1.5"/> <kinesic desc="changes slide" iterated="n"/> and the final one for me <pause dur="0.4"/> is vertical integration <pause dur="0.6"/> does anybody know what that means </u><pause dur="0.8"/> <u who="sm1232" trans="pause"> it's when you buy up # different companies at different stages of the <pause dur="0.4"/> process <gap reason="inaudible due to overlap" extent="1 sec"/></u><u who="nf1221" trans="overlap">

yes </u><u who="sf1252" trans="overlap"> the amount of control in # <gap reason="inaudible due to overlap" extent="1 sec"/> </u><u who="nf1221" trans="pause"> that's right </u><u who="sf1253" trans="latching"> <gap reason="inaudible" extent="1 sec"/> </u> <u who="nf1221" trans="overlap"> yeah <pause dur="0.2"/> yeah </u><pause dur="0.2"/> <u who="sm1232" trans="pause"> like # when Ford bought up the railways and the <pause dur="0.2"/> rubber # factories <gap reason="inaudible due to overlap" extent="1 sec"/> </u><u who="nf1221" trans="overlap"> absolutely yes it's it's the amount <pause dur="0.3"/> to which you own the supply chain so it's exactly what you said it's about <trunc>con</trunc> how much you control of the supply chain processes <pause dur="0.6"/> # <pause dur="0.2"/> how many companies you bought at different stages in the supply chain it's the amount of the supply chain that you own <pause dur="0.5"/> the example you would have been given yesterday with <pause dur="0.2"/> Ford Model T <pause dur="0.6"/> was that <pause dur="0.2"/> Henry Ford owned the entire supply chain <pause dur="0.2"/> okay <pause dur="0.5"/> # from mining the ore <pause dur="0.3"/> to make the steel panels <pause dur="0.3"/> to actually selling the car to the customer <pause dur="0.5"/> and he had a totally vertically integrated company <pause dur="0.4"/> i have to say it is more of an academic term <pause dur="0.2"/> than the <pause dur="0.3"/> one that's used in

practice <pause dur="0.4"/> but when you see it that's what it means <pause dur="0.6"/> other people call it process positioning <pause dur="0.6"/> # <pause dur="0.9"/> it means the same thing <pause dur="0.5"/> you're looking at the direction of it <trunc>o</trunc> <pause dur="0.2"/> do you want to buy <pause dur="0.3"/> your distributors <pause dur="0.4"/> do you want to buy some of your suppliers <pause dur="0.5"/> okay these decisions <pause dur="0.3"/> will form part of your manufacturing strategy <pause dur="1.1"/> what relationship are you going to have with the supply chain where is the power <pause dur="0.5"/> in the supply chain how are you going to respond to that <pause dur="0.7"/> # what kind of relationships are you going to have with the other <trunc>p</trunc> <pause dur="0.4"/> other companies in the chain <pause dur="1.7"/> are you going to go for joint ventures and this is tends to be what happens when people go <pause dur="0.3"/> abroad like to China <pause dur="0.3"/> some form of collaboration <pause dur="0.3"/> so that you can actually partner companies <pause dur="0.3"/> that are in other countries and that <pause dur="0.2"/> that tends to be <pause dur="0.5"/> quite typical <pause dur="0.6"/> # and what <trunc>m</trunc> <pause dur="0.2"/> <trunc>m</trunc> make buy decisions are you going to have <pause dur="0.3"/> and <trunc>s</trunc> <pause dur="0.7"/> some time this week <pause dur="0.3"/> you'll do a <trunc>le</trunc> a lecture on outsourcing <pause dur="0.4"/> and that will go through this in more detail <pause dur="0.2"/> the the

make buy decision <pause dur="0.5"/> what elements of <kinesic desc="holds up pen" iterated="n"/>this pen are you going to make yourself <pause dur="0.5"/> and what bits of it are you going to buy in from suppliers and subcontractors <pause dur="1.4"/> okay </u><gap reason="break in recording" extent="uncertain"/> <u who="nm1220" trans="pause"> sorry it's technology <pause dur="0.4"/> i'm too old for it <pause dur="2.3"/> right we've now got a factory <pause dur="2.5"/> we've decided where it is how big it's going to be <pause dur="1.2"/> how we're going to lay it out <pause dur="0.4"/> what level of technology what machines we've put in it <pause dur="0.6"/> and it's no darn use to us at all <pause dur="2.4"/> 'cause we can't actually do anything with it yet can we <pause dur="2.1"/> first thing we need are some people <pause dur="3.2"/> how are we going to select them <pause dur="1.7"/> do we need people with lots of skills who are going <trunc>d</trunc> have to do three day assessment centres <pause dur="1.1"/> or are they just <pause dur="0.2"/> lumping things around and we can grab the first twenty people that walk past the gate <pause dur="1.3"/> how are we actually going to select <pause dur="0.2"/> our employees what criteria do we use <pause dur="1.5"/> <kinesic desc="changes slide" iterated="n"/> what skills do we need <pause dur="2.2"/> do we need nuclear scientists <pause dur="1.0"/>

do we need skilled technicians <pause dur="0.6"/> lab technicians plumbers <pause dur="0.3"/> bricklayers <pause dur="0.7"/> people with particular skills they've taken several years to get <pause dur="1.8"/> or do they just need specialist skills <pause dur="0.8"/> from our business <pause dur="0.3"/> that we don't actually want anybody else to have <pause dur="0.4"/> that we've got to train people in ourselves <pause dur="3.6"/> what training have we got to do <pause dur="1.4"/> are we going to take people in and train them from scratch in our way of doing things <pause dur="0.4"/> in the way to work our machines the way we do our processes <pause dur="1.1"/> or are we going to <pause dur="0.2"/> try and take people trained from other companies just by offering a little bit more money <pause dur="0.6"/> <vocal desc="sneeze" iterated="n"/><pause dur="1.3"/> job content <pause dur="2.4"/> are they there <pause dur="0.5"/> just <pause dur="0.7"/> to join things together <pause dur="0.3"/> every ten seconds for eight hours a day <pause dur="0.6"/> are they going to rotate through lots of diferent jobs <pause dur="0.4"/> are we going to make their jobs interesting are we going for a cellular layout <pause dur="0.5"/> where they've got responsibility for particular things <pause dur="0.4"/> what job content are we giving people <pause dur="1.8"/> and they'll certainly be interested in that <pause dur="0.6"/> how are we

going to pay them <pause dur="1.2"/> is it just payment by results <pause dur="1.8"/> are they paid hourly on attendance <pause dur="0.4"/> are they paid weekly are they paid monthly on a salary <pause dur="0.8"/> are they on a bonus system <pause dur="0.3"/> is it a group bonus individual <sic corr="bonus">bronus</sic> company bonus <pause dur="0.4"/> how are we going to pay them <pause dur="0.7"/> certainly <pause dur="1.0"/> as i say our workforce if nobody else is vitally interested in that and it's obviously a significant part of our costs <pause dur="0.3"/> again where are we going to pitch our pay <pause dur="0.7"/> are we going to pay the minimum we can get away with <pause dur="0.7"/> pay <pause dur="0.9"/> the average for the area <pause dur="0.6"/> or are we going to be paying sort of <pause dur="0.7"/> top dollar we want the best people we want to be seen as the best employer <pause dur="2.6"/> what job security are we giving <pause dur="0.9"/> are we a Japanese company with our <trunc>s</trunc> middle managers <pause dur="0.5"/> offering them effectively lifetime employment <pause dur="1.7"/> or are we in <pause dur="0.2"/> California <pause dur="0.8"/> with at will employment <pause dur="0.7"/> when for no reason at all <pause dur="0.5"/> at a moment's notice you can be sacked or you can walk out <pause dur="0.6"/> perfectly reasonable standard conditions in California <pause dur="0.4"/> what are we

going to do about job security <pause dur="2.9"/><kinesic desc="changes slide" iterated="n"/> so we've now got some people <pause dur="1.3"/> how are we then going to organize them we've got to actually organize them <pause dur="0.3"/> so they know what they're doing <pause dur="1.0"/> where they are who they report to who's responsible for what <pause dur="2.9"/> are we going to have the traditional functional silo system <pause dur="1.2"/> where we've got <pause dur="0.2"/> accounts <pause dur="0.2"/> R and D sales <pause dur="0.4"/> production et cetera <pause dur="0.4"/> and then within production have we got department one with its manager department two with its manager <pause dur="1.1"/> or is it going to be a product based thing <pause dur="1.0"/> where you've got a department <pause dur="1.8"/> making small round products <pause dur="0.2"/> another department making big square products <pause dur="1.1"/> is it going to be customer based where you've got this department working for Ford <pause dur="0.5"/> different department working for Toyota <pause dur="0.8"/> is there a matrix organization are you in a product <trunc>ty</trunc> <pause dur="0.3"/> <trunc>pro</trunc> # sorry <pause dur="0.2"/> project type environment <pause dur="1.0"/> where you've got people working on a project but also responsible for <pause dur="0.3"/> to the manager for their particular skill <pause dur="0.6"/>

very common in fairly technological <pause dur="0.3"/> and technical enterprises <pause dur="3.0"/> what type and style of management <pause dur="0.4"/> traditional old fashioned supervisors with bowler hats <pause dur="0.4"/> cell leaders and team management <pause dur="0.5"/> matrix style way <trunc>t</trunc> <pause dur="0.3"/> if you've got a matrix who's the more important of the two managers you report to <pause dur="1.4"/> and very very importantly we've mentioned it before <pause dur="0.4"/> this afternoon we'll be looking at it in a lot more detail <pause dur="0.5"/> your measures <pause dur="0.7"/> we said if you've got a strategy <pause dur="1.1"/> how do you know it's working <pause dur="0.6"/> because you measure it <pause dur="0.8"/> you've got key measures <pause dur="0.9"/> to tell you <pause dur="0.5"/> what is important to tell you you're succeeding <pause dur="0.5"/> and probably even more importantly to tell you where you're <pause dur="0.6"/> not doing well enough or even failing <pause dur="0.5"/> if you've not got appropriate measures <pause dur="0.3"/> you haven't got any sort of system <pause dur="0.4"/> so measures for success <pause dur="0.2"/> vitally important to go alongside any strategy <pause dur="1.6"/> and communications how are you going to actually communicate <pause dur="0.8"/> with <pause dur="0.2"/> the workforce <pause dur="0.9"/> from <pause dur="0.4"/> top

management through to middle management to team leaders <pause dur="0.5"/> to the actual workforce <pause dur="0.2"/> are you going to have big banner headlines as you walk in every morning <pause dur="0.4"/> flashing lights giving you the message and <pause dur="0.3"/> moral for today <pause dur="0.4"/> going to have a firm's newspaper <pause dur="1.0"/> are you going to have <pause dur="0.2"/> team briefings daily weekly monthly <pause dur="0.5"/> team meetings <pause dur="0.4"/> away weekends to build team spirit how are you going to actually communicate <pause dur="0.5"/> or are you <pause dur="0.5"/> are you deciding that you're not actually bothering to tell anybody anything <pause dur="0.4"/> 'cause all your strategies are too secret for everyone to know <pause dur="2.5"/><kinesic desc="changes slide" iterated="n"/> then <pause dur="1.0"/> you've got some people you've got some organization you can actually start making things <pause dur="1.8"/> but at what quality have you got to make them <pause dur="0.8"/> what is driving your quality system who <trunc>de</trunc> <pause dur="0.3"/> who determines your quality <pause dur="5.5"/> are you going for ISO nine-thousand type <pause dur="0.4"/> certification <pause dur="1.2"/> often a good selling point to say that <pause dur="0.3"/> but what does it really mean is that really important <pause dur="0.8"/> means you've got very

good quality systems it doesn't necessarily mean you've got very good quality <pause dur="1.7"/> your quality systems purely internal are they your own systems <pause dur="0.8"/> are you controlling that are you setting the standard <pause dur="1.1"/> perhaps they're legally required some industries absolutely vital <pause dur="1.0"/> aircraft industry aerospace industry <pause dur="0.3"/> never mind what you think about the quality <pause dur="0.5"/> the C-A-A and the F-A-A will tell you <pause dur="0.4"/> whether things are good enough or not <pause dur="1.0"/> also pharmaceuticals every government in the world <pause dur="0.3"/> has its own standards for pharmaceuticals <pause dur="0.4"/> what can be sold at what quality at what strength and so such <pause dur="0.3"/> there may well be legal <pause dur="0.2"/> quality standards <pause dur="1.2"/> or <pause dur="0.7"/> they may be customer imposed <pause dur="0.5"/> certainly as i said i was many years in the auto components industry <pause dur="0.8"/> most of our factories <pause dur="0.4"/> were ISO nine-thousand registered <pause dur="0.5"/> but that didn't really matter a lot <pause dur="1.1"/> Ford's Q-one status was far more important <pause dur="1.4"/> Ford weren't really bothered they assumed we'd got our ISO nine-thousand <pause dur="0.5"/> but to continue doing business

with Ford <pause dur="0.4"/> we had to pass Ford's <pause dur="0.2"/> quality system inspections <pause dur="0.5"/> so that <pause dur="0.5"/> who's imposed it <pause dur="0.5"/> whose quality have you got to meet to be in business <pause dur="1.4"/><vocal desc="clears throat" iterated="n"/><pause dur="1.4"/> who's responsible for quality <pause dur="1.2"/> have you got <pause dur="0.4"/> a quality manager <pause dur="0.3"/> an inspection department <pause dur="2.4"/> or does everybody accept responsibility <pause dur="0.4"/> for their own quality <pause dur="0.3"/> they do their own S-P-C checking their own gauging <pause dur="0.4"/> their own passing off and stamping <pause dur="0.4"/> in legally required <pause dur="0.9"/> industries <pause dur="0.3"/> are you going for total quality management are you going for <trunc>t</trunc> quality <pause dur="0.5"/> as the driving culture of the organization <pause dur="0.3"/> how are you dealing with quality <pause dur="4.7"/> and then how are you controlling it day to day <pause dur="0.6"/> are you going for S-P-C systems <pause dur="1.0"/> are they done manually are you going to automate it <pause dur="0.8"/> put things to automatic <pause dur="0.6"/> inspection checks part way down the line <pause dur="0.5"/> how are you actually going to control it how are you going to measure it <pause dur="0.5"/> or are you going to the ultimate <pause dur="1.4"/> to have capable processes <pause dur="0.7"/> the six sigma approach in <trunc>ul</trunc> in the ultimate <pause dur="0.5"/> go into condition

monitoring we know <pause dur="0.3"/> this process is good <pause dur="0.5"/> all we need to <trunc>s</trunc> <pause dur="0.2"/> measure <pause dur="0.2"/> is the vibration and temperature of these bearings on the machine <pause dur="0.3"/> and so long as they're within <pause dur="0.7"/> <trunc>patr</trunc> control parameters we know the product will be right <pause dur="0.5"/> because it is working <pause dur="0.2"/> so far within the agreed specification <pause dur="0.5"/> that we know so long as the process is right <pause dur="0.2"/> the product will be right <pause dur="1.5"/> the best way of doing quality one could say but <pause dur="0.5"/> it's very expensive <pause dur="0.3"/> very technologically demanding <pause dur="0.4"/> is that what your market needs <pause dur="0.3"/> do you need that level of quality <pause dur="2.3"/><kinesic desc="changes slide" iterated="n"/> and then finally <pause dur="0.6"/> we've got all these things <pause dur="0.3"/> we've actually got to decide <pause dur="0.3"/> what we're making when we're making it <pause dur="3.5"/> so we need some sort of production planning we need to be able to get <pause dur="0.4"/> the materials and parts <pause dur="0.6"/> we need <pause dur="0.8"/> and all the services the electricity the water <pause dur="0.4"/> whatever <pause dur="0.6"/> so how are we going to try and forecast <pause dur="0.6"/> forward how are we trying to know <pause dur="0.3"/> what is required of us in the future <pause dur="0.7"/> are we trying to guess that or are we

only working make to order we don't do anything <pause dur="0.2"/> till an order arrives <pause dur="0.4"/> how do we load the factory <pause dur="0.5"/> how do we schedule it <pause dur="0.4"/> how do we decide which we're doing next # what order we're doing things <pause dur="0.5"/> what goes on which machine next what goes where next <pause dur="0.3"/> how do we actually decide what the factory is doing <pause dur="0.9"/> and even if you've got a production line <pause dur="0.6"/> sounds easy 'cause you <pause dur="0.9"/> you know the next thing down the line is a Toyota Corolla <pause dur="0.2"/> and the one after that's another Toyota Corolla <pause dur="0.7"/> but what colour is it going to be is it two door or four door <pause dur="0.4"/> does it have air con or not <pause dur="0.4"/> is it left-hand drive is it right-hand drive <pause dur="1.1"/> scheduling all those things within the overall pattern <pause dur="1.4"/> how are you controlling it <pause dur="1.9"/> not going to go into a lot of detail here and i mean <pause dur="0.5"/> most of the logistics and ops management module is talking just about those things <pause dur="0.9"/> have you got an M-R-P system are you trying to work J-I-T <pause dur="0.2"/> are you using Kanbans for pulling material <pause dur="0.4"/> are you using <pause dur="0.8"/> complex mathematical scheduling models

because you've got <pause dur="0.5"/> a high variability <pause dur="0.3"/> high route change <pause dur="0.3"/> sort of manufacturing <pause dur="0.5"/> # <pause dur="0.5"/> what level of automation because that affects it <pause dur="0.7"/> we've talked about the technology <pause dur="0.3"/> but perhaps different factories different levels of automation because <pause dur="0.5"/> different requirements in different countries <pause dur="0.8"/> people <pause dur="0.7"/> are you going to give them <pause dur="0.3"/> any flexibility <pause dur="0.6"/> are you having a cell <pause dur="0.9"/> where all you do is say to the cell and the team leader <pause dur="0.3"/> here is this week's work <pause dur="0.5"/> you sort it out <pause dur="0.5"/> or are you saying when you finish this job the next one will have arrived along the conveyor belt to you and that's the one you do next <pause dur="0.6"/> do you have to go to the computer system and that tells you <pause dur="0.3"/> because we're updating in real time <pause dur="0.3"/> or are we giving you a day's work <pause dur="0.3"/> a week's work what flexibility have we got <pause dur="0.4"/> how much planning and flexibility do we allow our people in what they do next <pause dur="1.7"/> and our sourcing <pause dur="0.3"/> subcontracting <pause dur="1.9"/> who are our suppliers how do we choose suppliers <pause dur="0.4"/> how do we relate to them <pause dur="0.4"/> how do we

order from them <pause dur="0.5"/> have we got an automatic <pause dur="0.3"/> level switch <pause dur="0.3"/> in the tank <pause dur="0.7"/> that when that's triggered it sends the <pause dur="1.3"/> order automatically and the tanker rolls up four hours later <pause dur="1.1"/> do we have some sort of subcontracting policy <pause dur="0.4"/> have we set a <pause dur="0.2"/> maximum level <pause dur="0.8"/> on our capacity <pause dur="0.3"/> because we know we're all right if there's a short term boom <pause dur="0.2"/> Heartland Engineering down the road <pause dur="0.3"/> can do some for us at a short notice <pause dur="0.4"/> how do we deal with all of these sort of things <pause dur="0.6"/> when we can answer those sort of things <pause dur="1.4"/> we can say <pause dur="0.6"/> we know we have the basis <pause dur="0.7"/> for running a manufacturing organization <pause dur="0.6"/> so what Hayes and Wheelwright's eight steps are doing <pause dur="0.4"/> they're almost a ticklist check these <pause dur="0.3"/> can you answer this can you answer that <pause dur="0.4"/> because if you've got an answer in each of those boxes <pause dur="0.4"/> you've probably covered <pause dur="0.4"/> most of the <pause dur="0.3"/> contents <pause dur="0.9"/> of your manufacturing strategy <pause dur="0.6"/> and just to take it broader <pause dur="0.4"/> you think of those same <pause dur="0.2"/> eight headings <pause dur="1.3"/> and effectively you can apply those same eight headings <pause dur="0.5"/> to a restaurant <pause dur="0.5"/> to a

hairdresser's to a cinema <pause dur="0.5"/> to a finance company <pause dur="0.6"/> so yes we're talking manufacturing today <pause dur="0.4"/> but the same conditions apply to any <pause dur="0.3"/> operational organization that's doing anything at all <pause dur="0.4"/> they've got to <pause dur="0.2"/> make decisions under those same things <pause dur="0.3"/> sure the headings <pause dur="0.4"/> under each of those major headings might be slightly different to reflect the different business <pause dur="0.6"/> but they've got to still go through those same sort of decisions <pause dur="0.4"/> so that as i say is how you broaden this subject out <pause dur="0.4"/> from narrow manufacturing <pause dur="0.4"/> to the wider broader <pause dur="0.3"/> operations <pause dur="0.2"/> front <pause dur="1.0"/> so there we've dealt with content <pause dur="0.4"/> i think now is a very appropriate time to <pause dur="0.4"/> take a break <pause dur="0.8"/> and then after the break we'll spend the second session <pause dur="0.5"/> <unclear>we'll</unclear> just looking at some of the academic models and the things behind <pause dur="0.3"/> the actual process of getting there <pause dur="0.3"/> so see you <pause dur="0.2"/> about ten to