Innovation

&
success

•Innovation is the development of new and entrepreneurial products and

services.
•This is a fundamental concept for any business as it increases customer
satisfaction, employee loyalty, increased profitability and efficiency
 A business is successful if it achieves its
missions and goals

CADBURY
‘Cadbury means quality’, this is our promise. Our
reputation is built upon quality, our commitment to
continuous improvement will ensure that our promise is
delivered

Successful businesses are innovative .

They create a culture of creativity and
CULTURE OF INNOVATION encourage new ideas.

•Change is encouraged This gives them a competitive

•Improvements are valued advantage
•Problems identified
•Communications lines are open
•Resources to assist new ideas
CAUSES OF BUSINESS
FAILURES
Accidentally Bowling The Greatest
Strike

Zebra beats Lioness

 Discuss some
factors that
inhibit
innovation?

Lack of Market research Lack of demand

Poor competitor knowledge Poor technology support

Poor mgmt skills to develop

Lack of R&D
& market the innovation

High Costs
Hungry Jacks
"To be the best Fast Food Hamburger Restaurant in terms of customer
satisfaction in both product and service and individual restaurant
profitability".
McDonalds
'McDonald's brand mission is to "be our customers' favorite place
and way to eat." Our worldwide operations have been aligned around
a global strategy called the Plan to Win centering on the five basics of
an exceptional customer experience -- People, Products, Place,
Price and Promotion. We are committed to improving our operations
and enhancing our customers' experience'
A business has to take account of its present operations
and plan for the future if it is to succeed .

Extensive business planning is an important part of a

company and is an ongoing procedure.

Business plans are a must before the inception of a

business and at regular intervals of at least every 5 years.

BUSINESS PLAN
PLANNING FOR SUCCESS
 ORGANISING FOR SUCESS

OPERATIONs MANAGEMENT

All business have to

A manufacturing decide on a
business has to organisational
consider setting structure
up a type of Ranging from a
production line traditional
hierarchical structure
and organise the to a more
physical layout of decentralised flatter
the factory approach
Identify the business as:

SERVICE / MAUFACTURING

Tasks
Sequence
Time allocated

The operations manager has various alternatives in

a manufacturing concern when choosing a layout
A layout is an arrangement of the space and facilities
according to:
–The type and size of activities to be carried out,
–Convenience of operations,
–Efficiency,
–Productivity,
–Economy, and
–Safety of the facilities and the users of the facilities.

The methods of grouping or types of layout are:

A Process layout is when you group similar activities together
according to the process or function they perform.

•An example would be a machine shop where all the drills are
located in one area of the shop, all the saws in another, etc.

•Another example would be a department store, where there is a

shoe department, a jewelry department, etc.
PRODUCT LAYOUT

•It involves the arrangements of machines in one line, depending

upon sequence of operations. In product layout, if there is a more
than one line of production, there are as many lines of machines.

•The emphasis here, therefore, is on special purpose machines in

contrast to the general purpose machines which are installed in the
process layout.

Product layouts are efficient, but lack the ability to change product
designs easily. An example would be when demand shifted to smaller
cars, then US automakers could not adapt their old equipment to build
the smaller engines

####
FIXED LAYOUT

•Fixed position layout involves the movement of men & machines to

the product which remains stationary.

•In this type of layout, the materials or major components remains in

a fixed location, & tools, machinery & men as well as other pieces of
material are brought to this location.

•The movement of men & machines is advisable as the cost of moving

them would be lesser.

•This is followed in manufacturing of bulky & heavy products, such

as, construction of buildings, locomotives, ships, boilers, aircraft &
generators
Organisational
structures
A manager has four major roles:

Planning – dev obj, sets bus aims, decides how to meet

goals and obj.
Co-ordinating –handle resourcing, distribute tasks, flow
of info, organise finance
Controlling – direct employees, monitor performance,
assess results, correct problems & take actions.
&
Leading – vision for the future, motivate staff, direct line
managers, steer employees towards bus and employee goals
 Mission
statement Control Mechanisms
Goals Policies and procedures
Regular review of process and operations
objectives Monitor progress towards goals