“OPERATIONS

CONSULTING AND
REENGINEERING”
OBJECTIVES:
• Defined Operations Consulting
• Hierarchy within Consulting Firm
• Operations Consulting and the 5 P’s
• Stages of Operations Consulting
• Reengineering
What is Operations Consulting?
• Operations Consulting deals with
assisting clients in developing
operations strategies and improving
production processes.
Hierarchy within Consulting Firms
 Economics of Consulting Firms
• The economics of consulting firms have
been written about extensively by David H.
Maister.
Three types of projects:
1. Brain Surgery: Requiring innovation and
creativity.
2. Gray Hair: Requiring a great deal of experience
3. Procedures: Requiring activities similar to other
existing projects.
 Operations Consulting & the 5 Ps
 Plants
– Adding and locating new plants
– Expanding, contracting, or refocusing facilities
 Parts
– Make or buy decisions
– Vendor selection decisions
 Processes
– Technology evaluation
– Process improvement and reengineering
 Operations Consulting & the 5 Ps
 People
– Quality improvement
– Setting/revising work standards
– Learning curve analysis
 Planning and Control Systems
– Supply chain management
– MRP (Material Requirements Planning)
– Shop floor control
– Warehousing and distribution
When are Operations Consultants
Needed?

• When faced with major investment decision(s)

• When management believes it is not getting

the maximum effectiveness from the
organization’s productive capacity.
 Stages in the Operations Consulting
Process
1. Sales and proposal development
2. Analyze problem
3. Design, develop and test alternative solutions
4. Develop systematic performance measures
5. Present final report
6. Implement changes
7. Assure client satisfaction
8. Assemble learnings from the study
What is Reengineering?
• Reengineering is the process of changing and
improving the design of a product or system.

• Business process reengineering (BPR) is a

business management strategy that focusing on
the analysis and design of workflows and
business processes within an organization.