Stern Business Plan Competition
Transcript Stern Business Plan Competition
Entrepreneurs’ Boot Camp
October 5, 2008
Operations Management Plan
Presented by Harry Chernoff
Clinical Associate Professor of Operations
• What is Operations Management?
• How does this topic fit into the business
Management of Operations
• What does the Operations section
– Deals with the SUPPLY side of the business
– How the company will produce the product or
supply the service
– Also includes the supply chain issues
• Corporate strategy
• Business strategy
• Operations strategy
– Consistent with other functional areas
Competitive advantage from
• How will your business compete?
• What are the goals?
• Why is your product/service better than
• What is your competitive edge?
• What drives your business?
• What do you do best?
– Management team (experience)
– Time to market
– Creativity / degree of innovation
• Types of processes
– Job shop
– Flow shop
– Assembly line
– Continuous flow
The basic transformation
Identified Process Pattern
Product Variety and Volume
Product Process Matrix – Services Industry
One of a
Higher StandardVolume Volume
Unit Cost (High)
Unit Cost (Low)
How hard is it to change the
type of process?
• Consider the origins of Burger King
– Entering a McDonald’s oriented market, the
ultimate hamburger factory
• What was (still is) their approach?
• Have it Your Way
– What does this mean to the operation?
• What changes have to be made to let the
customer “Have it Your Way”?
Quantitative Operational Measures
• Cycle time
• Throughput time
Qualitative Operational Measures
• How difficult is it to execute production or
• Can the skills be taught / transferred?
• Is the operation reproducible?
– How this affects growth
– Possible franchise concept
• Identify your market / customer
• Identify your supplier(s)
• Identify your supplier’s supplier(s)
– Walmart’s innovative approach
Summary of Operational issues
• Supply side of the business
– How the product is produced / service is supplied
• Competitive edge
– Emphasize the management team
– Chose a driver
• Type of process chosen
– How it changes over time
• Quantitative measures
– Cycle times / capacity / throughput time
• Qualitative measures
– Level of difficulty in execution
• Must tie-in to corporate strategy
– Gives reality to a creative concept