Focused Operations Management

Focused Operations Management shows how to do much more with existing resources in terms of throughput, response time and quality. It provides a system view and will touch upon performance measures, operations management, quality, cost-accounting, pricing, and above all, value creation and value enhancement.

Preface vii

Acknowledgments xi

About the Authors xiii

Part I: The Dynamic Management Environment

Chapter 1. The Modern Business Environment 3

Chapter 2. Principles of Management in the Dynamic Environment 11

Chapter 3. The Pareto Rule, the Focusing Table, and the Focusing Matrix 27

Part II: New Approaches in Management

Chapter 4. Managing the System by Its Constraints 43

Chapter 5. Management by Constraints in a Bottleneck Environment 71

Chapter 6. Managing by Constraints When the Market Is the Constraint 95

Chapter 7. Focused Current Reality Tree 115

Chapter 8. Resolving Managerial Conflicts 127

Chapter 9. The Efficiencies Syndrome 137

Chapter 10. Evils of Long Response Times 143

Chapter 11. Reducing Response Times 157

Chapter 12. The Complete Kit Concept 187

Chapter 13. Performance Measures and Managerial Control 201

Chapter 14. The Effects of Fluctuations, Variability, and Uncertainty on the System 215

Chapter 15. Evils of Traditional Cost Accounting 233

Chapter 16. Marketing, Costing, and Pricing Considerations in Decision-Making Processes 241

Chapter 17. Quality Management and Process Control 261

Part III: Strategy and Value Creation

Chapter 18. Strategy, Positioning, and Focusing 281

Chapter 19. Value Creation 307

Part IV: Applying the Focused Management Approach

Chapter 20. Value-Focused Project Management 345

Chapter 21. Managing Research and Development 369

Chapter 22. The Focused Management Approach in Logistics 395

Part V: Perspective and Implementation

Chapter 23. Our Managerial Credo 421

References 435

Recommended Readings 439

Index 441

BOAZ RONEN is a Professor of Technology Management and Value Creation at Tel Aviv University. He has consulted to numerous corporations, organizations, and government agencies worldwide. He has been a visiting professor at several high-profile business schools, including Columbia University, New York University, and SDA-Bocconi Graduate School of Business Administration in Italy. He is also the coauthor of Focused Operations Management for Health Services Organizations, from Jossey-Bass.

SHIMEON PASS is a noted expert on applying the philosophy and tools of the Focused Management methodology and the Theory of Constraints (TOC) in high-technology, industrial, service, retail, and nonprofit organizations. As an executive at IBM, he specialized in the implementation of advanced managerial methods to enterprise information systems. He specializes in applying Focused Management and TOC practices in the management of research and development organizations and project management. His papers on value creation and performance improvement have been published in leading practice and academic journals.

After their book Focused Operations Management for Health Services Organizations revolutionized the healthcare field, authors Boaz Ronen and Shimeon Pass now offer the same practical knowledge and proven tools for businesses and other organizations in Focused Operations Management: Achieving More with Existing Resources.

For almost any organization—nonprofits, service companies, manufacturing, high-tech industries, financial services, retail, communications, and more—Focused Operations Management offers solutions for doing more with existing resources in terms of throughput, response time, and quality. It provides a system view and covers performance measures, operations management, quality, cost accounting, pricing, and, most important, value creation and enhancement.

Based on commonsense principles and applicable to both large and small organizations, Focused Operations Management covers vital topics in the field, including:

• Management principles in the dynamic environment
• The Pareto Rule, the Focusing Table, and the Focusing Matrix
• The Theory of Constraints (TOC)
• Resolving managerial conflicts
• Reducing long response times
• The Complete Kit concept
• Performance measures and managerial control
• Quality management and process control
• Strategy, positioning, and focusing
• Value-focused project management
• And much more

With its focus on increasing throughput, reducing response time, and creating value, Focused Operations Management gives you the knowledge and methodology to turn around any organization in almost any industry. Completely up to date and packed with expert insight and real-life examples, this thorough guide is the ultimate resource for any business struggling to succeed in the hyper-competitive global marketplace.