AAOM Handbook

PS.04 Specify Strategy Objectives

Context

The outcome of TA PS.03, Analyse Target Production Distributions, was an analysis of the process performance required to deliver the Business Expectations and identification of the production strategy characteristics that are most significant to the achievement of the type of distribution required. The outcome of TA PS.02, Analyse Historic Production Distributions, was an analysis of historic process performance to identify the demonstrated limitations and capabilities in process performance. In order to progress the development of a cost effective Production strategy we need to compare the outputs of these two TAs and define: • what type of change from current process performance is required to meet the target (variability, operating level or both), • what change of specification from current process performance is required to meet the target (max, mode, mean, minimum), • whether the process has a demonstrated capability that is consistent with the target requirements, • what type of changes to the process production strategy specification or implementation are most relevant to achieving the change from current to target performance. Once the Production strategy objectives have been defined we can look at the work steps within the process, understand the type and level of impact they have on the gap between current and target performance, and consequently identify the critical issues for closing the performance gap.

Purpose

To specify the Production strategy objectives for the process.

Quantity

• One statement of the type of gap that needs to be closed. • One specification of the change in the Productive unit Capability Histogram that needs to be effected. • One comparison of demonstrated and required capability. • One list of changes to strategy specifications or implementation with probable relevance to the objective.

Quality

The gap analysis shall be based on analysis undertaken in accordance with TAs PS.01, Analyse Target Production Distributions, and PS.02, Analyse Historic Production Distributions.

The objective statement shall specify: • If the required outcome is to;

© McAlear Management Consultants 2006

Operational Planning: Set Production Strategy

Updated: August 2018

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