Hayes and Wheelwright Model - Ibm Analysis

Introduction

IBM Global Business Services is the consulting arm of IBM. GBS helps the customers transform their business in the rapidly changing business ecosystem. So the product / service provided by GBS is consulting. Though it can be segmented in different ways (for example, Business Analytics and Optimization, Customer Relationship Management, Financial Management etc.) the output of GBS is ‘Consulting Hours’. The inputs required for producing this output are the consultants working for GBS.

The Operations Function

To ensure a smooth flow of inputs and outputs, GBS has created an Operations Function which is responsible for governing all the processes related to management of these inputs and outputs. The Operations Function reports directly to the General Manager responsible for GBS. Some of the key responsibilities of the Operations Function are:

• Resource Management (RM) – This function is responsible for deployment of consultants to various consulting assignments. Resource Management is key to a consulting operation as it ensures that the various assignments are staffed correctly and timely so that the assignment can be completed successfully and on time.

• Bid & Proposal Management (B&PM) – This function is responsible for ensuring the commercial quality of a bid so that any proposal going out to a customer is profitable and viable. There are established rules which need to be followed in creating and submitting a proposal. There are established authority levels defining who can authorise a proposal depending upon the value and profitability which is determined using in-house tools.

• Reporting – This function is responsible for providing operations related reports to the GBS management.

The Hayes and Wheelwright model

The Hayes and Wheelwright Four-Stage model summarizes the contribution of the Operations function to the overall strategy of the company. As per the model,...