Agus Haryadi: Operational Excellence Strategy

Written by Student Reporter, Evita Sonny (Management 2020)

Ir. Agus Haryadi, MBA mentions product development strategy systematically on Wednesday, 12 February 2020 when gave lecture in front of SBM students. Armed with his experience as a business consultant, he explains about steps of creating a product. “First of all, to make a good product, we have to do an external analysis based on market research or market survey.” He points out that we have to make a product in accordance with customer needs and wants.

“Second is about internal analysis. It contains internal competencies and resources. Are there resources available to create those kinds of product ideas? If not, is it worth it to do outsourcing?” If we already got through these two steps, one step which is also important is the quality control process. To make sure all of the processing gone well, the quality control assessment must be created in all the first planning steps. Quality control involves testing of units and determining if they are within the specifications for the final product. Good quality control helps companies meet consumer demands for better products.

In his guest lecture, Ir. Agus Haryadi, MBA also explains and exemplifies one phenomenon regarding Boeing 737 Max 8 case. Firstly, Boeing 737 Max 8 is known for its success in producing aircraft very quickly. They just need 9 days to create one aircraft. Yet, after two deadly crashes of its 737 Max 8 that killed 346 people, Boeing has suspended production of the 737 Max and the airliner remains grounded around the world, with no clear timetable on when it will fly again. This case is in the spotlight up to one company pilot has said “This airplane is designed by clowns, who in turn are supervised by monkeys.”

This Boeing 737 Max 8 case describes how quality control takes a very important role. We should not hide any information. It is crucial to be transparent about every production detail to our customers. Ethically, we also are not allowed to ignore safety regulations to just obtain more and more money. Boeing 737 Max 8 has been crashed because they ignore this possibility of risk which may be happening. They also do not make sure the clients know how to use their aircraft properly since they do not do any simulation in order to cut costs. The product manager also does not take complaints seriously. This is just wrong since complaints have to be treated as valuable feedback to develop and correct any deficiency. “We should not put money above safety” he said.

The other challenges he faces when maintaining the production strategy is the human resources cooperation. “Based on my 20 years experience in the oil and gas company, I found that working with machines is far easier than working with humans. Thus, it takes time to adapt with teamwork as well.”

Risk management steps consist of identifying (what are the risk?), assess (how bad?), control (what can we do?), and monitor (is it improved?). The risk of New Product Development is:

  1. The new product may not be what the customers want and need.
  2. The product development process may involve technical hurdles and operational risk that must be overcome.
  3. Product development always comes with a financial risk.
  4. Sticking to only one development plan may lead to losing other, better, opportunities.
  5. Conducting product development projects in an ill-timed manner.