Chapter 2 - Operations Strategy

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Chapter 2 -Operations Strategy
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Competitive Priorities

• Corporate strategy
• goals
• core competencies
• environmental responses
• new products/services
• global strategies

• Market analysis
• segmentation
• needs assessment

• Capabilities
• current
• needed
• plans

• Competitive priorities
• Operations Marketing
• cost
• quality Finance
• time
• flexibility Others

• Functional area strategies
• finance
• marketing
• operations
• others

Figure 2.1
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Competitive Priorities

• Corporate strategy
• goals
• core competencies
• environmental responses
• new products/services
• global strategies

Cost 1. Low-cost operations Quality 2. High-per
formance design 3. Consistent
quality Time 4. Fast delivery 5. On-time
delivery 6. Development speed Flexibility 7. Cu
stomization 8. Volume flexibility

• Market analysis
• segmentation
• needs assessment

Figure 2.1
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Strategy and Decisions
Corporate strategy
Market analysis
Competitive priorities
Capabilities
Operations strategy

• Process decisions
• Quality decisions
• Capacity, location, and layout decisions
• Operating decisions

Figure 2.4
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Strategy and Decisions
Corporate strategy
Market analysis
Competitive priorities
Operations strategy
Figure 2.4
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Strategy and Decisions
Corporate strategy
Market analysis
Competitive priorities
Operations strategy

• Process decisions
• Quality decisions
• Capacity, location, and layout decisions
• Operating decisions

Figure 2.4
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• Operations Strategy as a number of Decisions
• Operations strategy translates service or
  product plans and competitive priorities for each
  market segment into decisions affecting the
  processes that support those market segments.
• A service or manufacturing strategy must be
  selected for each process.
• These decisions must be continually reevaluated
  according to the needs of the market.

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• Operations Strategy Across the Organization
• A firm is a system of interconnected parts, or
  functional areas.
• Management information systems help to link the
  various functional areas.
• Full collaboration among functional areas on
  decisions is a vital requirement for success.