Operations strategy is concerned with establishing broad policies and procedures for using a firm's resources to best support its competitive strategy and be aligned with the market. It addresses key dimensions like cost, quality, delivery speed and flexibility. Typical issues in operations strategy include capacity, technology, workforce, quality, organization structure, outsourcing, and plant focus. Order qualifiers are basic criteria for customer consideration, while order winners differentiate one firm from others. Developing an operations strategy involves segmenting markets, identifying requirements, and determining order winners and qualifiers to set specific performance goals. While concepts apply to services, their delivery system is central to strategy. Productivity is measured using total, partial, and multifactor measures.
Operations strategy is concerned with establishing broad policies and procedures for using a firm's resources to best support its competitive strategy and be aligned with the market. It addresses key dimensions like cost, quality, delivery speed and flexibility. Typical issues in operations strategy include capacity, technology, workforce, quality, organization structure, outsourcing, and plant focus. Order qualifiers are basic criteria for customer consideration, while order winners differentiate one firm from others. Developing an operations strategy involves segmenting markets, identifying requirements, and determining order winners and qualifiers to set specific performance goals. While concepts apply to services, their delivery system is central to strategy. Productivity is measured using total, partial, and multifactor measures.
Operations strategy is concerned with establishing broad policies and procedures for using a firm's resources to best support its competitive strategy and be aligned with the market. It addresses key dimensions like cost, quality, delivery speed and flexibility. Typical issues in operations strategy include capacity, technology, workforce, quality, organization structure, outsourcing, and plant focus. Order qualifiers are basic criteria for customer consideration, while order winners differentiate one firm from others. Developing an operations strategy involves segmenting markets, identifying requirements, and determining order winners and qualifiers to set specific performance goals. While concepts apply to services, their delivery system is central to strategy. Productivity is measured using total, partial, and multifactor measures.
Broad policies and procedures for using the firms resources, To best support its overall competitive strategy and must be in alignment with the market OPERATIONS COMPETITIVE DIMENSIONS Cost make it cheap Quality and Reliability (product & process) make it good elivery !peed make it fast elivery Reliability when promised eal "ith Changes in emand change volume #le$ibility & %e" &roduct 'ntroduction !peed change it (ther &roduct)!pecific Criteria support it What does the market want? Are these in conflict? A continuum? What are the priorities and trade-offs? (perations *anagement &age + (perations !trategy ,$ample !trategy &rocess Customer %eeds Corporate !trategy (perations !trategy ecisions on &rocesses and 'nfrastructure *ore &roduct 'ncrease (rg- !i.e 'ncrease &roduction Capacity Build %e" #actory 'ts &art of an (verall &lanning &rocess (perations *anagement &age / (perations !trategy TYPICAL ISSUES Capacity (ho" much, "hen, "here) Technology 0or1 #orce (and re2uired supervision) Quality (rgani.ation !tructure 3ertical 'ntegration, (utsourcing #ocus (e-g-, plant)"ithin)a)plant) ORDER QUALIFIERS AND WINNERS (rder Qualifiers ) the basic criteria that permit the firms products to be considered as candidates for purchase by customers (rder 0inners ) the criteria that differentiates the products and services of one firm from another DEVELOPING A MANUFACTURING STRATEGY !egment the mar1et (by customer and4or product group) 'dentify the product re2uirements, demand patterns, profit margins of each segment etermine the order "inners and order 2ualifiers Convert order "inners into specific performance re2uirements OPERATIONS STRATEGY IN SERVICES The service delivery system is 5the business6, so the operations strategy is inseparable from the corporate strategy But in general, the strategy concepts related to manufacturing also apply to services
(perations *anagement &age 7 (perations !trategy PRODUCTIVITY MEASUREMENT Total *easure (utputs 'nputs &artial *easure (utput or (utput or (utput etc- 8abor Capital *aterials *ultifactor (utput - etc- *easure 8abor 9 Capital 9 *aterials (perations *anagement &age : (perations !trategy Operation Strate!" Fra#e$or% Customer Needs New : Old product : product Competitive dimensions & reqs. Quality, Dependability, Speed, Fleibility, and !rice Operations & Supplier capabilities "ec#nolo$y !eople Systems %&D C&' (&" "Q' Distribution Support !lat)orms Financial mana$ement *uman resource mana$ement &n)ormation mana$ement +nterprise capabilities Customer Needs New : Old product : product Competitive dimensions & reqs. Quality, Dependability, Speed, Fleibility, and !rice Operations & Supplier capabilities "ec#nolo$y !eople Systems %&D C&' (&" "Q' Distribution Support !lat)orms Financial mana$ement *uman resource mana$ement &n)ormation mana$ement +nterprise capabilities