Block 1:Session 9 - Operations strategy (Book and online) (Operations…
Block 1:Session 9 - Operations strategy (Book and online)
‘the pattern of strategic decisions and actions that set the role, objectives and activities of the operation’ (Slack et al., 2010).
Four key areas (Walley, 2017)
Capacity and facilities
Supply chain development
How are resources best configured and managed to fit market requirements?
The market reconciliation model of operations strategy (Slack and Lewis, 2012)(See diagram)
Change over time
Framework = produce lifestyle
One performance objective may be put behind another as operations cant be good at everything e.g. Speed may reduce quality
Challenge when one operation serves different markets with different needs
May be separated
'Focused factory' (Skinner, 1974)
May be focused in one of four ways
By market segment
By concentrating on one specific performance objective
By technological speciality
Market influence model (See diagram)
Low-cost strategies e.g. poundland
High quality-standards strategies e.g. Prada
Market requirements are different for the same product in different market segments
Six generic types of performance objectives
Throughput time = the time taken for a resource to work through a process from start to finish.
The ability to change what you do
Logistics - Need to keep delivery promises
There are many ways that operations strategy influences each performance objective
= Drivers of operation strategy decisions
This model shows the relationship between competitive strategy, marketing strategy and operations strategy.