R12: operations strategy (4 linking ops strategy & performance…
R12: operations strategy
defining ops strategy
4 key operations strategy decision examples
capacity & facilities
lead or lag?
sites similar or different activities?
sites coordinated or independent?
supply chain devel
how much dow we own of tatola val chain?
how many suppliers?
how global is supply network?
outsource non-core activity?
presence of long-term r'ships?
what scale to operate at?
who uses it?
how hierarchical is mgmt ?
how central is planning and coord?
how group our departments?
what skills and capabilities do we develop?
how much discretion given to ees?
how are shifts/work patterns managed?
1 market influence
2 competences or abilities
3 corporate or entrepreneurial vision
ops strategy market influence model
ops strategy influenced by competitive & marketing strategies
competitive strat eg ikea, poundland (price)
marketing: prada, chanel (high quality provider)
marketing function decisions:
which markets; positioning; segmentation;
e.g. parts for GM (OEM): large quantities over long time period focus on quality price and supply
e.g. spare parts (aftermarket): small quantities focused on avail and price in short term
3 performance objectives
response flex & range flex
mix flex; variety flex; volume flex
keeping logistical promises - e.g. delivery
4 linking ops strategy & performance objectives
ops strategy and quality (achieve higher levels of qual)
concentrate expertise to sml no. locaitons (maintains standards)
suppliers selection per qual (not price)
tech investment: precision focus (exclude alt tech with <precision)
ee training/skills focus (minimise ee error)
incl workforce on continuous qual improvement
immediate non-conformance detection via added qual control steps
practices and processes that are designed to be used as a fail-safe
ops strategy & speed
location: near to customer base
devel fast thru-put (agile) supply chains (reduce lead times)
process design: fewer stages (minimise delays)
spare capacity/inventory (maintains availability)
delivery: use airfreight not shipping (fastest option)
ops strategy & flex
machines: smaller, flexible
people, < tech reliance
suppliers: wide range (inc variety & vol flex)
spare capacity: demand peaks & troughs ok
modular product design: incrs poss product varieties
ops strategy & sustainability
environmental e.g. CO2 emissions, landfill, H2O consumption (min normal standard; most existing orgs)
logistics emissions: global locations near to customers
social benefit: global locations near to customers
sustainable supply chains: closed loop supply chain enabling recycle and resuse of materials; raw material sourcing
social: ee contracts reflect social sus values
social benefit/local govt: assist devel of local infrastructure, enhances eco & social sustainability
ops strategy & dependability
promises made (at order-taking): realistic & achievable
ops strategy & cost performance
out of town location (red purchase/rental costs)
automation (reduce labour)
lean or stockless production (min waste/inventory cost)
self-service ops ( :forbidden: paid labour)
non-core ops out-sourced (to low cost service providers)
ops strategy adaptation over time
product life cycle
demand ebb & flow
5 performance trade-offs
fast product delivery :question: ..perhaps.. reduce QC check point volume
high product variety :question: high inventory vol req'd
however: high qual :question: :!?:low QC stops & returns
6 focused ops :star:(4 ways to focus...)
1 market segment
different process or factory w'sale v retail
2 specific performance objective
split facility into sections by performance req'mt (e.g. fast rack service option)
diff facilities for prototypes & mass production items
4 tech speciality
healthcare: diff facilities for x-ray v MRI...