Please enable JavaScript.
Coggle requires JavaScript to display documents.
Reading 12: Operations Strategy - Coggle Diagram
Reading 12: Operations Strategy
DEFINING OPERATIONS STRATEGY
'the pattern of strategic decisions and actions that set the role, objectives and activities of the operation' (Slack et al., 2010)
four key areas
capacity and facilities
supply chain development
technology
workforce
how are resources best configured and managed to fit market requirements?
the market reconciliation of operations strategy
market influences
can organisations exploit their operations' competencies or performance capabilities in the marketplace?
can be driven by a corporate or entrepreneurial vision
AN OPERATIONS STRATEGY MARKET INFLUENCE MODEL
operations strategy is influenced by both competitive and marketing strategies
market positioning and their choices to segment markets and serve different types of customers
PERFORMANCE OBJECTIVES
sustainability
environmental sustainability
economic sustainability
social sustainability
dependability
delivery promises
logistic operations where schedule adherence is a key issue
flexibility
variety flexibility
mix flexibility
volume flexibility
response flexibility and range flexibility
cost
customers consider price as one of the main buying criteria
speed
throughput time - time taken for a resource to work through a process from start to finish
quality
conformance quality
order-winning criteria
key reason for a customer to buy a product or service over others offered by competitors or substitutes
order-qualifying criteria
do not provide any source of competitive advantage but are necessary characteristics to have for the customer to even consider a purchase
LINKING OPERATIONS STRATEGY AND PERFORMANCE OBJECTIVES
operations strategy and sustainability
reducing CO2 emissions
reduction of landfill waste
operations strategy and dependability
promises made at the order-taking stage must be realistic and achievable
the control systems must be capable of progressing work to the required schedule, without errors
operations strategy and flexibility
smaller, more flexible machines
wider range of suppliers to increase both variety and volume flexibility
operations strategy and cost performance
automation to reduce labour costs
outsourcing of non-core operations to low-cost service providers
operations strategy and speed
locating near their customer base to minimise journey times
having spare capacity or inventory to maintain availability
operations strategy adaptation over time
must adapt to changing conditions
product life cycle
operations strategy and quality
selecting suppliers on the basis of quality over price
a focus on employee training and skills development to minimise staff errors
PERFORMANCE TRADE-OFFS
operations cannot be good at everything
when managers have to make operation strategy decisions, they can be confronted with apparent trade-offs to make
FOCUSSED OPERATIONS
operations are often focused in one of four ways:
by volume
by technology specialty
by concentrating one one specific performance objective
by market segment
